Questions from Intermediate Accounting

Q: Bluebell Enterprises Ltd.'s records reported an inventory cost of $

Bluebell Enterprises Ltd.'s records reported an inventory cost of $55,600 and a net realizable value of $54,000 at December 31, 2018. At December 31, 2019, the records indicated a cost of $68, 700 and...

Q: Farmer Brown Industries Inc. is in the business of producing organic

Farmer Brown Industries Inc. is in the business of producing organic foods for sale to restaurants and in local markets. The company uses IFRS and has a June 30 fiscal year end. As an experiment, the...

Q: Soon after December 31, 2020, the auditor of Morino Manufacturing

Soon after December 31, 2020, the auditor of Morino Manufacturing Corp. asked the company to prepare a depreciation schedule for semitrucks that showed the additions, retirements, depreciation, and ot...

Q: a. Briefly explain the criteria that have to be met for

a. Briefly explain the criteria that have to be met for inventory to be recorded at an amount greater than cost. b. Briefly explain the accounting for the following inventory items under ASPE: 1. Shee...

Q: Valued Assets Inc., a publicly listed company, has a building

Valued Assets Inc., a publicly listed company, has a building with an initial cost of $400,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $110,000. The fair v...

Q: Use the information for Valued Assets Inc. from BEl0.18

Use the information for Valued Assets Inc. from BEl0.18. On January 5, 2021, Valued sold the building for $325,000 cash. Prepare the journal entries to record the sale of the building after having use...

Q: Identify whether the following costs should be treated as a capital expenditure

Identify whether the following costs should be treated as a capital expenditure or revenue expenditure when they are incurred. a. $13,000 paid to rearrange and reinstall machinery b. $400 paid for a t...

Q: On May 10, 2020, Cosmo Co. enters into a

On May 10, 2020, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full price of $2,000 on July 15, 2020. The cost of goods is $1,300. Cosmo...

Q: Talarczyk Company sold 10,000 Super Spreaders on July 1,

Talarczyk Company sold 10,000 Super Spreaders on July 1, 2020, at a total price of $1 million, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $55...

Q: Nair Corp. enters into a contract with a customer to build

Nair Corp. enters into a contract with a customer to build an apartment building for $1 million. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonu...