Questions from Intermediate Accounting

Q: Stafford Company purchased Deaver Manufacturing for $1,400,000

Stafford Company purchased Deaver Manufacturing for $1,400,000 cash on January 1. The book value and fair value of the assets of Deaver as of the date of the acquisition follow: In addition, Deaver...

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: Refer to Practice 7-15. Assume that the sale of

Refer to Practice 7-15. Assume that the sale of the receivables was done with recourse. The estimated value of the recourse obligation is $1,300. Make the journal entry necessary on Cammo’s books to r...

Q: Sales for the year were $400,000. The Accounts

Sales for the year were $400,000. The Accounts Receivable balance was $50,000 at the beginning of the year and $65,000 at the end of the year. Compute the average collection period using (1) The avera...

Q: Buyer Company purchased Target Company for $800,000 cash.

Buyer Company purchased Target Company for $800,000 cash. Target Company had total liabilities of $300,000. Buyer Company’s assessment of the fair values it obtained when it purchased Target Company i...

Q: Using the following information, compute the cash balance.

Using the following information, compute the cash balance. Restricted deposits in foreign bank accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,200 Cash overdraf...

Q: Company A had sales for the year totaling $480,000

Company A had sales for the year totaling $480,000. The net property, plant, and equipment balance at the beginning of the year was $160,000; the ending balance was $200,000. Compute the fixed asset t...

Q: The company paid $750,000 to buy a collection of

The company paid $750,000 to buy a collection of assets. The assets had the following appraised values: Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q: Because of the extreme deterioration in the financial condition of a customer

Because of the extreme deterioration in the financial condition of a customer, the customer’s account in the amount of $7,500 was written off as uncollectible on July 23. By November 1, the customer’s...

Q: In exchange for land, the company received a 12-month

In exchange for land, the company received a 12-month note on January 1. The face amount of the note is $2,000, and the stated rate of interest is 12%, compounded annually. The 12% rate is equal to th...