New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
intermediate accounting reporting
Intermediate Accounting 14th Edition Fred Skousen, James Stice, Earl Kay Stice - Solutions
12. List three ^vays that bonds are commonly retired prior to maturity'. How should the early extinguishment of debt be presented on the income statement?
11. What amortization method for premiums and discounts on bonds is recommended by APB Opinion No. 21? Why? W'Tien can the alternative method be used?
10. What is meant by market rate of interest, stated or contract rate, and effective or yield rate? WTiich of these rates changes during the lifetime of the bond issue?
6. What is a line of credit?
4. At what amount should liabilities generally be reported?
3. Distinguish between current and noncurrent liabilities. 8.
2. (a) What is meant h\ an executory contract?(b) Do these contracts fit the definition of liabilities 6.included in this chapter? 7.
1. Identify the major components included in the 5.definition of liabilities established by the FASB.
8. Understand the conditions under which troubled debt restructuring occurs, and be able to account for troubled debt restructuring.
7. Review the notes to financial statements, and understand the disclosure associated with debt financing.EXPANDED MAT
6. Analyze a firm's debt position using ratios.
5. Explain various types of offbalance-sheet financing, and understand the reasons for this type of financing.
4. Understand the various types of bonds, compute the price of a bond issue, and account for the issuance, interest, and redemption of bonds.
3. Apply present value concepts to the accounting for long-term debts such as mortgages.
2. Account for short-term debt obligations, including those expected to be refinanced, and describe the purpose of lines of credit.
Refer to the debt restructuring information listed in P14-14.Required:For each of the independent alternatives listed in the “additional information disclosed” sections 1 through 4 of P14-14, prepare the journal entries for Second National Bank to record the debt restructuring agreement and all
Tenth National Bank has a $200,000, 12% note receivable from Priday Company that is due on December 31, 2022. On December 31, 2019, Priday misses the interest payment due on that date. The bank expects that the company will also miss the next payment, but will pay the principal on the maturity
On February 1, 2017, Aubrey Company sold its 5-year, $1,000 par value, 9% bonds, which were convertible at the option of the investor into Aubrey Company common stock at a ratio of 10 shares of common stock for each bond. Aubrey sold the convertible bonds at a discount. Interest is payable annually
You are beginning the 2019 audit of Alta Tierra Company’s long-term debt, and you determine that the company’s long-term note payable requires that it comply with certain financial covenants. The note payable is dated January 1, 2016, has a face value of $1,000,000, is due December 31, 2025,
You are the accountant for Speedy Company and are preparing the financial statements for 2019. Near the end of 2019, Speedy loaned its president $100,000 (a material amount) because she was having financial difficulties. The note was properly recorded as a note receivable by Speedy. You are unsure
Koreaco produces automobile transmissions, which are then sent to the United States where they are installed in domestically built cars. CarCo. a U.S. auto company, received a shipment of transmissions on December 15. 2001. The transmissions were subsequently paid for on January 30. 2002. The
Witte Inc. carries 4 items in inventory. The following per-unit data relate to these items at the end of 2002.Instructions:1. Calculate the value of the inventory under each of the following methods.a. Costb. The lower of cost or market applied to the individual inventory itemsc. The lower of cost
The Jamison Appliance Company began business on January' 1, 2001. The company decided from the beginning to grant allowances on merchandise traded in as partial payment on new sales. During 2002 the company granted trade-in allowances of \($64,035.The\) wholesale value of merchandise traded in was
The Olsen Company values its inventory at the lower of FIFO cost or market. The inventory accounts at December 31, 2001, had the following balances.The following are some of the transactions that affected the inventory of the Olsen Company during 2002.Feb. 10 Olsen Company purchases raw materials
Kimbell Manufacturing began operations 5 years ago. On August 13, 2002, a fire broke out in the warehouse destroying all inventory and many accounting records relating to the inventory. The information available is presented below. All sales and purchases are on account.Summary of previous years'
The following information was taken from the records of the Prairie Company.Instructions: Using the gross profit method, compute the value to be assigned to the inventory as of September 30, 2002, and prepare an income statement for the 9-month period ending on this date. Jan. 1, 2001-Dec. 31,
In December 2002, BuUseye Merchandise Inc. had a significant portion of its inventory stolen. The company determined the cost of inventory remaining to be \($31,100.\) The following information was taken from the records of the company.Instructions: Estimate the cost of the stolen inventory.
