Intermediate Accounting Volume 2,11th Canadian Edition Solution Manual

Topics

Brief Exercises

Exercises

Problems

1.

Understand the nature of long-term debt.

1, 2

1, 2

1, 2

2.

Understand how long-term debt is measured and accounted for.

3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18

3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 13

3.

Recognition and derecognition of debt and debt restructurings.

19, 20, 21

17, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28

6, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20

4.

Presentation of long-term debt.

24

16, 18, 29, 30

2, 8, 10

5.

Disclosure requirements.

31

9, 10

6.

Long-term debt analysis.

25

7

7.

Differences between IFRS and ASPE.

Item

Description

Level of Difficulty

Time
(minutes)

  E14-1

Features of long-term debt.

Simple

10-15

  E14-2

Information related to various bond issues.

Simple

35-45

  E14-3

Entries for bond transactions.

Simple

15-20

  E14-4

Entries for bond transactions—effective interest.

Simple

15-20

  E14-5

Entries for bond transactions—straight-line.

Simple

15-20

  E14-6

Entries for noninterest-bearing debt.

Simple

15-20

  E14-7

Imputation of interest.

Simple

15-20

E14-8

Instalment note.

Moderate

15-20

E14-9

Purchase of equipment with noninterest-bearing debt.

Moderate

15-20

  E14-10

Purchase of equipment with noninterest-bearing debt.

Moderate

15-20

  E14-11

Entries for bond transactions.

Moderate

15-20

  E14-12

Amortization schedule—straight-line.

Simple

15-20

  E14-13

Amortization schedule—effective interest.

Simple

15-20

  E14-14

Determine proper amounts in account balances.

Moderate

15-20

E14-15

Government interest free loan

Moderate

15-20

  E14-16

Entries and questions for bond transactions.

Moderate

20-30

  E14-17

Entries for retirement of bonds.

Simple

10-15

  E14-18

Entries for retirement and issuance of bonds – straight line.

Simple

15-20

E14-19

Entries for retirement and issuance of bonds – effective interest.

Complex

30-35

  E14-20

Entry for retirement of bond; bond issue costs.

Moderate

20-25

  E14-21

Entries for retirement and issuance of bonds.

Simple

15-20

  E14-22

Impairments.

Moderate

15-25

  E14-23

Settlement of debt.

Moderate

15-20

  E14-24

Term modification debtor’s entries.

Moderate

20-30

  E14-25

Term modification creditor’s entries.

Moderate

25-30

  E14-26

Settlement debtor’s entries.

Moderate

25-30

  E14-27

Settlement creditor’s entries.

Moderate

20-30

  E14-28

Debtor/creditor entries for modification of troubled debt.

Moderate

20-25

Item

Description

Level of Difficulty

Time
(minutes)

  E14-29

Classification of liabilities

Simple

15-20

  E14-30

Classification.

Simple

15-20

  E14-31

Long-term debt disclosure.

Simple

10-15

  P14-1

Entries for noninterest-bearing debt; payable in instalments.

Moderate

30-35

  P14-2

Contrasting note terms.

Complex

50-60

  P14-3

Analysis of amortization schedule and interest entries

Simple

15-20

  P14-4

Issuance and retirement of bonds.

Moderate

25-30

  P14-5

Comprehensive bond problem.

Complex

50-65

  P14-6

Issuance of bonds between interest dates, straight-line, retirement.

Complex

30-35

  P14-7

  P14-8

Entries for noninterest-bearing debt.

Classification of accounts used in bond issuance

Simple

Moderate

15-25

55-65

  P14-9

Issuance and retirement of bonds; income statement presentation.

Simple

15-20

  P14-10

Comprehensive problem; issuance, classification, reporting.

Moderate

20-25

  P14-11

Issuance of bonds between interest dates, effective interest, retirement.

Complex

30-35

  P14-12

Entries for life cycle of bonds.

Moderate

20-25

  P14-13

Bonds at discount and premium incl. partial redemption

Complex

45-50

  P14-14

Loan impairment entries.  

Moderate

30-40

  P14-15

Debtor/creditor entries for continuation of troubled debt.

Moderate

15-25

  P14-16

Restructure of note under different circumstances. 

Complex

50-60

  P14-17

Debtor/creditor entries for continuation of troubled debt.

Complex

40-50

  P14-18

Entries for troubled debt restructuring.

Moderate

30-35

  P14-19

  P14-20

Debtor/creditor entries for continuation of troubled debt with new effective interest.

Legal versus in-substance defeasance

Complex

Moderate

40-50

15-20