Questions from Intermediate Accounting

Q: Jaeco Corporation asks you to review its December 31, 2014 inventory

Jaeco Corporation asks you to review its December 31, 2014 inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Jaeco uses the periodic me...

Q: The summary financial statements of KwikMart Ltd. on December 31,

The summary financial statements of KwikMart Ltd. on December 31, 2014, are as follows: The following errors were made by the inexperienced accountant on December 31, 2013, and were not corrected. l....

Q: Astro Languet established Languet Products Co. as a sole proprietorship on

Astro Languet established Languet Products Co. as a sole proprietorship on January 5, 2014. At the company's year end of December 31, 2014, the accounts had the following balances (in thousands): A c...

Q: Schonfeld Company determined its ending inventory at cost and at lower of

Schonfeld Company determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2012, 2013, and 2014, as follows: Instructions (a) Prepare the journal entries...

Q: Reena Corp. lost most of its inventory in a fire in December

Reena Corp. lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following: Merchandise with a selling price o...

Q: During 2014, Jinnah Furniture Limited purchased a railway carload of wicker

During 2014, Jinnah Furniture Limited purchased a railway carload of wicker chairs. The manufacturer of the chairs sold them to Jinnah for a lump sum of $59,850 because it was discontinuing manufactur...

Q: Sube Specialty Corp., a division of FH Inc., manufactures three

Sube Specialty Corp., a division of FH Inc., manufactures three models of gearshift components for bicycles that are sold to bicycle manufacturers, retailers, and catalogue outlets. Since beginning op...

Q: The Eserine Wood Corporation manufactures desks. Most of the company's desks

The Eserine Wood Corporation manufactures desks. Most of the company's desks are standard models that are sold at catalogue prices. At December 31, 2014, the following finished desks appear in the com...

Q: The records for the Clothing Department of Ji-Woon's Department Store

The records for the Clothing Department of Ji-Woon's Department Store are summarized as follows for the month of January: 1. Inventory, January 1: at retail, $28,000; at cost, $l8, 000 2. Purchases in...

Q: Aero Acrobats lent $47,573 to Afterburner Limited, accepting

Aero Acrobats lent $47,573 to Afterburner Limited, accepting Afterburner's $49,000, three-month, zero interest-bearing notes. The implied interest is approximately 12%. Prepare Aero’s journal entries...