Questions from Intermediate Accounting

Q: Mayhelm Ltd. took a physical inventory on December 31 and determined

Mayhelm Ltd. took a physical inventory on December 31 and determined that goods costing $2,000 were on hand. This amount included $500 of goods held on consignment for Delhi Corporation. Not included...

Q: Doors Unlimited Ltd. purchases units of wood frames that have manufacturer’s

Doors Unlimited Ltd. purchases units of wood frames that have manufacturer’s rebates from Traders Inc. The rebate requires Doors Unlimited to purchase a minimum number of units in a calendar year. The...

Q: Angus Enterprises Ltd. reported cost of goods sold for 2014 of

Angus Enterprises Ltd. reported cost of goods sold for 2014 of $2.4 million and retained earnings of $4.2 million at December 31, 2014. Angus later discovered that it’s ending inventories at December...

Q: Garners World buys 1,000 computer game CDs from a distributor

Garners World buys 1,000 computer game CDs from a distributor that is discontinuing those games. The purchase price for the lot is $7,500. Garners' World will group the CDs into three price categories...

Q: Moorea Corp. uses a periodic inventory system. On June 24

Moorea Corp. uses a periodic inventory system. On June 24, the company sold 600 units. The following additional information is available: (a) Calculate the June 30 inventory and the June cost of goods...

Q: The following is a list of items that may or may not

The following is a list of items that may or may not be reported as inventory in Keesa Corp.'s December 31 balance sheet: l. Goods out on consignment at another company's store 2. Goods sold on an ins...

Q: Salan1ander Limited makes the following errors during the current year. Each

Salan1ander Limited makes the following errors during the current year. Each error is an independent case. l. Ending inventory is overstated by $1,020, but purchases are recorded correctly. 2. Both en...

Q: Eureka Limited has a calendar-year accounting period. The following

Eureka Limited has a calendar-year accounting period. The following errors were discovered in 2014. 1. The December 31, 2012 merchandise inventory had been understated by $51,000. 2. Merchandise purch...

Q: The net income per books of Lyondell Industries Limited was determined without

The net income per books of Lyondell Industries Limited was determined without any knowledge of the following errors. The 2008 year was Lyondell's first year in business. No dividends have been declar...

Q: Iqbal Corporation uses the lower of FIFO cost and net realizable value

Iqbal Corporation uses the lower of FIFO cost and net realizable value method on an individual item basis, applying the direct method. The inventory at December 31, 2014, included product AG. Relevant...