Questions from Intermediate Accounting


Q: Collins, Inc., entered into a 10-year franchise agreement

Collins, Inc., entered into a 10-year franchise agreement with an individual. For an initial franchise fee of $40,000, Collins agrees to assist in design and construction of the franchise location and...

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Q: ThyssenKrupp AG, headquartered in Germany, is one of the world’s

ThyssenKrupp AG, headquartered in Germany, is one of the world’s largest technology companies, with almost 160,000 employees worldwide and primary segments in steel, technology, and capital goods and...

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Q: TopChop sells hairstyling franchises. TopChop receives $50,000 from

TopChop sells hairstyling franchises. TopChop receives $50,000 from a new franchisee for providing initial training, equipment and furnishings that have a stand-alone selling price of $50,000. TopChop...

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Q: Holt Industries received a $2,000 prepayment from the Ramirez

Holt Industries received a $2,000 prepayment from the Ramirez Company for the sale of new office furniture. Holt will bill Ramirez an additional $3,000 upon delivery of the furniture to Ramirez. Upon...

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Q: Refer to the situation described in BE 5–31. Assume

Refer to the situation described in BE 5–31. Assume that the building was completed during the second year, and construction costs incurred during the second year were $10 million. How much revenue an...

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Q: On July 1, 2018, Apache Company sold a parcel of

On July 1, 2018, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apache’s books was $1,200,000. Terms of the sale required a do...

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Q: Refer to the situation described in BE 5–35. What

Refer to the situation described in BE 5–35. What should be the balance in the deferred gross profit account at the end of 2019 applying the installment sales method? In BE 5–35 On July 1, 2018, Apac...

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Q: On July 1, 2018, Apache Company, a real estate

On July 1, 2018, Apache Company, a real estate developer, sold a parcel of land to a construction company for $3,000,000. The book value of the land on Apache’s books was $1,200,000. Terms of the sale...

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Q: Estate Construction is constructing a building for CyberB, an online retailing

Estate Construction is constructing a building for CyberB, an online retailing company. Under the construction agreement, if for any reason Estate can’t complete construction, CyberB would own the par...

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Q: On May 1, 2018,Varga Tech Services signed a $

On May 1, 2018,Varga Tech Services signed a $6,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the pe...

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