Questions from Intermediate Accounting

Q: General Electric has long been known as a company that smoothes its

General Electric has long been known as a company that smoothes its reported earnings. What is it about General Electric that makes it possible for the company to smooth earnings?

Q: Payment of insurance in advance may be recorded in either (

Payment of insurance in advance may be recorded in either (a) An expense account or (b) An asset account. Which method would you recommend? What periodic entries are required under each method?

Q: Using the format provided, identify for each account, including an

Using the format provided, identify for each account, including an asterisk for contra accounts: 1. Whether the account will appear on a balance sheet (B/S), income statement (I/S), or neither (N) 2....

Q: Accounting standards place limits on the set of allowable alternative accounting treatments

Accounting standards place limits on the set of allowable alternative accounting treatments, but the accountant must still exercise judgment to choose among the remaining alternatives. In making those...

Q: On December 31, Trinkets Supply Company noted the following transactions that

On December 31, Trinkets Supply Company noted the following transactions that occurred during 2013, some or all of which might require adjustment to the books. (a) Payment of $4,300 to suppliers was m...

Q: From the following data, compute the working capital for Hales Shipping

From the following data, compute the working capital for Hales Shipping Co. at December 31, 2013. Cash in general checking account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q: The accountant for Save More Company made the following adjusting entries on

The accountant for Save More Company made the following adjusting entries on December 31, 2013. Further information is provided as follows: (a) Annual rent is paid in advance every October 1. (b) Ad...

Q: The following balance sheet was prepared for Jared Corporation as of December

The following balance sheet was prepared for Jared Corporation as of December 31, 2013. The following additional information relates to the December 31, 2013, balance sheet. (a) Cash includes $4,000...

Q: The bookkeeper for Joe’s Hardware Co. records all revenue and expense

The bookkeeper for Joe’s Hardware Co. records all revenue and expense items in nominal accounts during the period. The following balances, among others, are listed on the trial balance at the end of t...

Q: Use the information in Practice 3-3 to compute the debt

Use the information in Practice 3-3 to compute the debt ratio. Assume that the list includes all liability and equity items. In Practice 3-3 Accrued Income Taxes Payable . . . . . . . . . . . . . . ....