Questions from Intermediate Accounting

Q: Topanga Group began operations early in 2018. Inventory purchase information for

Topanga Group began operations early in 2018. Inventory purchase information for the quarter ended March 31, 2018, for Topanga’s only product is provided below. The unit costs includ...

Q: Carlson Auto Dealers Inc. sells a handmade automobile as its only

Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2018, Carlson...

Q: Caterpillar, Inc., is one of the world’s largest manufacturers of

Caterpillar, Inc., is one of the world’s largest manufacturers of construction, mining, and forestry machinery. The following disclosure note is included in the company’s 2015 financial statements: D....

Q: Whaley Distributors is a wholesale distributor of electronic components. Financial statements

Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the year ended December 31, 2018, reported the following amounts and subtotals ($ in millions): In 2...

Q: Taylor Corporation has used a periodic inventory system and the LIFO cost

Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception in 2011. The company began 2018 with the following inventory layers (listed in chronological order...

Q: Capwell Corporation uses a periodic inventory system. The company’s ending inventory

Capwell Corporation uses a periodic inventory system. The company’s ending inventory on December 31, 2018, its fiscal-year end, based on a physical count, was determined to be $326,000. Capwell’s unad...

Q: Cansela Corporation uses a periodic inventory system and the LIFO method to

Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with inventory of 4,500 units of its only product. The beginning inventory balan...

Q: The inventory of Royal Decking consisted of five products. Information about

The inventory of Royal Decking consisted of five products. Information about the December 31, 2018, inventory is as follows: Costs to sell consist of a sales commission equal to 10% of selling price...

Q: Under what circumstances is the equity method used to account for an

Under what circumstances is the equity method used to account for an investment in stock?

Q: Funseth Farms Inc. purchased a tractor in 2015 at a cost

Funseth Farms Inc. purchased a tractor in 2015 at a cost of $30,000. The tractor was sold for $3,000 in 2018. Depreciation recorded through the disposal date totaled $26,000. Prepare the journal entry...