Questions from Intermediate Accounting


Q: On September 30, 2024, Athens Software began developing a software

On September 30, 2024, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2025, and th...

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Q: Refer to the situation described in BE 9–7. Estimate

Refer to the situation described in BE 9–7. Estimate ending inventory and cost of goods sold using the conventional method and the information provided.

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Q: Freitas Corporation was organized early in 2024. The following expenditures were

Freitas Corporation was organized early in 2024. The following expenditures were made during the first few months of the year: Required: Prepare a summary journal entry to record the $107,000 in cash...

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Q: The Manguino Oil Company incurred exploration costs in 2024 searching and drilling

The Manguino Oil Company incurred exploration costs in 2024 searching and drilling for oil as follows: It was determined that Wells 104–108 were dry holes and were abandoned. Wells 1...

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Q: On March 1, 2024, Beldon Corporation purchased land as a

On March 1, 2024, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on Decemb...

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Q: Jackpot Mining Company operates a copper mine in central Montana. The

Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,000,000 in 2024 for the mining site and spent an additional $600,000 to prepare the mine for extraction of the cop...

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Q: In 2024, Bratten Fitness Company made the following cash purchases:

In 2024, Bratten Fitness Company made the following cash purchases: 1. The exclusive right to manufacture and sell the X-Core workout equipment from Symmetry Corporation for $200,000. Symmetry created...

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Q: On March 31, 2024, Wolfson Corporation acquired all of the

On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets...

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Q: Arlington Steel Company is a producer of raw steel and steel-

Arlington Steel Company is a producer of raw steel and steel-related products. On January 3, 2025, Arlington enters into a firm commitment to purchase 10,000 tons of iron ore pellets from a supplier...

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Q: Sanctums, Inc., purchases wheat for use in its food manufacturing

Sanctums, Inc., purchases wheat for use in its food manufacturing process. Sanctums operates in a highly competitive industry and is rarely able to increase its sales price. ∙ On Jan...

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