Questions from Financial Accounting

Q: Binders $5.8 million cost of inventory at the end

Binders $5.8 million cost of inventory at the end of last year was understated by $1.7 million. 1. Was last years reported gross profit of $3.8 million overstated, understated, or correct? What was t...

Q: Mountain Company made sales of $35,482 million during 2010

Mountain Company made sales of $35,482 million during 2010. Cost of goods sold for the year totaled $15,333 million. At the end of 2009, Mountains inventory stood at $1,641 million, and Mountain ended...

Q: Sam Smith served as executive director of Downtown Scanlon, an organization

Sam Smith served as executive director of Downtown Scanlon, an organization created to revitalize Scanlon, Minnesota. Over the course of 11 years Smith embezzled $297,000. How did Smith do it? He did...

Q: City Technology began the year with inventory of $244,000

City Technology began the year with inventory of $244,000 and purchased $1,540,000 of goods during the year. Sales for the year are $4,000,000, and Citys gross profit percentage is 60% of sales. Compu...

Q: On January 1, 2010, ABC Airline Service purchased an airplane

On January 1, 2010, ABC Airline Service purchased an airplane for $37,700,000. ABC Airline Service expects the plane to remain useful for six years and to have a residual value of $2,900,000. ABC Airl...

Q: This exercise summarizes the accounting for patents, which like copyrights,

This exercise summarizes the accounting for patents, which like copyrights, trademarks, and franchises, provide the owner with a special right or privilege. It also covers research and development cos...

Q: During 2010, Northern Satellite Systems, Inc., purchased two other

During 2010, Northern Satellite Systems, Inc., purchased two other companies for $16 million. Also during 2010, Northern made capital expenditures of $7 million to expand its market share. During the...

Q: Suppose you are considering investing in two businesses, La Petite France

Suppose you are considering investing in two businesses, La Petite France Bakery and Burgers Ahoy! The two companies are virtually identical, and both began operations at the beginning of the current...

Q: River Corporation, the investment banking company, often has extra cash

River Corporation, the investment banking company, often has extra cash to invest. Suppose River buys 600 shares of Eathen, Inc., stock at $40 per share. Assume River expects to hold the Eathen stock...

Q: D. J. Hills checkbook and February bank statement show the

D. J. Hills checkbook and February bank statement show the following: Requirement 1. Prepare Hills bank reconciliation at February 28.