Questions from Financial Accounting

Q: Perform the following accounting for the receivables of Andrews and Johnson,

Perform the following accounting for the receivables of Andrews and Johnson, a law firm, at December 31, 2018. Requirements: 1. Set up T-accounts and start with the beginning balances for these T-acc...

Q: Newcomb Corporation holds a portfolio of equity securities. On September 15

Newcomb Corporation holds a portfolio of equity securities. On September 15, Newcomb paid $83,000 for an investment in Sarelli Company stock, representing 5% of Sarelli Company stock. Newcomb plans on...

Q: Which option is better: receive $160,000 now or

Which option is better: receive $160,000 now or $50,000, $25,000, $55,000, $30,000, and $40,000, respectively, over the next five years? The cash flows are at the end of each year except for $160,000....

Q: Diamond Security Systems’ revenues for 2018 totaled $27.5 million

Diamond Security Systems’ revenues for 2018 totaled $27.5 million. As with most companies, Diamond is a defendant in lawsuits related to its products. Note 14 of the Diamond annual r...

Q: On January 31, 2018, Dunkin Logistics, Inc., issued

On January 31, 2018, Dunkin Logistics, Inc., issued five-year, 3% bonds payable with a face value of $8,000,000. The bonds were issued at 93 and pay interest on January 31 and July 31. Dunkin Logistic...

Q: Perry Bank has $450,000 of 9% debenture bonds

Perry Bank has $450,000 of 9% debenture bonds outstanding. The bonds were issued at 105 in 2018 and mature in 2038. The bonds have annual interest payments. Requirements: 1. How much cash did Perry B...

Q: Winter Ltd. is authorized to issue $2,500,

Winter Ltd. is authorized to issue $2,500,000 of 4%, 10-year bonds payable. On December 31, 2018, when the market interest rate is 5%, the company issues $2,000,000 of the bonds. Winter amortizes bond...

Q: On June 30, 2018, the market interest rate is 9

On June 30, 2018, the market interest rate is 9%. Ramsey Corporation issues $550,000 of 12%, 20-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizes bond premiu...

Q: On January 1, 2017, Kittle Corporation issued five-year

On January 1, 2017, Kittle Corporation issued five-year, 4% bonds payable with a face value of $2,500,000. The bonds were issued at 95 and pay interest on January 1 and July 1. Kittle amortizes bond...

Q: Fresno Transportation owns a fleet of 50 semi-trucks. The

Fresno Transportation owns a fleet of 50 semi-trucks. The original cost of the fleet was $7,500,000. Fresno uses straight-line depreciation for the fleet for accounting purposes, and MACRS depreciatio...