Questions from College Accounting

Q: At the beginning of the year four years ago, Cedar Valley

At the beginning of the year four years ago, Cedar Valley Company purchased construction equipment for $715,000, with a useful life of six years and estimated salvage value of $100,000. The company us...

Q: At the beginning of the year, it became obvious that the

At the beginning of the year, it became obvious that the truck purchased the year before was too small to handle many of Starksville’s jobs. On January 2, 20X2, Starksville traded in the old truck on...

Q: In 20X1, Ruby Canti invests cash of $220,000

In 20X1, Ruby Canti invests cash of $220,000 in a newly formed partnership that will operate The Pro Shop. In return, Canti receives a one-third interest in the capital of the partnership. In general...

Q: Billy Allen and Thomas Klammer are partners who share profits and losses

Billy Allen and Thomas Klammer are partners who share profits and losses in the ratio of 40:60, respectively. On December 31, 20X1, they decide that Klammer will sell one-half of his interest to Marve...

Q: The Valley Voice is a local newspaper that is published Monday through

The Valley Voice is a local newspaper that is published Monday through Friday. It sells 90,000 copies daily. The paper is currently in a profit squeeze, and the publisher, Tom Turkey, is looking for w...

Q: Nelson Ellis and Hank Tollis are partners who share profits and losses

Nelson Ellis and Hank Tollis are partners who share profits and losses in the ratio of 40 to 60 percent, respectively. The balances of their capital accounts on December 31, 20X0, are Ellis, $105,000,...

Q: William, Henderson, and Middleton are partners, sharing profits and

William, Henderson, and Middleton are partners, sharing profits and losses in the ratio of 40 to 30 to 30 percent, respectively. Their partnership agreement provides that if one of them withdraws from...

Q: Wade Wilson operates a sole proprietorship business that sells golf equipment.

Wade Wilson operates a sole proprietorship business that sells golf equipment. In 20X1, Wilson agrees to transfer his assets and liabilities to a partnership that will operate The Golf Shop. Wilson wi...

Q: On May 1, 20X1, James Dear and Jerold Morgan formed

On May 1, 20X1, James Dear and Jerold Morgan formed The Wine Shop. The two partners invested cash and other assets and liabilities with the following agreed-upon values: Dear: Cash, $6,500; Merchandis...

Q: Alexis Wells and Jessica Harris are partners who share profits and losses

Alexis Wells and Jessica Harris are partners who share profits and losses in the following manner. Wells receives a salary of $106,000 and Harris receives a salary of $150,000. These amounts were paid...