Questions from Intermediate Accounting

Q: The petty cash fund of Ricco’s Automotive contained the following items at

The petty cash fund of Ricco’s Automotive contained the following items at the end of September 2024: The petty cash fund was established at the beginning of September with a transfe...

Q: In 2024, J J Dishes changed its method of valuing inventory

In 2024, J J Dishes changed its method of valuing inventory from the FIFO method to the LIFO method. At December 31, 2023, J J’s inventories were $96 million (FIFO). J J’s records were insufficient to...

Q: Jansen Company’s general ledger showed a checking account balance of $23

Jansen Company’s general ledger showed a checking account balance of $23,820 at the end of May 2024. The May 31 cash receipts of $2,340, included in the general ledger balance, were placed in the nigh...

Q: Harrison Company maintains a checking account at the First National City Bank

Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2024 bank statement...

Q: At January 1, 2024, Clayton Hoists Inc. owed Third

At January 1, 2024, Clayton Hoists Inc. owed Third Banc Corp $12 million, under a 10% note due December 31, 2025. Interest was paid last on December 31, 2022. Clayton was experiencing severe financial...

Q: On January 1, 2024, the general ledger of 3D Family

On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances: During January 2024, the following transactions occur: The following information is available on...

Q: Parker Inc. has the following cash balances: /

Parker Inc. has the following cash balances: Required: 1. Prepare the current assets and current liabilities section of Parker’s 2024 balance sheet, assuming Parker reports under U....

Q: Tracy Company, a manufacturer of air conditioners, sold 100 units

Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2024. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms...

Q: Harwell Company manufactures automobile tires. On July 15, 2024,

Harwell Company manufactures automobile tires. On July 15, 2024, the company sold 1,000 tires to the Nixon Car Company for $50 each. The terms of the sale were 2/10, n/30. Harwell uses the gross metho...

Q: Harwell Company manufactures automobile tires. On July 15, 2024,

Harwell Company manufactures automobile tires. On July 15, 2024, the company sold 1,000 tires to the Nixon Car Company for $50 each. The terms of the sale were 2/10, n/30. Harwell uses the net method...