Questions from Financial Accounting

Q: Belvidere Self Storage purchased land, paying $170,000 cash

Belvidere Self Storage purchased land, paying $170,000 cash as a down payment and signing a $180,000 note payable for the balance. Belvidere also had to pay delinquent property tax of $2,000, title in...

Q: During 2018, Ming’s Book Store paid $486,000 for

During 2018, Ming’s Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior to construction, the city of Naperville charged Ming’s $1,000 for a building permit, which Ming...

Q: Lima Pizza bought a used Toyota delivery van on January 2,

Lima Pizza bought a used Toyota delivery van on January 2, 2018, for $18,600. The van was expected to remain in service for four years (57,000 miles). At the end of its useful life, Lima management es...

Q: On January 1, 2018, Black Iron Bar & Grill purchased

On January 1, 2018, Black Iron Bar & Grill purchased a building, paying $56,000 cash and signing a $101,000 note payable. The company paid another $60,000 to remodel the building. Furniture and fixtur...

Q: Without making journal entries, record the transactions of E-E

Without making journal entries, record the transactions of E-E-20A directly in the Shay T-account, Equity-method Investment. Assume that after all the noted transactions took place, Shay sold its enti...

Q: Chester Consultants purchased a building for $430,000 and depreciated

Chester Consultants purchased a building for $430,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $70,000. After using the building for 20 years, Cheste...

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

On January 1, 2017, Lincoln Manufacturing purchased a machine for $930,000. The company expected the machine to remain useful for eight years and to have a residual value of $110,000. Lincoln Manufact...

Q: On January 2, 2018, Drake Furnishings purchased display shelving for

On January 2, 2018, Drake Furnishings purchased display shelving for $8,100 cash, expecting the shelving to remain in service for five years. Drake depreciated the shelving on a double-declining-balan...

Q: Canyon Truck Company is a large trucking company. The company uses

Canyon Truck Company is a large trucking company. The company uses the units-of-production (UOP) method to depreciate its trucks.To follow are facts about one Mack truck in the company’s fleet. When t...

Q: Bearcreek Mines paid $433,000 for the right to extract

Bearcreek Mines paid $433,000 for the right to extract ore from a 450,000-ton mineral deposit. In addition to the purchase price, Bearcreek Mines paid a $155 filing fee to the county recorder, a $2,80...