• Q : Depreciation expense for the second year based problem....
    Accounting Basics :

    Schager Company purchased a computer system on January 1, 2006, at a cash cost of $25,000. The estimated useful life is 10 years, and the estimated residual value is $3,000. The company will use the

  • Q : Desired ending cash balance for company....
    Accounting Basics :

    Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. The desir

  • Q : Net cash provided by operations....
    Accounting Basics :

    Appier Company reported net income of $40,000 for the year ended December 31, 2003. During the year, inventories decreased by $14,000, accounts payable decreased by $16,000, depreciation expense was

  • Q : Concept related to shares of treasury stock....
    Accounting Basics :

    Fenway Company sells 1,000 shares of treasury stock for $32,000. The shares had been previously acquired for $24,000. The $8,000 received over cost should be credited to:

  • Q : Straight-line method of amortization related problem....
    Accounting Basics :

    A corporation issued $600,000 of 8%, 5-year bonds on January 1, at 102. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization, the a

  • Q : Amount of bond interest expense to be recognized problem....
    Accounting Basics :

    A corporation issued $600,000 of 8%, 5-year bonds on January 1, at 102. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization, the a

  • Q : What type of compound interest table is appropriate....
    Accounting Basics :

    On June 1, 2006, Walsh Company sold some equipment to Fischer Company. The two companies entered into an installment sales contract at a rate of 8%. The contract required 8 equal annual payments wit

  • Q : Amount of each annual payment of the ccompany....
    Accounting Basics :

    On January 1, 20A, Ross Company acquired a truck that had a purchase price of $20,000. The seller agreed to allow Ross to pay for the truck over a two-year period at 10% interest with equal payments

  • Q : Calculate the net cash effect of changes....
    Accounting Basics :

    In 1998, PepsiCo reported an increase in accounts receivable of $303 million, and an increase in inventory of $284 million. They also experienced an increase in short-term borrowings of $3,921 milli

  • Q : Current liability on the company year-end balance sheet....
    Accounting Basics :

    Disregarding interest, the amount of the $10,000 loan that should be considered a current liability on the company's 20A year-end balance sheet would be

  • Q : Required adjusting entry at the end of the accounting period....
    Accounting Basics :

    Goodman Company borrowed $100,000 cash on September 1, 20B, and signed a one-year 12%, interest-bearing note payable. The required adjusting entry at the end of the accounting period, December 31, 2

  • Q : Determining the effective interest rate....
    Accounting Basics :

    To finance a new department, Dannella Yogurt Corporation borrowed $80,000 at an interest rate of 10% On April 1, 20A. Considering the income tax rate of 40%, what is the effective interest rate (net

  • Q : Income statement for the note....
    Accounting Basics :

    On September 1, 20A, Dawn Equipment signed a one-year, 7% interest-bearing note payable for $5,000. Assuming that Dawn maintains its books on a calendar year basis, the amount of interest expense th

  • Q : Evaluate the current ratio....
    Accounting Basics :

    Genentech, a biotechnology company, reported current assets of $1,326.5 million and current liabilities of $484.1 million in 1999, and in 1998, current assets of $1,242.0 million and $291.3 million

  • Q : What was their current ratio....
    Accounting Basics :

    In 1999, The Walt Disney Company reported current assets of $10,200 million, total assets of $43,679 million, current liabilities of $7,707 million, and total liabilities of $22,704 million. What wa

  • Q : Basics of amount of depreciation expense....
    Accounting Basics :

    Bethany Company plans to depreciate a new building using declining-balance depreciation with 200 percent acceleration rate. The building cost $400,000. The estimated residual value of the building i

  • Q : Annual depreciation expense related problem....
    Accounting Basics :

    On January 1, 20A, Straight, Inc., purchased a machine with a cash price of $9,500. Straight also paid $500 for transportation and installation. The expected useful life of the machine is 5 years an

  • Q : What amount is capitalized to the building account....
    Accounting Basics :

    Johnson Company acquires land and building for $4,000,000 including all fees related to acquisition. The land is appraised at $2,700,000 and the building at $2,100,000. The building is then renovate

  • Q : What amount should be debited to the asset account vehicles....
    Accounting Basics :

    Martinelli Company recently purchased a truck. The price negotiated with the dealer was $85,000. Martinelli also paid sales tax of $6,000 on the purchase, shipping and preparation costs of $950, and

  • Q : Cost recorded for the machine....
    Accounting Basics :

    On March 1, Chapine Company purchased a new stamping machine for $5,000. Chapine paid cash for the machine. Other costs associated with the machine were: transportation costs, $300; sales tax paid $

  • Q : Gross method to record the purchases....
    Accounting Basics :

    Joe Company sold merchandise with an invoice price of $1,000 to Gibbs, Inc., with terms of 2/10, n/30. Which of the following is the correct entry to record the payment by Gibbs within the 10 days i

  • Q : Periodic inventory system-gross method to record purchases....
    Accounting Basics :

    Joe Company sold merchandise with an invoice price of $1,000 to Gibbs, Inc., with terms of 2/10, n/30. Which of the following is the correct entry to record the purchase by Gibbs if the company uses

  • Q : Compute the gross margin-gross profit....
    Accounting Basics :

    Discounts, $4,000; Beginning Inventory, $10,000; and Purchases, $140,000. A physical count of the merchandise on hand at the end of the year showed $20,000. Compute the gross margin (gross profit) t

  • Q : Compute the amount of the ending inventory....
    Accounting Basics :

    The following information was taken from the 20B income statement of Milburn Company: Pretax income, $12,000; Total operating expenses (not including income taxes), $20,000; Sales revenue, $120,000;

  • Q : Accountant recorded an adjusting entry....
    Accounting Basics :

    When preparing the monthly bank reconciliation, the accountant for Tiffany Toys noted that a check received from a customer last month for $89 was marked NSF and returned along with the bank stateme

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