Questions from Financial Accounting

Q: If a company had two units that cost $1 each in

If a company had two units that cost $1 each in its beginning inventory and purchased two more units for $2 each, what would be the gross profit reported on the income statement under each of the foll...

Q: Assume BAL, Inc., began March with 95 units of inventory

Assume BAL, Inc., began March with 95 units of inventory that cost a total of $1,710. During March, BAL, Inc., purchased and sold goods as follows:
BAL, Inc., uses perpetual inventory. Under the a...

Q: Assume that Wave Rider sold skateboards to a department store for $

Assume that Wave Rider sold skateboards to a department store for $28,000 cash. Howwould this transaction affect Wave Rider’s accounting equation? a. Increase both assets and stockholders’ equity by $...

Q: Ellen Beach owns Ellen’s Lawncare Service. The business has cash of

Ellen Beach owns Ellen’s Lawncare Service. The business has cash of $13,000 andequipment that costs $35,000. Debts of the business include accounts payable of$9,000 and a $5,000 note payable. Determin...

Q: What is a “normal balance”? What are normal balances for

What is a “normal balance”? What are normal balances for the following accounts? a. Accounts Receivable b. Prepaid Expenses c. Notes Payable d. Retained Earnings e. Salaries Expense

Q: Posting a $500 purchase of supplies on account appears as which

Posting a $500 purchase of supplies on account appears as which of the following? a.
b.
c.
d.

Q: Demonstrate your knowledge of accounting terminology by filling in the blanks toreview

Demonstrate your knowledge of accounting terminology by filling in the blanks toreview some key definitions. Dillon Baker is describing the accounting process for a friend who is a psychology major. D...

Q: Why do companies prepare adjusting entries?

Why do companies prepare adjusting entries?

Q: Unearned Revenue is always a. revenue. b.

Unearned Revenue is always a. revenue. b. stockholders’ equity. c. a liability. d. an asset.

Q: Julie’s Flower Shop’s Office Supplies balance on October 1 is $1

Julie’s Flower Shop’s Office Supplies balance on October 1 is $1,200, and the balance in Office Supplies Expense is $0. On October 31, $480 of supplies are on hand. Journalize and post the adjusting e...