• Q : Journal entry to record the adjusting entry problem....
    Accounting Basics :

    For the year ending December 31, 2010, Johnson Manufacturing Company had depreciation totaling $38,000 on its office equipment. Give the journal entry to record the adjusting entry.

  • Q : Appropriateness of the accounting procedures....
    Accounting Basics :

    The company recorded this transaction as follows Comment on the appropriateness of the accounting procedures followed by Anderson, Inc.

  • Q : Effective interest method of accounting for bonds....
    Accounting Basics :

    Which of the following statements regarding the effective interest method of accounting for bonds characteristics is false?

  • Q : Loss contingency to accrue....
    Accounting Basics :

    Mayberry Co. has a loss contingency to accrue. The loss amount can only be reasonably estimated within a range of outcomes. No single amount within the range is a better estimate than any other amou

  • Q : Machinery with a book value related problem....
    Accounting Basics :

    Holcomb Corpsssoration owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $200,000. The machinery has a fair value of $140,000. Holco

  • Q : Compute the total cost per ton in the first year....
    Accounting Basics :

    Compute the total cost per ton of ore mined in the first year. (Show computations by setting up a schedule giving cost per ton.)

  • Q : Section of a statement of the cash-flows....
    Accounting Basics :

    The sale of the fixed asset by Lawrence Company is a recognized gain of 3,000, since it's book value was 5,000, but it sold for 8,000. How should this be reported in the investing activities section

  • Q : Percentage of sales method of calculating doubtful accounts....
    Accounting Basics :

    Why would you select the percentage of sales method of calculating doubtful accounts as opposed to the percentage of receivables method?

  • Q : Basics of entries to record the transaction....
    Accounting Basics :

    High Ridge Merchandising Co. sold for $12,000 cash inventory that had cost $10,000. Assuming High Ridge uses the perpetual inventory method, the entries to record this transaction would be?

  • Q : What balance should appear in the investment....
    Accounting Basics :

    Assuming that Alison has the ability to significantly influence the operations of Holister, what balance should appear in the Investment in Holister account as of December 31, 2005?

  • Q : Depreciation expense based problem....
    Accounting Basics :

    At the beginning of 2011 Gates spent $96,000 to overhaul the machinery. After the overhaul, Gates estimated that the useful life would be extended 4 years (14 years total), and the salvage value wou

  • Q : Calculate the amount that would be received by an investor....
    Accounting Basics :

    Calculate the amount that would be received by an investor who has owned 260 shares of preferred stock and 500 shares of common stock since 2008 if a $.75 per share dividend on the common stock is p

  • Q : What are the period cost per unit associated with product....
    Accounting Basics :

    The West Company manufactures several different products. Unit cost associated with Product ORD203 are as followers

  • Q : Prepare the journal entry on august 15, 20x0....
    Accounting Basics :

    Assume the conditions from part (a) are met. Prepare the journal entry on August 15,20X0, for Gringo to record the sale of receivable, assuming the recourse obligation has a fair value of $2,000.

  • Q : Recognizing a loss on the impairment problem....
    Accounting Basics :

    Holcomb Corpsssoration owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $200,000. The machinery has a fair value of $140,000. Holco

  • Q : Market value of the common stock....
    Accounting Basics :

    Rick Co. had 30 million shares of $1 par common stock outstanding at January 1, 2009. In October, 2009, Rick Co.'s Board of Directors declared and distributed a 1% common stock dividend when the mar

  • Q : What is the budgeted change in inventory levels....
    Accounting Basics :

    The Willsey Merchandise Company has budgeted $40,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $18,000 in merchand

  • Q : Revenues and other operating costs basics....
    Accounting Basics :

    Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the MACRS rates for such property are 33%, 45%, 15%, and 7% f

  • Q : Amount and direction-increase or decrease....
    Accounting Basics :

    If total liabilities increased by $20,000 during a period of time and owner's equity increased by $5,000 during the same period, the amount and direction (increase or decrease) of the period's chang

  • Q : What is the gain or loss of the sale....
    Accounting Basics :

    january 1, 2010, a companys 40,000 for equipment with a 10 year estimated life and a 5,000 salvage value. On january 1,2014, sells the equipment for 18,500. What is the gain or loss of the sale?

  • Q : Total annual dividend income....
    Accounting Basics :

    Adam owns 100 shares of Webster's stock and has decided to continue holding those shares. Once Webster's issues the debt, Adam's total annual dividend income from these shares will:

  • Q : What is hay company''s ending inventory....
    Accounting Basics :

    Hay Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO. During the year, purchases were $600,000 and sales were $1,000,000. December 31 inventory at year-end prices was $

  • Q : Determine the total factory labor costs transferred to work....
    Accounting Basics :

    Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $25 per direct labor hour. The direct labor rate is $30 per hour.

  • Q : Problem based in purchasing power parity....
    Accounting Basics :

    Purchasing power parity In the spot market 7.8 Mexican pesos can be exchanged for 1 U.S. dollar. A compact disc cost $15 in the United States. If purchasing power parity (PPP) holds, what should be

  • Q : What is her gross income for tax purposes....
    Accounting Basics :

    Olga, a cash basis taxpayer, sold a corporate bond with accrued interest of $300 for $10,000. Olga's cost of the bond was $10,000. What is her gross income for tax purposes?

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