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Explain gains trading. Can Cane use gains trading on either portfolio? Does gains trading raise ethical issues?
Explain what factors a company should consider in determining which investments it should classify in each of the three categories.
At what amount does a company record the initial investment and what events subsequent to the initial investment (if any) change this amount?
Explain how Walker reports on its balance sheet and income statement the effects of its investment portfolio of available-for-sale securities for the year.
Explain how Houston reports the income statement effects of the cash dividends received during the year on the securities in the available-for-sale portfolio.
An available-for-sale security, whose fair value is currently less than cost, is reclassified as a trading security.
On January 2 of the current year, Herbert purchased an additional 15% of the voting common stock of Broome for $1,200,000.
Explain how Victoria accounts for the disposition prior to their maturity of the long-term bonds called by their issuer.
You are an accountant for the Davanzo Company. The president of the company calls you into her office and says, "I want to ask you about two issues.
What information is contained in a corporation's articles of incorporation?
List the various rights of a stockholder. Which do you consider to be the most important?
How is a corporation's legal capital determined, assuming its capital stock has a par value, a stated value, or no par value?
What is a stock subscription? How does a corporation report the accounts Subscriptions Receivable and Preferred Stock Subscribed on its balance sheet?
What alternatives are possible if a subscriber defaults on a stock subscription? How would you determine which alternative to use?
If a corporation issues capital stock for an asset other than cash, what amount would you use to record the transaction?
What is a stock split and a disproportionate stock split? How do they affect each element of a corporation's stockholders' equity?
What are share appreciation rights? Why are they advantageous to an employee?
What are the two segments of a corporation's contributed capital and what might be included in each segment?
Prepare the notes receivable portion of the Lisa Company's balance sheet on December 31, 2010 and 2011.
What are the arguments supporting accounting for the convertible debentures as a single element?
Prepare the notes receivable portion of the Seaver Company's balance sheet on December 31, 2010 and 2011.
Prepare a schedule showing interest income from the long-term receivables and gains recognized on sale of assets that would appear on Linden's income statement
In early January 2013, the bank and the company agree to a loan restructuring because of the financial condition of the company.
What is the effective interest method of amortization and how is it different from and similar to the straightline method of amortization?
Explain how to account for the proceeds from bonds issued with detachable stock purchase warrants.