Questions from Financial Accounting

Q: On June 15, 2017, Family Furniture discarded equipment that had

On June 15, 2017, Family Furniture discarded equipment that had a cost of $27,000, a residual value of $0, and was fully depreciated. Journalize the disposal of the equipment.

Q: Biagas, Inc. had net sales of $55,600

Biagas, Inc. had net sales of $55,600,000 for the year ended May 31, 2018. Its beginning and ending total assets were $52,800,000 and $98,500,000, respectively. Determine Biagas’s asset turnover ratio...

Q: White Corporation purchased equipment for $22,000. White recorded

White Corporation purchased equipment for $22,000. White recorded total depreciation of $19,000 on the equipment. On January 1, 2018, White traded in the equipment for new equipment, paying $23,200 ca...

Q: Highland Clothing purchased land, paying $96,000 cash and

Highland Clothing purchased land, paying $96,000 cash and signing a $300,000 note payable. In addition, Highland paid delinquent property tax of $1,100, title insurance costing $600, and $4,600 to lev...

Q: Concord Pet Care Clinic paid $210,000 for a group

Concord Pet Care Clinic paid $210,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $110,000, the building $88,000, and the equi...

Q: On January 1, 2018, Air Canadians purchased a used airplane

On January 1, 2018, Air Canadians purchased a used airplane for $37,000,000. Air Canadians expects the plane to remain useful for five years (4,000,000 miles) and to have a residual value of $5,000,00...

Q: On January 1, 2018, Advanced Airline purchased a used airplane

On January 1, 2018, Advanced Airline purchased a used airplane at a cost of $60,500,000. Advanced Airline expects the plane to remain useful for eight years (5,000,000 miles) and to have a residual va...

Q: Assume that Smith’s Auto Sales paid $45,000 for equipment

Assume that Smith’s Auto Sales paid $45,000 for equipment with a 15-year life and zero expected residual value. After using the equipment for six years, the company determines that the asset will rema...

Q: Calm Day reported the following income statement for the year ended December

Calm Day reported the following income statement for the year ended December 31, 2019: Requirements: 1. Compute Calm Day’s inventory turnover rate for the year. (Round to two decim...

Q: On October 31, 2018, Alternative Landscapes discarded equipment that had

On October 31, 2018, Alternative Landscapes discarded equipment that had a cost of $26,920. Accumulated Depreciation as of December 31, 2017, was $25,000. Assume annual depreciation on the equipment i...