Questions from Financial Accounting

Q: Antique Carpets’s books show the following data. In early 2020,

Antique Carpets’s books show the following data. In early 2020, auditors found that the ending merchandise inventory for 2017 was understated by $8,000 and that the ending merchandis...

Q: Consider the following note payable transactions of Caleb Video Productions.

Consider the following note payable transactions of Caleb Video Productions. Requirements: 1. Journalize the transactions for the company. 2. Considering the given transactions only, what are Caleb...

Q: Kellerman Company purchased a building and land with a fair market value

Kellerman Company purchased a building and land with a fair market value of $550,000 (building, $425,000, and land, $125,000) on January 1, 2018. Kellerman signed a 20-year, 6% mortgage payable. Kelle...

Q: SB Electronics is considering two plans for raising $4,000

SB Electronics is considering two plans for raising $4,000,000 to expand operations. Plan A is to issue 9% bonds payable, and plan B is to issue 500,000 shares of common stock. Before any new financin...

Q: On June 30, Daughtry Limited issues 8%, 20-year

On June 30, Daughtry Limited issues 8%, 20-year bonds payable with a face value of $130,000. The bonds are issued at 86 and pay interest on June 30 and December 31. Requirements: 1. Journalize the is...

Q: Anderson Company issued $70,000 of 10-year,

Anderson Company issued $70,000 of 10-year, 9% bonds payable on January 1, 2018. Anderson Company pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line amortiz...

Q: On January 1, 2018, Roberts Unlimited issues 8%, 20

On January 1, 2018, Roberts Unlimited issues 8%, 20-year bonds payable with a face value of $240,000. The bonds are issued at 104 and pay interest on June 30 and December 31. Requirements: 1. Journal...

Q: CoastalView Magazine issued $600,000 of 15-year,

CoastalView Magazine issued $600,000 of 15-year, 5% callable bonds payable on July 31, 2018, at 94. On July 31, 2021, CoastalView called the bonds at 101. Assume annual interest payments. Requirement...

Q: Pediatric Dispensary borrowed $390,000 on January 2, 2018

Pediatric Dispensary borrowed $390,000 on January 2, 2018, by issuing a 15% serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of pr...

Q: At December 31, MediStat Precision Instruments owes $52,000

At December 31, MediStat Precision Instruments owes $52,000 on Accounts Payable, Salaries Payable of $12,000, and Income Tax Payable of $10,000. MediStat also has $300,000 of Bonds Payable that were i...