Questions from Intermediate Accounting

Q: Pate paid $50,000 and gave a plot of undeveloped

Pate paid $50,000 and gave a plot of undeveloped land with a carrying amount of $320,000 and a fair value of $450,000 to Bizzell Co. in exchange for a plot of undeveloped land with a fair value of $50...

Q: All of the following are elements of a contract except:

All of the following are elements of a contract except: a. The contract has commercial substance. b. The vendor can identify payment terms for the goods or services. c. It is not approved by both part...

Q: A performance obligation is: a. An enforceable promise in

A performance obligation is: a. An enforceable promise in a contract with a customer to transfer a good or service to the customer. b. An offer to transfer a good or service to the customer. c. An exp...

Q: The following information pertains to Pewter Cup Company at August 30.

The following information pertains to Pewter Cup Company at August 30. Prepare the bank reconciliation for Pewter Cup by determining the correct balances for both book and bank. Prepare any required j...

Q: Telecom Co. enters into a two-year contract with a

Telecom Co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. To induce customers, Telecom Co. provides a free phone. Telecom Co. normally...

Q: The transaction price must reflect the time value of money if:

The transaction price must reflect the time value of money if: a. The vendor expects the period between customer payment and delivery of goods or services will be less than two years. b. The contract...

Q: Nance Network Consultants, Incorporated uses the percentage-of completion method

Nance Network Consultants, Incorporated uses the percentage-of completion method to account for its long-term contracts. It uses the cost-to-cost approach to measure progress. During the current year,...

Q: Bigelow Contractors signed a contract to construct a storage facility for RGN

Bigelow Contractors signed a contract to construct a storage facility for RGN Manufacturing, Inc. The fixed-fee contract specifies that the facility is to be completed in three years. Bigelow uses the...

Q: Repeat the requirements of P8-7 assuming Bigelow Contractors uses the

Repeat the requirements of P8-7 assuming Bigelow Contractors uses the completed-contract method to report its long-term contracts. Additionally, compare the reported gross profit and net asset (liabil...

Q: Wayne Computer Consultants, Incorporated develops and installs integrated computer systems and

Wayne Computer Consultants, Incorporated develops and installs integrated computer systems and networks for large utilities. On January 2, 2018, the company signed a contract to deliver an electricity...