Questions from Financial Accounting

Q: Mid Atlantic Energy Company’s balance sheet includes the asset Iron Ore.

Mid Atlantic Energy Company’s balance sheet includes the asset Iron Ore. Mid Atlantic Energy paid $2.4 million cash for the right to work a mine that contained an estimated 195,000 tons of ore. The co...

Q: Deluxe Pizza bought a used Honda delivery van on January 2,

Deluxe Pizza bought a used Honda delivery van on January 2, 2012, for $22,000. The van was expected to remain in service for four years (113,125 miles). At the end of its useful life, Deluxe officials...

Q: Translate into dollars the balance sheet of Washington Leather Goods’ Spanish subsidiary

Translate into dollars the balance sheet of Washington Leather Goods’ Spanish subsidiary. When Washington Leather Goods acquired the foreign subsidiary, a euro was worth $1.02. The current exchange ra...

Q: Assume that in early January 2012, an Early Bird Café purchased

Assume that in early January 2012, an Early Bird Café purchased a building, paying $54,000 cash and signing a $104,000 note payable. The restaurant paid another $65,000 to remodel the building. Furnit...

Q: Two accounts that arise from consolidation accounting are goodwill and noncontrolling interest

Two accounts that arise from consolidation accounting are goodwill and noncontrolling interest. 1. What is goodwill, and how does it arise? Which company reports goodwill, the parent or the subsidiary...

Q: Assume S-1 Security Consultants purchased a building for $450

Assume S-1 Security Consultants purchased a building for $450,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $93,000. After using the building for 20 y...

Q: Without making journal entries, record the transactions of Exercise 8-

Without making journal entries, record the transactions of Exercise 8-26B directly in the Potter account, Long-Term Investment in Faulk Software. Assume that after all the noted transactions took plac...

Q: Assume that on January 2, 2012, Barrett of Nebraska purchased

Assume that on January 2, 2012, Barrett of Nebraska purchased fixtures for $8,200 cash, expecting the fixtures to remain in service for five years. Barrett has depreciated the fixtures on a double-dec...

Q: During 2012, Cheng Book Store paid $483,000 for

During 2012, Cheng Book Store paid $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Cheng $1,300 for a building permit, which Cheng paid. Cheng...

Q: United Truck Company is a large trucking company that operates throughout the

United Truck Company is a large trucking company that operates throughout the United States. United Truck Company uses the units-of-production (UOP) method to depreciate its trucks. United Truck Compa...