Questions from Intermediate Accounting

Q: Krebsbach Company is negotiating a loan with FIS Bank. Krebsbach needs

Krebsbach Company is negotiating a loan with FIS Bank. Krebsbach needs $900,000. As part of the loan agreement, FIS Bank will require Krebsbach to maintain a compensating balance of 15% of the loan am...

Q: As of December 31, 2013, W. W. Cole

As of December 31, 2013, W. W. Cole Company’s total assets were $325 million and total liabilities were $180 million. Net income for 2013 was $38 million. During 2013, W. W. Cole’s chief executive off...

Q: The cash account of Abstract, Inc., disclosed a balance of

The cash account of Abstract, Inc., disclosed a balance of $16,348.82 on October 31. The bank statement as of October 31 showed a balance of $19,711.75. Upon comparing the statement with the cash reco...

Q: Using the following information, prepare a complete statement of cash flows

Using the following information, prepare a complete statement of cash flows. (a) Cash balance, beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q: Trevor Company completed a program of expansion and improvement of its plant

Trevor Company completed a program of expansion and improvement of its plant during 2013. You are provided with the following information concerning its buildings account: (a) On October 31, 2013, a 5...

Q: The following data were taken from Tyrone Tardieff’s check register for the

The following data were taken from Tyrone Tardieff’s check register for the month of April. Tyrone’s bank reconciliation for March showed one outstanding check, Che...

Q: Beecher’s Boston Barbeque Company purchased a customer list and an ongoing research

Beecher’s Boston Barbeque Company purchased a customer list and an ongoing research project for a total of $300,000. Beecher uses the expected cash flow approach for estimating the fair value of these...

Q: On July 1, 2013, McEnroe Company used receivables totaling $

On July 1, 2013, McEnroe Company used receivables totaling $150,000 as collateral on a $100,000, 15% note from Standard One Bank. The transaction is not structured such that receivables are being sold...

Q: Progressive Company reported the following asset values in 2012 and 2013:

Progressive Company reported the following asset values in 2012 and 2013: In addition, in 2013, Progressive had sales of $4,800,000; cost of goods sold for the year was $2,900,000. As of the end of...

Q: During its second year of operations, Shank Corporation found itself in

During its second year of operations, Shank Corporation found itself in financial difficulties. Shank decided to use its accounts receivable as a means of obtaining cash to continue operations. On Jul...