Questions from Intermediate Accounting

Q: The statement of financial position of Alice Inc. at December 31

The statement of financial position of Alice Inc. at December 31, 2016, includes the following: Transactions in 2017 include the following: 1. Accounts receivable of $146,000 were collected. This am...

Q: On October 1, 2017, Healy Farm Equipment Corp. sold

On October 1, 2017, Healy Farm Equipment Corp. sold a harvesting machine to Homestead Industries. Instead of a cash payment, Homestead Industries gave Healy Farm Equipment a $150,000, two-year, 10% no...

Q: Lian Tang, HK Corporation’s controller, is concerned that net income

Lian Tang, HK Corporation’s controller, is concerned that net income may be lower this year. He is afraid that upper-level management might recommend cost reductions by laying off accounting staff, hi...

Q: On December 31, 2017, Zhang Ltd. rendered services to

On December 31, 2017, Zhang Ltd. rendered services to Beggy Corp. at an agreed price of $91,844.10. In payment, Zhang accepted $36,000 cash and agreed to receive the balance in four equal installments...

Q: Desrosiers Ltd. had the following long-term receivable account balances

Desrosiers Ltd. had the following long-term receivable account balances at December 31, 2016: Notes receivable……………………………………….$1,800,000 Notes receivable—Employees………………………..400,000 Transactions dur...

Q: The following independent situations relate to inventory accounting: 1.

The following independent situations relate to inventory accounting: 1. Kessel Co. purchased goods with a list price of $175,000 and a trade discount of 20% based on the quantity purchased, with terms...

Q: Logo Limited follows ASPE. It manufactures sweatshirts for sale to athletic

Logo Limited follows ASPE. It manufactures sweatshirts for sale to athletic-wear retailers. The following summary information was available for Logo for the year ended December 31, 2016: Cash……………………...

Q: Sier Specialty Corp., a division of FH Inc., manufactures three

Sier Specialty Corp., a division of FH Inc., manufactures three models of bicycle gearshift components that are sold to bicycle manufacturers, retailers, and catalogue outlets. Since beginning operati...

Q: The Eserine Wood Corporation manufactures desks. Most of the company’s desks

The Eserine Wood Corporation manufactures desks. Most of the company’s desks are standard models that are sold at catalogue prices. At December 31, 2017, the following finished desks...

Q: The records for the Clothing Department of Danny’s Discount Store are summarized

The records for the Clothing Department of Danny’s Discount Store are summarized below for the month of January. Inventory, January 1: at retail $25,000; at cost $17,000 Purchases in January: at retai...