Questions from Intermediate Accounting

Q: Clayton Company exchanged a used machine with a book value of $

Clayton Company exchanged a used machine with a book value of $26,000 (cost $54,000 less $28,000 accumulated depreciation) and cash of $8,000 for a delivery truck. The machine is estimated to have a f...

Q: Clarke Company traded a used mixing machine for a new model.

Clarke Company traded a used mixing machine for a new model. The used machine has a book value of $11,000 (cost $32,000 less $21,000 accumulated depreciation) and a fair market value of $8,000. The ne...

Q: Brown Company contracts with Sebastian Company to exchange refrigerated trucks. Brown

Brown Company contracts with Sebastian Company to exchange refrigerated trucks. Brown Company will trade three SMC trucks for four DROF trucks owned by Sebastian Company. The trucks are approximately...

Q: Brown Company contracts with Sebastian Company to exchange refrigerated trucks. Brown

Brown Company contracts with Sebastian Company to exchange refrigerated trucks. Brown Company will trade three SMC trucks for four DROF trucks owned by Sebastian Company. The DROF refrigerated trucks...

Q: Assume that Sebastian Company from E11-38 reports under IFRS.

Assume that Sebastian Company from E11-38 reports under IFRS. Prepare the journal entry to record the exchange on the books of Sebastian Company. Data from E11-38: Brown Company contracts with Sebast...

Q: On December 31, 2018, the Clearwater Corporation acquired a custom

On December 31, 2018, the Clearwater Corporation acquired a custom-made plant asset by issuing a promissory note with a face value of $750,000, a due date of December 31, 2023, and a stated (coupon) r...

Q: Ferro Fuel Company (FFC) acquired a tract of land to

Ferro Fuel Company (FFC) acquired a tract of land to be used for oil and gas exploration at the beginning of the current year. FFC paid $500,000 to acquire the land, paid $325,000 in development costs...

Q: Repeat the requirements in E11-40 assuming that FFC uses the

Repeat the requirements in E11-40 assuming that FFC uses the successful-efforts method. Data from E11-40: a. Determine the total cost of the natural resource under the full-cost method. b. Prepare t...

Q: Spill Oil Corporation drilled 10 oil wells at the beginning of the

Spill Oil Corporation drilled 10 oil wells at the beginning of the current year. The total exploration costs associated with this oil and gas activity amounted to $8,500,000. Only six of the wells wer...

Q: Using the information provided in BE8-21, prepare the journal

Using the information provided in BE8-21, prepare the journal entry to record $5,000 of actual sales returns within one year after revenue was recognized by Botti Data From BE8-21: Botti Incorporated...