Questions from Financial Reporting

Q: Ball Data Corporation provides stock market data to investors. On January

Ball Data Corporation provides stock market data to investors. On January 1, 2019, it sells a customer access to its real-time database for two years at a price of $600,000. The customer has the right...

Q: Foremost Company owns a royalty interest in an oil well. The

Foremost Company owns a royalty interest in an oil well. The contract stipulates that Foremost will receive royalty payments semiannually on January 31 and July 31. The January 31 payment will be for...

Q: Online Auction Company (OAC) provides a platform for its users

Online Auction Company (OAC) provides a platform for its users to buy and sell goods. Sellers post goods for sale and other users bid on them. They high bidder wins the auction and purchases the goods...

Q: Berger Company had sales in 2019 of $200,000.

Berger Company had sales in 2019 of $200,000. The goods sold cost Berger $125,000. The goods were sold with the right of return. By the end of 2019, goods having a total selling price of $10,000 had b...

Q: Under a single contract, Sapra Corporation sold two machines to Gao

Under a single contract, Sapra Corporation sold two machines to Gao Company in 2019. One of the machines typically sells for $300,000 and the other for $150,000. Because Gao purchased the machines tog...

Q: Gallemore Corporation entered into a contract to sell a machine to Christiansen

Gallemore Corporation entered into a contract to sell a machine to Christiansen Corporation for $2 million. Christiansen pays for the equipment, but asks Gallemore to delay shipment under a “bill-and-...

Q: Maffett Ticket Brokers is a reseller of tickets to sporting events and

Maffett Ticket Brokers is a reseller of tickets to sporting events and concerts. During 2019, Maffett sold gift cards totaling $250,000. Based on past experience, Maffett expects that 1% of the gift c...

Q: In 2019, its first year of operations, Regal Department Store

In 2019, its first year of operations, Regal Department Store sells $250,000 of gift certificates redeemable for store merchandise that expire one year after their issuance. With a high degree of cert...

Q: Cornwell Construction Company has been operating in Pennsylvania for a number of

Cornwell Construction Company has been operating in Pennsylvania for a number of years. During 2019, the firm contracted with the Borough of Lewisburg to build a domed sports complex. Cornwell estimat...

Q: It’s late Tuesday evening, and you’ve just received a phone call

It’s late Tuesday evening, and you’ve just received a phone call from Dennis Whiting, your boss at GE Capital. Dennis wants to know your reaction to the Argenti loa...