Questions from Intermediate Accounting

Q: Wholesome Foods Corporation is a producer of gourmet organic cookies. The

Wholesome Foods Corporation is a producer of gourmet organic cookies. The company was established three years ago when its founder and president, Martha Spencer, purchased the trademark "Healthy Origi...

Q: Darrien Corporation purchased a trade name, customer list, and manufacturing

Darrien Corporation purchased a trade name, customer list, and manufacturing equipment for a Jump sum of $800,000. The fair market values of each asset are $280,000, $290,000, and $320,000, respective...

Q: Alaska Corporation purchased 300 common shares of Burke Inc. for $

Alaska Corporation purchased 300 common shares of Burke Inc. for $23,400 and accounted for them using the fair value through other comprehensive income model. During the year, Burke paid a cash divide...

Q: Green Earth Corp. has capitalized software costs of $980,

Green Earth Corp. has capitalized software costs of $980,000 on a product to be sold externally. During its first year, sales of this product totalled $380,000. Green Earth expects to earn $1,560,000...

Q: Latupatula Corporation purchased a patent from MaFee Corp. on January 1

Latupatula Corporation purchased a patent from MaFee Corp. on January 1, 2014, for $87,000. The patent had a remaining legal life of 16 years. Prepare Latupatula's journal entries to record the 2014 p...

Q: Wettlauffer Company Ltd. shows the following entries in its Equipment account

Wettlauffer Company Ltd. shows the following entries in its Equipment account for 2014. All amounts are based on historical cost. Instructions (a) Prepare any correcting entries that are necessary (b...

Q: Use the information in BE12-13 and assume that in January

Use the information in BE12-13 and assume that in January 2016, Latupatula spends $26,000 successfully defending a patent suit. In addition, Latupatula now feels the patent will be useful only for ano...

Q: On December 31, 2014, Convenient Cabs Incorporated was granted 10

On December 31, 2014, Convenient Cabs Incorporated was granted 10 taxi licences by the City of Somerdale, at a cost of $1,000 per licence. It is probable that Convenient Cabs will receive the expected...

Q: Use the information for Odyssey Ltd. in BE11-5.

Use the information for Odyssey Ltd. in BE11-5. In exercise BE11-5 Odyssey Ltd. purchased machinery on January 1, 2014, for $60,000. The machinery is estimated to have a residual value of $6,000 aft...