Questions from Intermediate Accounting


Q: A company constructs a building for its own use. Construction began

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $500,000; March 31, $600,000; J...

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Q: Refer to the situation described in BE 8–6. SAM

Refer to the situation described in BE 8–6. SAM uses a perpetual inventory system. Calculate ending inventory and cost of goods sold for January using (1) FIFO, and (2) Average cost. In BE 8–6 Samuel...

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Q: Refer to the situation described in BE 10–14. Assuming

Refer to the situation described in BE 10–14. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. In BE 10–14 A company constructs a buil...

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Q: Maxtor Technology incurred the following costs during the year related to the

Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monitor: Salaries ……………………………………………………………………………………………………………… $220,000 Deprecia...

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Q: In 2018, the controller of Sytec Corporation discovered that $42

In 2018, the controller of Sytec Corporation discovered that $42,000 of inventory purchases were incorrectly charged to advertising expense in 2017. In addition, the 2017 year-end inventory count fail...

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Q: An annual report of Sprint Corporation contained a rather lengthy narrative entitled

An annual report of Sprint Corporation contained a rather lengthy narrative entitled “Review of Segmental Results of Operation.” The narrative noted that short-term notes payable and commercial paper...

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Q: Alteran Corporation purchased office equipment for $1.5 million in

Alteran Corporation purchased office equipment for $1.5 million in 2015. The equipment is being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expecte...

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Q: Alta Ski Company’s inventory records contained the following information regarding its latest

Alta Ski Company’s inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. Beginning inventory, January 1, 2018 ……………… 600 u...

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Q: For financial reporting, Clinton Poultry Farms has used the declining-

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2015 for $2,560,000. Its useful life was estima...

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Q: Explain what is meant by the impairment of the value of property

Explain what is meant by the impairment of the value of property, plant, and equipment and intangible assets. How should these impairments be accounted for?

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