Questions from Financial Accounting

Q: Equipment was acquired at the beginning of the year at a cost

Equipment was acquired at the beginning of the year at a cost of $465,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 15 years and an estimated r...

Q: Layton Company purchased tool sharpening equipment on October 1 for $108

Layton Company purchased tool sharpening equipment on October 1 for $108,000. The equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $7,200...

Q: Hahn Flooring Company’s perpetual inventory records indicate that $1,333

Hahn Flooring Company’s perpetual inventory records indicate that $1,333,150 of merchandise should be on hand on December 31, 2019. The physical inventory indicates that $1,309,900 of merchandise is a...

Q: A building with a cost of $1,200,000

A building with a cost of $1,200,000 has an estimated residual value of $250,000, has an estimated useful life of 40 years, and is depreciated by the straight-line method. (a) What is the amount of th...

Q: Warwick’s Co., a women’s clothing store, purchased $75,

Warwick’s Co., a women’s clothing store, purchased $75,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Warwick’s returned $9,000 of the merchandise, receiving a credi...

Q: During the taking of its physical inventory on August 31, 2019

During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly counted its inventory as $366,900 instead of the correct amount of $378,500. Indicate the effect of t...

Q: Glacier Mining Co. acquired mineral rights for $494,000

Glacier Mining Co. acquired mineral rights for $494,000,000. The mineral deposit is estimated at 475,000,000 tons. During the current year, 31,500,000 tons were mined and sold. a. Determine the deplet...

Q: Assume the following data for Lusk Inc. before its year-

Assume the following data for Lusk Inc. before its year-end adjustments: Journalize the adjusting entries for the following: a. Estimated customer allowances b. Estimated customer returns

Q: During the taking of its physical inventory on December 31, 2019

During the taking of its physical inventory on December 31, 2019, Waterjet Bath Company incorrectly counted its inventory as $728,660 instead of the correct amount of $719,880. Indicate the effect of...

Q: Caldwell Mining Co. acquired mineral rights for $127,500

Caldwell Mining Co. acquired mineral rights for $127,500,000. The mineral deposit is estimated at 425,000,000 tons. During the current year, 42,000,000 tons were mined and sold. a. Determine the deple...