Questions from Intermediate Accounting

Q: Explain the accounting treatment and disclosures required when a change is made

Explain the accounting treatment and disclosures required when a change is made in depreciation method.

Q: At the beginning of its fiscal year, Koeplin Corporation purchased a

At the beginning of its fiscal year, Koeplin Corporation purchased a machine for $50,000. At the end of the year, the machine had a fair value of $32,000. Koeplin’s controller recorded depreciation of...

Q: Life.com issued $10 million of commercial paper on April

Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 6% discount rate. What is the effective interest rate on the commercial paper?...

Q: The following selected circumstances relate to pending lawsuits for Erismus, Inc

The following selected circumstances relate to pending lawsuits for Erismus, Inc. Erismus’s fiscal year ends on December 31. Financial statements are issued in March 2019. Erismus prepares its financi...

Q: On January 1, 2018, HGC Camera Store adopted the dollar

On January 1, 2018, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows: Require...

Q: Refer to the circumstances listed in E 13–21, but

Refer to the circumstances listed in E 13–21, but assume that Erismus prepares its financial statements according to International Financial Reporting Standards. In E 13–21 The following selected cir...

Q: Indicate (by letter) the way each of the items listed

Indicate (by letter) the way each of the items listed below should be reported in a balance sheet at December 31, 2018.

Q: Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified

Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2018 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense inve...

Q: Woodmier Lawn Products introduced a new line of commercial sprinklers in 2017

Woodmier Lawn Products introduced a new line of commercial sprinklers in 2017 that carry a one-year warranty against manufacturer’s defects. Because this was the first product for wh...

Q: The Commonwealth of Virginia filed suit in October 2016 against Northern Timber

The Commonwealth of Virginia filed suit in October 2016 against Northern Timber Corporation, seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conser...