Questions from Intermediate Accounting

Q: Presented below are four revenue recognition situations. I. Grupo

Presented below are four revenue recognition situations. I. Grupo sells goods to MTN for $1 million, payment due at delivery. 2. Grupo sells goods on account to Grifols for $800,000, payment due in 30...

Q: Blair Biotech enters into a licensing agreement with Pang Pharmaceutical for a

Blair Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Blair will receive a payment of $10,000 if the drug receives regulatory approval. Based on prior...

Q: Aaron's Agency sells an insurance policy offered by Capital Insurance Company for

Aaron's Agency sells an insurance policy offered by Capital Insurance Company for a commission of $100. In addition, Aaron will receive a further commission of $10 each year for as long as the policyh...

Q: Organic Growth Company is testing a number of new agricultural seeds that

Organic Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant five of its largest customers the unconditional righ...

Q: Uddin Publishing Co. publishes college textbooks that are sold to bookstores

Uddin Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days aft...

Q: The controller for Fashion Co. is trying to determine the amount

The controller for Fashion Co. is trying to determine the amount of cash to report on the December 31, 2020 statement of financial position. The following information is provided: 1. A commercial savi...

Q: Several of Kimper Corporation's major customers experienced cash flow problems in 2020

Several of Kimper Corporation's major customers experienced cash flow problems in 2020, mainly due to their increasing labour and production costs in 2019 and 2020. As a result, Kimper's accounts rece...

Q: Chessman Corporation factors $600,000 of accounts receivable with Liquidity

Chessman Corporation factors $600,000 of accounts receivable with Liquidity Financing, Inc. on a with recourse basis. Liquidity Financing will collect the receivables. The receivable records are trans...

Q: Lute Retail Ltd. Follows ASPE. It transfers $355,

Lute Retail Ltd. Follows ASPE. It transfers $355,000 of its accounts receivable to an independent trust in a securitization transaction on July 11, 2020, receiving 96% of the receivables balance as pr...

Q: The Becker Milk Company Limited, a real estate and investment management

The Becker Milk Company Limited, a real estate and investment management company, reports the following information in its financial statements for the years ended April 30, 2017, 2016, and 2015: In...