Questions from Financial Accounting

Q: On March 3, Plume Appliances sells $710,000 of

On March 3, Plume Appliances sells $710,000 of its receivables to Western Factors Inc. Western Factors Inc. assesses a service charge of 4% of the amount of receivables sold. Instructions Prepare the...

Q: The president of Mossy Enterprises asks if you could indicate the impact

The president of Mossy Enterprises asks if you could indicate the impact certain transactions have on the following ratios. Instructions Complete the table, indicating whether each transaction will i...

Q: Prepare journal entries to record these transactions. (a)

Prepare journal entries to record these transactions. (a) Echo Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salva...

Q: Thieu Co. has delivery equipment that cost $50,000

Thieu Co. has delivery equipment that cost $50,000 and has been depreciated $24,000. Instructions Record entries for the disposal under the following assumptions. (a) It was scrapped as having no valu...

Q: Luke Roye is uncertain about the control features of a bank account

Luke Roye is uncertain about the control features of a bank account. Explain the control benefits of (a) a checking account and (b) a bank statement.

Q: On May 10, Keene Company sold merchandise for $4,

On May 10, Keene Company sold merchandise for $4,000 and accepted the customer’s Best Business Bank MasterCard. At the end of the day, the Best Business Bank MasterCard receipts were deposited in the...

Q: Presented below are data on three promissory notes. Determine the missing

Presented below are data on three promissory notes. Determine the missing amounts.

Q: On July 4, Mazie’s Restaurant accepts a Visa card for a

On July 4, Mazie’s Restaurant accepts a Visa card for a $250 dinner bill. Visa charges a 4% service fee. Instructions Prepare the entry on Mazie’s books related to the transaction.

Q: Suppose the amounts presented here are basic fi nancial information (in

Suppose the amounts presented here are basic fi nancial information (in millions) from the 2017 annual reports of Nike and adidas. Instructions Calculate the accounts receivable turnover and average...

Q: Abner Company purchases a patent for $156,000 on January

Abner Company purchases a patent for $156,000 on January 2, 2017. Its estimated useful life is 6 years. (a) Prepare the journal entry to record amortization expense for the first year. (b) Show how th...