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intermediate accounting ifrs 4th edition
Intermediate Accounting IFRS Edition 2nd Edition Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield - Solutions
Sabonis Cosmetics Co. purchased machinery on December 31, 2014, paying \($50\),000 down and agreeing to pay the balance in four equal installments of \($40\),000 payable each December 31. An assumed interest of 8% is implicit in the purchase price.Instructions Prepare the journal entries that would
Chen Company issued its 9%, 25-year mortgage bonds in the principal amount of ¥30,000,000 on January 2, 2001, at a discount of¥2,722,992 (effective rate of 10%). The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before
In each of the following independent cases, the company closes its books on December 31.1. Sanford Co. sells \($500\),000 of 10% bonds on March 1, 2015. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2018. The bonds yield 12%. Give entries through
Presented below are selected transactions on the books of Simonson Corporation.July 1, 2015 Bonds payable with a par value of €900,000, which are dated January 1, 2015, are sold at 119.219 plus accrued interest to yield 10%. They are coupon bonds, bear interest at 12%(payable annually at January
On April 1, 2015, Sarkar Company sold 15,000 of its 11%, 15-year, R\($1\),000 face value bonds to yield 12%. Interest payment dates are April 1 and October 1. On April 2, 2016, Sarkar took advantage of favorable prices of its shares to extinguish 6,000 of the bonds by issuing 200,000 of its
Crocker Corp.owes D. Yaeger Corp. a 10-year, 10% note in the amount of £330,000 plus £33,000 of accrued interest. The note is due today, December 31, 2015. Because Crocker Corp. is in financial trouble, D. Yaeger Corp. agrees to forgive the accrued interest, £30,000 of the principal and to
Presented below are three independent situations.Instructions(a) On January 1, 2015, Langley Co. issued 9% bonds with a face value of \($700\),000 for \($656\),992 to yield 10%. The bonds are dated January 1, 2015, and pay interest annually. What amount is reported for interest expense in 2015
On January 1, 2016, Nichols Company issued for \($1\),085,800 its 20-year, 11% bonds that have a maturity value of \($1\),000,000 and pay interest semiannually on January 1 and July 1. Bond issue costs were not material in amount. Below are three presentations of the non-current liability section
Schrempf Company has completed a number of transactions during 2015. In January, the company purchased under contract a machine at a total price of€1,200,000, payable over 5 years with installments of €240,000 per year. The seller has considered the transaction as an installment sale with the
On March 1, 2016, Sealy Company sold its 5-year, £1,000 face value, 9% bonds dated March 1, 2016, at an effective annual interest rate (yield) of 11%.Interest is payable semiannually, and the first interest payment date is September 1, 2016. Sealy uses the effective-interest method of
Matt Ryan Corporation is interested in building its own soda can manufacturing plant adjacent to its existing plant in Partyville, Kansas. The objective would be to ensure a steady supply of cans at a stable price and to minimize transportation costs. However, the company has been experiencing some
Donald Lennon is the president, founder, and majority owner of Wichita Medical Corporation, an emerging medical technology products company. Wichita is in dire need of additional capital to keep operating and to bring several promising products to final development, testing, and production. Donald,
Comparative Analysis Case adidas and Puma The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively.The complete annual reports, including the notes to the financial statements, are available online.Instructions Use the companies’ financial
Financial Statement Analysis Cases Case 1 Commonwealth Edison Co.The following article about Commonwealth Edison Co. (USA) appeared in the Wall Street Journal.Bond Markets Giant Commonwealth Edison Issue Hits Resale Market With \($70\) Million Left Over NEW YORK—Commonwealth Edison Co.’s
Accounting, Analysis, and Principles The following information is taken from the 2015 annual report of Bugant, Inc. Bugant’s fiscal year ends December 31 of each year.Additional information concerning 2016 is as follows.1. Sales were €2,922, all for cash.2. Purchases were €2,000, all paid in
Professional Research Wie Company has been operating for just 2 years, producing specialty golf equipment for women golfers.To date, the company has been able to finance its successful operations with investments from its principal owner, Michelle Wie, and cash flows from operations. However,
Professional Simulation In this simulation, you are asked to address questions related to the accounting for non-current liabilities.Prepare responses to all parts. KWW Professional Simulation Non-Current Liabilities Time Remaining 4 hours 30 minutes Directions Situation Joumal Entry Analysis
Wilco Corporation has the following equity balances at December 31, 2015.Prepare Wilco’s December 31, 2015, equity section in the statement of financial position. Share capital-ordinary, 5 par value Treasury shares Retained earnings Share premium-ordinary 510,000 90,000 2,340,000 1,320,000
On February 1, 2015, Gruber Corporation issued 3,000 shares of its £5 par value ordinary shares for land worth £31,000. Prepare the February 1, 2015, journal entry.
