Questions from Financial Accounting

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

McCloud Corporation owns equity-method investments in several companies. McCloud paid $1,800,000 to acquire a 30% investment in Brown Software Company. Brown reported net income of $660,000 for the fi...

Q: Mayfield, Inc., has the following plant asset accounts: Land

Mayfield, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Mayfield completed the following...

Q: On January 2, 2018, Jupiter Company paid $270,

On January 2, 2018, Jupiter Company paid $270,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $1,800, sales tax of $6,900, and $31,300 for a special...

Q: Caribbean Sales, Inc., sells electronics and appliances. The excerpts

Caribbean Sales, Inc., sells electronics and appliances. The excerpts that follow are adapted from Caribbean’s financial statements for 2018 and 2017 Requirements: 1. How much was C...

Q: Atlantic Energy Company’s balance sheet includes the asset Iron Ore Rights.

Atlantic Energy Company’s balance sheet includes the asset Iron Ore Rights. Atlantic Energy paid $2.9 million cash for the right to work a mine that contained an estimated 225,000 tons of ore. The com...

Q: At the end of 2017, Solar Power had total assets of

At the end of 2017, Solar Power had total assets of $17.8 billion and total liabilities of $9.1 billion. Included among the assets were property, plant, and equipment with a cost of $4.5 billion and a...

Q: Bargain Basement Corporation operates general merchandise and food discount stores in the

Bargain Basement Corporation operates general merchandise and food discount stores in the United States. The company reported the following information for the three years ending December 31, 2017: R...

Q: Walker Corporation reported the following related to property and equipment (all

Walker Corporation reported the following related to property and equipment (all in millions) Requirements: 1. Draw T-accounts for Property and Equipment and Accumulated Depreciation. Enter the infor...

Q: Becker Supply, Inc., opened an office in White Bear Lake

Becker Supply, Inc., opened an office in White Bear Lake, Minnesota. Becker incurred the following costs in acquiring land, making land improvements, and constructing and furnishing the new sales buil...

Q: Forest Lake Resort reported the following on its balance sheet at December

Forest Lake Resort reported the following on its balance sheet at December 31, 2018: On July 1, 2019, the resort expanded operations and purchased additional equipment for cash at a cost of $109,000...