Questions from Intermediate Accounting

Q: During 2012, Williamson Company changed from FIFO to weighted-average

During 2012, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2011 and 2010 (Williamson’s first year of operations) under FIFO was $160,000 and $180,000, re...

Q: Briefly describe how the organization of the FASB Codification corresponds to the

Briefly describe how the organization of the FASB Codification corresponds to the elements of financial statements.

Q: Vandross Company has recorded bad debt expense in the past at a

Vandross Company has recorded bad debt expense in the past at a rate of 1½% of net sales. In 2012, Vandross decides to increase its estimate to 2%. If the new rate had been used in prior years, cumula...

Q: In 2012, Hollis Corporation reported net income of $1,

In 2012, Hollis Corporation reported net income of $1,000,000. It declared and paid preferred stock dividends of $250,000. During 2012, Hollis had a weighted average of 190,000 common shares outstandi...

Q: The stockholders’ equity section of Sosa Corporation appears below as of December

The stockholders’ equity section of Sosa Corporation appears below as of December 31, 2012. Net income for 2012 reflects a total effective tax rate of 34%. Included in the net inco...

Q: Presented below are selected ledger accounts of Woods Corporation at December 31

Presented below are selected ledger accounts of Woods Corporation at December 31, 2012. Woods’s effective tax rate on all items is 34%. A physical inventory indicates that the endi...

Q: McEntire Corporation began operations on January 1, 2009. During its

McEntire Corporation began operations on January 1, 2009. During its first 3 years of operations, McEntire reported net income and declared dividends as follows. The following information relates to...

Q: At December 31, 2011, Schroeder Corporation had the following stock

At December 31, 2011, Schroeder Corporation had the following stock outstanding. 8% cumulative preferred stock, $100 par, 107,500 shares ………………………. $10,750,000 Common stock, $5 par, 4,000,000 shares …...

Q: Zehms Company began operations in 2010 and adopted weighted-average pricing

Zehms Company began operations in 2010 and adopted weighted-average pricing for inventory. In 2012, in accordance with other companies in its industry, Zehms changed its inventory pricing to FIFO. The...

Q: Armstrong Corporation reported the following for 2012: net sales $1

Armstrong Corporation reported the following for 2012: net sales $1,200,000; cost of goods sold $720,000; selling and administrative expenses $320,000; and an unrealized holding gain on available-for-...