Questions from Intermediate Accounting

Q: Ski West, Inc., operates a downhill ski area near Lake

Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adult customers also can purchase a season pass that entitles the pass...

Q: Video Planet (VP) sells a big screen TV package consisting

Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have th...

Q: Access the FASB Standards Codification at the FASB website (www.

Access the FASB Standards Codification at the FASB website (www.fasb.org). Required: Determine the specific citation for accounting for each of the following items: 1. On what basis is a contract’s t...

Q: On March 1, 2018, Gold Examiner receives $147,

On March 1, 2018, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the ba...

Q: Clarks Inc., a shoe retailer, sells boots in different styles

Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling “Sun-Boots” to customers for $70 per pair. When a customer purchases a pair of SunBoots, Cla...

Q: A New York City daily newspaper called “Manhattan Today” charges

A New York City daily newspaper called “Manhattan Today” charges an annual subscription fee of $135. Customers prepay their subscriptions and receive 260 issues over the year. To attract more subscrib...

Q: On May 1, 2018, Meta Computer, Inc., enters

On May 1, 2018, Meta Computer, Inc., enters into a contract to sell 5,000 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $95,000, to be settled by a cash pa...

Q: Thomas Consultants provided Bran Construction with assistance in implementing various cost-

Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomas’s contract specifies that it will receive a flat fee of $50,000 and an additional...

Q: Rocky Guide Service provides guided 1–5 day hiking tours throughout

Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,000 per tour day, a...

Q: Consider each of the following scenarios separately: Scenario 1:

Consider each of the following scenarios separately: Scenario 1: Crown Construction Company entered into a contract with Star Hotel for building a highly sophisticated, customized conference room to b...