Questions from Financial Accounting

Q: Maplewood Properties bought three lots in a subdivision for a lump-

Maplewood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows: Lot ………………………………………………………………………..Appraised Value 1 ……………………………………………...

Q: Crispy Fried Chicken bought equipment on January 2, 2018, for

Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the equipment’s usef...

Q: Suppose you manage Campbell Appliance. The store’s summarized financial statements for

Suppose you manage Campbell Appliance. The store’s summarized financial statements for 2019, the most recent year, follow: Assume that you need to double net income. To accomplish...

Q: Assume that AB Tire Store completed the following perpetual inventory transactions for

Assume that AB Tire Store completed the following perpetual inventory transactions for a line of tires: Requirements: 1. Compute cost of goods sold and gross profit using the FIFO inventory costing...

Q: Salem Hardware Consultants purchased a building for $540,000 and

Salem Hardware Consultants purchased a building for $540,000 and depreciated it on a straight-line basis over a 40-year period. The estimated residual value is $100,000. After using the building for 1...

Q: On January 2, 2017, Comfy Clothing Consignments purchased showroom fixtures

On January 2, 2017, Comfy Clothing Consignments purchased showroom fixtures for $17,000 cash, expecting the fixtures to remain in service for five years. Comfy has depreciated the fixtures on a double...

Q: On January 2, 2016, Pet Spa purchased fixtures for $

On January 2, 2016, Pet Spa purchased fixtures for $37,800 cash, expecting the fixtures to remain in service for six years. Pet Spa has depreciated the fixtures on a straight-line basis, with $9,000 r...

Q: Cannon Mountain Mining paid $462,300 for the right to

Cannon Mountain Mining paid $462,300 for the right to extract mineral assets from a 400,000-ton deposit. In addition to the purchase price, Cannon also paid a $900 filing fee, a $1,800 license fee to...

Q: Melbourn Printers (MP) manufactures printers. Assume that MP recently

Melbourn Printers (MP) manufactures printers. Assume that MP recently paid $200,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to prov...

Q: Blacker by Photo reported the following figures on its December 31,

Blacker by Photo reported the following figures on its December 31, 2018, income statement and balance sheet: Compute the asset turnover ratio for 2018 Round to two decimal places.