Questions from Financial Accounting

Q: Green Nation Financial Services is considering two plans for raising $600

Green Nation Financial Services is considering two plans for raising $600,000 to expand operations. Plan A is to borrow at 5%, and plan B is to issue 100,000 shares of common stock at $6.00 per share....

Q: Kimball Sports Authority purchased inventory costing $22,500 by signing

Kimball Sports Authority purchased inventory costing $22,500 by signing a 6% short-term, one-year note payable. The purchase occurred on July 31, 2016. Kimball pays annual interest each year on July 3...

Q: The accounting records of Carmine Appliances included the following balances at the

The accounting records of Carmine Appliances included the following balances at the end of the period: In the past, Carmine’s warranty expense has been 8% of sales. During the curr...

Q: Great White Publishing completed the following transactions for one subscriber during 2016

Great White Publishing completed the following transactions for one subscriber during 2016: Requirement 1. Journalize these transactions (explanations not required). Then report any liability on th...

Q: Penske has an annual payroll of $215,000. In

Penske has an annual payroll of $215,000. In addition, the company incurs payroll tax expense of 12%. At December 31, Penske owes salaries of $7,800 and FICA and other payroll tax of $550. The company...

Q: Assume that Boston Sales Company completed the following note payable transactions:

Assume that Boston Sales Company completed the following note payable transactions: Requirements 1. How much interest expense must be accrued at December 31, 2016? (Round your answer to the nearest...

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

At December 31, 2016, Saglio Real Estate reported a current liability for income tax payable of $73,000. During 2017, Saglio earned income of $650,000 before income tax. The company’s income tax rate...

Q: Great Earth Homes, Inc., builds environmentally sensitive structures. The

Great Earth Homes, Inc., builds environmentally sensitive structures. The company’s 2016 revenues totaled $2,770 million. At December 31, 2016 and 2015, the company had, respectively...

Q: Crockett Security Systems’ revenues for 2016 totaled $21.9 million

Crockett Security Systems’ revenues for 2016 totaled $21.9 million. As with most companies, Crockett is a defendant in lawsuits related to its products. Note 14 of the Crockett annua...

Q: Assume Costello Electronics completed these selected transactions during September 2016:

Assume Costello Electronics completed these selected transactions during September 2016: a. Sales of $2,500,000 are subject to estimated warranty cost of 3%. The estimated warranty payable at the beg...