Questions from Financial Accounting

Q: Girard Unlimited, a new company, completed these transactions. 1

Girard Unlimited, a new company, completed these transactions. 1. Stockholders invested $55,000 cash and inventory with a fair value of $30,000. 2. Sales on account, $25,000. What will Girard’s total...

Q: Assume that a business is headed for certain bankruptcy and it is

Assume that a business is headed for certain bankruptcy and it is evident that its liabilities greatly exceed its assets. Which principle would be violated if its financial statements were prepared us...

Q: During February, assets increased by $83,000 and liabilities

During February, assets increased by $83,000 and liabilities increased by $23,000. Equity must have a. increased by $60,000. b. increased by $106,000. c. decreased by $106,000. d. decreased by $60...

Q: The Unearned Revenue account of Melrose Incorporated began 2018 with a normal

The Unearned Revenue account of Melrose Incorporated began 2018 with a normal balance of $5,500 and ended 2018 with a normal balance of $16,000. During 2018, the Unearned Revenue account was credited...

Q: At December 31, 2018, Landy Products has cash of $

At December 31, 2018, Landy Products has cash of $24,000, receivables of $18,000, and inventory of $80,000. The company’s equipment totals $182,000. Landy owes accounts payable of $22,000 and long-ter...

Q: On January 1 of the current year, Oliver Company paid $

On January 1 of the current year, Oliver Company paid $2,100 rent to cover six months (January–June). Oliver recorded this transaction as follows: Oliver adjusts the accounts at the...

Q: For 2018, Broadview Company had revenues in excess of expenses.

For 2018, Broadview Company had revenues in excess of expenses. Which statement describes Broadview’s closing entries at the end of 2018? (Assume there is only one closing entry for both revenue and e...

Q: Purchasing a building for $115,000 by paying cash of

Purchasing a building for $115,000 by paying cash of $25,000 and signing a note payable for $90,000 will a. decrease total assets and increase total liabilities by $25,000. b. increase both total as...

Q: Assume the same facts as in question 3-45. Oliver’s

Assume the same facts as in question 3-45. Oliver’s adjusting entry at the end of February should include a debit to Rent Expense in the amount of a. $700. b. $0. c. $350. d. $1,400.

Q: Maynard Corporation began the year with cash of $135,000

Maynard Corporation began the year with cash of $135,000 and land that cost $25,000. During the year, Maynard earned service revenue of $260,000 and had the following expenses: salaries, $185,000; ren...