Questions from Intermediate Accounting


Q: Companies in the same line of business usually have similar investments and

Companies in the same line of business usually have similar investments and capital structures, and an opportunity for similar rates of return. One of the key performance indicators that is used to as...

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Q: Khalfan Industries would like to determine the fair value of its manufacturing

Khalfan Industries would like to determine the fair value of its manufacturing facility in London, Ontario. The facility consists of land, building, and manufacturing equipment. Instructions: (a) Ide...

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Q: Jaeco Corporation asks you to review its December 31, 2017 inventory

Jaeco Corporation asks you to review its December 31, 2017 inventory values and prepare the necessary adjustments to the books. The following information is given to you: 1. Jaeco uses the periodic me...

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Q: The following is a list of items that may or may not

The following is a list of items that may or may not be reported as inventory in J Soukas Corp.’s December 31 balance sheet: 1. Goods out on consignment at another company’s store 2. Goods sold on an...

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Q: In an annual audit of Solaro Company Limited, you find that

In an annual audit of Solaro Company Limited, you find that a physical inventory count on December 31, 2017, showed merchandise of $441,000. You also discover that the following items were excluded fr...

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Q: During 2017, Build it Furniture Limited purchased a railway car load

During 2017, Build it Furniture Limited purchased a railway car load of wicker chairs. The manufacturer of the chairs sold them to Build it for a lump sum of $59,850, because it was discontinuing manu...

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Q: At December 31, 2017, Igor Ltd. has outstanding non

At December 31, 2017, Igor Ltd. has outstanding non-cancellable purchase commitments for 32,500 litres of raw material at $2.00 per litre. The material will be used in Igor’s manufacturing process, an...

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Q: Salamander Limited makes the following errors during the current year. Each

Salamander Limited makes the following errors during the current year. Each error is an independent case. 1. Ending inventory is overstated by $1,020, but purchases are recorded correctly. 2. Both end...

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Q: Eureka Limited has a calendar-year accounting period. The following

Eureka Limited has a calendar-year accounting period. The following errors were discovered in 2017. 1. The December 31, 2015 merchandise inventory had been understated by $51,000. 2. Merchandise purch...

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Q: Transactions follow for Cassio Limited: March 10………………Purchased

Transactions follow for Cassio Limited: March 10………………Purchased goods billed at $40,000, terms 3/10, n/60. 11…………………………..Purchased goods billed at $25,000, terms 1/15, n/30. 19……………………………………………………………...

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