Questions from Intermediate Accounting

Q: Referring to the revenue arrangement in BE6.9, determine the

Referring to the revenue arrangement in BE6.9, determine the transaction price for this contract, assuming (a) Nair is only able to estimate whether the building can be completed by August 1, 2020, or...

Q: On January 2, 2020, Adani Inc. sells goods to

On January 2, 2020, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with a face value of $11 ,000, with payment due in 12 months. The fair value of the goods at the...

Q: On March 1, 2020, Parnevik Company sold goods to Goosen

On March 1, 2020, Parnevik Company sold goods to Goosen Inc. for $660,000 in exchange for a five-year, zero-interest-bearing note in the face amount of $1,062,937. The goods have an inventory cost on...

Q: On July 10, 2020, Amodt Ltd. sold GPS systems

On July 10, 2020, Amodt Ltd. sold GPS systems to retailers on account for a selling price of $700,000 (cost $560,000). Amodt grants the right to return systems that do not sell in three months followi...

Q: Use the information for Amodt Ltd. in BE6.13 and

Use the information for Amodt Ltd. in BE6.13 and assume instead that the company follows ASPE. Follow the same instructions as in parts (a) and (b) in BE6.13. Data of BE6.13 On July 10, 2020, Amodt...

Q: Kristin Company sells 300 units of its products for $20 each

Kristin Company sells 300 units of its products for $20 each to Logan Inc. for cash. Kristin allows Logan to return any unused product within 30 days and receive a full refund. The cost of each produc...

Q: Manual Company sells goods to Nolan Company during 2020. It offers

Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 23. If...

Q: Hung-Chao Yu Company issues a six-year, 8

Hung-Chao Yu Company issues a six-year, 8% mortgage note on January 1, 2020, to obtain financing for new equipment. The terms provide for semi-annual instalment payments of $112,825. What were the cas...

Q: During February 2020, Master Massage Ltd. sells $10,

During February 2020, Master Massage Ltd. sells $10,000 of gift cards for Valentine's Day gifts. From reliable past experience, management estimates that 103 of the gift cards sold will not be redeeme...

Q: Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone

Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the pre...