Moonwalker Corporation issued 2,000 shares of its \($10\) par value ordinary shares for \($60\),000.Moonwalker also incurred \($1\),500 of costs associated with issuing the shares. Prepare Moonwalker’s journal entry to record the issuance of the company’s shares.
Sprinkle Inc. has outstanding 10,000 shares of €10 par value ordinary shares. On July 1, 2015, Sprinkle reacquired 100 shares at €87 per share. On September 1, Sprinkle reissued 60 shares at €90 per share. On November 1, Sprinkle reissued 40 shares at €83 per share. Prepare Sprinkle’s
Arantxa Corporation has outstanding 20,000 shares of R\($5\) par value ordinary shares. On August 1, 2015, Arantxa reacquired 200 shares at R\($80\) per share. On November 1, Arantxa reissued the 200 shares at R\($70\) per share. Arantxa had no previous treasury share transactions. Prepare
Silva Inc. owns shares of Costa Corporation classified as a trading equity investment. At December 31, 2015, the trading equity investment was carried in Silva’s accounting records at its cost of R\($875\),000, which equals its fair value. On September 21, 2016, when the fair value of the
Nottebart Corporation has outstanding 10,000 shares of €100 par value, 6% preference shares and 60,000 shares of €10 par value ordinary shares. The preference shares were issued in January 2015, and no dividends were declared in 2015 or 2016. In 2017, Nottebart declares a cash dividend of
Abernathy Corporation was organized on January 1, 2015. It is authorized to issue 10,000 shares of 8%, \($50\) par value preference shares, and 500,000 shares of no-par ordinary shares with a stated value of \($2\) per share. The following share transactions were completed during the first
Loxley Corporation is authorized to issue 50,000 shares of \($10\) par value ordinary shares. During 2015, Loxley took part in the following selected transactions.1. Issued 5,000 shares at \($45\) per share, less costs related to the issuance of the shares totaling \($7\),000.2. Issued 1,000 shares
Weisberg Corporation has 10,000 shares of \($100\) par value, 6%, preference shares and 50,000 ordinary shares of \($10\) par value outstanding at December 31, 2015.Instructions Answer the questions in each of the following independent situations.(a) If the preference shares are cumulative and
For a recent 2-year period, the statement of financial position of Jiang Group showed the following equity data at December 31 (amounts in millions).Instructions (a) Answer the following questions.(1) What is the par value of the ordinary shares?(2) What is the cost per treasury share at December
Addison Corporation has 10 million shares of ordinary shares issued and outstanding. On June 1, the board of directors voted a 60 cents per share cash dividend to shareholders of record as of June 14, payable June 30.Instructions(a) Prepare the journal entry for each of the dates above, assuming
The following data were taken from the statement of financial position accounts of Murless Corporation on December 31, 2015.Instructions Prepare the required journal entries for the following unrelated items.(a) A 5% share dividend is declared and distributed at a time when the market price of the
Teller Corporation’s post-closing trial balance at December 31, 2015, was as follows.At December 31, 2015, Teller had the following number of ordinary and preference shares.The dividends on preference shares are €4 cumulative. In addition, the preference shares have a preference in liquidation
Elizabeth Company reported the following amounts in the equity section of its December 31, 2015, statement of financial position.During 2016, Elizabeth took part in the following transactions concerning equity.1. Paid the annual 2015 $8 per share dividend on preference shares and a $2 per share
Martinez Company’s ledger shows the following balances on December 31, 2015.Instructions Assuming that the directors decide to declare total dividends in the amount of €266,000, determine how much each class of shares should receive under each of the conditions stated below. One year’s
Johnstone Inc. began operations in January 2014 and reported the following results for each of its 3 years of operations.Johnstone Inc. has never paid a cash or share dividend. There has been no change in the share capital accounts since Johnstone began operations. The country law permits dividends
On January 5, 2015, Phelps Corporation received a charter granting the right to issue 5,000 shares of \($100\) par value, 8% cumulative and non-participating preference shares, and 50,000 shares of \($10\) par value ordinary shares. It then completed these transactions.Jan. 11 Issued 20,000