Soho Clothing Store values its inventoy under the retail inventory method. The following data are available for 2002.Instructions:1. Compute the estimated inventory at December 3 1 , 2002, using the retail inventory method to estimate inventory at lower of cost or market.2. Prepare the summary
The following information was taken from the records of Trump Inc. for the years 2001 and 2002.Instructions: Compute the value of the inventory at the end of 2001 and 2002 using the retail inventory method to estimate average cost. 2002 2001 Sales Sales discounts Sales returns Freight-in $128,600
Johnson & Jones, a pharmaceutical company, uses the retail inventor method to estimate inventory at lower of cost or market. The limited information shown on the next page is available for the past 3 years.Instructions: Compute the missing amounts from the information given. Inventory, Jan. 1
The Sonntag Corporation has adjusted and closed its books at the end of 2001 . The company arrives at its inventory position by a physical count taken on December 31 of each year In March of 2002, the following errors were discovered.a. Merchandise that cost \($2,500\) was sold for \($3,400\) on
In 1999, Van Hover Inc. adopted the dollar-value LIFO retaU inventory method. The January 1. 1999. price index was 1,00. The data shown on the next page are available for the 4-year period ending December 31, 2002.Instructions: Calculate the inventories to be reported at the end of 1999, 2000,
The St. George Sports Shop values its inventory on the dollar-value LIFO retail basis.Incremental inventory layers are costed at end-of-year prices. At December 31 , 2001, the inventory was valued as follows:The December 31, 2001, inventory at 2001 retail prices was \($77,340\). Information
On November 17, 2002, Chaldees Airways entered into a commitment to purchase 3,000 barrels of aviation fuel for \($165,000\) on March 23, 2003. Chaldees entered into this purchase commitment to protect itself against the volatility in the aviation fuel market. By December 31, the purchase price of
Charles & Sons, a U.S. computer supplies firm, had the following transactions with foreign companies during December 2001.a. Goldstar Co., Ltd., a South Korea-based firm, sold 5,000 computer hard drives to Charles & Sons for 100,000 won per drive on December 12, 2001. Charles & Sons
How are purchase discounts and sales discounts treated when using the retail inventory method?
Karen Stewart, president of Laronco, Inc., recently attended a seminar on effectively managing a business. One session of the seminar that particularly impressed Karen was the discussion of inventory management and the various types of inventory estimation methods available for producing interim
REGINA, INC., was a fast-srowins floor-care company that went public in 1985 and went bankrupt in 1988. Resina went from a one-product company with \($60\) million in sales in 1985 to a four-product company with \($181\) million in sales in 1988. Reported eaminss climbed from \($1.1\) million in
The following inventory data are available for Alpine Ski Shop at December 31.1. Determine the value of ending inventory using the lower-of-cost-or-market method applied to(a) individual items and(b) total inventory.2. Prepare any journal entries required to adjust the ending inventory if lower of
The Muhlstein Corporation began business on January 1. 2002. The following table shows information about inventories, as of December 31. for 3 consecutive years under different valuation methods. Assume that purchases are \($50.000\) each year. Using this information and assuming that the same
Wailea Inc. sells new equipment with a \($3,900\) list price. A dissatisfied customer returned one piece of equipment. Wailea determines that the returned equipment can be resold if it is reconditioned. The expected sales price of the reconditioned equipment is \($3,500;\) the reconditioning
On August 15, 2002, a hurricane damaged a warehouse of Rheinhart Merchandise Company. The entire inventory and many accounting records stored in the warehouse were completely destroyed. Although theinventory was not insured, a portion could be sold for scrap. Through the use of microfilmed records,
On June 30, 2002, a flash flood damaged the warehouse and factory of Bend Corporation, completed destroying the work in process inventory. There was no damage to either the raw materials or finished goods inventories. A physical inventory taken after the flood revealed the following valuations.The
The Evening Out Clothing Store values its inventory using the retail inventory method. The following data are available for the month of November 2002.Compute the estimated inventory at November 30, 2002, assuming:1. FIFO 2. LIFO 3. Average cost Inventory, November 1 Purchases Sales Cost $ 53,800
