Questions from Financial Accounting

Q: How would a debit balance in Unrealized Gain (Loss) on

How would a debit balance in Unrealized Gain (Loss) on Available-for-Sale Investments be reported in the financial statements?

Q: When is the equity method the appropriate accounting for equity investments?

When is the equity method the appropriate accounting for equity investments?

Q: How does the accounting for a dividend received differ between the cost

How does the accounting for a dividend received differ between the cost method and the equity method?

Q: At the market close on May 12 of a recent year,

At the market close on May 12 of a recent year, McDonald’s Corporation had a closing stock price of $129.51. In addition, McDonald’s Corporation had a dividend per share of $3.56 during the previous y...

Q: During the current year, merchandise is sold for $315,

During the current year, merchandise is sold for $315,800 cash and $1,225,000 on account. The cost of the merchandise sold is $875,000. What is the amount of the gross profit?

Q: Prepare a journal entry for the purchase of office supplies on September

Prepare a journal entry for the purchase of office supplies on September 30 for $2,500, paying $800 cash and the remainder on account.

Q: A corporation issued $2,000,000 of 20-

A corporation issued $2,000,000 of 20-year bonds for cash at 98. How would the transaction be reported on the statement of cash flows?

Q: Fully depreciated equipment costing $50,000 is discarded. What

Fully depreciated equipment costing $50,000 is discarded. What is the effect of the transaction on cash flows if (a) $15,000 cash is received for the equipment, (b) No cash is received for the equipme...

Q: The treasury stock in Discussion Question 7 is resold for $3

The treasury stock in Discussion Question 7 is resold for $3,750,000. a. What is the effect on the corporation’s revenue of the period? b. What is the effect on stockholders’ equity?

Q: For the current year, Packers Company decided to switch from the

For the current year, Packers Company decided to switch from the indirect method to the direct method for reporting cash flows from operating activities on the statement of cash flows. Will the change...