Questions from Financial Accounting

Q: The following account balances are taken from the records of Martin Corp

The following account balances are taken from the records of Martin Corp. for the past two years. Other information available for 2017 is as follows: a. Net income for the year was $200,000. b. Depr...

Q: The Operating Activities section of Miller Corp.’s statement of cash

The Operating Activities section of Miller Corp.’s statement of cash flows reported an adjustment for depreciation expense of $25,000, as well as another for a loss on the sale of equipment of $5,000...

Q: The Operating Activities section of Washburn Company’s statement of cash flows reported

The Operating Activities section of Washburn Company’s statement of cash flows reported an adjustment for a gain on the retirement of bonds of $5,000. The Financing Activities section of the statement...

Q: The following events occurred at Handsome Hounds Grooming Company during its first

The following events occurred at Handsome Hounds Grooming Company during its first year of business: a. To establish the company, the two owners contributed a total of $50,000 in exchange for common...

Q: You are considering making a loan to Kellogg’s (Kellogg Company).

You are considering making a loan to Kellogg’s (Kellogg Company). The following information is from the statements of cash flows and the notes to the consolidated financial statement...

Q: On January 1, 2015, Jose Company purchased a building for

On January 1, 2015, Jose Company purchased a building for $200,000 and a delivery truck for $20,000. The following expenditures have been incurred during 2017: • The building was painted at a cost of...

Q: Erin Company incurred the following costs during 2017 and 2018:

Erin Company incurred the following costs during 2017 and 2018: a. Research and development costing $20,000 was conducted on a new product to sell in future years. A product was successfully developed...

Q: On January 1, 2017, White feather Industries issued 300,

On January 1, 2017, White feather Industries issued 300, $1,000 face value bonds. The bonds have a five-year life and pay interest at the rate of 10%. Interest is paid semiannually on July 1 and Janua...

Q: Berol Corporation sold 20-year bonds on January 1, 2017

Berol Corporation sold 20-year bonds on January 1, 2017. The face value of the bonds was $100,000, and they carry a 9% stated rate of interest, which is paid on December 31 of every year. Berol receiv...

Q: Following are the financial statements for Griffin Inc. for the year

Following are the financial statements for Griffin Inc. for the year 2017: Additional information: Griffin Inc. has authorized 500,000 shares of 10%, $10 par value, cumulative preferred stock. Ther...