Questions from Financial Accounting

Q: Ten Flags over Georgia paid $100,000 for a concession

Ten Flags over Georgia paid $100,000 for a concession stand. Ten Flags started out depreciating the building straight-line over 20 years with zero residual value. After using the concession stand for...

Q: The following situations describe two cash payment situations and two cash receipt

The following situations describe two cash payment situations and two cash receipt situations. In each pair, one set of internal controls is better than the other. Evaluate the internal controls in ea...

Q: Journalize the following assumed transactions for The Pepson Company. Show amounts

Journalize the following assumed transactions for The Pepson Company. Show amounts in billions. a. Cash purchases of inventory, $3.8 billion b. Sales on account, $19.7 billion c. Cost of goods sold...

Q: McCarver Investments purchased Hoffman shares as a trading security on December 18

McCarver Investments purchased Hoffman shares as a trading security on December 18 for $103,000. 1. Suppose the Hoffman shares decreased in value to $96,000 at December 31. Make the McCarver journal...

Q: Susan Perry keeps the Accounts Receivable T-account of Abraham &

Susan Perry keeps the Accounts Receivable T-account of Abraham & Paige, a partnership. What duty will a good internal control system withhold from Perry? Why?

Q: Foley Distribution Service pays $140,000 for a group purchase

Foley Distribution Service pays $140,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $75,000, the buildings current market...

Q: Assume Nation Airlines repaired a Boeing 777 aircraft at a cost of

Assume Nation Airlines repaired a Boeing 777 aircraft at a cost of $1.5 million, which Nation paid in cash. Further, assume the Nation accountant erroneously capitalized this expense as part of the co...

Q: Barbara Smith manages Jones Advertising. Smith fears that a trusted employee

Barbara Smith manages Jones Advertising. Smith fears that a trusted employee has been stealing from the company . This employee receives cash from clients and also prepares the monthly bank reconcilia...

Q: Greta Cassidy sells memberships to the Phoenix Symphony Association in Phoenix,

Greta Cassidy sells memberships to the Phoenix Symphony Association in Phoenix, Arizona. The Symphonys procedure requires Cassidy to write a patron receipt for all memberships sold. The receipt forms...

Q: ABC, Inc., reported these figures for its fiscal year (

ABC, Inc., reported these figures for its fiscal year (amounts in millions): Suppose ABC later learns that ending inventory was overstated by $14 million. What are the correct amounts for (a) net s...