Questions from Intermediate Accounting

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, management wishes to consider all of the effects on the compa...

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

Crane Corporation has the following accounts included in its December 31, 2017, trial balance: Equity Investments (trading) $21,000, Goodwill $150,000, Prepaid Insurance $12,000, Patents $220,000, and...

Q: During 2017, Williamson Company changed from FIFO to weighted-average

During 2017, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2016 and 2015 (Williamson’s first year of operations) under FIFO was $160,000 and $180,000, re...

Q: Vandross Company has recorded bad debt expense in the past at a

Vandross Company has recorded bad debt expense in the past at a rate of 1½% of accounts receivable, based on an aging analysis. In 2017, Vandross decides to increase its estimate to 2%. If the new rat...

Q: Included in Gonzalez Company’s December 31 trial balance is a note receivable

Included in Gonzalez Company’s December 31 trial balance is a note receivable of $12,000. The note is a 4-month, 10% note dated October 1. Prepare Gonzalez’s December 31 adjusting entry to record $300...

Q: Portman Corporation has retained earnings of $675,000 at January

Portman Corporation has retained earnings of $675,000 at January 1, 2017. Net income during 2017 was $1,400,000, and cash dividends declared and paid during 2017 totaled $75,000. Prepare a retained ea...

Q: Identify which basic principle of accounting is best described in each item

Identify which basic principle of accounting is best described in each item below. a. Norfolk Southern Corporation reports revenue in its income statement when the performance obligation is satisfied...

Q: Vande Velde Company made three investments during 2017. (1

Vande Velde Company made three investments during 2017. (1) It purchased 1,000 shares of Sastre Company, a start-up company. Vande Velde made the investment based on valuation estimates from an inter...

Q: Kelly Company had cash receipts from customers in 2017 of $142

Kelly Company had cash receipts from customers in 2017 of $142,000. Cash payments for operating expenses were $97,000. Kelly has determined that at January 1, accounts receivable was $13,000, and prep...

Q: Side Kicks has year-end account balances of Sales Revenue $

Side Kicks has year-end account balances of Sales Revenue $808,900, Interest Revenue $13,500, Cost of Goods Sold $556,200, Administrative Expenses $189,000, Income Tax Expense $35,100, and Dividends $...