Questions from Intermediate Accounting

Q: Dingel Corporation has contracted with you to prepare a statement of cash

Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Additional data related to 2017 are as follows. 1. Equipment...

Q: Your firm has been engaged to examine the financial statements of Almaden

Your firm has been engaged to examine the financial statements of Almaden Corporation for the year 2017. The bookkeeper who maintains the financial records has prepared all the unaudited financial sta...

Q: Cineplex Corporation is a diversified company that operates in five different industries

Cineplex Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2018. Sales of segmen...

Q: Matheny Inc. went public 3 years ago. The board of

Matheny Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through t...

Q: On January 1, 2017, Irwin Animation sold a truck to

On January 1, 2017, Irwin Animation sold a truck to Peete Finance for $33,000 and immediately leased it back. The truck was carried on Irwin’s books at $28,000. The term of the lease is 5 years, and t...

Q: Glaus Leasing Company agrees to lease machinery to Jensen Corporation on January

Glaus Leasing Company agrees to lease machinery to Jensen Corporation on January 1, 2017. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal...

Q: Cleveland Inc. leased a new crane to Abriendo Construction under a

Cleveland Inc. leased a new crane to Abriendo Construction under a 5-year noncancelable contract starting January 1, 2017. Terms of the lease require payments of $33,000 each January 1, starting Janua...

Q: Winston Industries and Ewing Inc. enter into an agreement that requires

Winston Industries and Ewing Inc. enter into an agreement that requires Ewing Inc. to build three diesel-electric engines to Winston’s specifications. Upon completion of the engines, Winston has agree...

Q: Broussard Company reported net income of $3.5 million in

Broussard Company reported net income of $3.5 million in 2017. Depreciation for the year was $520,000, accounts receivable increased $500,000, and accounts payable increased $300,000. Compute net cash...

Q: Prior to 2017, Heberling Inc. excluded manufacturing overhead costs from

Prior to 2017, Heberling Inc. excluded manufacturing overhead costs from work in process and finished goods inventory. These costs have been expensed as incurred. In 2017, the company decided to chang...