Questions from Financial Accounting

Q: A company reports purchases of $388,000, a beginning

A company reports purchases of $388,000, a beginning accounts payable balance of $27,000, and an ending accounts payable balance of $48,000. All purchases were on account. The company’s accounts payab...

Q: Gravel Corporation borrowed $250,000 from a bank on January

Gravel Corporation borrowed $250,000 from a bank on January 1, 2019, by signing a 10%, six-month note. The journal entry made by Gravel on January 1, 2019, will debit a. Interest Expense for $25,000 a...

Q: Lexter Corporation borrows cash by signing a $90,000,

Lexter Corporation borrows cash by signing a $90,000, 8%, eight-month note on December 1 with its local bank. The total cash paid for interest (only) at the maturity of the note by Lexter will be a. $...

Q: Blue Jay, Inc., manufactures and sells computer monitors with a

Blue Jay, Inc., manufactures and sells computer monitors with a three-year warranty. Warranty costs are expected to average 7% of sales during the warranty period. The following table shows the sales...

Q: Which of the following statements is false? a. A

Which of the following statements is false? a. A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense) will o...

Q: Lakeside Software began January with $3,900 of merchandise inventory

Lakeside Software began January with $3,900 of merchandise inventory. During January, Lakeside made the following entries for its inventory transactions: How much was Lakeside’s inv...

Q: What was Lakeside’s gross profit for January? a. $

What was Lakeside’s gross profit for January? a. $7,500 b. $ – 0 – c. $1,900 d. $5,600

Q: Connors Company paid $700 cash to make a repair on equipment

Connors Company paid $700 cash to make a repair on equipment it sold under a one-year warranty in the prior year. The entry to record the payment will debit a. Accrued Warranty Payable and credit Cash...

Q: Swisher Company sold inventory with a selling price of $5,

Swisher Company sold inventory with a selling price of $5,000 to customers for cash. It also collected sales taxes of $250. The journal entry to record this information includes a a. credit to Sales T...

Q: If The Corner Frame Shop uses the FIFO method, the cost

If The Corner Frame Shop uses the FIFO method, the cost of the ending inventory will be a. $21,200. b. $20,900. c. $21,240. d. $27,840