New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
intermediate accounting reporting

Intermediate Accounting 14th Edition Fred Skousen, James Stice, Earl Kay Stice - Solutions

12. What is meant by mutual recognition? Is mutual recognition a feasible solution to the issue of allowing foreign companies to register on the stock exchanges of other countries?
13. (a) Why have accountants traditionally preferred to report historical costs rather than current costs in conventional statements? (b) What are some limitations of historical cost statements?
14. What are the three alternatives to reporting historical cost/nominal dollar financial statements, and how do they differ from conventional reporting practice?
15. (a) How are general price indexes computed?(b)What are some of their limitations?
16. If equipment was purchased for $85,000 at the beginning of the year when the Consumer Price Index (CPI) was 160, how would the equipment be recorded on a constant dollar end-of-year balance sheet if the year-end CPI was 180?
17. Indicate whether a company sustains a gain or loss in purchasing power under each of the following conditions.(a) A company maintains an excess of monetary assets over monetary liabilities during a period of increasing general price levels.(b) A company maintains an excess of monetary'
18. (a) Distinguish between realized and unrealized holding gains and losses, (b) Distinguish between the real and inflationary components of total holding gains and losses.^^
21. When financial statements are translated, what is the difference between the resulting debits and credits called? Where is this difference disclosed on the balance sheet?
1. Understand the various classification and measurement issues associated with debt.
17. Under the provisions of IAS 16, what is the credit entr)' when noncurrent operating assets are written up to reflect an increase in market value?
16. What argument is given for repotting noncurrent operating assets at their historical costs instead of at current values?
13- Why are some asset expenditures made subsequent to acquisition recorded as an increase in an asset account and others recorded as a decrease in Accumulated Depreciation?
12. Which of the following items would be recorded as expenses and which would be recorded as assets?(a) Cost of installing machiner}-(b) Cost of unsuccessful litigation to protect patent(c) Extensive repairs as a result of a fire(d) Cost of grading land(e) Insurance on machinen." in transit(0
10. Why do some companies expense asset expenditures that are under an established monetary'amount?
6. Gaylen Corp. decides to construct a building for itself and plans to use existing plant facilities to assist with such construction, (a) "SXTiat costs will enter into the cost of construction? (b) What t^^o positions can the company take with respect to general overhead allocation during the
5. (a) Why is the "list price" of an asset often not representative of its fair market value? (b) Under these conditions, how should a fair market value be determined?
2. What acquisition costs are included in (a) copyrights,(h) franchises, and (c) trademarks?
1. On the balance sheets of many companies, the largest classification of assets in amount is noncurrent operating assets. Name the items, in addition to the amount paid to the former owner or contractor, that may be properly included as part of the acquisition cost of the following propertv-
6 EXPANDED MAT] e^.Evaluate the different v/ays to compute capitalized interest and properly incorporate midyear loans into the capitalized interest calculations.
18. How is the fixed asset turnover ratio calculated, and what does the resulting ratio measure?
5 Use the fixed asset turnover ratio as a general measure of how efficiently a company is using its property, plant, and equipment.
4 Discuss the pros and cons of recording noncurrent operating assets at their current values.
3 Separate costs into those that should be expensed immediately and those that should be capitalized, and understand the accounting standards for research and development and oil and gas exploration costs.
2 Properly account for noncurrent operating asset acquisitions using various special arrangements, including deferred payment, self-construction, and acquisition of an entire company.
1 Identify those costs to be included in the acquisition cost of different types of noncurrent operating assets.
20. Under the intrinsic value method, how does the accounting for a performance-based stock option plan differ from the accounting for an award plan calling for cash settlements?
19. Under the intrinsic value method, how does the accounting for a performance-based stock option plan differ from the accounting for a fixed stock option plan?
18. (a) Why might a company seek a quasireorganization? (b) WTiat are the steps in a quasi-reorganization?
17. In accounting for the equit\' of foreign companies, what is the primary purpose of equit)- reserves?
15. (a) What is a liquidating dividend? (b) Under w^hat circumstances are such distributions made?
13. The following announcement appeared on the financial page of a newspaper:The Board of Directors of Benton Co., at its meeting on June 15, 2002, declared the regular quarterly dividend on outstanding common stock of $ 1 .40 per share, payable on July 10, 2002. to the stockholders of record at
12. How can retained earnings be restricted by law? In what other ways can retained earnings be restricted?
11. How are errors corrected when they are discovered in the current year? in a subsequent year?
19. Briefly describe the dangers to financial statement users inherent in the use of the fixed asset turnover ratio.e.^'
10. What t>pes of disclosure are required in relation to stock-based compensation plans?
9. What is the primary- difference between the intrinsic value and fair value methods of accounting for stock-based compensation plans? Which method does the FASB recommend?
