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The Canliss Milling Company purchased machinery on January 2, 2019, for $800,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreci...
See AnswerQ: Dreighton Engineering Group receives royalties on a technical manual written by two
Dreighton Engineering Group receives royalties on a technical manual written by two of its engineers and sold to William B. Irving Publishing, Inc. Royalties are 10% of net sales, receivable on Octobe...
See AnswerQ: The Commonwealth of Virginia filed suit in October 2019, against Northern
The Commonwealth of Virginia filed suit in October 2019, against Northern Timber Corporation seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conser...
See AnswerQ: During 2021, WMC Corporation discovered that its ending inventories reported on
During 2021, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts: 2019 understated by $120,000 2020 overstated by 150,00...
See AnswerQ: Aquatic Equipment Corporation decided to switch from the LIFO method of costing
Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2021. The inventory as reported at the end of 2020 using LIFO would h...
See AnswerQ: On December 12, 2021, an investment in equity securities costing
On December 12, 2021, an investment in equity securities costing $80,000 was sold for $100,000. The total of the sale proceeds was credited to the investment in equity securities account. Required: 1....
See AnswerQ: Kerianne paints landscapes, and in late 2021 placed four paintings with
Kerianne paints landscapes, and in late 2021 placed four paintings with a retail price of $250 each in the Holmstrom Gallery. Kerianne’s arrangement with Holmstrom is that Holmstrom will earn a 20% co...
See AnswerQ: Wilkins Food Products Inc. acquired a packaging machine from Lawrence Specialists
Wilkins Food Products Inc. acquired a packaging machine from Lawrence Specialists Corporation. Lawrence completed construction of the machine on January 1, 2019. In payment for the machine Wilkins iss...
See AnswerQ: At the end of 2020, Majors Furniture Company failed to accrue
At the end of 2020, Majors Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2020 on bonds payable. The bonds mature in 2032. The discount on t...
See AnswerQ: Below are three independent and unrelated errors. a. On
Below are three independent and unrelated errors. a. On December 31, 2020, Wolfe-Bache Corporation failed to accrue salaries expense of $1,800. In January 2021, when it paid employees for the December...
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