Questions from Financial Accounting

Q: Tri-State Bank and Trust is considering giving Josef Company a

Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing so, management decides that further discussions with Josef’s accountant may be desirable. One area of particular conce...

Q: Rachel Warren, an auditor with Laplante CPAs, is performing a

Rachel Warren, an auditor with Laplante CPAs, is performing a review of Schuda Company’s inventory account. Schuda did not have a good year, and top management is under pressure to boost reported inco...

Q: Gato Inc. had the following inventory situations to consider at January

Gato Inc. had the following inventory situations to consider at January 31, its year-end. (a) Goods held on consignment for Steele Corp. since December 12. (b) Goods shipped on consignment to Logan Ho...

Q: On December 1, Marzion Electronics Ltd. has three DVD players

On December 1, Marzion Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purch...

Q: Linda’s Boards sells a snowboard, Xpert, that is popular with

Linda’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Linda’s purchases of Xpert snowboards during September...

Q: Xiong Co. uses a periodic inventory system. Its records show

Xiong Co. uses a periodic inventory system. Its records show the following for the month of May, in which 65 units were sold Instructions Compute the ending inventory at May 31 and cost of goods sol...

Q: Kaleta Company reports the following for the month of June.

Kaleta Company reports the following for the month of June. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO. (b) Which costing method...

Q: Lisa Company had 100 units in beginning inventory at a total cost

Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Lisa had 80 units in ending inventory....

Q: Inventory data for Kaleta Company are presented in E6-7.

Inventory data for Kaleta Company are presented in E6-7. Data from E6-7: Instructions (a) Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (Round ave...

Q: (a) Identify the three activities that pertain to a petty

(a) Identify the three activities that pertain to a petty cash fund, and indicate an internal control principle that is applicable to each activity. (b) When are journal entries required in the operat...