Questions from Financial Accounting

Q: A The bank portion of the bank reconciliation for Bogalusa Company at

A The bank portion of the bank reconciliation for Bogalusa Company at October 31, 2017, is shown below. The adjusted cash balance per bank agreed with the cash balance per books at October 31. The N...

Q: Identify the five components of a good internal control system.

Identify the five components of a good internal control system.

Q: The comparative balance sheets for Spicer Company as of December 31 are

The comparative balance sheets for Spicer Company as of December 31 are presented below. Additional information: 1. Operating expenses include depreciation expense of $42,000. 2. Land was sold for ca...

Q: On January 1, 2017, Opal Company issued $2,

On January 1, 2017, Opal Company issued $2,000,000 face value, 7%, 10-year bonds at $2,147,202. This price resulted in a 6% effective-interest rate on the bonds. Opal uses the effective-interest metho...

Q: (a) What are the principal differences between common stock and

(a) What are the principal differences between common stock and preferred stock? (b) Preferred stock may be cumulative. Discuss this feature. (c) How are dividends in arrears presented in the financia...

Q: Why is it necessary to convert accrual basis net income to cash

Why is it necessary to convert accrual basis net income to cash-basis net income when preparing a statement of cash flows?

Q: (a) What is a convertible bond? (b

(a) What is a convertible bond? (b) Discuss the advantages of a convertible bond from the standpoint of the bondholders and of the issuing corporation.

Q: Name the major ratios useful in assessing (a) liquidity

Name the major ratios useful in assessing (a) liquidity and (b) solvency.

Q: The following data are taken from the financial statements of Colby Company

The following data are taken from the financial statements of Colby Company. Compute for each year (a) the accounts receivable turnover and (b) the average collection period. What conclusions about th...

Q: Emron Inc. is considering these two alternatives to finance its construction

Emron Inc. is considering these two alternatives to finance its construction of a new $2 million plant: 1. Issuance of 200,000 shares of common stock at the market price of $10 per share. 2. Issuance...