Clemson Company had the following equity as of January 1, 2015.During 2015, the following transactions occurred.Instructions (a) Prepare the journal entries to record the treasury share transactions in 2015, assuming Clemson uses the cost method.(b) Prepare the equity section of the statement of
Hatch Company has two classes of share capital outstanding: 8%, £20 par preference and £5 par ordinary. At December 31, 2014, the following accounts were included in equity.The following transactions affected equity during 2015.Jan. 1 30,000 preference shares issued at £22 per share.Feb. 1
Washington Company has the following equity accounts at December 31, 2015.Instructions(a) Prepare entries in journal form to record the following transactions, which took place during 2016.(1) 280 ordinary shares were purchased at \($97\) per share. (These are to be accounted for using the cost
The books of Conchita Corporation carried the following account balances as of December 31, 2015.The company decided not to pay any dividends in 2015.The board of directors, at their annual meeting on December 21, 2016, declared the following: “The current year dividends shall be 6% on the
Myers Company provides you with the following condensed statement of financial position information.Instructions For each transaction below, indicate the euro impact (if any) on the following five items: (1) total assets, (2) share capital—ordinary, (3) share premium—ordinary, (4) retained
Earnhart Corporation has outstanding 3,000,000 ordinary shares with a par value of \($10\) each. The balance in its retained earnings account at January 1, 2015, was \($24\),000,000, and it then had Share Premium of \($5\),000,000. During 2015, the company’s net income was \($4\),700,000. A cash
Penzi Company was formed on July 1, 2013.It was authorized to issue 300,000 shares of £10 par value ordinary shares and 100,000 shares of 8% £25 par value, cumulative and non-participating preference shares. Penzi Company has a July 1–June 30 fiscal year.The following information relates to the
Wallace Computer Company is a small, closely held corporation. Eighty percent of the shares are held by Derek Wallace, president. Of the remainder, 10%are held by members of his family and 10% by Kathy Baker, a former officer who is now retired. The statement of financial position of the company at
Martin Corporation is planning to issue 3,000 shares of its own$10 par value ordinary shares for two acres of land to be used as a building site.Instructions(a) What general rule should be applied to determine the amount at which the land should be recorded?(b) Under what circumstances should this
Mask Company has 30,000 shares of€10 par value ordinary shares authorized and 20,000 shares issued and outstanding. On August 15, 2015, Mask purchased 1,000 shares of treasury shares for €18 per share. Mask uses the cost method to account for treasury shares. On September 14, 2015, Mask sold
Comparative Analysis Case adidas and Puma The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively.The complete annual reports, including the notes to the financial statements, are available online.Instructions Use the companies’ financial
Financial Statement Analysis Case Case 1: BHP Billiton BHP Billiton (GBR) is the world’s largest diversified natural resources company. The company extracts and processes minerals, oil, and gas from its production operations located primarily in Australia, the Americas, and southern Africa. BHP
Accounting, Analysis, and Principles On January 1, 2015, Nadal Corporation had the following equity accounts.Share Capital—Ordinary (€10 par value, 60,000 shares issued and outstanding) €600,000 Share Premium—Ordinary 500,000 Retained Earnings 620,000 During 2015, the following transactions
Petrenko Corporation has outstanding 2,000 €1,000 bonds, each convertible into 50 shares of€10 par value ordinary shares. The bonds are converted on December 31, 2015. The bonds payable have a carrying value of €1,950,000, and there is conversion equity of €20,000. Record the conversion
On January 1, 2015, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood’s £5 par value ordinary shares at £50 per share at any time during the next 5 years. The market price of the shares is £65 per share on the date of
On January 1, 2015 (the date of grant), Lutz Corporation issues 2,000 restricted shares to its executives.The fair value of these shares is $75,000, and their par value is $10,000. The shares are forfeited if the executives do not complete 3 years of employment with the company. Prepare the journal
Kalin Corporation had 2015 net income of €1,000,000. During 2015, Kalin paid a dividend of €2 per share on 100,000 preference shares. During 2015, Kalin had outstanding 250,000 ordinary shares. Compute Kalin’s 2015 earnings per share.
