Questions from Financial Accounting

Q: 1. Milton Printers incurred external costs of $700,000

1. Milton Printers incurred external costs of $700,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Milton with a competiti...

Q: Assume Voltron Company paid $22 million to acquire Brighton Industries.

Assume Voltron Company paid $22 million to acquire Brighton Industries. Assume further that Brighton had the following summarized data at the time of the Voltron acquisition (amounts in millions):...

Q: Hometown Supply Company reported the following information in its comparative financial statements

Hometown Supply Company 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 for...

Q: Assume Howard Manufacturing Corporation completed the following transactions: a.

Assume Howard Manufacturing Corporation completed the following transactions: a. Sold a store building for $690,000. The building had cost Howard Manufacturing $1,200,000, and at the time of the sale,...

Q: Accounting records of Artie’s Appliances included the following balances at the end

Accounting records of Artie’s Appliances included the following balances at the end of the period: In the past, Artie’s warranty expense has been 8% of sales. Durin...

Q: Kingman Financial paid $590,000 for a 30% investment

Kingman Financial paid $590,000 for a 30% investment in the common stock of Cavalier, Inc. For the first year, Cavalier reported net income of $240,000, and at year-end declared and paid cash dividend...

Q: Travis Publishing completed the following transactions for one subscriber during 2018:

Travis Publishing completed the following transactions for one subscriber during 2018: Requirement: 1. Journalize these transactions (explanations not required). Then report any liability on the com...

Q: Key West has an annual payroll of $150,000.

Key West has an annual payroll of $150,000. In addition, the company incurs payroll tax expense of 10% of the annual payroll. At December 31, Key West owes salaries of $8,000 and FICA and other payrol...

Q: Electronics completed these selected transactions during March 2018: a.

Electronics completed these selected transactions during March 2018: a. Sales of $2,050,000 are subject to an accrued warranty cost of 9%. The accrued warranty payable at the beginning of the year was...

Q: Pine Systems’ revenues for LO 52018 totaled $27.1 million

Pine Systems’ revenues for LO 52018 totaled $27.1 million. As with most companies, Pine is a defendant in lawsuits related to its products. Note 14 of the Pine annual report for 2018...