Questions from Intermediate Accounting

Q: Esplanade Company was formed on December 1, 2011. The following

Esplanade Company was formed on December 1, 2011. The following information is available from Esplanade’s inventory records for Product BAP. A physical inventory on March 31, 2012,...

Q: Presented below is information related to radios for the Couples Company for

Presented below is information related to radios for the Couples Company for the month of July. Instructions (a) Assuming that the periodic inventory method is used, compute the inventory cost at Ju...

Q: Derek Lee just received a signing bonus of $1,000

Derek Lee just received a signing bonus of $1,000,000. His plan is to invest this payment in a fund that will earn 6%, compounded annually. Instructions (a) If Lee plans to establish the DL Foundatio...

Q: The following is a record of Cannondale Company’s transactions for Boston Teapots

The following is a record of Cannondale Company’s transactions for Boston Teapots for the month of May 2012. Instructions (a) Assuming that perpetual inventories are not maintained...

Q: The board of directors of Oksana Corporation is considering whether or not

The board of directors of Oksana Corporation is considering whether or not it should instruct the accounting department to change from a first-in, first out (FIFO) basis of pricing inventories to a la...

Q: You are the vice president of finance of Mickiewicz Corporation, a

You are the vice president of finance of Mickiewicz Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2012. These schedules appe...

Q: Tom Brady Shop began operations on January 2, 2012. The

Tom Brady Shop began operations on January 2, 2012. The following stock record card for footballs was taken from the records at the end of the year. A physical inventory on December 31, 2012, reveal...

Q: The following example was provided to encourage the use of the LIFO

The following example was provided to encourage the use of the LIFO method. In a nutshell, LIFO subtracts inflation from inventory costs, deducts it from taxable income, and records it in a LIFO reser...

Q: Belanna Corporation began operations on December 1, 2012. The only

Belanna Corporation began operations on December 1, 2012. The only inventory transaction in 2012 was the purchase of inventory on December 10, 2012, at a cost of $20 per unit. None of this inventory w...

Q: Sisko Company has used the dollar-value LIFO method for inventory

Sisko Company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Sisko’s records. Instructions Calculate...