Questions from Financial Accounting

Q: Brower Co. is considering the following alternative financing plans:

Brower Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond inte...

Q: A business issued a 45-day note for $80,

A business issued a 45-day note for $80,000 to a creditor on account. The note was discounted at 5%. Journalize the entries to record (a) The issuance of the note and (b) The payment of the note at ma...

Q: Prior to liquidating their partnership, Wakefield and Barns had capital accounts

Prior to liquidating their partnership, Wakefield and Barns had capital accounts of $105,000 and $55,000, respectively. The partnership assets were sold for $40,000. The partnership had no liabilities...

Q: Using the following accounts and balances, prepare the Stockholders’ Equity section

Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 8. One hundred thousand shares of common stock are authorized, and 5,...

Q: Using the bond from Practice Exercise 14-5A, journalize the

Using the bond from Practice Exercise 14-5A, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. In Practice Exercise 14-5A On the fir...

Q: The following information was taken from Sigmund Company’s balance sheet:

The following information was taken from Sigmund Company’s balance sheet: Fixed assets (net) …………………………… $1,050,000 Long-term liabilities …………………………… 750,000 Total liabilities …………………………………… 850,000 T...

Q: Fukushima Company provides its employees with vacation benefits and a defined contribution

Fukushima Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $19,500 for the period. The pension plan requires a contributi...

Q: Prior to liquidating their partnership, Bonilla and Perez had capital accounts

Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities....

Q: Using the following accounts and balances, prepare the Stockholders’ Equity section

Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 8. Five hundred thousand shares of common stock are authorized, and 4...

Q: Using the bond from Practice Exercise 14-5B, journalize the

Using the bond from Practice Exercise 14-5B, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. In Practice Exercise 14-5B On the fir...