Q: On January 1, 2021, Farmer Fabrication issued stock options for
On January 1, 2021, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for manageria...
See AnswerQ: Refer to the situation described in BE 19–8. Suppose
Refer to the situation described in BE 19–8. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 5% in three years. What journal entry will b...
See AnswerQ: In 2021, the Barton and Barton Company changed its method of
In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2020, B & B’s inventories were $32 million (FIFO). B & B...
See AnswerQ: In 2021, internal auditors discovered that PKE Displays, Inc.,
In 2021, internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $350,000 cost of a machine purchased on January 1, 2018. The machine’s useful life was expected to...
See AnswerQ: Refer to the trial balance information in BE 3–5.
Refer to the trial balance information in BE 3–5. Calculate the (a) current ratio, (b) acid-test ratio, and (c) debt to equity ratio. Data from BE 3-5: The following is a December 3...
See AnswerQ: Refer to the situation described in BE 20–10. Assume
Refer to the situation described in BE 20–10. Assume the error was discovered in 2023, after the 2022 financial statements are issued. Ignoring income taxes, what journal entry will PKE use to correct...
See AnswerQ: In 2021, the internal auditors of Development Technologies, Inc.,
In 2021, the internal auditors of Development Technologies, Inc., discovered that (a) 2020 accrued salaries of $2 million were not recognized until they were paid in 2021 and (b) a $3 million purchase...
See AnswerQ: In 2021, Adonis Industries changed its method of valuing inventory from
In 2021, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2020, Adonis’s inventories were $47.6 million (average cost). Adonis...
See AnswerQ: In 2021, J J Dishes changed its method of valuing inventory
In 2021, J J Dishes changed its method of valuing inventory from the FIFO method to the LIFO method. At December 31, 2020, J J’s inventories were $96 million (FIFO). J J’s records were insufficient to...
See AnswerQ: Irwin, Inc. constructed a machine at a total cost of
Irwin, Inc. constructed a machine at a total cost of $35 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being de...
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