Questions from Financial Reporting

Q: The Kroger Co. operates numerous grocery store chains. Excerpts from

The Kroger Co. operates numerous grocery store chains. Excerpts from Kroger’s Note 15 arepresented below. The 2017 amounts are for the fiscal year ended February 3, 2018. All amounts...

Q: Princess Retail Stores started doing business on January 1, 20X1.

Princess Retail Stores started doing business on January 1, 20X1. The following data reflect its inventory purchases and sales during the year: Required: 1. Compute gross margin and cost of ending in...

Q: Packard, Inc., adopted the dollar-value LIFO inventory method

Packard, Inc., adopted the dollar-value LIFO inventory method on June 30, 20X1, the end of its fiscal year. Packard’s inventory records provide the following information: Required:...

Q: During your audit of Patti Company’s ending inventory at December 31,

During your audit of Patti Company’s ending inventory at December 31, 20X1, you find the following inventory accounting errors: a. Goods in Patti’s warehouse on consignment from Valley, Inc., were inc...

Q: Parque Corporation (a fictional company) applied to Fairview Bank (

Parque Corporation (a fictional company) applied to Fairview Bank (another fictional company) early in 20X2 for a $400,000 five-year loan to finance plant modernization. The company proposes that the...

Q: On January 2, 20X0, Half, Inc., purchased a

On January 2, 20X0, Half, Inc., purchased a manufacturing machine for $864,000. The machinehas an eight-year estimated life and a $144,000 estimated salvage value. Half expects to manufacture 1,800,00...

Q: To meet the increasing demand for its microprocessors, Intelligent Micro Devices

To meet the increasing demand for its microprocessors, Intelligent Micro Devices began construction of a new manufacturing facility on January 1, 20X1. Construction costs were incurreduniformly throug...

Q: Consider the following two scenarios: Scenario I: Over the

Consider the following two scenarios: Scenario I: Over the 20X1–20X5 period, Micro Systems, Inc., spends $10 million a year todevelop patents on new computer hardware manufacturing technology. While s...

Q: Assume that Major Motors Corporation, a large automobile manufacturer, reported

Assume that Major Motors Corporation, a large automobile manufacturer, reported in a recentannual report to shareholders that its buildings had an original cost of $4,694,000,000. a. Major Motors uses...

Q: The 20X0 income statement and other information for Mallard Corporation, which

The 20X0 income statement and other information for Mallard Corporation, which is about to purchase a new machine at a cost of $500 and a new computer system at a cost of $300, follow. Additional Info...