Questions from Accounting Principles

Q: Chisenhall Company purchased land and a building on January 1, 2020

Chisenhall Company purchased land and a building on January 1, 2020. Management’s best estimate of the value of the land was $100,000 and of the building $200,000. However, management told the account...

Q: Depreciation information for Corales Company is given in BE10.4.

Depreciation information for Corales Company is given in BE10.4. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second...

Q: Rosco Taxi Service uses the units-of-activity method in

Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 150,000 miles. Taxi no. 10 cost $39,500 and is expected to have a salv...

Q: On January 1, 2020, the Morgantown Company ledger shows Equipment

On January 1, 2020, the Morgantown Company ledger shows Equipment $32,000 and Accumulated Depreciation—Equipment $9,000. The depreciation resulted from using the straight-line method with a useful lif...

Q: Prepare journal entries to record the following. a. Sound

Prepare journal entries to record the following. a. Sound Tracker Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No s...

Q: Jamison Company has the following obligations at December 31: (

Jamison Company has the following obligations at December 31: (a) a note payable for $100,000 due in 2 years, (b) a 10-year mortgage payable of $300,000 payable in ten $30,000 annual payments, (c) int...

Q: Swenson Company has the following payroll procedures. a. Supervisor

Swenson Company has the following payroll procedures. a. Supervisor approves overtime work. b. The human resources department prepares hiring authorization forms for new hires. c. A second payroll dep...

Q: At Ward Company, employees are entitled to one day’s vacation for

At Ward Company, employees are entitled to one day’s vacation for each month worked. In January, 70 employees worked the full month. Record the vacation pay liability for January, assuming the average...

Q: Peralta Company borrows $60,000 on July 1 from the

Peralta Company borrows $60,000 on July 1 from the bank by signing a $60,000, 10%, one-year note payable. a. Prepare the journal entry to record the proceeds of the note. b. Prepare the journal entry...

Q: Cody Company sells three different categories of tools (small, medium

Cody Company sells three different categories of tools (small, medium, and large). The cost and net realizable value of its inventory of tools are as follows. Determine the value of the company&acir...