Questions from Intermediate Accounting


Q: During the course of your examination of the financial statements of the

During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2024, you discover net income in 2024 is $30,000 but no adjusting entries hav...

See Answer

Q: S&J Lawn Service Company maintains its books on a cash

S&J Lawn Service Company maintains its books on a cash basis. However, the company recently borrowed $100,000 from a local bank, and the bank requires S&J to provide annual financial statement...

See Answer

Q: Haskins and Jones, Attorneys-at-Law, maintains its

Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2024, the law firm collected $545,000 for services rendered to its clients and paid out $412,000 in expenses. You are a...

See Answer

Q: The December 31, 2024, unadjusted trial balance for the Wolkstein

The December 31, 2024, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the company’s year-end reporting date. The following year-end adjust...

See Answer

Q: The employees of Xitrex, Inc., are paid each Friday.

The employees of Xitrex, Inc., are paid each Friday. The company’s fiscal year-end is June 30, which falls on a Wednesday for the current year. Salaries are earned evenly throughout the five-day work...

See Answer

Q: Refer to E 2–9 and respond to the following requirements

Refer to E 2–9 and respond to the following requirements. Required: 1. If Microchip’s accountant employed reversing entries for accruals, which adjusting entries would she likely reverse at the begin...

See Answer

Q: A company’s accounting system consists of a general journal (GJ),

A company’s accounting system consists of a general journal (GJ), a cash receipts journal (CR), a cash disbursements journal (CD), a sales journal (SJ), and a purchases journal (PJ)....

See Answer

Q: When Desoto Water Works purchased equipment at the end of 2023 at

When Desoto Water Works purchased equipment at the end of 2023 at a cost of $65,000, the company debited Buildings and credited Cash $65,000. The error was discovered in 2024. What journal entry will...

See Answer

Q: The accounting system of a company consists of a general journal (

The accounting system of a company consists of a general journal (GJ), a cash receipts journal (CR), a cash disbursements journal (CD), a sales journal (SJ), and a purchases journal (PJ). For each of...

See Answer

Q: On January 1, 2024, LLB Industries borrowed $200,

On January 1, 2024, LLB Industries borrowed $200,000 from Trust Bank by issuing a two-year, 10% note, with interest payable quarterly. ∙ LLB entered into a two-year interest rate swa...

See Answer