Questions from Intermediate Accounting


Q: Wang Corporation issued $12 million of commercial paper on March 1

Wang Corporation issued $12 million of commercial paper on March 1 on a nine-month note. Interest was discounted at issuance at a 9% discount rate. Prepare the journal entry for the issuance of the co...

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Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements According to International Financial Reporting Standards. AF’s financial statements a...

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Q: In March 2024, Price Company began developing a new software system

In March 2024, Price Company began developing a new software system to be used internally for managing its inventory. The software integrates customer orders with inventory on hand to automatically pl...

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Q: On December 12, 2021, Park Electronics received $24,

On December 12, 2021, Park Electronics received $24,000 from a customer toward a cash sale of $240,000 of diodes to be completed on January 16, 2025. What journal entries should Park record on Decembe...

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Q: In Lizzie Shoes’ experience, gift cards that have not been redeemed

In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $18,000 during August 2024. $4,000 of cards were re...

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Q: During December, Rainey Equipment made a $600,000 credit

During December, Rainey Equipment made a $600,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%. Prepare the appropriate journal entry.

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Q: Consider the following liabilities of Future Brands, Inc., at December

Consider the following liabilities of Future Brands, Inc., at December 31, 2024, the company’s fiscal year-end. Should they be reported as current liabilities or long-term liabilities? 1. $77 million...

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Q: Coulson Company is in the process of refinancing some long-term

Coulson Company is in the process of refinancing some long-term debt. Its fiscal year ends on December 31, 2024, and its financial statements will be issued on March 15, 2025. Under current U.S. GAAP,...

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Q: Flexner Company is in the process of refinancing some long-term

Flexner Company is in the process of refinancing some long-term debt. Its fiscal year ends on December 31, 2024, and its financial statements will be issued on March 15, 2025. Under current IFRS, how...

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Q: Das Medical introduced a new implant that carries a five-year

Das Medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. Based on industry experience with similar product introductions, warranty costs are expected to a...

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