Questions from Intermediate Accounting


Q: The Collins Corporation purchased office equipment at the beginning of 2019 and

The Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,000,000. This cost included the following expenditures: The company estimated an eight-year use...

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Q: Williams-Santana Inc. is a manufacturer of high-tech

Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its...

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Q: S&L Financial buys and sells securities expecting to earn profits

S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on Janu...

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Q: Williams-Santana Inc. is a manufacturer of high-tech

Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its...

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Q: Whaley Distributors is a wholesale distributor of electronic components. Financial statements

Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the years ended December 31, 2019 and 2020, reported the following amounts and subtotals ($ in million...

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Q: Conrad Playground Supply underwent a restructuring in 2021. The company conducted

Conrad Playground Supply underwent a restructuring in 2021. The company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred during 2021 before any...

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Q: You are internal auditor for Shannon Supplies, Inc., and are

You are internal auditor for Shannon Supplies, Inc., and are reviewing the company’s preliminary financial statements. The statements, prepared after making the adjusting entries, bu...

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Q: George Young Industries (GYI) acquired industrial robots at the beginning

George Young Industries (GYI) acquired industrial robots at the beginning of 2018 and added them to the company’s assembly process. During 2021, management became aware that the $1 m...

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Q: The Pyramid Company has used the LIFO method of accounting for inventory

The Pyramid Company has used the LIFO method of accounting for inventory during its first two years of operation, 2019 and 2020. At the beginning of 2021, Pyramid decided to change to the average cost...

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Q: Shown below are net income amounts as they would be determined by

Shown below are net income amounts as they would be determined by Weihrich Steel Company by each of three different inventory costing methods ($ in thousands). Required: 1. Assume that Weihrich used F...

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