Questions from Intermediate Accounting

Q: The information below was disclosed during the audit of Elbert Inc.

The information below was disclosed during the audit of Elbert Inc. 1. Year _____Amount Due per Tax Return 2012 ……………………………………….……… $130,000 2013 …………………………………………………. 104,000 2. On January 1, 2012, e...

Q: On January 1, 2012, Cage Company contracts to lease equipment

On January 1, 2012, Cage Company contracts to lease equipment for 5 years, agreeing to make a payment of $137,899 (including the executory costs of $6,000) at the beginning of each year, starting Janu...

Q: On March 5, 2013, you were hired by Hemingway Inc

On March 5, 2013, you were hired by Hemingway Inc., a closely held company, as a staff member of its newly created internal auditing department. While reviewing the company’s records...

Q: Comparative balance sheet accounts of Sharpe Company are presented below.

Comparative balance sheet accounts of Sharpe Company are presented below. Additional data: 1. Equipment that cost $10,000 and was 60% depreciated was sold in 2012. 2. Cash dividends were declared an...

Q: Lemke Company sponsors a defined benefit pension plan for its employees.

Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2012 and 2013. Instructions (a) Prepare a pension worksh...

Q: On December 31, 2012, Shellhammer Co. sold 6-

On December 31, 2012, Shellhammer Co. sold 6-month-old equipment at fair value and leased it back. There was a loss on the sale. Shellhammer pays all insurance, maintenance, and taxes on the equipment...

Q: Nimble Health and Racquet Club (NHRC), which operates eight clubs

Nimble Health and Racquet Club (NHRC), which operates eight clubs in the Chicago metropolitan area, offers one-year memberships. The members may use any of the eight facilities but must reserve racque...

Q: The financial statements of Marks and Spencer plc (M&S

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://corporate.marksandspencer.com/documents/publications/2010/Annual_Repo...

Q: Use the information for Rick Kleckner Corporation from IFRS21-7.

Use the information for Rick Kleckner Corporation from IFRS21-7. Assume that at December 31, 2012, Kleckner made an adjusting entry to accrue interest expense of $29,530 on the lease. Prepare Kleckner...

Q: Bill Novak is working on an audit of an IFRS client.

Bill Novak is working on an audit of an IFRS client. In his review of the client’s interim reports, he notes that the reports are prepared on a discrete basis. That is, each interim report is viewed a...