Questions from Intermediate Accounting

Q: Consolidated Natural Gas Company (CNG), with corporate headquarters in Pittsburgh

Consolidated Natural Gas Company (CNG), with corporate headquarters in Pittsburgh, Pennsylvania, is one of the largest producers, transporters, distributors, and marketers of natural gas in North Amer...

Q: Hanson Company (see BE10-2) borrowed $1,

Hanson Company (see BE10-2) borrowed $1,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,000,0...

Q: On September 1, 2012, Winans Corporation acquired Aumont Enterprises for

On September 1, 2012, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At the time of purchase, Aumont’s balance sheet showed assets of $620,000, liabilities of $200,000,...

Q: Jurassic Company owns machinery that cost $900,000 and has

Jurassic Company owns machinery that cost $900,000 and has accumulated depreciation of $380,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair valu...

Q: Kawasaki Company shows the following entries in its Equipment account for 2013

Kawasaki Company shows the following entries in its Equipment account for 2013. All amounts are based on historical cost. Instructions (a) Prepare any correcting entries necessary. (b) Assuming that...

Q: On March 10, 2014, No Doubt Company sells equipment that

On March 10, 2014, No Doubt Company sells equipment that it purchased for $240,000 on August 20, 2007. It was originally estimated that the equipment would have a life of 12 years and a salvage value...

Q: Presented below is information related to equipment owned by Pujols Company at

Presented below is information related to equipment owned by Pujols Company at December 31, 2012. Cost …………….………………………………………….. $9,000,000 Accumulated depreciation to date ……………….. 1,000,000 Expected...

Q: Assume the same information as E11-16, except that Pujols

Assume the same information as E11-16, except that Pujols intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,000. In E11-16 Presented below i...

Q: The management of Sprague Inc. was discussing whether certain equipment should

The management of Sprague Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $900,000 with depr...

Q: Hernandez Timber Company owns 9,000 acres of timberland purchased in

Hernandez Timber Company owns 9,000 acres of timberland purchased in 2001 at a cost of $1,400 per acre. At the time of purchase, the land without the timber was valued at $400 per acre. In 2002, Herna...