Questions from Intermediate Accounting

Q: The first audit of the books of Bruce Gingrich Company was made

The first audit of the books of Bruce Gingrich Company was made for the year ended December 31, 2018. In examining the books, the auditor found that certain items had been overlooked or incorrectly ha...

Q: Michaels Company had available at the end of 2017 the following information

Michaels Company had available at the end of 2017 the following information. Instructions Prepare a statement of cash flows for Michaels Company using the direct method accompanied by a reconciliat...

Q: At January 1, 2017, Beidler Company reported retained earnings of

At January 1, 2017, Beidler Company reported retained earnings of $2,000,000. In 2017, Beidler discovered that 2016 depreciation expense was understated by $400,000. In 2017, net income was $900,000 a...

Q: Gordon Company started operations on January 1, 2012, and has

Gordon Company started operations on January 1, 2012, and has used the FIFO method of inventory valuation since its inception. In 2018, it decides to switch to the average-cost method. You are provide...

Q: Below is the net income of Anita Ferreri Instrument Co., a

Below is the net income of Anita Ferreri Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. Instructions (Ignore tax considerations.) a. Ass...

Q: Kathleen Cole Inc. acquired the following assets in January of 2015

Kathleen Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5 years; salvage value, $15,000………$525,000 Building, estimated service life, 30 years; no salva...

Q: Presented below are the comparative income and retained earnings statements for Denise

Presented below are the comparative income and retained earnings statements for Denise Habbe Inc. for the years 2017 and 2018. The following additional information is provided: 1. In 2018, Denise H...

Q: Following are selected balance sheet accounts of Allman Bros. Corp.

Following are selected balance sheet accounts of Allman Bros. Corp. at December 31, 2017 and 2016, and the increases or decreases in each account from 2016 to 2017. Also presented is selected income s...

Q: On January 1, 2017, Burke Corporation signed a 5-

On January 1, 2017, Burke Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Burke to make annual payments of $8,668 at the beginning of each year, starti...

Q: Pam Erickson Construction Company changed from the completed-contract to the

Pam Erickson Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2018. For tax purposes, the compa...