Questions from Intermediate Accounting


Q: Worf Co. both purchases and constructs various equipment it uses in

Worf Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2014...

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Q: Plant acquisitions for selected companies are as follows. 1.

Plant acquisitions for selected companies are as follows.1. Belanna Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $700,000. At th...

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Q: Harrisburg Furniture Company started construction of a combination office and warehouse building

Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2014. Harrisburg expected to complete...

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Q: Two positions have normally been taken with respect to the recording of

Two positions have normally been taken with respect to the recording of fixed manufacturing overhead as an element of the cost of plant assets constructed by a company for its own use: (a) It shoul...

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Q: On December 31, 2013, Main Inc. borrowed $3

On December 31, 2013, Main Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2014, the company made the following expenditures related to this building...

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Q: On July 31, 2014, Amsterdam Company engaged Minsk Tooling Company

On July 31, 2014, Amsterdam Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2014. T...

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Q: The following three situations involve the capitalization of interest.Situation

The following three situations involve the capitalization of interest.Situation I: On January 1, 2014, Oksana Baiul, Inc. signed a fixed-price contract to have Builder Associates construct a major pla...

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Q: Jane Geddes Engineering Corporation purchased conveyor equipment with a list price of

Jane Geddes Engineering Corporation purchased conveyor equipment with a list price of $10,000. Presented below are three independent cases related to the equipment. (a) Geddes paid cash for the equ...

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Q: Below are transactions related to Duffner Company;(a) The City

Below are transactions related to Duffner Company;(a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this landis determined to be $81,000.(b) 13,000 shar...

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Q: Presented below is information related to Zonker Company.1.

Presented below is information related to Zonker Company. 1. On July 6, Zonker Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the pr...

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