Questions from Financial Accounting

Q: On-Time Delivery Company acquired an adjacent lot to construct a

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $90,000 and giving a short-term note for $50,000. Legal fees paid were $1,750, delinquent taxes assumed were $25,...

Q: Tri-City Ironworks Co. reported $44,500,

Tri-City Ironworks Co. reported $44,500,000 for equipment and $29,800,000 for accumulated depreciation—equipment on its balance sheet. Does this mean (a) That the replacement cost of the equipment is...

Q: Convert each of the following estimates of useful life to a straight

Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage: (a) 10 years, (b) 8 years, (c) 25 years, (d) 40 years, (e) 5 years, (f) 4 years, (g...

Q: Journalize the following transactions, using the allowance method of accounting for

Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct. 2. Received $600 from Rachel Elpel and wrote off the remainder owed of $1,350 as unc...

Q: Prior to adjustment at the end of the year, the balance

Prior to adjustment at the end of the year, the balance in Trucks is $296,900 and the balance in Accumulated Depreciation—Trucks is $99,740. Details of the subsidiary ledger are as f...

Q: A Kubota tractor acquired on January 8 at a cost of $

A Kubota tractor acquired on January 8 at a cost of $85,000 has an estimated useful life of 10 years. Assuming that it will have no residual value, determine the depreciation for each of the first two...

Q: Hoffman Company purchased merchandise on account from a supplier for $65

Hoffman Company purchased merchandise on account from a supplier for $65,000, terms 1/10, n/30. Hoffman Company returned $7,500 of the merchandise and received full credit. a. If Hoffman Company pays...

Q: Monet Paints Co. is a newly organized business with a list

Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows: Accounts Payable Accounts Receivable Accumulated Depreciation—Office Equipment Accumu...

Q: Beginning inventory, purchases, and sales for Item Gidget are as

Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) The cost of merchandise...

Q: Distinguish between the accounting for capital expenditures and revenue expenditures.

Distinguish between the accounting for capital expenditures and revenue expenditures.