Questions from Financial Accounting

Q: During the current year ended December 31, Rank Company disposed of

During the current year ended December 31, Rank Company disposed of three different assets. On January 1 of the current year, prior to their disposal, the asset accounts reflected the following: The...

Q: During the current year ending December 31, Nguyen Corporation completed the

During the current year ending December 31, Nguyen Corporation completed the following transactions: a. On January 1, purchased a license for $7,200 cash (estimated useful life, four years). b. On Jan...

Q: Jones Soda is a regional soda manufacturer in the Pacific Northwest.

Jones Soda is a regional soda manufacturer in the Pacific Northwest. Jones is currently facing three lawsuits, summarized below: a. A customer is suing Jones for $1 million because he claims to have f...

Q: Carey Corporation has five different intangible assets to be accounted for and

Carey Corporation has five different intangible assets to be accounted for and reported on the financial statements. The management is concerned about the amortization of the cost of each of these int...

Q: On January 1 of Year 1, Austin Auto Company decided to

On January 1 of Year 1, Austin Auto Company decided to start a fund to build an addition to its plant. Austin will deposit $320,000 in the fund at each year-end, starting on December 31 of Year 1. The...

Q: Sturgis Company completed the following transactions during Year 1. Sturgis’s fiscal

Sturgis Company completed the following transactions during Year 1. Sturgis’s fiscal year ends on December 31. Required: 1. Prepare journal entries for each of these transactions. 2...

Q: Using data from problem Alternate Problem-1, complete the following

Using data from problem Alternate Problem-1, complete the following: Data given in Alternate Problem-1: Sturgis Company completed the following transactions during Year 1. Sturgis’s...

Q: Ford Motor Company is one of the world’s largest companies, with

Ford Motor Company is one of the world’s largest companies, with annual sales of cars and trucks in excess of $144 billion. A recent annual report for Ford contained the following note: Warranties Est...

Q: Tootsie Roll Industries, Inc., is engaged in the manufacture and

Tootsie Roll Industries, Inc., is engaged in the manufacture and sale of confectionery products. Last year, Tootsie Roll reported cost of goods sold of $352 million. This year, cost of goods sold was...

Q: On January 1, Ellsworth Company completed the following transactions (use

On January 1, Ellsworth Company completed the following transactions (use an 8% annual interest rate for all transactions): a. Borrowed $2,000,000 to be repaid in five years. Agreed to pay $150,000 in...