Questions from Financial Accounting

Q: The net income of Solas Photography Company decreased sharply during 2012.

The net income of Solas Photography Company decreased sharply during 2012. Lisa Almond, owner of the company, anticipates the need for a bank loan in 2013. Late in 2012, Almond instructed Brad Lail, t...

Q: Amazon.com, Inc. —like all other businesses—

Amazon.com, Inc. —like all other businesses—adjusts accounts prior to year end to get correct amounts for the financial statements. Examine Amazon.com, Inc.’s Consolidated Balance Sheets in Appendix A...

Q: Refer to the consolidated financial statements of RadioShack Corporation in Appendix B

Refer to the consolidated financial statements of RadioShack Corporation in Appendix B. During 2010, the company had numerous accruals and deferrals. As a new member of RadioShack’s accounting staff ,...

Q: Matt Trozo formed a lawn service company as a summer job.

Matt Trozo formed a lawn service company as a summer job. To start the business on May 1, he deposited $2,500 in a new bank account in the name of Trozzo Lawn Service, Inc. consisting of a $1,500 loan...

Q: Putnam Company began April with inventory of $46,100.

Putnam Company began April with inventory of $46,100. The business made net purchases of $31,500 and had net sales of $64,600 before a fire destroyed the company’s inventory. For the past several year...

Q: Journalize the following assumed transactions for Th e Soda Pop Company.

Journalize the following assumed transactions for Th e Soda Pop Company. Show amounts in billions. a. Cash purchases of inventory, $4.5 billion b. Sales on account, $18.9 billion c. Cost of goods sold...

Q: Bridget Krumb, Inc., purchased inventory costing $125,000

Bridget Krumb, Inc., purchased inventory costing $125,000 and sold 80% of the goods for $190,000. All purchases and sales were on account. Krumb later collected 25% of the accounts receivable. 1. Jour...

Q: Better Buy purchases inventory in crates of merchandise; each crate of

Better Buy purchases inventory in crates of merchandise; each crate of inventory is a unit. The fiscal year of Better Buy ends each January 31. Assume you are dealing with a single Better Buy store in...

Q: Tolbert Trumpet Company is nearing the end of its worst year ever

Tolbert Trumpet Company is nearing the end of its worst year ever. With two weeks until year-end, it appears that net income for the year will have decreased by 30% from last year. Jim Tolbert, the pr...

Q: Assume a Gold Medal Sports outlet store began August 2012 with 44

Assume a Gold Medal Sports outlet store began August 2012 with 44 pairs of running shoes that cost the store $33 each. The sale price of these shoes was $61. During August, the store completed these i...