Questions from Financial Accounting

Q: For each transaction listed in E8-4, indicate the amount

For each transaction listed in E8-4, indicate the amount and direction (+ or −) of effects on the financial statement accounts and on the overall accounting equation. Data from E8-4...

Q: Young and Old Corporation (YOC) uses two aging categories to

Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 5% uncollectible rate. Accounts more than 60 da...

Q: Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense

Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three time periods as follows: (1) 1–30 days old, $12,000; (2) 31–9...

Q: Innovative Tech Inc. (ITI) has been using the percentage

Innovative Tech Inc. (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $100,000 and estimated that ½ of 1 percent of t...

Q: Fraud Investigators Inc. operates a fraud detection service.

Fraud Investigators Inc. operates a fraud detection service. Required: 1. Prepare journal entries for each transaction below. a. On March 31, 10 customers were billed for detection services totali...

Q: Assume that Simple Co. had credit sales of $250,

Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance f...

Q: The following is a list of account titles and amounts (in

The following is a list of account titles and amounts (in millions) reported at December 27, 2015, by Hasbro, Inc., a leading manufacturer of games, toys, and interactive entertainment software for ch...

Q: Amazon, Alphabet, and TripAdvisor rely on various intangible assets to

Amazon, Alphabet, and TripAdvisor rely on various intangible assets to operate their businesses. These companies amortize the cost of these assets using the straight-line method over the following ave...

Q: Refer to the data in E9-10. Assume each company

Refer to the data in E9-10. Assume each company spent $319,800 at the beginning of the current year for additional Developed Technology. Because of its proprietary nature, the technology is estimated...

Q: Bluestone Company had three intangible assets at the end of the current

Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $9,300. When purchased, the patent had an...