Use the following information for questions 71 and 72.
Presented below is information related to Hale Corporation:
Common Stock, $1 par
Paid-in Capital in Excess of ParCommon Stock
Preferred 8 1/
ACCOUNTING FOR LEASES
52. On December 1, 2015, Goetz Corporation leased office space for 10 years at a
monthly rental of $90,000. On that date Goetz paid the landlord the following amounts:
21. The revenue recognition principle provides that revenue is recognized when
c. it is realized or realizable and it is earned.
22. When goods or services are exchanged for cash or claims to cash (
DILUTIVE SECURITIES AND EARNINGS PER SHARE
MULTIPLE CHOICEDilutive Securities, Conceptual
21. Convertible bonds
d. may be exchanged for equity securities.
22. The conversion of bonds is most commonly recorded by the
d. book value method.
STATEMENT OF CASH FLOWS
Use the following information for questions 51 through 55.
Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA.
One statement that the enterprise is an
ACCOUNTING CHANGES AND ERROR ANALYSIS
On January 1, 2012, Neal Corporation acquired equipment at a cost of $720,000.
Neal adopted the sum-of-the-years-digits method of depreciation for this equipment and
70. On August 1, 2014, Dambro Company acquired 800, $1,000, 9% bonds at 97 plus
accrued interest. The bonds were dated May 1, 2014, and mature on April 30, 2020, with
interest paid each October 31 and Ap
INTERMEDIATE ACCOUNTING I
6:00 7:50 p.m.
Dongkuk Lim, Ph.D.
With the globalization of current business, international investment opportunities have increased, making it
necessary for multinational investors to understand the various accounting methods used to report company financial
information. From the perspect
US GAAP and IFRS stances on the revaluation of Property, Plant and Equipment (PP&E) differ greatly. According
to McGladey, US GAAP enforces the policy that revaluation is not allowed. Comparatively, IFRS allows a business to
apply the revaluation model, w
LIFO and FIFO were created to keep track of manufactured goods and merchandise. These methods
provide reasonable estimates of the flow of goods in inventory. However, despite their similar purpose, when a
company selects one over the other, there are sign