Douglas Corporation had 120,000 ordinary shares outstanding on January 1, 2015. On May 1, 2015, Douglas issued 60,000 ordinary shares. On July 1, Douglas purchased 10,000 treasury shares, which were reissued on October 1. Compute Douglas’s weighted-average number of ordinary shares outstanding
Tomba Corporation had 300,000 ordinary shares outstanding on January 1, 2015. On May 1, Tomba issued 30,000 ordinary shares. (a) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued for cash. (b) Compute the weighted-average number of shares outstanding if the
Rockland Corporation earned net income of R$300,000 in 2015 and had 100,000 ordinary shares outstanding throughout the year. Also outstanding all year was R$800,000 of 10% bonds, which are convertible into 16,000 ordinary shares. The interest expense on the liability component of the convertible
DiCenta Corporation reported net income of €270,000 in 2015 and had 50,000 ordinary shares outstanding throughout the year. Also outstanding all year were 5,000 shares of cumulative preference shares, each convertible into 2 ordinary shares. The preference shares pay an annual dividend of €5
Bedard Corporation reported net income of 300,000 in 2015 and had 200,000 ordinary shares outstanding throughout the year. Also outstanding all year were 45,000 options to purchase ordinary shares at 10 per share. The average market price of the shares during the year was 15. Compute diluted
The 2015 income statement of Wasmeier Corporation showed net income of €480,000 and a loss from discontinued operations of €120,000. Wasmeier had 100,000 shares of ordinary shares outstanding all year. Prepare Wasmeier’s income statement presentation of earnings per share.
Ferraro, Inc. established a share-appreciation rights (SARs) program on January 1, 2015, which entitles executives to receive cash at the date of exercise for the difference between the market price of the shares and the pre-established price of \($20\) on 5,000 SARs. The required service period is
Angela Corporation issues 2,000 convertible bonds at January 1, 2015. The bonds have a 3-year life and are issued at par with a face value of €1,000 per bond, giving total proceeds of €2,000,000. Interest is payable annually at 6%. Each bond is convertible into 250 ordinary shares (par value of
Assume the same information in E16-1, except that Angela Corporation converts its convertible bonds on January 1, 2016.Instructions(a) Compute the carrying value of the bond payable on January 1, 2016.(b) Prepare the journal entry to record the conversion on January 1, 2016.(c) Assume that the
On January 1, 2015, Cai Company issued a 10%convertible bond at par, with a face value of ¥100,000, maturing on January 1, 2025. The bond is convertible into ordinary shares of Cai at a conversion price of ¥2,500 per share. Interest is payable annually. At date of issue, Cai could have issued at
On January 1, 2015, Lin Company issued a convertible bond with a par value of £50,000 in the market for £60,000. The bonds are convertible into 6,000 ordinary shares of £1 per share par value. The bond has a 5-year life and has a stated interest rate of 10% payable annually. The market interest
Schuss Inc. issued €3,000,000 of 10%, 10-year convertible bonds on April 1, 2015, at 98. The bonds were dated April 1, 2015, with interest payable April 1 and October 1. Bond discount is amortized semiannually using the effective-interest method. The net present value of the bonds without the
For each of the unrelated transactions described below, present the entry(ies) required to record each transaction.1. Coyle Corp. issued €10,000,000 par value 10% convertible bonds at 99. If the bonds had not been convertible, the company’s investment banker determines that they would have been
On September 1, 2015, Tokachi Company sold at 104(plus accrued interest) 30,000 of its 8%, 10-year, ¥10,000 face value, non-convertible bonds with detachable share warrants. Each bond carried two detachable warrants. Each warrant was for one ordinary share at a specified option price of ¥1,500
On May 1, 2015, Barkley Company issued 3,000 €1,000 bonds at 102. Each bond was issued with one detachable share warrant. The fair value of the bonds on May 1, 2015, was €2,940,000.Instructions(a) Prepare the entry to record the issuance of the bonds and warrants.(b) Assume the same facts as
