Questions from Financial Accounting

Q: Record the following transactions in the journal of Sounds on Wheels,

Record the following transactions in the journal of Sounds on Wheels, Inc. Explanations are not required. Use a 360-day year for interest computations and round to the nearest dollar.

Q: Brown Freightway provides freight service. The company’s balance sheet includes Land

Brown Freightway provides freight service. The company’s balance sheet includes Land, Buildings, and Motor-Carrier Equipment. Brown Freightway uses a separate accumulated depreciation account for each...

Q: Casey’s Marine Supply, Inc., lost its entire inventory in a

Casey’s Marine Supply, Inc., lost its entire inventory in a hurricane that occurred on March 31, 2016. Over the past five years, gross profit has averaged 35 percent of net sales. The company’s record...

Q: The comparative financial statements of Appleway Flowers, Inc., for 2016

The comparative financial statements of Appleway Flowers, Inc., for 2016, 2015, and 2014 include the following selected data:
Requirements 1. Compute these ratios for 2016 and 2015: a. Quick rati...

Q: What is depreciation, and why is it used in accounting?

What is depreciation, and why is it used in accounting?

Q: On January 4, 2016, Crux Systems, Inc., paid

On January 4, 2016, Crux Systems, Inc., paid $281,200 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $2,800 transportation charges;...

Q: Osborne Organic Foods, Inc., has the following information for the

Osborne Organic Foods, Inc., has the following information for the years ending December 31, 2016 and 2015:
Requirements 1. Compute the rate of inventory turnover for Osborne Organic Foods, Inc.,...

Q: Ferguson Industries had a piece of equipment that cost $49,

Ferguson Industries had a piece of equipment that cost $49,000 and had accumulated depreciation of $45,000. Requirement 1. Record the disposition of the equipment assuming the following independent...

Q: The Log Cabin Cafe acquired Hungry Boy Diners. The financial records

The Log Cabin Cafe acquired Hungry Boy Diners. The financial records of Hungry Boy Diners included:
Requirements 1. Make the journal entry to record The Log Cabin Cafe’s purchase of Hungry Boy Di...

Q: O’Malley Resources, Inc., balance sheet includes three assets: Natural

O’Malley Resources, Inc., balance sheet includes three assets: Natural Gas, Oil, and Coal Reserves. Suppose O’Malley Resources, Inc., paid $1,700,000 cash for the right to work a mine with an estimate...