Questions from Financial Accounting

Q: River City Supply, Inc., uses the allowance method to account

River City Supply, Inc., uses the allowance method to account for uncollectible accounts. On December 31, 2016, Allowance for Uncollectible Accounts has a $375 credit balance. Journalize the year-end...

Q: On January 2, 2016, Evergreen Lighting purchased showroom fixtures for

On January 2, 2016, Evergreen Lighting purchased showroom fixtures for $18,000 cash, expecting the fixtures to remain in service for 5 years. Evergreen Lighting has depreciated the fixtures on a strai...

Q: Gabby’s Bakery Company reported sales revenue of $148,000 and

Gabby’s Bakery Company reported sales revenue of $148,000 and cost of goods sold of $93,000. Requirements 1. Compute Gabby’s Bakery Company’s correct gross profit assuming the company’s ending inven...

Q: On April 30, 2016, Seattle First National Bank loaned $

On April 30, 2016, Seattle First National Bank loaned $100,000 to Pugliese Produce, Inc., on a one-year, 8 percent note. Requirements 1. Compute the interest for the years ended December 31, 2016 an...

Q: Score More Sports uses the FIFO inventory method. Score More Sports

Score More Sports uses the FIFO inventory method. Score More Sports started December with 10 helmets that cost $54 each. On December 19, Score More Sports bought 15 helmets at $52 each. On December 28...

Q: Assume that Hart Corporation’s comparative balance sheet reported these amounts:

Assume that Hart Corporation’s comparative balance sheet reported these amounts:
Requirement 1. Assume that on January 1, 2016, Hart sold 1/10 of its plant and equipment for $56,000 in cash. Jour...

Q: Mike’s Custom Furniture, Inc., reported the following comparative income statements

Mike’s Custom Furniture, Inc., reported the following comparative income statements for the years ended April 30, 2016 and 2015.
During 2016, Mike’s Custom Furniture, Inc., discovered that the 201...

Q: Journalize the following transactions of Lawn Pro, Inc., which ends

Journalize the following transactions of Lawn Pro, Inc., which ends its accounting year on September 30:

Q: Ludlow Transport is a large trucking company. Ludlow Transport uses the

Ludlow Transport is a large trucking company. Ludlow Transport uses the unit’s of-production (UOP) method to depreciate its trucks. In 2013, Ludlow Transport acquired a Mack truck costing $410,000 wit...

Q: Master Blaster, Inc., sells and installs audio equipment. During

Master Blaster, Inc., sells and installs audio equipment. During a recent fire that occurred at its warehouse, Master Blaster, Inc.’s entire inventory was destroyed. Master Blaster, Inc.’s accounting...