Questions from Intermediate Accounting

Q: Raleigh Department Store uses the conventional retail method for the year ended

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows: a. The inventory at January 1, 2016, had a retail value of $45,000 and...

Q: JWS Transport Company’s employees earn vacation time at the rate of 1

JWS Transport Company’s employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment t...

Q: On January 1, 2018, Poplar Fabricators Corporation agreed to grant

On January 1, 2018, Poplar Fabricators Corporation agreed to grant its employees two weeks of vacation each year, with the stipulation that vacations earned each year can be taken the following year....

Q: The FASB Accounting Standards Codification represents the single source of authoritative U

The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: 1. What is the specific citation that describes the d...

Q: Bavarian Bar and Grill opened for business in November 2018. During

Bavarian Bar and Grill opened for business in November 2018. During its first two months of operation, the restaurant sold gift certificates in various amounts totaling $5,200, mostly as Christmas pre...

Q: Diversified Semiconductors sells perishable electronic components. Some must be shipped and

Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit i...

Q: In Lizzie Shoes’ experience, gift cards that have not been redeemed

In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $18,000 during August 2018. $4,000 of cards were re...

Q: The following selected transactions relate to liabilities of Interstate Farm Implements for

The following selected transactions relate to liabilities of Interstate Farm Implements for December 2018. Interstate’s fiscal year ends on December 31. Required: Prepare the appropriate journal entr...

Q: Cast Iron Grills, Inc., manufactures premium gas barbecue grills.

Cast Iron Grills, Inc., manufactures premium gas barbecue grills. The company uses a periodic inventory system and the LIFO cost method for its grill inventory. Cast Iron’s December 31, 2018, fiscal y...

Q: S&L Financial buys and sells securities expecting to earn profits

S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on Janu...