Questions from Intermediate Accounting

Q: Wilson Incorporated acquired a leather-cutting machine for $200,

Wilson Incorporated acquired a leather-cutting machine for $200,000 on December 31, 2018. The general accountant incorrectly coded the invoice as Miscellaneous Expense. The general accountant discover...

Q: Using the data from BE21-10 for Wilson Incorporated, assume

Using the data from BE21-10 for Wilson Incorporated, assume now that the general accountant discovered the error in 2019 when the books had already been closed for 2018. Prepare the correcting entry f...

Q: Barin Retail Outlets incorrectly recorded inventory in 2016. Rather than recording

Barin Retail Outlets incorrectly recorded inventory in 2016. Rather than recording ending inventory as $960,000, Barin’s accounting manager entered $690,000, understating ending inventory by $270,000....

Q: Using the information from BE21-12, prepare the journal entry

Using the information from BE21-12, prepare the journal entry necessary to correct the inventory error, assuming that Barin’s controller discovered the error in 2017 after the books had been closed fo...

Q: Tyrion Retailers, Inc. incorrectly recorded inventory in 2016. Rather

Tyrion Retailers, Inc. incorrectly recorded inventory in 2016. Rather than recording ending inventory as $570,000, Tyrion’s accounting manager entered $750,000. Tyrion’s controller discovered the erro...

Q: Mills Abrams Manufacturing Company changed its method of accounting for inventory from

Mills Abrams Manufacturing Company changed its method of accounting for inventory from the average-cost method to the LIFO basis as of January 1 of the current year. It still uses the average-cost met...

Q: Draft a footnote to disclose the accounting change implemented by the Mills

Draft a footnote to disclose the accounting change implemented by the Mills Abrams Manufacturing Company using the information provided in BE21-2. Assume that pre-tax income for the current year is $2...

Q: Serat Construction Company elected to change its method of accounting from the

Serat Construction Company elected to change its method of accounting from the percentage-of-completion method to the completedcontract method. Prior-years income (cumulative) would have been $300,000...

Q: Cole Construction Company elected to change its method of accounting from the

Cole Construction Company elected to change its method of accounting from the completed-contract method to the percentage-ofcompletion method. Prior-years income (cumulative) would have been $550,000...

Q: IFRS. Esta Company, an IFRS reporter, has opted to

IFRS. Esta Company, an IFRS reporter, has opted to revalue land. The land originally cost €2,000,000 on January 1. At the end of the year, the land is appraised at €2,200,000. Determine the amount of...