Questions from Accounting Principles

Q: Franceour Mining Co. purchased for $7 million a mine that

Franceour Mining Co. purchased for $7 million a mine that is estimated to have 35 million tons of ore and no salvage value. In the first year, 5 million tons of ore are extracted. a. Prepare the journ...

Q: Campanez Company purchases a patent for $140,000 on January

Campanez Company purchases a patent for $140,000 on January 2, 2020. Its estimated useful life is 10 years. a. Prepare the journal entry to record amortization expense for the first year. b. Show how...

Q: Information related to plant assets, natural resources, and intangibles at

Information related to plant assets, natural resources, and intangibles at the end of 2020 for Dent Company is as follows: buildings $1,100,000, accumulated depreciation—buildings $600,000, goodwill $...

Q: In a recent annual report, Target reported beginning total assets of

In a recent annual report, Target reported beginning total assets of $44.1 billion, ending total assets of $44.5 billion, and net sales of $63.4 billion. Compute Target’s asset turnover.

Q: Olathe Company exchanges old delivery equipment for new delivery equipment. The

Olathe Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $31,000 (cost $61,000 less accumulated depreciation $30,000). Its fair value...

Q: Assume the same information as BE10.15, except that the

Assume the same information as BE10.15, except that the fair value of the old delivery equipment is $33,000. Prepare the entry to record the exchange.

Q: Rich Castillo Company incurs the following expenditures in purchasing a truck:

Rich Castillo Company incurs the following expenditures in purchasing a truck: cash price $30,000, accident insurance $2,000, sales taxes $2,100, motor vehicle license $100, and painting and lettering...

Q: Flaherty Company had the following two transactions related to its delivery truck

Flaherty Company had the following two transactions related to its delivery truck. 1. Paid $45 for an oil change. 2. Paid $400 to install special gear unit, which increases the operating efficiency of...

Q: a. Jovad Company ships merchandise to Martin Company on December 30

a. Jovad Company ships merchandise to Martin Company on December 30. The merchandise reaches the buyer on January 6. Indicate the terms of sale that will result in the goods being included in (1) Jova...

Q: Corales Company acquires a delivery truck at a cost of $38

Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a salvage value of $6,000 at the end of its 4-year useful life. Compute annual depreciation expense for th...