Questions from Financial Accounting

Q: Good business and accounting practices require the exercise of good judgment.

Good business and accounting practices require the exercise of good judgment. How should ethics be incorporated into making accounting judgments? Why is ethics important?

Q: A Healthy Planet, Inc., needs funds, and Mary Barry

A Healthy Planet, Inc., needs funds, and Mary Barry , the president, has asked you to consider investing in the business. Answer the following questions about the different ways that Barry might organ...

Q: A large auto manufacturer sells large fleets of vehicles to auto rental

A large auto manufacturer sells large fleets of vehicles to auto rental companies, such as Acme and Harris. Suppose Acme is negotiating with the auto manufacturer to purchase 950 vehicles. Write a sho...

Q: Capeside Corporation began 2010 owing notes payable of $3.9

Capeside Corporation began 2010 owing notes payable of $3.9 million. During 2010 Capeside borrowed $2.3 million on notes payable and paid off $2.0 million of notes payable from prior years. Interest e...

Q: After operating for several months, architect Gwen Markum completed the following

After operating for several months, architect Gwen Markum completed the following transactions during the latter part of July: Journalize the transactions of Gwen Markum, Architect. Include an explan...

Q: Accounting definitions are precise, and you must understand the vocabulary to

Accounting definitions are precise, and you must understand the vocabulary to properly use accounting. Sharpen your understanding of key terms by answering the following questions: 1. How do the asset...

Q: Hombran Doughnuts has current assets of $290 million; property ,

Hombran Doughnuts has current assets of $290 million; property , plant, and equipment of $490 million; and other assets totaling $150 million. Current liabilities are $150 million and long-term liabil...

Q: Suppose that on January 1 Georgetown Golf Company paid cash of $

Suppose that on January 1 Georgetown Golf Company paid cash of $80,000 for computers that are expected to remain useful for four years. At the end of four years, the computers values are expected to b...

Q: As the controller of Eden Consulting, you have hired a new

As the controller of Eden Consulting, you have hired a new employee, whom you must train. She objects to making an adjusting entry for accrued salaries at the end of the period. She reasons, We will p...

Q: Resort Travel borrowed $80,000 on October 1 by signing

Resort Travel borrowed $80,000 on October 1 by signing a note payable to Texas First Bank. The interest expense for each month is $500. The loan agreement requires Resort to pay interest on December 3...