Questions from Financial Accounting

Q: On March 1, Lincoln sold merchandise on account to Amelia Company

On March 1, Lincoln sold merchandise on account to Amelia Company for $28,000, terms 1/10, net 45. On March 6, Amelia returns merchandise with a sales price of $1,000. On March 11, Lincoln receives pa...

Q: Record the following transactions on the books of Jarvis Co. (

Record the following transactions on the books of Jarvis Co. (Omit cost of goods sold entries.) (a) On July 1, Jarvis Co. sold merchandise on account to Stacey Inc. for $23,000, terms 2/10, n/30. (b)...

Q: On January 10, Molly Amise uses her Lawton Co. credit

On January 10, Molly Amise uses her Lawton Co. credit card to purchase merchan-dise from Lawton Co. for $1,700. On February 10, Molly is billed for the amount due of $1,700. On February 12, Molly pays...

Q: Thoms Company incurs these expenditures in purchasing a truck: cash price

Thoms Company incurs these expenditures in purchasing a truck: cash price $24,000, accident insurance (during use) $2,000, sales taxes $1,080, motor vehicle license $300, and painting and lettering $1...

Q: Pat Buhn is the new owner of Young Co. She has

Pat Buhn is the new owner of Young Co. She has heard about internal control but is not clear about its importance for her business. Explain to Pat the four purposes of internal control, and give her o...

Q: Krieg Company had the following two transactions related to its delivery truck

Krieg Company had the following two transactions related to its delivery truck. 1. Paid $38 for an oil change. 2. Paid $400 to install special shelving units, which increase the operating efficiency o...

Q: At the end of 2016, Safer Co. has accounts receivable

At the end of 2016, Safer Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $25,000. On January 24, 2017, it is learned that the company’s receivable from Madonna Inc....

Q: In 2017, Bismark Company has net credit sales of $1

In 2017, Bismark Company has net credit sales of $1,600,000 for the year. It had a beginning accounts receivable (net) balance of $108,000 and an ending accounts receivable (net) balance of $120,000....

Q: For each of the following income statement line items, state whether

For each of the following income statement line items, state whether the item is a “by nature” expense item or a “by function” expense item. ________ Cost of goods sold. ________ Utilities expense. __...

Q: Gordon Chemicals Company acquires a delivery truck at a cost of $

Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Compute annual...