Questions from Financial Accounting

Q: Mastrolia Corporation’s Retained Earnings account balance was $25,000 on

Mastrolia Corporation’s Retained Earnings account balance was $25,000 on January 1. During January, the company recorded revenue of $80,000, expenses of $60,000, and dividends of $5,000. The company a...

Q: Barth’s unadjusted trial balance reports Unearned Client Revenue of $9,

Barth’s unadjusted trial balance reports Unearned Client Revenue of $9,000 and Client Revenue Earned of $45,000. An examination of client records reveals that $4,000 of previously unearned revenue has...

Q: On February 1, Williams Storage agreed to rent Haka Manufacturing warehouse

On February 1, Williams Storage agreed to rent Haka Manufacturing warehouse space for $4,000 per month. Haka Manufacturing paid the first three months’ rent in advance. a. Prepare the necessary adjus...

Q: Cat Fancy, Inc., has provided the following information from its

Cat Fancy, Inc., has provided the following information from its most current financial statements. a. Compute the company’s net income percentage in the current year. b. Compute t...

Q: Alexander’s unadjusted trial balance dated December 31, year 1, reports

Alexander’s unadjusted trial balance dated December 31, year 1, reports Income Taxes Expense of $100,000, and Income Taxes Payable of $25,000. The company’s accountant estimates that income taxes expe...

Q: Accountants at Warner Co. use worksheets similar to the one shown

Accountants at Warner Co. use worksheets similar to the one shown in Exhibit 5–13. In the company’s most current year-end worksheet, the amounts transferred from th...

Q: During the current year, the total assets of Mifflinburg Corporation decreased

During the current year, the total assets of Mifflinburg Corporation decreased by $60,000 and total liabilities decreased by $300,000. The company issued $100,000 of new stock, and its net income for...

Q: In anticipation of declining inventory replacement costs, the management of Computer

In anticipation of declining inventory replacement costs, the management of Computer Products Co. elects to use the FIFO inventory method rather than LIFO. Explain how this decision should affect the...

Q: On November 1 of the current year, Sunbury Corporation invested 90

On November 1 of the current year, Sunbury Corporation invested 90,000 in a new delivery truck. The truck is being depreciated at a monthly rate of $625. During the year, the company issued additional...

Q: Indicate in which section of the balance sheet each of the following

Indicate in which section of the balance sheet each of the following accounts is classified. Use the symbols CA for current assets, NCA for noncurrent assets, CL for current liabilities, LTL for long-...