Questions from Intermediate Accounting

Q: As part of its stock-based compensation package, International Electronics

As part of its stock-based compensation package, International Electronics granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2018. At exercise, holders of the SARs are...

Q: The Peridot Company purchased machinery on January 2, 2016, for

The Peridot Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation me...

Q: Wardell Company purchased a mini computer on January 1, 2016,

Wardell Company purchased a mini computer on January 1, 2016, at a cost of $40,000. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an est...

Q: Carter Containers sold marketable securities, land, and common stock for

Carter Containers sold marketable securities, land, and common stock for $30 million, $15 million, and $40 million, respectively. Carter also purchased treasury stock, equipment, and a patent for $21...

Q: Indicate with the appropriate letter the nature of each situation described below

Indicate with the appropriate letter the nature of each situation described below: Type of Change PR ……………………. Change in principle reported retrospectively PP …………..………… Change in principle reported p...

Q: During 2018, WMC Corporation discovered that its ending inventories reported on

During 2018, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts: WMC uses the periodic inventory system and the FIFO...

Q: Indicate with the appropriate letter the nature of each adjustment described below

Indicate with the appropriate letter the nature of each adjustment described below: Type of Adjustment A. Change in accounting principle (reported retrospectively) B. Change in accounting principle (e...

Q: Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at

Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2017: ????????__________________________________($ in millions) Paid-in capital: Common st...

Q: During 2016 (its first year of operations) and 2017,

During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to chan...

Q: Aquatic Equipment Corporation decided to switch from the LIFO method of costing

Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2018. The inventory as reported at the end of 2017 using LIFO would h...