On November 1, 2014, Olympic Company adopted a share-option plan that granted options to key executives to purchase 40,000 shares of the company’s£10 par value ordinary shares. The options were granted on January 2, 2015, and were vested 2 years after the date of grant if the grantee was still
On January 1, 2015, Magilla Inc. granted share options to officers and key employees for the purchase of 20,000 of the company’s €10 par ordinary shares at €25 per share. The options were exercisable within a 5-year period beginning January 1, 2017, by grantees still in the employ of the
On January 1, 2014, Tsang Corporation granted 10,000 options to key executives. Each option allows the executive to purchase one share of Tsang’s HK\($5\) par value ordinary shares at a price of HK\($20\) per share. The options were exercisable within a 2-year period beginning January 1, 2016, if
Derrick Company issues 4,000 restricted shares to its CFO, Dane Yaping, on January 1, 2015. The shares have a fair value of £120,000 on this date. The service period related to these restricted shares is 4 years. Vesting occurs if Yaping stays with the company for 4 years. The par value of the
Lopez Company issues 10,000 restricted shares to its CFO, Juan Carlos, on January 1, 2015. The shares have a fair value of €500,000 on this date. The service period related to the restricted shares is 5 years. Vesting occurs if Carlos stays with the company for 6 years. The par value of the
Portillo Inc. uses a calendar year for financial reporting.The company is authorized to issue 9,000,000 R$10 par ordinary shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo’s ordinary share activities.Instructions (a) Compute the
On January 1, 2015, Chang Corp. had 480,000 ordinary shares outstanding. During 2015, it had the following transactions that affected the ordinary share account.Instructions (a) Determine the weighted-average number of shares outstanding as of December 31, 2015.(b) Assume that Chang Corp. earned
Ott Company had 210,000 ordinary shares outstanding on December 31, 2015. During the year 2016, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For the year 2016, Ott Company reported net income of £229,690 after a loss on discontinued operations of £40,600 (net
Huang Company presented the following data (yen in thousands).Instructions Compute earnings per share. Net income Preference shares: 50,000 shares outstanding, 100 par, 8% cumulative, not convertible 2,200,000 5,000,000 Ordinary shares: Shares outstanding 1/1 600,000 Issued for cash, 5/1 300,000
A portion of the statement of income and retained earnings of Pierson Inc. for the current year follows.During the year, Pierson Inc. had a loss from discontinued operations of \($1\),340,000 after applicable income tax reduction of \($1\),200,000.At the end of the current year, Pierson Inc. has
On January 1, 2015, Bailey Industries had shares outstanding as follows.To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 170,000 ordinary shares. The acquisitions took place as shown below.On May 14, 2015, Bailey realized a €90,000 (before
At January 1, 2015, Cameron Company’s outstanding shares included the following.Net income for 2015 was R\($2\),830,000. No cash dividends were declared or paid during 2015. On February 15, 2016, however, all preference dividends in arrears were paid, together with a 5% share dividend on ordinary
In 2015, Buraka Enterprises issued, at par, 75 1,000, 8% bonds, each convertible into 100 ordinary shares. The liability component of convertible bonds was 950 per bond, based on a market rate of interest of 10%. Buraka had revenues of 17,500 and expenses other than interest and taxes of 8,400 for
On June 1, 2014, Bluhm Company and Amanar Company merged to form Davenport Inc. A total of 800,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis.On April 1, 2016, the company issued an additional 600,000 shares for cash. All 1,400,000 shares were
The Ottey Corporation issued 10-year, \($4\),000,000 par, 7% callable convertible subordinated debentures on January 2, 2015. The bonds have a par value of \($1\),000, with interest payable annually. The interest expense recorded on the liability component of the convertible bond for 2015 was
On January 1, 2015, Lund Company issued 10-year, €3,000,000 face value, 6% bonds, at par. Each €1,000 bond is convertible into 15 ordinary shares of Lund. Lund’s net income in 2016 was €240,000, and its tax rate was 40%. Interest expense on the liability component in 2016 was €210,000.