8. Describe the difference in the accounting for detachable and nondetachable warrants.
5. Why might a company purchase its own stock?
4. How is stock valued when it is issued in exchange for noncash assets or for ser\ices?
3. What rights of ownership are given up by preferred shareholders? WTiat additional protections are enjoyed by preferred shareholders?
2. What is the historical significance of par value?
1. What basic rights are held by each common stockholder?
12 Use both the intrinsic value and fair value methods to account for performancebased stock option plans and plans calling for a cash settlement.
11 Eliminate a retained earnings deficit through a quasi-reorganization.
10 Prepare a statement of changes in stock-^y holders' equity.
9 Explain the background of unrealized gains and losses recorded as direct equity adjustments, and list the major types of equity reserves found in foreign balance sheets.
8 Properly record cash dividends, property dividends, small and large stock dividends, and stock splits.
7 List the factors that impact the retained earnings balance.
6 Distinguish between stock conversions that require a reduction in retained earnings and those that do not.
5 Explain the difference between the intrinsic value and fair value methods, and use both in accounting for a fixed stock option plan.
4 Account for the issuance of stock rights and stock warrants.
3 Use both the cost and par value methods to account for stock repurchases.
2 Record the issuance of stock for cash, on a subscription basis, and in exchange for non cash assets or for services.
1 Identify the rights associated with ownership of common and preferred stock.
PROBLEM 10-44 REACQUISITION OF BONDS Guerra Company authorized the sale of $500,000 of 12%, 10-year debentures on January 1, 1997. Interest is payable on January 1 and July 1. The entire issue was sold on AprU 1, 1997, at 102 plus accrued interest. On April 1, 2002, $250,000 of the bond issue was
PROBLEM 10-43 ADJUSTMENT OF BOND INVESTMENT ACCOUNT In auditing the books for the Carmichael Corporation as of December 31, 2002, before the accounts are closed, you find the following long-term investment account balance.Account: INVESTMENT IN BIG OIL 9% BONDS (MATURITY DATE, JUNE 1, 2006)Date
PROBLEM 1 0-38 BOND ENTRIES-ISSUER On April 1. 1992, the MiromarTooI Company authorized the sale of $8,000,000 of 7%convertible bonds with interest payment dates ofApril 1 and October 1 . The bonds were sold on July 1, 1992, and mature on April 1, 2012. The bond discount totaled$426,600. The bond
PROBLEM 10-37 CASH FLOW EFFECTS OF A BOND PREMIUM On January- 1. 2002. Datalink Inc. issued SIOO.OOO, 10%, 10-year bonds when the market rate of interest was 8%. Interest is payable on June 30 and December 31. The following financial information is available.Sales $300,000 Cost of sales 180,000
PROBLEM 10-31 January 2, 1997, and currently have an unamortized premium of $210,000. Prepare the necessar)^ journal entries on Moriarty's books for each of the following independent situations. (a) Bondholders agree to forgive past-due interest and reduce the interest rate on the debt from 10% to
20. What two methods can be used to compute the amount of interest that should be capitalized?Which method is more theoretically correct?
EXERCISE 10-30 MODIFICATION OF DEBT TERMS Moriarty Co. is experiencing financial difficulties. Income has exhibited a downward trend, and the company reported its first loss in company history this past year. The firm has been unable to service its debt and, as a result, has missed 2 semiannual
EXERCISE 10-29 ^^ TROUBLED DEBT RESTRUCTURING-EQUITY SWAP Southwest Enterprises is threatened with bankruptcy due to its inability to meet interest payments and fund requirements to retire $4,000,000 of long-term notes. The notes are all held by Imperial Insurance Company. In order to prevent
EXERCISE 10-28
EXERCISE 10-27 WAX CONVERTIBLE BONDS Clarkston Inc. issued SI.000,000 of convertible 10-year, 11% bonds on July 1, 2001. The interest is payable semiannually on Januar}^ 1 and July 1 . The discount in connection with the issue was $9,500, which is amortized monthly using the straight-line basis.
