Questions from Intermediate Accounting

Q: Volumetrics Corporation owns machinery that cost $20,000 when purchased

Volumetrics Corporation owns machinery that cost $20,000 when purchased on January 1, 2020. Depreciation has been recorded at a rate of $3,000 per year, resulting in a balance in accumulated depreciat...

Q: Dev Equipment Corp. usually closes its books on December 31,

Dev Equipment Corp. usually closes its books on December 31, but at the end of 2020 it held its cash book open so that a more favorable statement of financial position could be prepared for credit pur...

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, 2019: Part 1 Duri...

Q: In 2020, Ibran Corp. required additional cash for its business

In 2020, Ibran Corp. required additional cash for its business. Management decided to use accounts receivable to raise the additional cash and has asked you to determine the income statement effects o...

Q: The Cormier Corporation sells office equipment and supplies to many organizations in

The Cormier Corporation sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of 2/10, n/30. In the past, over 75% of the credit customers have t...

Q: The Patchwork Corporation manufactures sweaters for sale to athletic-wear retailers

The Patchwork Corporation manufactures sweaters for sale to athletic-wear retailers. The following information was available on Patchwork for the years ended December 31, 2019 and 2020: During 2020,...

Q: Joseph Kiuvik is reviewing the cash accounting for Connolly Corporation, a

Joseph Kiuvik is reviewing the cash accounting for Connolly Corporation, a local mailing service. Joseph's review will focus on the petty cash account and the bank reconciliation for the month ended M...

Q: The cash account of Villa Corp. shows a ledger balance of

The cash account of Villa Corp. shows a ledger balance of $3,969.85 on June 30, 2020. The bank statement as at that date shows a balance of $4,150. When the statement was compared with the cash record...

Q: Information follows for Quartz Industries Ltd.: /

Information follows for Quartz Industries Ltd.: Additional information: 1. One June 26 transactions were for bank service charges. 2. One June 30 transactions was a bank debit memo for $1,050.00 f...

Q: A series of unrelated situations follow for several companies that use ASPE

A series of unrelated situations follow for several companies that use ASPE: 1. Atlantic Inc.'s unadjusted trial balance at December 31, 2020, included the following accounts: 2. An analysis and agi...