Questions from Financial Accounting

Q: Accounting records for Allegheny Corporation yield the following data for the year

Accounting records for Allegheny Corporation yield the following data for the year ended June 30, 2018: Requirements: 1. Journalize Allegheny’s inventory transactions for the year u...

Q: On January 1, 2018, Little City Bar & Grill purchased

On January 1, 2018, Little City Bar & Grill purchased a building, paying $58,000 cash and signing a $110,000 note payable. The company paid another $62,000 to remodel the building. Furniture and fix...

Q: Ardmore Investments purchased Columbia Corporation shares on December 16 for $110

Ardmore Investments purchased Columbia Corporation shares on December 16 for $110,000. Ardmore plans on holding the securities a few months. Ardmore owns less than 2% of the outstanding shares of Colu...

Q: Shay Corporation owns equity-method investments in several companies. Shay

Shay Corporation owns equity-method investments in several companies. Shay paid $1,600,000 to acquire a 25% investment in Faulk Software Company. Faulk reported net income of $620,000 for the first ye...

Q: Fresno Consultants purchased a building for $440,000 and depreciated

Fresno Consultants purchased a building for $440,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $82,000. After using the building for 20 years, Fresno...

Q: On January 1, 2017, Stockton Manufacturing purchased a machine for

On January 1, 2017, Stockton Manufacturing purchased a machine for $910,000. The company expected the machine to remain useful for eight years and to have a residual value of $80,000. Stockton Manuf...

Q: Sweitzer Printers incurred external costs of $400,000 for a

Sweitzer Printers incurred external costs of $400,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Sweitzer with a competi...

Q: Assume Kaledan Company paid $15 million to acquire Roeder Industries.

Assume Kaledan Company paid $15 million to acquire Roeder Industries. Assume further that Roeder had the following summarized data at the time of the Kaledan acquisition (amounts in millions): Roeder...

Q: Handley Grocery Corporation reported the following information in its comparative financial statements

Handley Grocery Corporation reported the following information in its comparative financial statements for the fiscal year ended January 31, 2018: Requirements: 1. Compute the net profit margin ratio...

Q: Assume Alfonso Corporation completed the following transactions: a. Sold

Assume Alfonso Corporation completed the following transactions: a. Sold a store building for $670,000. The building had cost Alfonso $1,600,000, and at the time of the sale, its accumulated depreciat...