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Financial Accounting - Computing Depreciation

P10-3A On January 1, 2006, Solomon Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $38,500. Related expenditures included: Sales tax $2,200, shipping costs $175, insurance during shipping $75, installation and testing costs $50, and $90 of oil and

Transportation Method: Andrew-Carter case

Andrew-Carter, Inc. (A-C), is a major Canadian producer and distributor of outdoor lighting fixtures. Its fixture is distributed throughout North America and has been in high demand for several years. The company operates three plants that manufacture the fixture and distribute it to five distribution centers (warehouses). Duri

Financial Accounting - Identifying Internal Control Weaknesses

P5-6A Cedar Grove Middle School wants to raise money for a new sound system for its auditorium. The primary fund-raising event is a dance at which the famous disc jockey Obnoxious Al will play classic and not-so-classic dance tunes. Roger DeMaster, the music and theater instructor, has been given the responsibility for coor

Financial Accounting

The trial balance of Brennan Fashion Center contained the following accounts at November 30, the end of the company's fiscal year. BRENNAN FASHION CENTER Trial Balance November 30, 2002 Debit Credit Cash $ 28,700 Accounts Receivable 33,700 Merchandise Inventory 45,000 Store Supplies 5,50

Financial Accounting

P3-5A Ewok-Ackbar opened Ewok's Carpet Cleaners Inc. on March 1. During March, the following transactions were completed. Mar. 1 Issued $10,000 of common stock for $10,000 cash. 1 Purchased used truck for $6,000, paying $4,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,200 on account. 5 Paid $1,

Financial Accounting - Comparison of Inventory Systems

CHAPTER 6: EXERCISE 6.12 Comparison of Inventory Systems Sky Probe sells state-of-the-art telescopes to individuals and organizations interested in studying the solar system. At December 31 last year, the company's inventory amounted to $250,000. During the first week of January this year, the company made only one purchase

Financial Accounting and Journalizing

Section II On January 1, 2002, John Diego Company had Accounts Receivable $146,000, Notes Receivable of $15,000, and Allowance for Doubtful Accounts of $13,200. The note receivable is from Trudy Borke Company. It is a 4-month, 12% note dated December 31, 2001. John Diego Company prepares financial statements annually. During t

Financial Accounting

E4-11 On December 31, the adjusted trial balance of Garg Employment Agency shows the following selected data. Accounts Receivable $24,000 Commission Revenue $92,000 Interest Expense 7,800 Interest Payable 1,500 Analysis shows that adjusting entries were made to (1) accrue $4,200 of commission revenue and (2) ac

Financial Accounting

(See attached files for full problem description) E4-6 The adjusted trial balance of Lanza Company at the end of its fiscal year. E4-7 Prepare an income statement and a retained earnings statement for the year. There were no issuances of stock during the year. Prepare a classified balance sheet at July 31.

Change from Fair Value to Equity

E22-19 (Change from Fair Value to Equity) On January 1, 2004, Barbra Streisand Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for $1,400,000. At the time, the book value and the fair value of John's net assets were $13,000,000. On July 1, 2005, Streisand paid $3,040,000 for 50,000 additional shares of John

Seasonalize Trends

The Costello Music Company has been in business for 5 years, selling electric organs. Below are the quarterly sales by year, with annual totals. Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 1 4 2 1 5 12 2 6

Accounting Transfer Price Problem

Case 5-2 IBM Data Center for Eastman Kodiak In 1989, IBM and Kodak entered into and agreement whereby IBM would build and operate a data processing center in Rochester, NY that consolidates five Kodak data centers into one. Of the five original data centers, three were at separate sites in Rochester, one was in Colorado, and

Treasury Stock Transactions and Presentation - Jodz Company

P15-2 (Treasury Stock Transactions and Presentation) Jodz Company had the following stockholders' equity as of January 1, 2004. Common stock, $5 par value, 20,000 shares issued $100,000 Paid-in capital in excess of par 300,000 Retained earnings

Financial Accounting - Exercise 3.4

Record the following selected transactions in general journal form for Sun Orthopedic Clinic, Inc.Include a brief explanation of the transaction as part of each journal entry. Oct. 1 The clinic issued 4,000 additional shares of capital stock to Doctor Soges at $50 per share. Oct. 4 The clinic purchased diagnostic equipme

Financial Accounting

In June 2005, Wendy Winger organized a corporation to provide aerial photography services. The company, called Aerial Views, began operations immediately. Transactions during the month of June were as follows: June 1 The corporation issued 60,000 shares of capital stock to Wendy Winger in exchange for $60,000 cash. June 2


The net income of Simon and Hobbs, a department store, decreased sharply during 2000. Carol Simon, owner of the store, anticipates the need for a bank loan in 2001. Late in 2000, Simon instructs the store's accountant to record a $10,000 sale of furniture to the Simon family, even though the goods will not be shipped from the

Financial Accounting

Judi Dench is a licensed architect. During the first month of the operation of her company, Judi Dench, Inc., the following events and transactions occurred. April 1 Stockholders invested $25,000 cash in exchange for common stock. 1 Hired a secretary-receptionist at a salary of $300 per week payable monthly.

Financial Accounting

The ledger of Welch Rental Agency Inc. on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 3,600 Supplies 2,80

Financial Accounting - Problem 7

The bookkeeper for Wooster Company asks you to prepare the following accrued adjusting entries at December 31. 1. Interest on notes payable of $400 is accrued. 2. Services provided but not recorded total $1,250. 3. Salaries earned by employees of $900 have not been recorded. Use the following account titles: Service Reve

Adjusting entry for depreciation

At the end of its first year, the trial balance of Easton Company shows Equipment $30,000 and zero balances in Accumulated Depreciation?Equipment and Depreciation Expense. Depreciation for the year is estimated to be $6,000. Prepare the adjusting entry for depreciation at December 31, post the adjustments to T accounts, and ind

Calculate minimax to decide best investment

(See attached file for full problem description) Do not do D in # 8 --- 8) A local real estate investor in Orlando is considering thre3e alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourist; profits fro

Elburn Company: Accounts Receivable

The ledger of Elburn Company at the end of the current year shows the following: Accounts Receivable $110,000 Sales $840,000 Sales Returns and Allowances $28,000 Instructions (a) If Elburn uses the direct write-off method to account for uncollected accounts, journalize the adjusting entry at December 31, assuming Elburn

Math Problems

1.Which line is parallel to the y-axis 2. Sales reductions force a factory to cut back its output by 20%. By what percentage must the reduced sales be increased allow production to be brought back to normal? 3. The current sales price of a power drill is $117. This is $30 more than half the list price. At what discount is