Questions from Financial Accounting

Q: New lithographic equipment, acquired at a cost of $800,

New lithographic equipment, acquired at a cost of $800,000 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $90,000. T...

Q: The following items may appear on a bank statement: 1

The following items may appear on a bank statement: 1. Bank correction of an error from recording a $6,200 deposit as $2,600 2. EFT payment 3. Note collected for company 4. Service charge Using the fo...

Q: FedEx Corporation and United Parcel Service, Inc. compete in the

FedEx Corporation and United Parcel Service, Inc. compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicle...

Q: The following table shows the sales and average book value of fixed

The following table shows the sales and average book value of fixed assets for three different companies from three different industries for a recent year: a. For each company, determine the fixed a...

Q: A printing press priced at a fair market value of $275

A printing press priced at a fair market value of $275,000 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade...

Q: Assume the same facts as in Exercise 9-27, except

Assume the same facts as in Exercise 9-27, except that the book value of the press traded in is $108,500. (a) What is the amount of cash given? (b) What is the gain or loss on the exchange? In Exerci...

Q: On July 1, Twin Pines Co., a water distiller,

On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $220,000. Twin Pines received a trade-in allowance (fair market value) of $45,000...

Q: On October 1, Bentley Delivery Services acquired a new truck with

On October 1, Bentley Delivery Services acquired a new truck with a list price (fair market value) of $75,000. Bentley Delivery received a trade-in allowance (fair market value) of $24,000 on an old t...

Q: Bev Wynn, vice president of operations for Dillon County Bank,

Bev Wynn, vice president of operations for Dillon County Bank, has instructed the bank’s computer programmer to use a 365-day year to compute interest on depository accounts (liabilities). Bev also in...

Q: Melinda Stoffers owns and operates ABC Print Co. During February,

Melinda Stoffers owns and operates ABC Print Co. During February, ABC incurred the following costs in acquiring two printing presses. One printing press was new, and the other was purchased from a bus...