Questions from Intermediate Accounting

Q: Morgan Sondgeroth Inc. began operations in January 2015 and reported the

Morgan Sondgeroth Inc. began operations in January 2015 and reported the following results for each of its 3 years of operations. At December 31, 2017, Morgan Sondgeroth Inc. capital accounts were a...

Q: Twenty-five thousand shares reacquired by Elixir Corporation for $53

Twenty-five thousand shares reacquired by Elixir Corporation for $53 per share were exchanged for undeveloped land that has an appraised value of $1,700,000. At the time of the exchange, the common st...

Q: On June 30, 2017, your client, Ferry Company,

On June 30, 2017, your client, Ferry Company, was granted two patents covering plastic cartons that it had been producing and marketing profitably for the past 3 years. One patent covers the manufactu...

Q: Faith Evans Corporation is a regional company which is an SEC registrant

Faith Evans Corporation is a regional company which is an SEC registrant. The corporation’s securities are thinly traded on NASDAQ. Faith Evans Corp. has issued 10,000 units. Each unit consists of a $...

Q: Dave Matthew Inc. issues 500 shares of $10 par value

Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $100,000. Instructions a. Prepare the journal entry for the issua...

Q: Lindsey Hunter Corporation is authorized to issue 50,000 shares of

Lindsey Hunter Corporation is authorized to issue 50,000 shares of $5 par value common stock. During 2017, Lindsey Hunter took part in the following selected transactions. 1. Issued 5,000 shares of st...

Q: Pistons Inc. recently hired a new accountant with extensive experience in

Pistons Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned e...

Q: Otis Thorpe Corporation has 10,000 shares of $100 par

Otis Thorpe Corporation has 10,000 shares of $100 par value, 8%, preferred stock and 50,000 shares of $10 par value common stock outstanding at December 31, 2017. Instructions Answer the questions i...

Q: Presented below are various account balances of K.D. Lang

Presented below are various account balances of K.D. Lang Inc. a. Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year. b. Bank loans payable of a winery, due...

Q: Rembrandt Company acquired a plant asset at the beginning of Year 1

Rembrandt Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three diff...