Questions from Intermediate Accounting


Q: The following information relates to Starbucks for the year ended October 2

The following information relates to Starbucks for the year ended October 2, 2011: net income 1,245.7 million; unrealized holding loss of $10.9 million related to available-for-sale securities during...

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Q: Archer Construction Company began work on a $420,000 construction

Archer Construction Company began work on a $420,000 construction contract in 2014. During 2014, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At Decembe...

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Q: What are the major types of subsequent events? Indicate how each

What are the major types of subsequent events? Indicate how each of the following “subsequent events” would be reported. (a) Collection of a note written off in a prior period. (b) Issuance of a large...

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Q: The following facts relate to Duncan Corporation. 1. Deferred

The following facts relate to Duncan Corporation. 1. Deferred tax liability, January 1, 2014, $60,000. 2. Deferred tax asset, January 1, 2014, $20,000. 3. Taxable income for 2014, $105,000. 4. Cumulat...

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Q: Andrews Company has five employees participating in its defined benefit pension plan

Andrews Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2014 are as follows. On January 1, 2014,...

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Q: On February 20, 2014, Barbara Brent Inc., purchased a

On February 20, 2014, Barbara Brent Inc., purchased a machine for $1,500,000 for the purpose of leasing it. The machine is expected to have a 10-year life, no residual value, and will be depreciated o...

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Q: Below is the net income of Anita Ferreri Instrument Co., a

Below is the net income of Anita Ferreri Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. Instructions (Ignore tax considerations.) (a) Assum...

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Q: Condensed financial data of Pat Metheny Company for 2014 and 2013 are

Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented below. Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant as...

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Q: Bradburn Corporation was formed 5 years ago through a public subscription of

Bradburn Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Bradburn and is its current pres...

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Q: On January 1, 2013, when its $30 par value

On January 1, 2013, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8% convertible debentures due in 20 years. The conversion option allowed the ho...

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