Demonstration Problem 1-3
Identify the basic concept that was violated in each of the following situations.
1. Don Sherwood, a shareholder of the Brady Construction Corporation, has not received a
financial statement from the company for over two years.
Demonstration Problem 4-5
The statement of cash flows classifies all cash inflows and outflows into one of the three
categories shown below and lettered from a-c. In addition, certain transactions that do not
involve cash are reported in the statement as
Demonstration Problem 4-1
The following is a partial trial balance for Apex Computer Corporation as of December 31,
Sales revenue .
Interest revenue .
Gain on sale of investments .
Cost of goods sold .
Demonstration Problem 4-3
The Ottoboni Corporation had two operating divisions, one manufacturing division and a
finance division. Both divisions are considered separate components of the entity. The finance
division has been unprofitable, and on October
Demonstration Problem 5-4
The Ugenti Construction Company contracted to construct a warehouse building for
$2,600,000. Construction began in 2016 and was completed in 2017. Data relating to the
contract are summarized below:
Costs incurred durin
Demonstration Problem 7-2
SDLI, Inc. grants its customers 30 days credit. The company uses the allowance method for
its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by
multiplying 2% times the amount of credit sal
Demonstration Problem 81
Callahan & Sons began 2013 with 10,
cost of each unit is $25.00. Merchandise
2013, are as follows:
Purchase ' Total Cost
. $ 24.00 $192,000 March 1 - Inventory on hand 3,000 units; cost $8.00 each. '
March 8 - Purchased 5,
Demonstration Problem 9-1
Cooperstown Sports, Inc.
31, 2013, inventory is as follows:
Gloves $3 60,000
n pie/Xv mi
Case 1: At the start of its fiscal year, the Garr Company purchased a building that it planned to
sell within six months. It asked its accountant where to classify this asset in its financial
statements, and if it should
Demonstration Problem 3-3
The following are typical disclosures that would appear in the notes accompanying financial
statements. For each of the items listed, indicate where the disclosure would likely appear
either in (A) the significant accounting pol
Demonstration Problem 1-2
Listed below are several terms and phrases associated with the FASBs conceptual framework
and underlying accounting principles. Pair each item from List A (by letter) with the item from
List B that is most appropriately associate
Demonstration Problem 3-1
The following are the typical classifications used in a balance sheet:
a) Current assets
f) Current liabilities
g) Long-term liabilities
c) Property, plant, and equipment
h) Paid-in capital
d) Intangible assets
Demonstration Problem 4-2
The Bilibong Company had three distinct operating divisions, each of which qualifies as a
separate component. The sports equipment division had been unprofitable, and on June 1, 2016,
the company adopted a plan to sell the assets