EXERCISE 10-26 ISSUANCE OF CONVERTIBLE BONDS Ricardo Insurance decides to finance expansion of its physical facilities by issuing convertible debenture bonds. The terms of the bonds follow: maturity date 20 years after May 1, 2001, the date of issuance; conversion at option of holder after 2 years;
EXERCISE 10-25 RETIREMENT AND REFINANCING OF BONDS Chiam Corporation has S 300,000 of 12% bonds, callable at 102, with a remaining 10-year term, and interest payable semiannually. The bonds are currently valued on the books at $290,000, and the company has just made the interest payment and
EXERCISE 10-24 RETIREMENT OF BONDS The December 31, 2001, balance sheet ofWorsham Company includes the following items:9% bonds payable due December 31 , 2010 Premium on bonds payable$400,000 10,800 The bonds were issued on December 31, 2000, at 103, with interest payable on June 30 and December 31
EXERCISE 10-23 RETIREMENT OF DEBT BEFORE MATURITY The long-term debt section of Starr Company's balance sheet as of December 31, 2001, included 9% bonds payable of $200,000 less unamortized discount of $16,000. Further examination revealed that these bonds were issued to yield 10%. The amortization
EXERCISE 10-22 SALE OF BOND INVESTMENT Jennifer Stack acquired $50,000 of Oldtown Corp. 9% bonds on July 1, 1999- The bonds were acquired at 92; interest is paid semiannually on March 1 and September 1. The bonds mature September 1, 2006. Stack's books are kept on a calendar-year basis. On
EXERCISE 10-21 DISCOUNT AND PREMIUM AMORTIZATION The Rolstone Corporation issued $200,000 of 8% debentures to yield 10%, receiving$184,556. Interest is payable semiannually and the bonds mature in 5 years.1 . What entries would be made by Rolstone for the first 2 interest payments, assuming premium
EXERCISE 10-20 BOND INTEREST AND PREMIUM OR DISCOUNT AMORTIZATION Assume that S200.000 of Baker School District 6% bonds are sold on the bond issue date for S185.~88. Interest is payable semiannually, and the bonds mature in 10 years.The purchase price provides a return of "% on the investment.1.
EXERCISE 10-19 AMORTIZATION OF BOND PREMIUM OR DISCOUNT On Januar>- 1. 2001, Terrel Company sold S 100.000 of 10-year. 8% bonds at 92.5. an effective rate of 9%. Interest is to be paid on July 1 and December 31- Compute the premium or discount to be amortized in 2001 and 2002 using (a) the
EXERCISE 10-18 ISSUANCE AND REACQUISITION OF BONDS On Januan," 1. 2001, the Housen Company issued 10-year bonds of S500.000 at 102.Interest is payable on Januan- 1 and July 1 at 10%. On April 1. 2002. the Housen Company reacquires and retires 50 of its own 51,000 bonds at 98 plus accrued
EXERCISE 10-17 ZERO-COUPON BONDS Allrite Inc. is considering issuing bonds to finance the acquisition of a nationwide chain of distributors of.\llrite's products. Allrite is contemplating two different r\"pes of bonds to raise the required S50 million purchase price. The first is a traditional
EXERCISE 10-16 SELLING BONDS AT PAR, PREMIUM, OR DISCOUNT In each of the following independent cases, state whether the bonds were issued at par. a premium, or a discount. Explain your answers.(a) Pop-up Manufacturing sold 1 .500 of its S 1 .000, 8% stated-rate bonds when the market rate was ^%.(b)
EXERCISE 10-15 COMPUTATION OF MARKET VALUES OF BOND ISSUES What is the market value of each of the following bond issues? (Round to the nearest dollar)(a) 10% bonds of $ 1 ,000,000 sold on bond issue date; 10-year life; interest payable semiannually; effective rate, 12%.(b) 9% bonds of $200,000
EXERCISE 10-14 MORTGAGE AMORTIZATION SCHEDULE On July 1, 2002, Gandalf Inc. borrowed $50,000 to finance the purchase of machinery.The terms of the mortgage require payments to be made at the end of every month with the first payment of $1,112 being due on July 31, 2002. The length of the mortgage
EXERCISE 10-13 ACCOUNTING FOR MORTGAGES On Januan' 1, 2002, Lily Company purchased a building for $800,000. The company made a 20% downpayment and took out a mortgage payable over 30 years with monthly payments of $5,616.46. The first payment is due February 1, 2002. The mortgage interest rate is
CASE 10-12 DO WE REALLY HAVE INCOME?The Jefferson Corporation has $20,000,000 of 10% bonds outstanding. Because of cash flow problems, the company is behind in interest payments and in contnbutions to its bonds retirement fund. The market value of the bonds has declined until it is currently only
