Questions from Intermediate Accounting

Q: The Rockwell Corporation uses a periodic inventory system and has used the

The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1982. In 2021, the company decided to change to the average cost method. D...

Q: Fantasy Fashions had used the LIFO method of costing inventories, but

Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2021 decided to change to the FIFO method. The inventory as reported at the end of 2020 using LIFO would have...

Q: During 2019 and 2020, Faulkner Manufacturing used the sum-of

During 2019 and 2020, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes....

Q: The year-end adjusted trial balance of the Timmons Tool and

The year-end adjusted trial balance of the Timmons Tool and Die Corporation included the following account balances: retained earnings, $220,000; dividends, $12,000; sales revenue, $850,000; cost of g...

Q: For the Coca-Cola bonds described in BE 12–2

For the Coca-Cola bonds described in BE 12–2, prepare journal entries to record (a) any unrealized gains or losses occurring in 2021 and (b) the sale of the bonds in 2022. Data from BE 12-2: S&L Fina...

Q: In 2021, the Marion Company purchased land containing a mineral mine

In 2021, the Marion Company purchased land containing a mineral mine for $1,600,000. Additional costs of $600,000 were incurred to develop the mine. Geologists estimated that 400,000 tons of ore would...

Q: Described below are six independent and unrelated situations involving accounting changes.

Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entries or closing entries were prepared. Assume the tax...

Q: At the beginning of 2021, Wagner Implements undertook a variety of

At the beginning of 2021, Wagner Implements undertook a variety of changes in accounting methods, corrected several errors, and instituted new accounting policies. Required: Indicate for each item 1 t...

Q: The comparative balance sheets for 2021 and 2020 and the income statement

The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduous’s accounting records is pr...

Q: Shown below in T-account format are the changes affecting the

Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2021. At January 1, 2021, the corporation had outstanding 105 million common shares,...