Questions from Intermediate Accounting

Q: Keyser’s Fleece Inc. holds a drove of sheep. Keyser shears

Keyser’s Fleece Inc. holds a drove of sheep. Keyser shears the sheep on a semiannual basis and then sells the harvested wool into the specialty knitting market. Keyser has the following informat...

Q: Refer to the data in IFRS9-8 for Keyser’s Fleece Inc

Refer to the data in IFRS9-8 for Keyser’s Fleece Inc. Prepare the journal entries for (a) The wool harvested in the first six months of 2014, and (b) The wool harvested that is sold for $10,500...

Q: Connie Chung Corporation adopted the dollar-value LIFO retail inventory method

Connie Chung Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2013. At that time the inventory had a cost of $54,000 and a retail price of $100,000. The following inform...

Q: John Olerud Ltd., a local retailing concern in the Bronx,

John Olerud Ltd., a local retailing concern in the Bronx, New York, has decided to change from the conventional retail inventory method to the LIFO retail method starting on January 1, 2015. The compa...

Q: Remmers Company manufactures desks. Most of the company’s desks are standard

Remmers Company manufactures desks. Most of the company’s desks are standard models and are sold on the basis of catalog prices. At December 31, 2014, the following finished desks appear in the...

Q: Garcia Home Improvement Company installs replacement siding, windows, and louvered

Garcia Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes in northern New Jersey and southern New York. The compa...

Q: Mickelson Inc. owns land that it purchased on January 1,

Mickelson Inc. owns land that it purchased on January 1, 2000, for $450,000. At December 31, 2014, its current value is $770,000 as determined by appraisal. At what amount should Mickelson report this...

Q: Magilke Industries acquired equipment this year to be used in its operations

Magilke Industries acquired equipment this year to be used in its operations. The equipment was delivered by the suppliers, installed by Magilke, and placed into operation. Some of it was purchased fo...

Q: What are the general rules for how gains or losses on retirement

What are the general rules for how gains or losses on retirement of plant assets should be reported in income?

Q: Name the items, in addition to the amount paid to the

Name the items, in addition to the amount paid to the former owner or contractor, that may properly be included as part of the acquisition cost of the following plant assets. (a) Land. (b) Machi...