Questions from Intermediate Accounting

Q: Indicate which of the following costs should be expensed when incurred.

Indicate which of the following costs should be expensed when incurred. (a) $13,000 paid to rearrange and reinstall machinery. (b) $200,000 paid for addition to building. (c) $200 paid for tune-up and...

Q: Because of calamitous earthquake losses, Bernstein Company, one of your

Because of calamitous earthquake losses, Bernstein Company, one of your client’s oldest and largest customers, suddenly and unexpectedly became bankrupt. Approximately 30% of your client’s total sales...

Q: On January 1, 2012, Lombard Co. sells property for

On January 1, 2012, Lombard Co. sells property for which it had paid $690,000 to Sargent Company, receiving in return Sargent’s zero-interest-bearing note for $1,000,000 payable in 5 years. What entry...

Q: Springsteen Inc. reported in a recent annual report “Restricted cash

Springsteen Inc. reported in a recent annual report “Restricted cash for debt redemption.” What section of the balance sheet would report this item?

Q: Finman Company designated Jill Holland as petty cash custodian and established a

Finman Company designated Jill Holland as petty cash custodian and established a petty cash fund of $200. The fund is reimbursed when the cash in the fund is at $15. Petty cash receipts indicate funds...

Q: Use the information presented in BE7-15 for Horton Corporation.

Use the information presented in BE7-15 for Horton Corporation. Prepare any entries necessary to make Horton’s accounting records correct and complete. In BE7-15 Horton Corporation is preparing a ban...

Q: Kraft Enterprises owns the following assets at December 31, 2012.

Kraft Enterprises owns the following assets at December 31, 2012. What amount should be reported as cash?

Q: Use the information from BE7-2, assuming Restin Co.

Use the information from BE7-2, assuming Restin Co. uses the net method to account for cash discounts. Prepare the required journal entries for Restin Co. In BE7-2 Restin Co. uses the gross method to...

Q: Presented below are three unrelated situations. (a) Ron

Presented below are three unrelated situations. (a) Ron Stein Company recently signed a lease for a new office building, for a lease period of 10 years. Under the lease agreement, a security deposit o...

Q: On October 1, 2012, Chung, Inc. assigns $

On October 1, 2012, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables ass...