Questions from Accounting Principles

Q: The following items appear on the balance sheet of Crunched Auto Body

The following items appear on the balance sheet of Crunched Auto Body Repair Shop, which has a 12-month operating cycle. Identify the proper classification of each item. In the space beside each item...

Q: Assume Pebble Inc. on October 15 purchased $2,500

Assume Pebble Inc. on October 15 purchased $2,500 of merchandise on credit. The next day, it recorded sales of $1,700; cost of sales was $1,200. Record the October 15 and October 16 entries assuming e...

Q: Snowbot Snow Removal Company of Halifax purchased some snowplow equipment on March

Snowbot Snow Removal Company of Halifax purchased some snowplow equipment on March 10, 2020, that had a cost of $150,000 (ignore GST/PST). Show the journal entries that would record this purchase and...

Q: Mercedes Boats borrowed $220,000 on September 15, 2020

Mercedes Boats borrowed $220,000 on September 15, 2020, for 45 days at 7% interest by signing a note. 1. On what date will this note mature? 2. How much interest expense is created by this note? 3. Pr...

Q: On April 15, 2020 Dallas Consulting borrowed $17,000

On April 15, 2020 Dallas Consulting borrowed $17,000 to pay the tax bill owing, for 45 days at 9% interest by signing a note. 1. On what date will this note mature? 2. How much interest expense is cre...

Q: Trista and Co. borrowed $180,000 on December 1

Trista and Co. borrowed $180,000 on December 1, 2020, for 90 days at 5% interest by signing a note to buy jewellery inventory. 1. On what date will this note mature? 2. How much interest expense is cr...

Q: Shefford Cutlery extends a lifetime replacement warranty on all units sold.

Shefford Cutlery extends a lifetime replacement warranty on all units sold. Using past experience, the company estimates that 0.5% of units sold will be returned and require replacement at an average...

Q: On October 6, 2020, Norwood Co., an office equipment

On October 6, 2020, Norwood Co., an office equipment supplier, sold a copier for cash of $21,000 (cost $13,900) with a two-year parts and labour warranty. Based on prior experience, Norwood expects ev...

Q: Music Media Ltd. prepares statements quarterly. Part A:

Music Media Ltd. prepares statements quarterly. Part A: Required: 1. Based on 2019 results, Music’s estimated tax liability for 2020 is $285,960. Music will accrue 1/12 of this amoun...

Q: Superior Skateboard Company, located in Ontario, is preparing adjusting entries

Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following: a. During December, Superior sold 6,500 skateboards that carry...