Questions from Financial Reporting

Q: MSK Construction Company contracted to construct a factory building for $525

MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 2019 and was completed in 2020. Information relating to the contract follows: 1. Record...

Q: Teuvo Company entered into two contracts on the same date with Rundblad

Teuvo Company entered into two contracts on the same date with Rundblad Corporation. Teuvo has provided the following analysis of price and cost for the contracts: You inquired about why Teuvo would...

Q: Panarin Company entered into two contracts on the same date with Hjalmarsson

Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following analysis of price and cost for the contracts: Hjalmarsson, the customer,...

Q: On January 1, 2019, Quenneville Corporation sold equipment to Wirtz

On January 1, 2019, Quenneville Corporation sold equipment to Wirtz, Inc., for $500,000. The equipment had cost $300,000 to manufacture. The contract with Wirtz requires Quenneville to provide complet...

Q: Ladd Corporation sells construction equipment to a customer for $200,

Ladd Corporation sells construction equipment to a customer for $200,000. The equipment comes with a standard 10-year warranty covering all maintenance and repairs during that time. Initially, Ladd es...

Q: Zahava Corporation sells equipment to Ari Company for $700,000

Zahava Corporation sells equipment to Ari Company for $700,000 on December 31, 2019. The two companies agree that Ari will pay $100,000 upon delivery (December 31, 2019), with the remaining $600,000 d...

Q: Zahava Corporation sells equipment to Ari Company for $700,000

Zahava Corporation sells equipment to Ari Company for $700,000. Ari does not need the equipment until December 31, 2021, but agrees to pay $600,000 immediately on December 31, 2019, in order to assist...

Q: The following information is taken from the operating section of the statement

The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders, Inc.: Collections from customers ……………………………………$ 28,000 Payments to su...

Q: On October 1, 2018, Bullseye Company sold 250,000

On October 1, 2018, Bullseye Company sold 250,000 gallons of diesel fuel to Schmidt Co. at $3 per gallon. On November 8, 2018, 150,000 gallons were delivered; on December 27, 2018. another 50,000 gall...

Q: The statement of cash flows for the year ended December 31,

The statement of cash flows for the year ended December 31, 2017, and other data for Bradley Corporation are shown below: Additional data: a. Bradley’s Dividends receivable account...