Questions from Intermediate Accounting

Q: Assume the bonds in BE14-2 were issued at 98.

Assume the bonds in BE14-2 were issued at 98. Prepare the journal entries for a. January 1, b. July 1, and c. December 31. Assume The Colson Company records straight-line amortization semiannually...

Q: On April 1, 2017, Gloria Estefan Company received a condemnation

On April 1, 2017, Gloria Estefan Company received a condemnation award of $430,000 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new state h...

Q: Wilco Corporation has the following account balances at December 31, 2017

Wilco Corporation has the following account balances at December 31, 2017. Share capital—ordinary, $5 par value……. $ 510,000 Treasury shares………………………………………..90,000 Retained earnings………………………………2,340,0...

Q: Brooks Corporation sells computers under a 2-year warranty contract that

Brooks Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2017, the corporation sel...

Q: Romo Company spent $190,000 developing a new process,

Romo Company spent $190,000 developing a new process, $45,000 in legal fees to obtain a patent, and $91,000 to market the process that was patented, all in the year 2017. How should these costs be acc...

Q: A building that was purchased on December 31, 2003, for

A building that was purchased on December 31, 2003, for $2,500,000 was originally estimated to have a life of 50 years with no salvage value at the end of that time. Depreciation has been recorded thr...

Q: A fire destroys all of the merchandise of Assante Company on February

A fire destroys all of the merchandise of Assante Company on February 10, 2017. Presented below is information compiled up to the date of the fire. Inventory, January 1, 2017……………………….$ 400,000 Sales...

Q: Andrea Torbert purchased a computer for $8,000 on July

Andrea Torbert purchased a computer for $8,000 on July 1, 2017. She intends to depreciate it over 4 years using the double-declining-balance method. Salvage value is $1,000. Compute depreciation for 2...

Q: Crowe Company purchased a heavy-duty truck on July 1,

Crowe Company purchased a heavy-duty truck on July 1, 2014, for $30,000. It was estimated that it would have a useful life of 10 years and then would have a trade-in value of $6,000. The company uses...

Q: Pierre Company has a 12% note payable with a carrying value

Pierre Company has a 12% note payable with a carrying value of $20,000. Pierre applies the fair value option to this note. Given an increase in market interest rates, the fair value of the note is $22...