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# Accounting Questions: Financial accounting and reporting

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Q1: ABC Car Wash, Inc. washed 100 cars this past month. They charge \$7 per car for a wash. The company's only expenses during this month were \$83 utilities/water, \$300 wages and \$31 for soap. The wages were paid during the month, but the utility bill and soap bills were not. What is ABC's income or loss for this month?

Q2: ABC and Associates has the following account balances listed in alphabetical order: Accumulated Depreciation, \$23,000; Accounts Payable, \$8,500, Accounts Receivable, \$12,000; Cash, \$3,500; Equipment, \$44,000, Land, \$21,000, Mortgage Payable, \$45,000; Prepaid Insurance, \$7,500; Supplies, \$2,000; Unearned
Revenue, \$6,000; Wages payable, \$4,500. What are the ABC and Associates' current liabilities?

Q3: ABC Enterprises had the following inventory data:
Date Quantity Unit cost
June 1 Beginning inventory 5 \$52
June 4 Purchase 10 \$55
June 7 Sale 12
June 11 Purchase 9 \$58
June 14 Sale 8
Assuming average cost, what is the cost of goods sold for the June 14 sale?

Q4: ABC Built Construction has given you the following information from its
aging of Accounts Receivable. Using this information, determine the amount of the
journal entry to record the estimated uncollectible accounts.
Current \$22,000 1% uncollectible
31-60 days 5,500 6% uncollectible
61-90 days 2,400 10% uncollectible
91 and up 900 18% uncollectible
The current balance in Allowance for Doubtful Accounts is a \$146 debit.

Q5: The following is selected data for Tomco Industries:2012 2011
Sales \$1,158,000 \$1,076,000
Net Income 114,000 106,000
Total Current Assets 162,000 147,000
Property, Plant and Equipment 643,000 638,000

38,000000 Plant and Equipment the ratio of net income divided by average fixed assets
The return on assets (rounded to the nearest tenth of a percent) for 2012 was:

Q6: Based on the following information, in which year did the company have
the best return on equity?
Year 1 Year 2 Year 3
Sales \$3,000,000 \$2,000,000 \$1,000,000
Net Income \$500,000 \$500,000 \$500,000
Average Common
Stockholders' Equity \$2,500,000 \$2,380,952 \$2,272,727

Q7: The ABC Corporation Stockholders' Equity section includes the
following information:
Preferred Stock \$12,000
Paid-in Capital in Excess of Par—
Preferred 2,700
Common Stock 15,000
Paid-in Capital in Excess of Par—
Common 4,100
Retained Earnings 8,200
What was the total selling price of the common stock?