Questions from Intermediate Accounting

Q: On January 2, 2014, MacCloud Co. issued a 4

On January 2, 2014, MacCloud Co. issued a 4-year, $100,000 note at 6% fixed interest, interest payable semiannually. MacCloud now wants to change the note to a variable-rate note. As a result, on Janu...

Q: Dingel Corporation has contracted with you to prepare a statement of cash

Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Additional data related to 2014 are as follows. 1. Equipment tha...

Q: Identify the lease classifications for lessors and the criteria that must be

Identify the lease classifications for lessors and the criteria that must be met for each classification.

Q: Coffin Corporation appropriately uses the installment-sales method of accounting to

Coffin Corporation appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2014 and 2015. Instructions...

Q: Dexter Company appropriately uses the asset liability method to record deferred income

Dexter Company appropriately uses the asset liability method to record deferred income taxes. Dexter reports depreciation expense for certain machinery purchased this year using the modified accelerat...

Q: Mantle Inc. sells merchandise for cash and also on the installment

Mantle Inc. sells merchandise for cash and also on the installment plan. Entries to record cost of goods sold are made at the end of each year. Repossessions of merchandise (sold in 2014) were made in...

Q: Baden Corporation entered into a lease agreement for 10 photocopy machines for

Baden Corporation entered into a lease agreement for 10 photocopy machines for its corporate headquarters. The lease agreement qualifies as an operating lease in all terms except there is a bargain-pu...

Q: Various types of accounting changes can affect the financial statements of a

Various types of accounting changes can affect the financial statements of a business enterprise differently. Assume that the following list describes changes that have a material effect on the financ...

Q: McElroy Company has the following portfolio of investment securities at September 30

McElroy Company has the following portfolio of investment securities at September 30, 2014, its last reporting date.  On October 10, 2014, the Horton shares were sold at a price of $54 per share. In...

Q: Why is it necessary to convert accrual-based net income to

Why is it necessary to convert accrual-based net income to a cash basis when preparing a statement of cash flows?