Zambrano Company’s net income for 2015 is £40,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2014, each exercisable for one share at £8. None has been exercised, and 10,000 ordinary shares were outstanding during 2015. The average market price of
Brooks Inc. recently purchased Donovan Corp., a large midwestern home painting corporation. One of the terms of the merger was that if Donovan’s income for 2016 was \($110\),000 or more, 10,000 additional shares would be issued to Donovan’s shareholders in 2017. Donovan’s income for 2015 was
On December 31, 2012, Flessel Company issues 120,000 shareappreciation rights to its officers entitling them to receive cash for the difference between the market price of its shares and a pre-established price of £10. The fair value of the SARs is estimated to be £4 per SAR on December 31, 2013;
Dominquez Company establishes a share-appreciation rights program that entitles its new president Dan Scott to receive cash for the difference between the market price of the shares and a pre-established price of R\($30\) (also market price) on December 31, 2013, on 40,000 SARs.The date of grant is
Berg Company adopted a share-option plan on November 30, 2014, that provided that 70,000 shares of \($5\) par value ordinary shares be designated as available for the granting of options to officers of the corporation at a price of \($9\) a share. The market price was \($12\) a share on November
Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald’s financial statements. Selected financial information for the fiscal year ended June 30,
Meng Group is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2015, and May 31, 2016 (yen in thousands).The income from continuing operations for each year was ¥1,800,000 and ¥2,500,000, respectively.In both years, the
The information below pertains to Barkley Company for 2015.There were no changes during 2015 in the number of ordinary shares, preference shares, or convertible bonds outstanding. There are no treasury shares. The company also has ordinary share options (granted in a prior year) to purchase 75,000
Agassi Corporation is preparing the comparative financial statements to be included in the annual report to shareholders. Agassi employs a fiscal year ending May 31.Income before income tax for Agassi was €1,400,000 and €660,000, respectively, for fiscal years ended May 31, 2016 and 2015.
The executive officers of Rouse Corporation have a performance-based compensation plan. The performance criteria of this plan is linked to growth in earnings per share. When annual EPS growth is 12%, the Rouse executives earn 100% of the shares; if growth is 16%, they earn 125%. If EPS growth is
Comparative Analysis Case adidas and Puma The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively.The complete annual reports, including the notes to the financial statements, are available online.Instructions Use the companies’ financial
International Reporting Case Sepracor, Inc., a U.S. drug company, reported the following information in a recent annual report (amounts in thousands). The company prepares its financial statements in accordance with U.S. GAAPAnalysts attempting to compare Sepracor to international drug companies
Accounting, Analysis, and Principles On January 1, 2015, Garner issued 10-year, €200,000 face value, 6% bonds at par. Each €1,000 bond is convertible into 30 shares of Garner €2, par value, ordinary shares. Interest on the bonds is paid annually on December 31. The market rate for Garner’s
Professional Simulation In this simulation, you are asked to address questions related to the accounting for share options and earnings per share computations. Prepare responses to all parts. KWW Professional Simulation Share Options and EPS Time Remaining 3 hours 50 minutes As auditor for Banquo &
If the bonds in Question 6 are classified as trading and they have a fair value at December 31, 2015, of €3,604,000, prepare the journal entry (if any) at December 31, 2015, to record this transaction.
Cameron Company has a portfolio of debt investments that it has managed as a trading investment.At December 31, 2015, Cameron had the following balances related to this portfolio: debt investments,£250,000; fair value adjustment, £10,325 (Dr). Cameron management decides to change its business
On January 1, 2015, Jennings Company purchased at par 10% bonds having a maturity value of €300,000. They are dated January 1, 2015, and mature January 1, 2020, with interest receivable December 31 of each year. The bonds are held to collect contractual cash flows.Instructions(a) Prepare the
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