Questions from Financial Accounting

Q: Bliss Perfume Company issued $300,000 of 10 percent bonds

Bliss Perfume Company issued $300,000 of 10 percent bonds on January 1, 20X2, at 110. The bonds mature 10 years from issue and have semiannual interest payments on January 1 and July 1. Parsons Corpor...

Q: Farflung Corporation has in excess of 60 subsidiaries worldwide. It owns

Farflung Corporation has in excess of 60 subsidiaries worldwide. It owns 65 percent of the voting common stock of Micro Company and 80 percent of the shares of Eagle Corporation. Micro sold $400,000 p...

Q: Clayton Corporation purchased 75 percent of Topple Company common stock and 40

Clayton Corporation purchased 75 percent of Topple Company common stock and 40 percent of its preferred stock on January 1, 20X6, for $270,000 and $80,000, respectively. At the time of purchase, the f...

Q: Mainstream Corporation holds 80 percent of Offenberg Company’s voting shares, acquired

Mainstream Corporation holds 80 percent of Offenberg Company’s voting shares, acquired on January 1, 20X1, at underlying book value. On January 1, 20X4, Mainstream purchased Offenber...

Q: Offenberg Company issued $100,000 of 10 percent bonds on

Offenberg Company issued $100,000 of 10 percent bonds on January 1, 20X1, at 120. The bonds mature in 10 years and pay 10 percent interest annually on December 31. Mainstream Corporation holds 80 perc...

Q: Brown Company owns 90 percent of the common stock and 60 percent

Brown Company owns 90 percent of the common stock and 60 percent of the preferred stock of White Corporation, both acquired at underlying book value on January 1, 20X1. At that date, the fair value of...

Q: On January 1, 20X2, Fischer Corporation purchased 90 percent of

On January 1, 20X2, Fischer Corporation purchased 90 percent of Culbertson Company common shares and 60 percent of its preferred shares at underlying book value. At that date, the fair value of the no...

Q: Tyler Manufacturing purchased 60 percent of the ownership of Brown Corporation stock

Tyler Manufacturing purchased 60 percent of the ownership of Brown Corporation stock on J anuary 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equa...

Q: Tyler Manufacturing purchased 60 percent of the ownership of Brown Corporation stock

Tyler Manufacturing purchased 60 percent of the ownership of Brown Corporation stock on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal...

Q: Grasper Corporation owns 70 percent of Latent Corporation’s common stock and 25

Grasper Corporation owns 70 percent of Latent Corporation’s common stock and 25 percent of Dally Corporation’s common stock. In addition, Latent owns 40 percent of Dally’s stock. In 20X6, Grasper, Lat...