Questions from Financial Accounting

Q: At December 31, 2016, Hawley Real Estate reported a current

At December 31, 2016, Hawley Real Estate reported a current liability for income tax payable of $78,000. During 2017, Hawley earned income of $650,000 before income tax. The company’s income tax rate...

Q: Earth Friendly Structures, Inc., builds environmentally sensitive structures. The

Earth Friendly Structures, Inc., builds environmentally sensitive structures. The company’s 2016 revenues totaled $2,760 million. At December 31, 2016, and 2015, the company had, res...

Q: Barclay Systems’ revenues for 2016 totaled $26.2 million.

Barclay Systems’ revenues for 2016 totaled $26.2 million. As with most companies, Barclay is a defendant in lawsuits related to its products. Note 14 of the Barclay annual report for...

Q: Assume that Banff Electronics completed these selected transactions during March 2016:

Assume that Banff Electronics completed these selected transactions during March 2016: a. Sales of $2,100,000 are subject to estimated warranty cost of 2%. The estimated warranty payable at the begin...

Q: On January 31, 2016, Danvers Logistics, Inc., issued

On January 31, 2016, Danvers Logistics, Inc., issued five-year, 7% bonds payable with a face value of $10,000,000. The bonds were issued at 96 and pay interest on January 31 and July 31. Danvers Logist...

Q: County Bank has $300,000 of 7% debenture bonds

County Bank has $300,000 of 7% debenture bonds outstanding. The bonds were issued at 103 in 2016 and mature in 2036. The bonds have annual interest payments. Requirements 1. How much cash did Count...

Q: Score Ltd. is authorized to issue $2,000,

Score Ltd. is authorized to issue $2,000,000 of 3%, 10-year bonds payable. On December 31, 2016, when the market interest rate is 7%, the company issues $1,600,000 of the bonds. Score Ltd. amortizes b...

Q: On June 30, 2016, the market interest rate is 8

On June 30, 2016, the market interest rate is 8%. Team Sports Ltd. issues $800,000 of 10%, 10-year bonds payable. The bonds pay interest on June 30 and December 31. Team Sports Ltd. amortizes bond pre...

Q: Footnote 2 of Abercrombie and Fitch Co.’s financial statements for

Footnote 2 of Abercrombie and Fitch Co.’s financial statements for fiscal year 2014 (January 31, 2015) contains the following information: Requirement...

Q: Companies that operate in different industries may have very different financial ratio

Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different count...