Questions from Financial Accounting

Q: Pollard Service Co. experienced the following transactions for Year 1,

Pollard Service Co. experienced the following transactions for Year 1, its first year of operations: 1. Provided $86,000 of services on account. 2. Collected $72,000 cash from accounts receivable. 3....

Q: Applied Business Systems has a small number of sales on account but

Applied Business Systems has a small number of sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectible accounts. During Year 1, A...

Q: Classic Auto Parts sells new and used auto parts. Although a

Classic Auto Parts sells new and used auto parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During Year 1, its first year of operations, Classic A...

Q: Cachet Enterprises loaned $30,000 to Craft Co. on

Cachet Enterprises loaned $30,000 to Craft Co. on September 1, Year 1, for one year at 6 percent interest. Required: a. Record these general journal entries for Cachet Enterprises: (1) The loan to Cr...

Q: On March 1, Year 1, Taylor’s Deli loaned $18

On March 1, Year 1, Taylor’s Deli loaned $18,000 to Style Studio for one year at 5 percent interest. Required: Answer the following questions: a. What is Taylor’s interest income for Year 1? b. What...

Q: Advanced Carpet Cleaning provided $76,000 of services during Year

Advanced Carpet Cleaning provided $76,000 of services during Year 1, its first year of operations. All customers paid for the services with major credit cards. Advanced Carpet submitted the credit car...

Q: Bali Sales Company experienced the following events: 1. Purchased

Bali Sales Company experienced the following events: 1. Purchased merchandise inventory for cash. 2. Purchased merchandise inventory on account. 3. Returned merchandise purchased on account. 4. Sold m...

Q: Jung Company accepted credit cards in payment for $8,650

Jung Company accepted credit cards in payment for $8,650 of services performed during March Year 1. The credit card company charged Jung a 4 percent service fee. The credit card company paid Jung as s...

Q: The following post-closing trial balance was drawn from the accounts

The following post-closing trial balance was drawn from the accounts of Southern Timber Co. as of December 31, Year 1: Transactions for Year 2: 1. Acquired an additional $20,000 cash from the issue...

Q: The following information is available for Bradford Inc. and Windsor Inc

The following information is available for Bradford Inc. and Windsor Inc. at December 31: Required: a. What is the accounts receivable turnover for each of the companies? b. What is the average days...