Questions from Intermediate Accounting

Q: Finch Industries shipped $550,000 of merchandise on consignment to

Finch Industries shipped $550,000 of merchandise on consignment to Royal Crown Company. Finch paid freight costs of $5,000. Royal Crown Company paid $1,500 for local advertising, which is reimbursable...

Q: On August 15, 2014, Japan Ideas consigned 500 electronic play

On August 15, 2014, Japan Ideas consigned 500 electronic play systems, costing $100 each, to YoYo Toys Company. The cost of shipping the play systems amounted to $1,250 and was paid by Japan Ideas. On...

Q: Pennfield Construction Corp. began work on a $5,020

Pennfield Construction Corp. began work on a $5,020,000 construction contract in 2014. During 2014, the company incurred costs of $1,600,000, billed its customer for $ 1,750,000, and collected $1,500,...

Q: Explain the basic economics of what is being received and what is

Explain the basic economics of what is being received and what is being given up in each of the following business transactions. (a) A company sells packaging material to another company. The terms of...

Q: Seaport Marina has 500 slips (boat docks) that rent for

Seaport Marina has 500 slips (boat docks) that rent for $1,000 per season. Payments must be made in full at the start of the boating season, April 1. Slips may be reserved for the next season if they...

Q: Tampa Inc. began work on an $11.5-

Tampa Inc. began work on an $11.5-million contract in 2014 to construct an office building. During 2014, Tampa Inc. incurred costs of $3.3 million, billed its customers for $5.1 million, and collected...

Q: Inexperienced construction company ABC Corp. signed a risky contract to build

Inexperienced construction company ABC Corp. signed a risky contract to build a research facility at a fixed contract amount of $2 million. The work began in early 2014 and ABC incurred costs of $900,...

Q: Louis Manufacturing Inc. (LMI) purchased some telecommunications equipment in

Louis Manufacturing Inc. (LMI) purchased some telecommunications equipment in January of the current year. The equipment normally sells for $2,300. In order to entice LMI to close the deal, the salesp...

Q: Lombardo Construction Corp. began work on a $100-million

Lombardo Construction Corp. began work on a $100-million construction contract in 2014 to build a luxury hotel to be completed in 2016. During 2014, Lombardo incurred costs of $42 million, billed its...

Q: Compare the accounting for long-term contracts under ASPE and under

Compare the accounting for long-term contracts under ASPE and under IFRS.