Questions from Financial Accounting

Q: Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system to

Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $7,000. The estimated useful...

Q: Nicole thinks that her business, Nicole’s Getaway Spa (NGS),

Nicole thinks that her business, Nicole’s Getaway Spa (NGS), is doing really well and she is planning a large expansion. With such a large expansion, Nicole will need to finance some of it using debt...

Q: CC11-1 Accounting for Equity Financing Nicole has been financing Nicole’s

CC11-1 Accounting for Equity Financing Nicole has been financing Nicole’s Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000 no-par preferred shares and 200,000 $2 par comm...

Q: During a recent year, Nicole’s Getaway Spa (NGS) reported

During a recent year, Nicole’s Getaway Spa (NGS) reported net income of $2,300. The company reported the following activities: a. Increase in inventory of $400. b. Depreciation of $3,000. c. Increase...

Q: What is gross profit? How is the gross profit percentage computed

What is gross profit? How is the gross profit percentage computed? Illustrate its calculation and interpretation assuming Net Sales is $100,000 and Cost of Goods Sold is $60,000.

Q: Looking back over the last few years, it is clear that

Looking back over the last few years, it is clear that Nicole Mackisey has accomplished a lot running her business, Nicole’s Getaway Spa (NGS). Nicole is curious about her company&ac...

Q: Nicole Mackisey is thinking of forming her own spa business, Nicole’s

Nicole Mackisey is thinking of forming her own spa business, Nicole’s Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 s...

Q: CC2-1 Accounting for the Establishment of a Business Nicole has

CC2-1 Accounting for the Establishment of a Business Nicole has decided that she is going to start her business, Nicole’s Getaway Spa (NGS). A lot has to be done when starting a new business. Here are...

Q: Starting in May, Nicole has decided that she has everything she

Starting in May, Nicole has decided that she has everything she needs to open her doors to customers. To keep up with competition, Nicole has added gift certificates and has started to advertise her c...

Q: Assume it is now December 31, 2018, and Nicole has

Assume it is now December 31, 2018, and Nicole has just completed her first year of operations at Nicole’s Getaway Spa. After looking through her trial balance, she noticed that there are some items t...