Questions from Intermediate Accounting

Q: Midwest Enterprises made the following entry on December 31, 2012.

Midwest Enterprises made the following entry on December 31, 2012. What entry would Anaheim National Bank make regarding its outstanding loan to Midwest Enterprises? Explain why this must be the cas...

Q: Distinguish between cash-basis accounting and accrual-basis accounting.

Distinguish between cash-basis accounting and accrual-basis accounting. Why is accrual-basis accounting acceptable for most business enterprises and the cash-basis unacceptable in the preparation of a...

Q: Indicate whether each of the items below is a real or nominal

Indicate whether each of the items below is a real or nominal account and whether it appears in the balance sheet or the income statement. (a) Prepaid Rent. (b) Salaries and Wages Payable. (c) Invento...

Q: Assume that on February 1, Procter & Gamble (P&

Assume that on February 1, Procter & Gamble (P&G) paid $720,000 in advance for 2 years’ insurance coverage. Prepare P&G’s February 1 journal entry and the annual adjusting entry on June 30.

Q: Dresser Company’s weekly payroll, paid on Fridays, totals $8

Dresser Company’s weekly payroll, paid on Fridays, totals $8,000. Employees work a 5-day week. Prepare Dresser’s adjusting entry on Wednesday, December 31, and the journal entry to record the $8,000 c...

Q: On July 1, 2012, Crowe Co. pays $15

On July 1, 2012, Crowe Co. pays $15,000 to Zubin Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. For Crowe Co., journalize the entry on July 1 and the...

Q: Discuss the appropriate treatment in the income statement for the following items

Discuss the appropriate treatment in the income statement for the following items: (a) Loss on discontinued operations. (b) Non-controlling interest allocation.

Q: Using the data in BE3-3, journalize the entry on

Using the data in BE3-3, journalize the entry on July 1 and the adjusting entry on December 31 for Zubin Insurance Co. Zubin uses the accounts Unearned Service Revenue and Service Revenue. In BE3-3 O...

Q: When the accounts of Constantine Inc. are examined, the adjusting

When the accounts of Constantine Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period. 1. The prepaid insurance account shows a debit of...

Q: Presented below are selected accounts for Acevedo Company as reported in the

Presented below are selected accounts for Acevedo Company as reported in the worksheet at the end of May 2012. Instructions Complete the worksheet by extending amounts reported in the adjusted trial...