Questions from Intermediate Accounting

Q: Hawkins Corporation has the following balances at December 31, 2014.

Hawkins Corporation has the following balances at December 31, 2014. How should these balances be reported on Hawkins’s balance sheet at December 31, 2014?

Q: Mike Macinski Leasing Company leases a new machine that has a cost

Mike Macinski Leasing Company leases a new machine that has a cost and fair value of $95,000 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks o...

Q: Gordon Company started operations on January 1, 2009, and has

Gordon Company started operations on January 1, 2009, and has used the FIFO method of inventory valuation since its inception. In 2015, it decides to switch to the average-cost method. You are provide...

Q: The income statement of Vince Gill Company is shown below.

The income statement of Vince Gill Company is shown below. Additional information: 1. Accounts receivable decreased $360,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3....

Q: The following information was described in a note of Canon Packing

The following information was described in a note of Canon Packing Co. “During August, Holland Products Corporation purchased 311,003 shares of the Company’s common stock which constitutes approximate...

Q: Heartland Company’s budgeted sales and budgeted cost of goods sold for the

Heartland Company’s budgeted sales and budgeted cost of goods sold for the coming year are $144,000,000 and $99,000,000, respectively. Short-term interest rates are expected to average 10%. If Heartla...

Q: Tomba Corporation had 300,000 shares of common stock outstanding on

Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2014. On May 1, Tomba issued 30,000 shares. (a) Compute the weighted-average number of shares outstanding if the30,000 s...

Q: Garfield Company purchased, as a held-to-maturity investment

Garfield Company purchased, as a held-to-maturity investment, $80,000 of the 9%, 5-year bonds of Chester Corporation for $74,086, which provides an 11% return. Prepare Garfield’s journal entries for...

Q: Travel Inc. sells tickets for a Caribbean cruise to Carmel Company

Travel Inc. sells tickets for a Caribbean cruise to Carmel Company employees. The total cruise package costs Carmel $70,000 from ShipAway cruise liner. Travel Inc. receives a commission of 6% of the t...

Q: Zurich Company reports pretax financial income of $70,000 for

Zurich Company reports pretax financial income of $70,000 for 2014. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater...