Questions from Intermediate Accounting

Q: Crowe Company purchased a heavy-duty truck on July 1,

Crowe Company purchased a heavy-duty truck on July 1, 2011, for $30,000. It was estimated that it would have a useful life of 10 years and then would have a trade-in value of $6,000. The company uses...

Q: Chippewas Inc. has decided to purchase equipment from Central Michigan Industries

Chippewas Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2014, to expand its production capacity to meet customers’ demand for its product. Chippewas issue...

Q: Cardinals Corporation purchased a computer on December 31, 2013, for

Cardinals Corporation purchased a computer on December 31, 2013, for $105,000, paying $30,000 down and agreeing to pay the balance in five equal installments of $15,000 payable each December 31 beginn...

Q: Hayes Industries purchased the following assets and constructed a building as well

Hayes Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2: These assets were purchased as a lump sum for $100,000 ca...

Q: Busytown Corporation, which manufactures shoes, hired a recent college graduate

Busytown Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices...

Q: The Buildings account of Postera Inc. includes the following items that

The Buildings account of Postera Inc. includes the following items that were used in determining the basis for depreciating the cost of a building. (a) Organization and promotion expenses. (b) A...

Q: Cannondale Company purchased an electric wax melter on April 30, 2014

Cannondale Company purchased an electric wax melter on April 30, 2014, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. Instructions Prepar...

Q: Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $

Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pert...

Q: Dana Ashbrook Inc. has negotiated the purchase of a new piece

Dana Ashbrook Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $8,000 plus trade-in, f.o.b. factory. Dana Ashbrook Inc. paid $8,000 cash and traded in used equipmen...

Q: King Donovan Resources Group has been in its plant facility for 15

King Donovan Resources Group has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in sound working order. The company&...