Questions from Intermediate Accounting

Q: Below is the Retained Earnings account for the year 2014 for Acadian

Below is the Retained Earnings account for the year 2014 for Acadian Corp. Instructions (a) Prepare a corrected retained earnings statement. Acadian Corp. normally sells investments of the typ...

Q: Wade Corp. has 150,000 shares of common stock outstanding

Wade Corp. has 150,000 shares of common stock outstanding. In 2014, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in t...

Q: What is earnings management?

What is earnings management?  

Q: Bobek Inc. has recently reported steadily increasing income. The company

Bobek Inc. has recently reported steadily increasing income. The company reported income of $20,000 in 2011, $25,000 in 2012, and $30,000 in 2013. A number of market analysts have recommended that i...

Q: Charlie Brown, controller for Kelly Corporation, is preparing the company’s

Charlie Brown, controller for Kelly Corporation, is preparing the company’s income statement at year-end. He notes that the company lost a considerable sum on the sale of some equipment it had...

Q: Simpson Corp. is an entertainment firm that derives approximately 30%

Simpson Corp. is an entertainment firm that derives approximately 30% of its income from the Casino Knights Division, which manages gambling facilities. As auditor for Simpson Corp., you have recent...

Q: As audit partner for Grupo and Rijo, you are in charge

As audit partner for Grupo and Rijo, you are in charge of reviewing the classification of unusual items that have occurred during the current year. The following material items have come to your att...

Q: Willie Nelson, Jr., controller for Jenkins Corporation, is preparing

Willie Nelson, Jr., controller for Jenkins Corporation, is preparing the company’s financial statements at year-end. Currently, he is focusing on the income statement and determining the forma...

Q: Presented below is information related to Viel Company at December 31,

Presented below is information related to Viel Company at December 31, 2014, the end of its first year of operations. Instructions Compute the following: (a) income from operations, (b) net in...

Q: Your client took accounting a number of years ago and was unaware

Your client took accounting a number of years ago and was unaware of comprehensive income reporting. He is not convinced that any accounting standards exist for comprehensive income. Instructions...