Carmel Department Store uses the retail inventory method. On December 31, 2002, the following information relating to the inventory was gathered.Compute the ending inventory value at December 31, 2002, using:1. The average cost method 2. The lower-of-cost-or-market method Inventory, January 1,
Armual income for the Stoker Co. for the period 1998-2002 appears below. However, a review of the records for the company reveals inventory misstatements as listed.Calculate corrected net income for each year. 1998 1999 2000 2001 2002 Reported net income (loss). $18,000 $13,000 $2,000 $ (5,800)
The Martin Company reported income before taxes of \($370,000\) for 2001 and \($526,000\) for 2002. A later audit produced the following information.a. The ending inventory for 2001 included 2,000 units erroneously priced at \($5,90\) per unit. The correct cost was \($9-50\) per unit.b. Merchandise
The Cardoza Products Company's inventory record appears below.The company uses a LIFO cost flow assumption. It reported ending inventories as follows for its first 3 years of operations:Determine if the Cardoza Products Company has reported its inventory correctly.Assuming that 2002 accounts are
The Paradise Hardware Store began using the dollar-value LIFO retail method in 2001 for determining inventory values. In 2001. the cost percentage was computed at 62%. Information relating to the inventory for 2002 is given below.1. Compute the cost percentage for 2002. (Round percentage to 2
On Februan 15. 2003. Rooker. Madras & Associates compiled the following information concerning inxentory for five years. They used the dollar-value LIFO retail inventory method.Compute the inventory cost at the end of each year under the dollar-value LIFO retail method. (Round all dollar
On October 1. 2002, Gore Electronics Inc. entered into a 6-month. \($520,000\) purchase commitment for a supply of Product A. On December 31, 2002, the market value of this material had fallen to \($421,500.\) Make the journal entries necessary on December 31, 2002, and on March 31. 2003, assuming
Guenther's. a German company that supplies your firm with a necessan- raw material, recently shipped 10,000 units of the material to your production facilit)-.1. Prepare the necessary journal entries to record the purchase of the goods and the subsequent payment 30 days later if the selling price
The White Wove Corporation began operations in 2002. A summary of the first quarter appears below.The White Wove Corporation used the LIFO perpetual inventory method and correctly computed an inventory value of \($38,300\) at the end of the first quarter Manasement is considerins chansing to a FIFO
In 1 989 an investigation by the U.S. Department of Justice Criminal Division uncovered a massive fraud perpetrated by top management of MINISCRIBE CORPORATION. MiniScribe manufactured and sold computer disk drives. The investigation revealed the following practices.• Recording inventory as being
Caitlin Georse, an accountins student at Rider Coliese, is wntins a research paper on inventories.She discovers that Accountins Research Study No. 1 3 on inventories was issued in the 1970s by the Accounting Principles Board. As she scans the report, she is surprised to find an inventory method
The Innovative Production Co. has used the LIFO method of valuins its inventories for several years. Layers for some of the inventory items are valued at amounts one-third to one-half of the current market price. The products manufactured and marketed by the company are subject to rapid
The following inventory information is for Debo Company.Sales for the year totaled \($6,000.\) All sales and purchases are on account.1. Make the journal entries necessary to record purchases and sales during the year assuming a periodic inventory system.2. Assume that a periodic inventory system
Using the following data, compute the total cash expended for inventory in 2002. Accounts payable: January 1, 2002 December 31, 2002 Cost of goods sold-2002 Inventory balance: January 1, 2002 December 31, 2002 $200,000 450,000 900,000 300,000 200,000
The Joliet Manufacturing Company reviewed its year-end inventory and found the following items. Indicate which items should be included in the inventory balance at December 31, 2002. Give your reasons for the treatment you suggest.(a) A packing case containing a product costing \($816\) was
The following quarterly cost data have been accumulated for Garrison Mfg. Inc.Garrison uses the FIFO method for valuing raw materials inventories. Prepare a cost of goods manufactured schedule for Garrison Mfg. Inc. for the quarter ended March 31. 2002. Raw materials-beginning inventory (Jan. 1,
On July 23. Pultnewille Company purchased goods on account for \($5,000.\) Pultneyville later returned defective goods costing \($300\).Record the purchase and the return of the defective goods assuming (1) a periodic inventory system, and (2) a perpetual inventory system.
