Questions from Intermediate Accounting

Q: Mathus, Inc. reported income before tax of $180,

Mathus, Inc. reported income before tax of $180,000, and taxable income was $200,000. This $20,000 difference resulted from unearned revenues that the firm recorded as revenue for tax purposes but as...

Q: IFRS. Genius Auto Malls, an IFRS reporter, recently conducted

IFRS. Genius Auto Malls, an IFRS reporter, recently conducted its annual impairment review of the value of its trademark (an indefinite-life intangible), which it currently carries at $2,500,000. Evid...

Q: The Block Company uses the accrual basis to account for all sales

The Block Company uses the accrual basis to account for all sales transactions. Total sales for the current year amounted to $450,000. Of this amount, $120,000 is from sales on installment. The firm u...

Q: Deane Company leases office space from Blossom Building Associates for a term

Deane Company leases office space from Blossom Building Associates for a term of 20 years in order to expand its operations into the southern region of the state. The office space includes the use of...

Q: IFRS. Repeat the requirements of BE18-9 for the lessor

IFRS. Repeat the requirements of BE18-9 for the lessor, Perry Leasing assuming that Perry is an IFRS reporter. Perry is not a dealer. Data from BE18-9: Prepare the journal entries at the commencement...

Q: Assume that Imprescia Industries leases machinery for 3 years with fixed rentals

Assume that Imprescia Industries leases machinery for 3 years with fixed rentals of $8,000 per year. The agreement also requires that Imprescia purchase consumables (such as lubrication, drive belts,...

Q: VJ Leasing Company recently leased machinery to Berg Building Associates. The

VJ Leasing Company recently leased machinery to Berg Building Associates. The 5-year lease contract requires rental payments of $20,000 on January 1 of each year. The lease meets at least one of the G...

Q: Sun Bank recently leased machinery to Claude Company. The 8-

Sun Bank recently leased machinery to Claude Company. The 8-year lease contract requires rental payments of $100,000 due on January 1 of each year. The lease is classified as a finance lease for the l...

Q: Assume that Sting Stores leases office space from Ramona Realty for $

Assume that Sting Stores leases office space from Ramona Realty for $15,000 per month. According to the terms of the lease, monthly rentals will increase by the annual increase in the Consumer Price I...

Q: Assume that Anderson Associates, Inc. leases conference and training facilities

Assume that Anderson Associates, Inc. leases conference and training facilities from The Learning Company. Anderson will conduct training seminars for the clients at the leased space. The lease requir...