Questions from Intermediate Accounting


Q: On the last day of its fiscal year ending December 31,

On the last day of its fiscal year ending December 31, 2021, the Sedgwick & Reams (S&R) Glass Company completed two financing arrangements. The funds provided by these initiatives will allow the compa...

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Q: On September 30, 2021, Athens Software began developing a software

On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and th...

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Q: Johnstone Company is facing several decisions regarding investing and financing activities.

Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. 1. On June 30, 2021, the Johnstone Company purchased equipment from Gen...

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Q: On January 1, 2021, the Montgomery Company agreed to purchase

On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $25,000 each, and will be paid on December 31, 2021, 2022, and 2023. The last...

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Q: On January 1, 2021, The Barrett Company purchased merchandise from

On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a noninterest bearing note requiring five annual payments of $20,000 on each December 31 beginning on Decembe...

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Q: Fit & Slim (F&S) is a health club

Fit & Slim (F&S) is a health club that offers members various gym services. Required: 1. Assume F&S offers a deal whereby enrolling in a new membership for $700 provides a year of unlimited access to...

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Q: In 2021, the Westgate Construction Company entered into a contract to

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as...

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Q: Complete the requirements of P 6–10 assuming that Westgate Construction’s

Complete the requirements of P 6–10 assuming that Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time. Data...

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Q: Curtiss Construction Company, Inc., entered into a fixed-price

Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2021, to construct a four-story office building. At that time, Curtiss estimated that it woul...

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Q: Citation Builders, Inc., builds office buildings and single-family

Citation Builders, Inc., builds office buildings and single-family homes. The office buildings are constructed under contract with reputable buyers. The homes are constructed in developments ranging f...

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