Questions from Financial Accounting

Q: On January 1, the first day of the fiscal year,

On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 × 6% × ½ year), receiving cash of $5,000,000. Jour...

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

The following information was taken from Charu Company’s balance sheet: Fixed assets (net) ………………………………. $860,000 Long-term liabilities ……………………………. 200,000 Total liabilities ……………………………………. 600,000 T...

Q: Journalize the entries to record the following selected bond investment transactions for

Journalize the entries to record the following selected bond investment transactions for Starks Products: a. Purchased for cash $120,000 of Iceline, Inc. 5% bonds at 100 plus accrued interest of $1,00...

Q: Regling Company provides its employees vacation benefits and a defined benefit pension

Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $35,000 for the period. The pension formula calculated a pension cost of $...

Q: Bull City Industries is considering issuing a $100,000,

Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. a. If the note is issued with a 45-day term, journalize the entries to record: 1. The issuance of the note. 2....

Q: Niles and Cohen, CPAs earned $12,375,000

Niles and Cohen, CPAs earned $12,375,000 during 20Y4 using 75 employees. During 20Y5, the firm grew revenues to $15,400,000 and expanded the staff to 88 employees. a. Determine the revenue per employe...

Q: Rockwell Inc. reported the following results for the year ended June

Rockwell Inc. reported the following results for the year ended June 30, 20Y5: Retained earnings, July 1, 20Y4 ………………….. $3,900,000 Net income …………………………………………………….. 714,000 Cash dividends declared ……...

Q: A $1,500,000 bond issue on which there

A $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for $1,455,000. Journalize the redemption of the bonds.

Q: The cost of merchandise sold reported on the income statement was $

The cost of merchandise sold reported on the income statement was $770,000. The accounts payable balance decreased $44,000, and the inventory balance decreased by $66,000 over the year. Determine the...

Q: EarlKeen Co. sold $260,000 of equipment during January

EarlKeen Co. sold $260,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 4% of the sales price. On August 15, a customer required...