Questions from Financial Accounting


Q: Wildwood Properties owns an apartment building that has a carrying value of

Wildwood Properties owns an apartment building that has a carrying value of $15,000,000 on January 1, 2013. The highway department has decided to construct a new highway near the building, which subst...

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Q: Tillis Corporation acquired the assets of Kieran Corporation (Kieran) on

Tillis Corporation acquired the assets of Kieran Corporation (Kieran) on January 1, 2011, for $2,400,000. On this date the fair values of the assets of Kieran were as follows: land, $400,000; building...

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Q: Fedup Express acquired a delivery truck on January 1, 2009,

Fedup Express acquired a delivery truck on January 1, 2009, for $48,000. It estimated that the truck would have a six-year useful life and $6,000 salvage value. Fedup Express uses the straight-line de...

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Q: The balance sheets of Wilcox Corporation at the beginning and end of

The balance sheets of Wilcox Corporation at the beginning and end of the year contained the following data: During the year, Wilcox Corporation sold machinery and equipment at a gain of $4,000. It p...

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Q: Give correcting entries for the following situations. In each case,

Give correcting entries for the following situations. In each case, the firm uses the straight-line method of depreciation and closes its books annually on December 31. a. A firm purchased a computer...

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Q: Hager Company acquires a computer from Volusia Computer Company. The cash

Hager Company acquires a computer from Volusia Computer Company. The cash price (fair value) of the computer is $37,938. Hager Company gives a three-year, interest-bearing note with a maturity value o...

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Q: Company A and Company B both start 2012 with $1 million

Company A and Company B both start 2012 with $1 million of shareholders’ equity and 100,000 shares of common stock outstanding. During 2012, both companies earn net income of $100,000, a return of 10%...

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Q: Compute the issue price of each of the following bonds.

Compute the issue price of each of the following bonds. a. $1,000,000 face value, zero coupon bonds due in 20 years, priced on the market to yield 10% compounded semiannually. b. $1,000,000 face value...

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Q: On January 1 of the current year, Womack Company issues 10

On January 1 of the current year, Womack Company issues 10% semiannual coupon bonds maturing five years from the date of issue. The firm issues the bonds to yield 8% compounded semiannually. The bonds...

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Q: On January 1, 2012, Seward Corporation issues $100,

On January 1, 2012, Seward Corporation issues $100,000 face value, 8% semiannual coupon bonds maturing three years from the date of issue. The coupons, dated for June 30 and December 31 of each year,...

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