Questions from Intermediate Accounting

Q: The Manguino Oil Company incurred exploration costs in 2018 searching and drilling

The Manguino Oil Company incurred exploration costs in 2018 searching and drilling for oil as follows: Well 101 ………………………………….. $ 50,000 Well 102 ……………………………………. 60,000 Well 103 ……………………………………. 80,000...

Q: On March 1, 2018, Beldon Corporation purchased land as a

On March 1, 2018, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on Decemb...

Q: Oaktree Company purchased new equipment and made the following expenditures:

Oaktree Company purchased new equipment and made the following expenditures: Purchase price …………………………………………………………. $45,000 Sales tax ……………………………………………………………………… 2,200 Freight charges for shipment of...

Q: Samtech Manufacturing purchased land and building for $4 million. In

Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: T...

Q: Canova Corporation adopted the dollar-value LIFO retail method on January

Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2018. On that date, the cost of the inventory on hand was $15,000 and its retail value was $18,750. Information for 2018 an...

Q: Jackpot Mining Company operates a copper mine in central Montana. The

Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,000,000 in 2018 for the mining site and spent an additional $600,000 to prepare the mine for extraction of the cop...

Q: In 2018, Bratten Fitness Company made the following cash purchases:

In 2018, Bratten Fitness Company made the following cash purchases: 1. The exclusive right to manufacture and sell the X-Core workout machine from Symmetry Corporation for $200,000. Symmetry created t...

Q: Selected financial statement data for Schmitzer Inc. is shown below:

Selected financial statement data for Schmitzer Inc. is shown below: What was the amount of net sales for 2018?

Q: On March 31, 2018, Wolfson Corporation acquired all of the

On March 31, 2018, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets...

Q: Johnson Corporation acquired all of the outstanding common stock of Smith Corporation

Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith’s net assets (assets minus liabilities) was $7,...