CASE 10-11 IN-SUBSTANCE DEFEASANCE Another form of early extinguishment of debt is referred to as in-substance defeasance, or economic defeasance. In-substance defeasance is a process of transferring assets, generally cash and securities, to an irrevocable trust, and using the assets and earnings
CASE 10-10 LET'S GET THAT DEBT OFF THE BALANCE SHEET!Both COCA-COLA CO. and ^AARRIO^ CORPORATION have improved the appearance of their parent company balance sheets by organizing separate companies and transferring significant amounts of debt to these entities. To avoid including these subsidiaries
CASE 10-9 WHAT IS MEANT BY VALUING LIABILITIES AT CURRENT VALUES?John Jex, CPA, had just delivered a keynote address to a banker's organization on the merits of valuing loan portfolio assets at market values that reflected changing interest rates. During the question-and-answer period he was asked
CASE 1 0-8 CIRCLE K CORPORATION AND ITS DEBT COVENANTS When companies raise money throush the issuance of bonds or other Ions-term debt instruments, debt holders typically require the company to comply with certain conditions, or covenants. The notes to ^^....^ .'s 1989 financial statements provide
CASE 1 0-7 DEFERRED INTEREST AND INTEREST RATE RESETS Corporations commonly incur debt in financins the acquisition of other companies or in fishtins takeover attacks by competitors. Two stratesies often employed involve deferrins interest payments and incorporatins interest rate resets. For
CASE 1 0-6 IS THERE A LOSS ON CONVERSION?Holton Co. recently issued $1,000,000 face value, 8%, 30-year debentures at 97, The debentures are callable at 103 upon 30 days' notice by the issuer at anytime besinnins 5 years after the date of issue. The debentures are convertible into $1 par value
CASE 10-5 DISASTER BONDS Natural disasters—they occur all too often. Califomians worry about earthquakes. Residents of Florida worry about hurricanes. Folks along the Mississippi River worry about flooding. The Midwest has its twisters, and the Rocky Mountain states have wildfires. Insurance
CASE 10-4 ACCOUNTING FOR BONDS Startup Company decided to issue 5100,000 worth of 10%, 5-year bonds dated Januar/ 1, 2001, with interest payable semiannually on January 1 and July 1 of each year. Due to printing and other delays. Startup was not able to sell the bonds until July 1, 2001. The bonds
CASE 10-3 LEAVE MY CURRENT RATIO ALONE!Soto Inc., a closely held corporation, has never been audited and is seeking a large bank loan for plant expansion. The bank has requested audited financial statements. In conference with the president and majority stockholder of Soto, the auditor is informed
CASE 10-2 MEASURING LIABILITIES Long-term leases and long-term debt are typically recognized in the financial statements at their discounted present values. This recognition practice acknowledges the time value of money However, the standards related to accounting for deferred income taxes do not
needs of investors and creditors?
CASE 10-1 WHAT IS A LIABILITY?Professional athletes resularly sisn long-term multimillion-dollar contracts in which they promise to play for a particular team for a specified time period. Owners of these teams often sign long-term leases for the use of playing facilities for a specified time
21. \XTiat is the recommended accounting treatment for bond restructurings effected as:(a) An asset sw^ap?(b) An equit)' s^ap?(c) A modification of terms?
20. WTiat distinguishes a troubled debt restructuring from other debt restructurings?
19. Wliat is a joint venture, and how can a joint venture be a form of off-balance-sheet financing?
18. Why is off-balance-sheet financing popular with many companies? WTiat problems are associated with the use of this method of financing?
17'. What is meant by refinancing or refunding a bond issue? When may refinancing be advisable?
16. The conversion of convertible bonds to common stock by an investor may be viewed as an exchange involving no gain or loss or as a transaction for which market values should be recognized and a gain or loss reported. WTiat arguments support each of these views for the investor and for the issuer?
15. How does the accounting for convertible debt under IAS 32 differ from the accounting prescribed bv U.S. GAAP?
14. Wliat are the distinguishing features of convertible debt securities? WTiat questions relate to the nature of this t\pe of security ?
13- ^X"hat purpose is ser\'ed by issuing callable bonds?

Showing 1800 - 1900 of 3974

First
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved