Questions from Accounting Principles

Q: On April 10, 2020, fire damaged the office and warehouse

On April 10, 2020, fire damaged the office and warehouse of Corvet Company. Most of the accounting records were destroyed, but the following account balances were determined as of March 31, 2020: Inve...

Q: Both the gross profit method and the retail inventory method are based

Both the gross profit method and the retail inventory method are based on averages. For each method, indicate the average used, how it is determined, and how it is applied.

Q: You are the controller of Small Toys Inc. Pamela Bames,

You are the controller of Small Toys Inc. Pamela Bames, the president, recently mentioned to you that she found an error in the 2019 financial statements which she believes has corrected itself. She d...

Q: Pawlowski Company has net sales of $400,000 and cost

Pawlowski Company has net sales of $400,000 and cost of goods available for sale of $300,000. If the gross profit rate is 35%, what is the estimated cost of the ending inventory? Show computations.

Q: Cinderella Shoe Shop had goods available for sale in 2020 with a

Cinderella Shoe Shop had goods available for sale in 2020 with a retail price of $120,000. The cost of these goods was $84,000. If sales during the period were $80,000, what is the ending inventory at...

Q: Westside Textiles decides to sell $800,000 of its accounts

Westside Textiles decides to sell $800,000 of its accounts receivable to First Factors Inc. First Factors assesses a service charge of 3% of the amount of receivables sold. Prepare the journal entry t...

Q: Indicate the maturity date of each of the following promissory notes:

Indicate the maturity date of each of the following promissory notes:

Q: Jana Company dishonors a note at maturity. What are the options

Jana Company dishonors a note at maturity. What are the options available to the lender?

Q: The accounts receivable turnover is 8.14, and average net

The accounts receivable turnover is 8.14, and average net receivables during the period are $400,000. What is the amount of net credit sales for the period?

Q: On January 1, 2020, Emporia Country Club purchased a new

On January 1, 2020, Emporia Country Club purchased a new riding mower for $15,000. The mower is expected to have an 8-year life with a $3,000 salvage value. What journal entry would Emporia make at De...