Questions from Financial Accounting


Q: Nova Corporation hired a new product manager and agreed to provide her

Nova Corporation hired a new product manager and agreed to provide her a $20,000 relocation loan on a six-month, 7 percent note. Prepare journal entries to record the following transactions for Nova C...

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Q: Laser Delivery Services, Inc. (LDS), was incorporated January

Laser Delivery Services, Inc. (LDS), was incorporated January 1. The following transactions occurred during the year: a. Received $40,000 cash from the company’s founders in exchang...

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Q: Why is it appropriate to use cash basis accounting in your personal

Why is it appropriate to use cash basis accounting in your personal life but not in the business world?

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Q: Heavey and Lovas Furniture Repair Service, a company with two stockholders

Heavey and Lovas Furniture Repair Service, a company with two stockholders, began operations on June 1. The following T-accounts indicate the activities for the month of June. Required: For each of...

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Q: Columbia Sportswear Company reported the following in recent balance sheets (amounts

Columbia Sportswear Company reported the following in recent balance sheets (amounts in millions). Required: 1. Calculate the current ratio (rounded to two decimal places) at September 30, 2016, and...

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Q: Business Sim Corp. (BSC) issued 1,000 common

Business Sim Corp. (BSC) issued 1,000 common shares to Kelly in exchange for $12,000. BSC borrowed $30,000 from the bank, promising to repay it in two years. BSC paid $35,000 for computer equipment wi...

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Q: The following are independent situations. a. A company orders

The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $25,000 within three months. b. A company pu...

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Q: As described in a recent annual report, Digital Diversions, Inc

As described in a recent annual report, Digital Diversions, Inc. (DDI), designs, develops, and distributes video games for computers and advanced game systems. DDI has been operating for only one full...

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Q: The following events occurred for Favata Company a. Received

The following events occurred for Favata Company a. Received $10,000 cash from owners and issued stock to them. b. Borrowed $7,000 cash from a bank and signed a note due later this year. c. Bought...

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Q: For each of the events in E2-4, prepare journal

For each of the events in E2-4, prepare journal entries, checking that debits equal credits. Data from E2-4: The following events occurred for Favata Company: a. Received $10,000 cash from owners and...

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