Questions from Intermediate Accounting

Q: Explain the following terms. a. LIFO layer.

Explain the following terms. a. LIFO layer. b. LIFO reserve. c. LIFO effect.

Q: At the balance sheet date, Clarkson Company held title to goods

At the balance sheet date, Clarkson Company held title to goods in transit amounting to $214,000. This amount was omitted from the purchases figure for the year and also from the ending inventory. Wha...

Q: Distinguish among the following: (1) a general checking

Distinguish among the following: (1) a general checking account, (2) an imprest bank account, and (3) a lockbox account.

Q: Qualls Corporation reported 2017 earnings per share of $7.21

Qualls Corporation reported 2017 earnings per share of $7.21. In 2018, Qualls reported earnings per share as follows. On income from continuing operations……………$6.40 On discontinued operations……………………...

Q: Describe the estimation of the allowance, based on expected cash flows

Describe the estimation of the allowance, based on expected cash flows.

Q: The Kroger Company reported the following data in its annual report (

The Kroger Company reported the following data in its annual report (in millions). Instructions a. Compute Kroger’s inventory turnovers for fiscal years ending January 31, 2015, a...

Q: Harding Corporation has the following accounts included in its December 31,

Harding Corporation has the following accounts included in its December 31, 2017, trial balance: Accounts Receivable $110,000, Inventory $290,000, Allowance for Doubtful Accounts $8,000, Patents $72,0...

Q: Koch Corporation’s adjusted trial balance contained the following asset accounts at December

Koch Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2017: Cash $7,000, Land $40,000, Patents $12,500, Accounts Receivable $90,000, Prepaid Insurance $5,200...

Q: On July 1, 2017, Crowe Co. pays $15

On July 1, 2017, Crowe Co. pays $15,000 to Zubin Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. For Crowe Co., journalize the entry on July 1 and the...

Q: Using the data in BE3-3, journalize the entry on

Using the data in BE3-3, journalize the entry on July 1 and the adjusting entry on December 31 for Zubin Insurance Co. Zubin uses the accounts Unearned Service Revenue and Service Revenue. From BE3-3...