Questions from Intermediate Accounting

Q: Dexter Company appropriately uses the asset liability method to record deferred income

Dexter Company appropriately uses the asset liability method to record deferred income taxes. Dexter reports depreciation expense for certain machinery purchased this year using the modified accelerat...

Q: Wainwright Corporation had the following activities in 2012. 1.

Wainwright Corporation had the following activities in 2012. 1. Sale of land $180,000 2. Purchase of inventory $845,000 3. Purchase of treasury stock $72,000 4. Purchase of equipment $415,000 5. Is...

Q: Use the information for Rick Kleckner Corporation from BE21-3.

Use the information for Rick Kleckner Corporation from BE21-3. Assume that at December 31, 2012, Kleckner made an adjusting entry to accrue interest expense of $29,530 on the lease. Prepare Kleckner’s...

Q: Bloom Corporation had the following 2012 income statement. Sales …………………………………………………………….………….

Bloom Corporation had the following 2012 income statement. Sales …………………………………………………………….…………. $200,000 Cost of goods sold ……………………………………………………….. 120,000 Gross profit …………………………………………………………….……… 80,0...

Q: For 2010, Campbell Soup Company had pension expense of $68

For 2010, Campbell Soup Company had pension expense of $68 million and contributed $284 million to the pension fund. Prepare Campbell Soup Company’s journal entry to record pension expense and funding...

Q: Jana Kingston Corporation enters into a lease on January 1, 2012

Jana Kingston Corporation enters into a lease on January 1, 2012, that does not transfer ownership or contain a bargain-purchase option. It covers 3 years of the equipment’s 8-year useful life, and th...

Q: Use the information from BE23-4 for Bloom Corporation. Prepare

Use the information from BE23-4 for Bloom Corporation. Prepare the cash flows from operating activities section of Bloom’s 2012 statement of cash flows using the indirect method. In BE23-4 Bloom Corp...

Q: Mancuso Corporation amended its pension plan on January 1, 2012,

Mancuso Corporation amended its pension plan on January 1, 2012, and granted $160,000 of prior service costs to its employees. The employees are expected to provide 2,000 service years in the future,...

Q: Assume that IBM leased equipment that was carried at a cost of

Assume that IBM leased equipment that was carried at a cost of $150,000 to Sharon Swander Company. The term of the lease is 6 years beginning January 1, 2012, with equal rental payments of $30,044 at...

Q: In 2012, Bailey Corporation discovered that equipment purchased on January 1

In 2012, Bailey Corporation discovered that equipment purchased on January 1, 2010, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage valu...