Questions from Financial Accounting

Q: Assume Dans Drums borrowed $19 million from Need It Now Bank

Assume Dans Drums borrowed $19 million from Need It Now Bank and agreed to (a) pay an interest rate of 7.1% and (b) maintain a compensating balance amount equal to 5.8% of the loan. Determine Dans D...

Q: Assume Birch Leaf Foods, Inc., experienced the following revenue and

Assume Birch Leaf Foods, Inc., experienced the following revenue and accounts receivable write-offs: Suppose Birch Leaf estimates that 1% of revenues will become uncollectible. Requirement 1. Journ...

Q: Toyland prepares budgets to help manage the company. Toyland is budgeting

Toyland prepares budgets to help manage the company. Toyland is budgeting for the fiscal year ended January 31, 2010. During preceding year ended January 31, 2009, sales totaled $9,700 million and cos...

Q: For each of the following situations, identify the inventory method that

For each of the following situations, identify the inventory method that you would use or, given the use of a particular method, state the strategy that you would follow to accomplish your goal: a. In...

Q: Define fraud. List and briefly discuss the three major components of

Define fraud. List and briefly discuss the three major components of the fraud triangle.

Q: Summer Kluxon, Inc., purchased inventory costing $120,000

Summer Kluxon, Inc., purchased inventory costing $120,000 and sold 75% of the goods for $150,000. All purchases and sales were on account. Kluxon later collected 30% of the accounts receivable 1. Jour...

Q: Continental Sporting Goods started April with an inventory of nine sets of

Continental Sporting Goods started April with an inventory of nine sets of golf clubs that cost a total of $1,260. During April Continental purchased 25 sets of clubs for $4,000. At the end of the mon...

Q: Identify the other control procedures usually found in a company’s system of

Identify the other control procedures usually found in a company’s system of internal control besides separation of duties, and tell why each is important.

Q: At December 31, 2010, Darcis Travel has an accounts receivable

At December 31, 2010, Darcis Travel has an accounts receivable balance of $88,000. Allowance for Doubtful Accounts has a credit balance of $900 before the year-end adjustment. Service revenue for 2010...

Q: As a recent college graduate, you land your first job in

As a recent college graduate, you land your first job in the customer collections department of Countryroads Publishing. Zach Peters, the manager, asked you to propose a system to ensure that cash rec...