Questions from General Accounting

Q: Eddy Corporation began operations on April 1 by issuing 55,000

Eddy Corporation began operations on April 1 by issuing 55,000 shares of $5 par value common stock for cash at $13 per share. Journalize the issuance.

Q: Morray Corporation had the following transactions. 1. Issued $

Morray Corporation had the following transactions. 1. Issued $160,000 of bonds payable. 2. Paid utilities expense. 3. Issued 500 shares of preferred stock for $45,000. 4. Sold land and a building for...

Q: State whether each of the following is an indicator of a company’s

State whether each of the following is an indicator of a company’s liquidity, solvency, or profitability. (a) Price-earnings ratio. (b) Inventory turnover. (c) Debt to assets ratio. (d) Times interest...

Q: Indicate whether the following statements are true or false. 1

Indicate whether the following statements are true or false. 1. Managerial accountants explain and report manufacturing and nonmanufacturing costs, determine cost behaviors, and perform cost-volume-pr...

Q: Nance Co. receives $280,000 when it issues a

Nance Co. receives $280,000 when it issues a $280,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments o...

Q: Match the descriptions that follow with the corresponding terms. Descriptions

Match the descriptions that follow with the corresponding terms. Descriptions: 1. ______ Inventory system in which goods are manufactured or purchased just as they are needed for sale. 2. ______ A met...

Q: Explain how the treatment of cash equivalents will probably change in the

Explain how the treatment of cash equivalents will probably change in the future.

Q: “Decision-making is management’s most important function.” Do you

“Decision-making is management’s most important function.” Do you agree? Why or why not?

Q: Peggy Jantzen believes a current liability is a debt that can be

Peggy Jantzen believes a current liability is a debt that can be expected to be paid in one year. Is Peggy correct? Explain.

Q: Dakota University sold 9,000 season football tickets at $100

Dakota University sold 9,000 season football tickets at $100 each for its five-game home schedule. What entries should be made (a) when the tickets are sold and (b) after each game?