Spearman Truck Sales sells semitrailers. The current inventory includes the following 5 semitrailers (identical except for paint color) along with purchase dates and costs:On May 20, 2002, a trucking firm purchases semitrailer #3 from Spearman for \($79,000\).1. Compute the gross margin on this
A note to the financial statements of Alpine Inc. at December 31, 2002, reads as follows:Because of the manufacturer's production problems for our Widget Limited line, our inventories were unavoidably reduced. Under the LIFO inventory accounting method currently being used for tax and financial
First-in, first-out has been used for inventory valuation by the Atwood Co. since it was organized in 1999. Using the data that follow, redetermine the net incomes for each year on the assumption of inventory valuation on the last-in. first-out basis: 1999 2000 Reported net income-FIFO basis
The Boise Implement Company showed the following data in its fmancial statements.1. Compute the number of days' sales in average inventony for both 2001 and 2002.What can you infer from these numbers?2. How would you interpret the answer to (1) if this company were in the business of selling fresh
The Johnson Manufacturing Company manufactures a single product. The managers, Ron and Ken Johnson, decided on December 31. 1999. to adopt the dollar-value LIFO inventory method. The inventory value on that date using the newly adopted dollar-value LIFO method was \($500,000.\) Additional
Jennifer Inc. adopted dollar-value LIFO on December 31, 1999. Data for 1999-2002 follows:1. Compute the inventory value at December 31 of each year under the dollar-value LIFO method, assuming new layers are valued using the average price index.2. Compute the inventory value at December 31, 2002,
On December 31, 2002, the controller of Hardman Enterprises selected 6 items to use as a representative sample of the company's inventory Information relative to these products was compiled and summarized in the following schedule:The price index on January 1, 2002, is 1.00. Compute a price index
LaRue's Fashion Clothing Store has hired you to assist with some year-end fmancial data preparation. The company's accountant quit 3 weeks ago and left many items incomplete. Summary information is given below.Determine the data that are missing from the table. Carry each index to 3 decimal places.
The following information is available for Woodfield Inc.Instructions: Compute the missing amounts. Products in Sample Inventory 2002 2001 2000 Raw materials: Beginning inventory Purchases Materials available to use Ending inventory Raw materials used Direct labor Manufacturing overhead. Total
Streuling Inc. is preparing its 2002 year-end financial statements. Prior to any adjustments, inventory is valued at \($76,050.\) The following information has been found relating to certain inventory transactions.(a) Goods valued at \($11,000\) are on consignment with a customer. These goods are
The Zerbel Manufacturing Co. was organized in 2000 to produce a single product. The company's production and sales records for the period 2000-2002 are summarized below.All units produced in a given year are assigned the same average cost.Instructions: Calculate the gross profit for each of the 3
A portion of the Stark Company's balance sheet appears as follows:Stark Company pays for all operating expenses with cash and purchases all inventory on credit. During 2002, cash totaling \($471,700\) was paid on accounts payable. Operating expenses for 2002 totaled \($220,000\). All sales are cash
The Manuel Corporation sells household appliances and uses UFO for inventory costing. The inventory contains 10 different products, and historical LIFO layers are maintained for each of them. The LIFO layers for one of the products, Easy Chef, were as follows at December 31, 2001:Instructions:1 .
The Greenriver Manufacturing Company manufactures two products: Raft and Float. At December 31, 2001, Greenriver used the FIFO inventory method. Effective January 1, 2002, Greenriver changed to the LIFO inventory method. The cumulative effect of this change is not determinable, and as a result, the
The following information for Valdez Industries was taken from the company's financial statements (amounts in thousands).Instructions:1 . Compute the inventory turnover and the number of days' sales in inventory for the years 2000-2002. Use average inventory in your calculations.2. Evaluate Valdezs
The Bergman Company sells 3 different products. Five years ago, management adopted the LIFO inventory method and established 3 specific pools of goods. Bergman values all incremental layers of inventory at the average cost of purchases within the period.Information relating to the 3 products for
Steve's Repair Shop began operations on January 1, 1997. After discussing the matter with his accountant, Steve decided dollar-value LIFO should be used for inventory costing.Information concerning the inventory of Steve's Repair Shop is shown below.Instructions: Compute the inventory value at
The Mietus Company manufactures a single product. The company adopted the dollar-value LIFO inventory method on December 31, 1997. More information concerning Mietus Company is shown below.Instructions: Compute the inventory value at December 31 of each year under the dollar-value LIFO inventory
On January 1, 1998, Nolder Company changed its inventory cost flow method from FIFO to LIFO for its raw materials inventory. The change was made for both financial statement and income tax reporting purposes. Nolder uses the multiple-pools approach under which substantially identical raw materials
Kristy's Cosmetics Supply is interested in generating price indexes for inventory. To aid in accomplishing this task, on December 31, 2002, the controller assembled information on various inventory items shown at the top of the next page. The controller indicated that 1999 is the base year
On December 3 1 , 2002, Lelegren Architectural Supply took a statistical inventory of items for the sample of its inventory The inventory revealed the following information.Instructions:1 . Compute the year-end price index for Lelegren Architectural Supply at December 31, 2001, and 2002. The prices
What is an activity-based cost (ABC) system?
