Questions from Intermediate Accounting

Q: Elliott Corp. failed to record accrued salaries for 2016, $

Elliott Corp. failed to record accrued salaries for 2016, $2,000; 2017, $2,100; and 2018, $3,900. What is the amount of the overstatement or understatement of Retained Earnings at December 31, 2019?

Q: During 2017, Simms Company redeemed $2,000,000

During 2017, Simms Company redeemed $2,000,000 of bonds payable for $1,880,000 cash. Indicate how this transaction would be reported on a statement of cash flows, if at all.

Q: An entry to record Purchases and related Accounts Payable of $13

An entry to record Purchases and related Accounts Payable of $13,000 for merchandise purchased on December 23, 2018, was recorded in January 2019. This merchandise was not included in inventory at Dec...

Q: Equipment was purchased on January 2, 2017, for $24

Equipment was purchased on January 2, 2017, for $24,000, but no portion of the cost has been charged to depreciation. The corporation wishes to use the straight-line method for these assets, which hav...

Q: At December 31, 2017, Coburn Corp. has assets of

At December 31, 2017, Coburn Corp. has assets of $10,000,000, liabilities of $6,000,000, common stock of $2,000,000 (representing 2,000,000 shares of $1 par common stock), and retained earnings of $2,...

Q: Goring Dairy leases its milking equipment from King Finance Company under the

Goring Dairy leases its milking equipment from King Finance Company under the following lease terms. 1. The lease term is 10 years, noncancelable, and requires equal rental payments of $30,300 due at...

Q: In preparation for significant expansion of its international operations, ABC Co

In preparation for significant expansion of its international operations, ABC Co. has adopted a plan to gradually shift to the same accounting methods as used by its international competitors. Part of...

Q: The income statement for the year ended December 31, 2017,

The income statement for the year ended December 31, 2017, for Laskowski Manufacturing Company contains the following condensed information. Included in operating expenses is a $24,000 loss resultin...

Q: Savannah, Inc. is a company that manufactures and sells a

Savannah, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2017 are projected as follows. Quarter…………………Units First…………………..80,000 Second………...

Q: Salaur Company is evaluating a lease arrangement being offered by TSP Company

Salaur Company is evaluating a lease arrangement being offered by TSP Company for use of a computer system. The lease is noncancelable, and in no case does Salaur receive title to the computers during...