Questions from Intermediate Accounting

Q: On St. Patrick’s Day 1992, Chambers Development Company, one

On St. Patrick’s Day 1992, Chambers Development Company, one of the largest landfill and waste management firms in the United States, announced that it had been improperly capitalizing costs associate...

Q: You recently graduated from college with your accounting degree. Your father’s

You recently graduated from college with your accounting degree. Your father’s best friend is the director of the accounting department of a small manufacturing firm in the area, and you accepted a po...

Q: Custom Industries purchases new specialized manufacturing equipment on July 1, 2013

Custom Industries purchases new specialized manufacturing equipment on July 1, 2013. The equipment cash price is $96,000. Custom signs a deferred payment contract that provides for a down payment of $...

Q: Cammo Company sold receivables (without recourse) for $53,

Cammo Company sold receivables (without recourse) for $53,000. Cammo received $50,000 cash immediately from the factor (the company to whom the receivables were sold). The remaining $3,000 will be rec...

Q: HiTech Industries purchases new electronic equipment for its telecommunication system. The

HiTech Industries purchases new electronic equipment for its telecommunication system. The contractual arrangement specifies 10 payments of $8,600 each to be made over a 10-year period. If HiTech had...

Q: Refer to Practice 7-15. Assume that Cammo received the

Refer to Practice 7-15. Assume that Cammo received the entire $53,000 in cash immediately. Also assume that the transfer of receivables did not satisfy the three conditions contained in FASB ASC parag...

Q: Refer to Practice 8-7. Assume that the company employs

Refer to Practice 8-7. Assume that the company employs the efforts-expended method of estimating the percentage of completion. In particular, the company measures its progress by the number of support...

Q: On May 31, 2013, Julienne Corp. exchanged 20,

On May 31, 2013, Julienne Corp. exchanged 20,000 shares of its $1 par common stock for the following assets: (a) A trademark valued at $183,000. (b) A building, including land, valued at $732,000 (20%...

Q: As payment for services rendered, the company received an 18-

As payment for services rendered, the company received an 18-month note on January 1. The face amount of the note is $6,000, and the stated rate of interest is 9%, compounded annually. The 9% rate is...

Q: Sayer Co. enters into a contract with Bradford Construction Co.

Sayer Co. enters into a contract with Bradford Construction Co. for construction of an office building at a cost of $680,000. Upon completion of construction, Bradford agrees to accept in full payment...