In accounting for long-term contracts (those taking longer than 1 year to complete), the two methods commonly followed are the percentage-of-completion method and the completed-contract method.1. Discuss how earnings on long-term contracts are recognized and computed under these two methods.2.
Magleby Inn sells franchises to independent operators throughout the westem part of the United States. The contract with the franchisee includes the following provisions.a. The franchisee is charged an initial fee of \($25,000.\) Of this amount, \($5,000\) is payable when the agreement is signed
On December 1. 2002. bids were submitted for a construction project to build a new municipal building and fire station. The lowest bid was \($3,980,000.\) submitted by the Jessop Construction Company. Jessop was awarded the contract. Jessop uses the completed contract method to report gross profit.
Espiritu Construction Co. has used the cost-to-cost percentage-of-completion method of recognizing revenue. Tony Espiritu assumed leadership of the business after the recent death of his father, Howard. In reviewing the records, Espiritu finds the following information regarding a recently
Smokey International Inc. recently acquired the Kurtz Builders Company. Kurtz has incomplete accounting records. On one particular project, only the information below is available.Because the information is incomplete, you are asked the following questions assuming the percentage-of-completion
Tara Builders Inc. is building a new home for Margaret Mitchell at a contracted price of \($120,000.\) The estimated cost at the time the contract is signed Qanuary 2, 2002) is \($97,000.\) At December 31, 2002, the total cost incurred is \($59,000\) with estimated costs to complete of \($41,000.\)
Central Iowa Builders Inc. entered into a contract to construct an office building andplaza at a contract price of \($10,000,000.\) Income is to be reported using the percentage of completion method as determined by estimates made by the architect. The data below summarize the activities on the
On January 1, 2001, the Ishikawa Construction Company entered into a 3-year contract to build a dam. The original contract price was \($18,000,000\) and the estimated cost was \($16,100,000.\) The following cost data relate.Prepare the required journal entries for the 3 years of the contract,
The Build-It Construction Company enters into a contract on January 1, 2002, to construct a 20-story office building for \($42,000,000.\) During the construction period, many change orders are made to the original contract. The following schedule summarizes the changes made in 2002.Compute the
The Fitness Health Spa charges an annual membership fee of \($600\) for its services. For this fee, each member receives a fitness evaluation (value \($100),\) a monthly magazine (value \($32),\) and 2-hour's use of the equipment each week. The initial direct costs to obtain the membership are
Denna Corporation had sales in 2001 of \($210,000,\) in 2002 of \($270,000,\) and in 2003 of \($350,000.\) The gross profit percentage of each year, in order, was 25%, 29%, and 27%.Past history has shown that 10% of total sales are collected in the first vear, 40% in the second year, and 30% in the
Bailey Bats Inc. had the following sales and gross profit percentages for the years 2001-2004.Historically, 55% of sales are collected in the year of the sale, 30% in the following year, 10% in the third year. Assuming collections are as projected, give the journal entries for the years 2001-2004,
Johnson Enterprises uses the cost recovery method for all installment sales. Complete the following table. Installment sales Cost of installment sales Gross profit percentage Cash collections: 2001 sales 2002 sales 2003 sales. Realized gross profit on installment sales 2001 2002 2003 $80,000
On September 1, 2002, Jensen Company entered into franchise agreements with 3 franchisees. The agreements required an initial fee payment of \($7,000\) plus 4 \($3,000\) payments due ever) 4 months, the first payment due December 31, 2002. The interest rate is 12%. The initial deposit is refundable
Starbrite Pizzas franchises its name to different people across the country. The franchise agreement requires the franchisee to make an initial payment of \($12,000\) and sign a \($32,000\) non-interest-bearing note on the agreement date. The note is to be paid in 4 annual payments of \($8,000\)
In 2002, Rawlings Wholesalers transferred goods to a retailer on consignment. The transaction was recorded as a sale by Rawlings. The goods cost \($45,000\) and normally are sold at a 30% markup. In 2003, \($12,000\) (cost) of the merchandise was sold by the retailer at the normal markup, and the
Zamponi's Construction Company reports its income for tax purposes on a completedcontract basis and income for financial statement purposes on a percentage of completion basis. A record of construction activities for 2002 and 2003 follows:General and administrative expenses for 2002 and 2003 were
Showing 1900 - 2000
of 3974
First
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Last
Step by Step Answers
Get 50% OFF
Claim Now
