Questions from Intermediate Accounting

Q: Some of the transactions of Torres Company during August are listed below

Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. August 10 Purchased merchandise on account, $12,000, terms 2/10, n/30. 13 Returned...

Q: Hull Company’s record of transactions concerning part X for the month of

Hull Company’s record of transactions concerning part X for the month of April was as follows. Instructions (a) Compute the inventory at April 30 on each of the following bases. As...

Q: Some of the information found on a detail inventory card for Slatkin

Some of the information found on a detail inventory card for Slatkin Inc. for the first month of operations is as follows. Instructions (a) From these data compute the ending inventory on each of th...

Q: Ehlo Company is a multiproduct firm. Presented below is information concerning

Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Instructions Compute cost of goods sold, assuming Ehlo uses: (a) Periodic system, FIF...

Q: The management of Tritt Company has asked its accounting department to describe

The management of Tritt Company has asked its accounting department to describe the effect upon the company’s financial position and its income statements of accounting for inventori...

Q: Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic

Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement: It can either make immediate payment of $3,500,000, or it can make annual payment...

Q: Norman’s Televisions produces television sets in three categories: portable, midsize

Norman’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2012, Norman adopted dollar-value LIFO and decided to use a singl...

Q: Jane Yoakam, president of Estefan Co., recently read an article

Jane Yoakam, president of Estefan Co., recently read an article that claimed that at least 100 of the country’s largest 500 companies were either adopting or considering adopting the last-in, first-ou...

Q: Harrisburg Company is considering changing its inventory valuation method from FIFO to

Harrisburg Company is considering changing its inventory valuation method from FIFO to LIFO because of the potential tax savings. However, the management wishes to consider all of the effects on the c...

Q: Wilkens Company uses the LIFO method for inventory costing. In an

Wilkens Company uses the LIFO method for inventory costing. In an effort to lower net income, company president Lenny Wilkens tells the plant accountant to take the unusual step of recommending to the...