Questions from Financial Reporting

Q: The Williamsport Crosscutters baseball team had a player contract with Clemens (

The Williamsport Crosscutters baseball team had a player contract with Clemens (a promising young catcher) that was recorded in its accounting records at $500,000. The Reading Phillies had a player co...

Q: Samson Manufacturing Company, a calendar year company, purchased a machine

Samson Manufacturing Company, a calendar year company, purchased a machine for $65,000 on January 1, 2015 At the date of purchase, Samson incurred the following additional costs: Loss on sale of old m...

Q: On January 1, 2017, Hardy, Inc., purchased certain

On January 1, 2017, Hardy, Inc., purchased certain plant assets under a deferred payment contract. The agreement called for making annual payments of $10,000 for five years. The first payment is due o...

Q: For $20 million, Ross Adams Mining acquired a tract of

For $20 million, Ross Adams Mining acquired a tract of land containing a large deposit of anthracite coal. Ross Adams believes the most economical way to extract the coal is to stripmine the site. The...

Q: Clay Company started construction on a new office building on January 1

Clay Company started construction on a new office building on January 1, 2017, and it moved into the finished building on July 1, 2018. Of the building’s $2,500,000 total cost, $2,000,000 was incurred...

Q: Kobe Company began constructing a building for its own use in February

Kobe Company began constructing a building for its own use in February 2017. During 2017, Kobe incurred interest of $70,000 on specific construction debt and $15,000 on other borrowings. Interest comp...

Q: Diamond Offshore Drilling, Inc. (DOD), is an international

Diamond Offshore Drilling, Inc. (DOD), is an international company that provides contract drilling services to the energy industry. In its 2015 Form 10-K, it reports the following information related...

Q: Weir Company uses straight-line depreciation for its property, plant

Weir Company uses straight-line depreciation for its property, plant, and equipment, which, stated at cost, consisted of the following: Weir’s depreciation expense for 2017 and 20...

Q: McClelland Corporation agreed to purchase some landscaping equipment from Agri-Products

McClelland Corporation agreed to purchase some landscaping equipment from Agri-Products for a cash price of $500,000. Before accepting delivery of the equipment, McClelland learned that the same equip...

Q: On January 1, 2013 Vick Company purchased a trademark for $

On January 1, 2013 Vick Company purchased a trademark for $400,000, which had an estimated useful life of 16 years. In January 2017, Vick paid $60,000 for legal fees in a successful defense of the tra...