Questions from Intermediate Accounting


Q: Sung Corporation, a manufacturer of steel products, began operations on

Sung Corporation, a manufacturer of steel products, began operations on October 1, 2019. Sung's accounting department has begun to prepare the capital asset and depreciation schedule that follows. You...

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Q: Ducharme Corporation purchased electrical equipment at a cost of $12,

Ducharme Corporation purchased electrical equipment at a cost of $12,400 on June 2, 2017. From 2017 through 2020, the equipment was depreciated on a straight-line basis, under the assumption that it w...

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Q: Alladin Company purchased a large piece of equipment on October 1,

Alladin Company purchased a large piece of equipment on October 1, 2020. The following information relating to the equipment was gathered at the end of October: It is expected that the equipment could...

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Q: Odyssey Ltd. purchased machinery on January 1, 2020, for

Odyssey Ltd. purchased machinery on January 1, 2020, for $60,000. The machinery is estimated to have a residual value of $6,000 after a useful life of eight years. (a) Calculate the 2020 depreciation...

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Q: On June 15, 2017, a second-hand machine was

On June 15, 2017, a second-hand machine was purchased for $77,000. Before being put into service, the equipment was overhauled at a cost of $5,200, and additional costs of $400 for direct material an...

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Q: Comco Tool Corp. records depreciation annually at the end of the

Comco Tool Corp. records depreciation annually at the end of the year. Its policy is to take a full year's depreciation on all assets that are used throughout the year and depreciation for half a yea...

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Q: On January 1, 2018, Dayan Corporation, a small manufacturer

On January 1, 2018, Dayan Corporation, a small manufacturer of machine tools, acquired new industrial equipment for $1.1 million. The new equipment had a useful life of five years and the residual va...

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Q: Linda Monkland established Monkland Ltd. in mid-2019 as the

Linda Monkland established Monkland Ltd. in mid-2019 as the sole shareholder. The accounts on June 30, 2020, the company's year end, just prior to preparing the required adjusting entries, were as fo...

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Q: On April 30, 2020, Oceanarium Corporation ordered a new passenger

On April 30, 2020, Oceanarium Corporation ordered a new passenger ship, which was delivered to the designated cruise port and available for use as of June 30, 2020. Overall, the cost of the ship was...

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Q: Guiglano Inc. is a large, publicly held corporation. The

Guiglano Inc. is a large, publicly held corporation. The following are six selected expenditures that were made by the company during the fiscal year ended April 30, 2020. The proper accounting treatm...

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