Questions from Financial Accounting

Q: Using the facts in the preceding question, McIntosh’s entry to record

Using the facts in the preceding question, McIntosh’s entry to record the interest expense on July 1, 2016, will include a a. credit to Interest Expense. b. debit to Bonds Payable. c. credit to Dis...

Q: Amortizing the discount on bonds payable a. reduces the semiannual

Amortizing the discount on bonds payable a. reduces the semiannual cash payment for interest. b. is necessary only if the bonds were issued at more than face value. c. increases the recorded amount...

Q: The journal entry on the maturity date to record the payment of

The journal entry on the maturity date to record the payment of $2,500,000 of bonds payable that were issued at a $90,000 discount includes a. a debit to Discount on Bonds Payable for $90,000. b. a...

Q: Is the payment of the face amount of a bond on its

Is the payment of the face amount of a bond on its maturity date regarded as an operating activity, an investing activity, or a financing activity? a. Operating activity b. Investing activity c. Fi...

Q: Assume Franklin Security Consultants purchased a building for $430,000

Assume Franklin Security Consultants purchased a building for $430,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $70,000. After using the building for...

Q: On January 1, 2013, Regal Manufacturing purchased a machine for

On January 1, 2013, Regal Manufacturing purchased a machine for $850,000. Regal Manufacturing expects the machine to remain useful for eight years and to have a residual value of $40,000. Regal Manuf...

Q: Assume that on January 2, 2016, Drake-Neiman purchased

Assume that on January 2, 2016, Drake-Neiman purchased fixtures for $8,000 cash, expecting the fixtures to remain in service for five years. Drake-Neiman has depreciated the fixtures on a double-decli...

Q: Carson Truck Company is a large trucking company that operates throughout the

Carson Truck Company is a large trucking company that operates throughout the United States. Carson Truck Company uses the units-of production method to depreciate its trucks. Carson Truck Company tr...

Q: Nero Mines paid $432,000 for the right to extract

Nero Mines paid $432,000 for the right to extract ore from a 425,000-ton mineral deposit. In addition to the purchase price, Nero Mines also paid a $150 filing fee, a $2,700 license fee to the state o...

Q: 1. Midway Printers incurred external costs of $600,000

1. Midway Printers incurred external costs of $600,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it is expected to provide Midway Printers with a c...