Questions from Intermediate Accounting

Q: LaBouche Corporation owns a warehouse. On November 1, it rented

LaBouche Corporation owns a warehouse. On November 1, it rented storage space to a lessee (tenant) for 3 months for a total cash payment of $2,400 received in advance. Prepare LaBouche’s Novem...

Q: Dresser Company’s weekly payroll, paid on Fridays, totals $8

Dresser Company’s weekly payroll, paid on Fridays, totals $8,000. Employees work a 5-day week. Prepare Dresser’s adjusting entry on Wednesday, December 31, and the journal entry to recor...

Q: Included in Gonzalez Company’s December 31 trial balance is a note receivable

Included in Gonzalez Company’s December 31 trial balance is a note receivable of $12,000. The note is a 4-month, 10% note dated October 1. Prepare Gonzalez’s December 31 adjusting entry...

Q: At the end of its first year of operations, the trial

At the end of its first year of operations, the trial balance of Alonzo Company shows Equipment $30,000 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Deprec...

Q: When the accounts of Daniel Barenboim Inc. are examined, the

When the accounts of Daniel Barenboim Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period. 1. The prepaid insurance account shows a d...

Q: Identify three situations in which accounting measures are based on present values

Identify three situations in which accounting measures are based on present values. Do these present value applications involve single sums or annuities, or both single sums and annuities? Explain....

Q: What are the primary characteristics of an annuity? Differentiate between an

What are the primary characteristics of an annuity? Differentiate between an “ordinary annuity” and an “annuity due.”  

Q: Kehoe, Inc. owes $40,000 to Ritter Company

Kehoe, Inc. owes $40,000 to Ritter Company. How much would Kehoe have to pay each year if the debt is retired through four equal payments (made at the end of the year), given an interest rate on the...

Q: Wayne Rogers Corp. maintains its financial records on the cash basis

Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers Corp. requests you as its independent...

Q: Distinguish between cash-basis accounting and accrual basis accounting. Why

Distinguish between cash-basis accounting and accrual basis accounting. Why is accrual-basis accounting acceptable for most businesses and the cash-basis unacceptable in the preparation of an income...