Questions from Financial Accounting

Q: Assume the same information as BE8-3(given below)

Assume the same information as BE8-3(given below) and that on March 4, 2017, Safer Co. receives payment of $4,300 in full from Madonna Inc. Prepare the journal entries to record this transaction. Data...

Q: Byrd Co. uses the percentage-of-receivables basis to

Byrd Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $400,000 at the end of the...

Q: Sarasota Company has a credit balance of $2,200 in

Sarasota Company has a credit balance of $2,200 in Allowance for Doubtful Accounts before adjustment. The estimated uncollectibles under the percentage- of-receivables basis is $5,100. Prepare the adj...

Q: For 2017, Sale Company reported beginning total assets of $300

For 2017, Sale Company reported beginning total assets of $300,000 and ending total assets of $340,000. Its net income for this period was $50,000, and its net sales were $400,000. Compute the company...

Q: Gotham Company purchased a new machine on October 1, 2017,

Gotham Company purchased a new machine on October 1, 2017, at a cost of $90,000. The company estimated that the machine has a salvage value of $8,000. The machine is expected to be used for 70,000 wor...

Q: While examining cash receipts information, the accounting department deter-mined

While examining cash receipts information, the accounting department deter-mined the following information: opening cash balance $150, cash on hand $1,125.74, and cash sales per register tape $988.62....

Q: On January 1, 2017, the Hermann Company ledger shows Equipment

On January 1, 2017, the Hermann Company ledger shows Equipment $36,000 and Accumulated Depreciation $13,600. The depreciation resulted from using the straight-line method with a useful life of 10 year...

Q: Consider these transactions: (a) Tastee Restaurant accepted a

Consider these transactions: (a) Tastee Restaurant accepted a Visa card in payment of a $200 lunch bill. The bank charges a 3% fee. What entry should Tastee make? (b) Martin Company sold its accounts...

Q: At April 30, the bank reconciliation of Back 40 Company shows

At April 30, the bank reconciliation of Back 40 Company shows three outstanding checks: No. 254 $650, No. 255 $700, and No. 257 $410. The May bank statement and the May cash payments journal are given...

Q: Musical Corporation acquires 80 percent of Dustin Corporation’s common shares on January

Musical Corporation acquires 80 percent of Dustin Corporation’s common shares on January 1, 20X2. On January 2, 20X2, Dustin acquires 60 percent of Rustic Corporationâ€
...