Questions from Accounting Principles

Q: The financial statements of Minnesota Mining and Manufacturing Company (3M)

The financial statements of Minnesota Mining and Manufacturing Company (3M) report net sales of $20.0 billion. Accounts receivable (net) are $2.7 billion at the beginning of the year and $2.8 billion...

Q: Financial Statement During its fi rst year of operations, Gavin Company

Financial Statement During its fi rst year of operations, Gavin Company had credit sales of $3,000,000; $600,000 remained uncollected at year-end. The credit manager estimates that $31,000 of these re...

Q: At the end of 2020, Carpenter Co. has accounts receivable

At the end of 2020, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2021, the company learns that its receivable from Megan Gray is...

Q: Assume the same information as BE9.4. On March 4

Assume the same information as BE9.4. On March 4, 2021, Carpenter Co. receives payment of $6,200 in full from Megan Gray. Prepare the journal entries to record this transaction. Information from BE 9...

Q: Kingston Co. uses the percentage-of-receivables basis to

Kingston Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $420,000 at the end of...

Q: Presented below are two independent transactions. a. Tony’s Restaurant

Presented below are two independent transactions. a. Tony’s Restaurant accepted a Visa card in payment of a $175 lunch bill. The bank charges a 4% fee. What entry should Tony’s make? b. Larkin Company...

Q: Compute interest and find the maturity date for the following notes.

Compute interest and find the maturity date for the following notes.

Q: In January, the payroll supervisor determines that gross earnings for Carlyle

In January, the payroll supervisor determines that gross earnings for Carlyle Company are $120,000. All earnings are subject to 7.65% FICA taxes, 5.4% state unemployment taxes, and 0.8% federal unempl...

Q: The following expenditures were incurred by McCoy Company in purchasing land:

The following expenditures were incurred by McCoy Company in purchasing land: cash price $50,000, accrued taxes $3,000, attorneys’ fees $2,500, real estate broker’s commission $2,000, and clearing and...

Q: Gunkelson Company sells equipment on September 30, 2020, for $

Gunkelson Company sells equipment on September 30, 2020, for $18,000 cash. The equipment originally cost $72,000 and as of January 1, 2020, had accumulated depreciation of $42,000. Depreciation for th...