Questions from Financial Accounting

Q: On January 1, Year 1, Prairie Enterprises purchased a parcel

On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $28,000 cash. At the time of purchase, the company planned to use the land for a warehouse site. In Year 3, Prairie Enterprises...

Q: Use the following information to prepare a classified balance sheet for Alpha

Use the following information to prepare a classified balance sheet for Alpha Co. at the end of Year 1:

Q: On January 1, Year 1, Poultry Processing Company purchased a

On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $42,000. The equipment had a three-year estimated life with a $3,000 salvage value. Straight...

Q: Tippah Antiques uses the periodic inventory system to account for its inventory

Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah’s records for Year 2: beginning balance i...

Q: Helen Parish started a design company on January 1, Year 1

Helen Parish started a design company on January 1, Year 1. On April 1, Year 1, Parish borrowed cash from a local bank by issuing a one-year $120,000 face value note with annual interest based on an 8...

Q: Sheldon Jones borrowed money by issuing two notes on March 1,

Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $52,000 face value discount note to Farmers Bank. Th...

Q: On January 1, Year 1, Webb Construction Company overhauled four

On January 1, Year 1, Webb Construction Company overhauled four cranes, resulting in a slight increase in the life of the cranes. Such overhauls occur regularly at two-year intervals and have been tre...

Q: Colorado Mining paid $600,000 to acquire a mine with

Colorado Mining paid $600,000 to acquire a mine with 40,000 tons of coal reserves. The following statements model reflects Colorado Mining’s financial condition just prior to purchas...

Q: Abardeen Corporation borrowed $90,000 from the bank on October

Abardeen Corporation borrowed $90,000 from the bank on October 1, Year 1. The note had an 8 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash on...

Q: Old Town Entertainment has two employees in Year 1. Clay earns

Old Town Entertainment has two employees in Year 1. Clay earns $3,600 per month, and Philip, the manager, earns $10,800 per month. Neither is paid extra for working overtime. Assume the Social Securit...