Questions from Financial Accounting

Q: Ford Construction Company purchased a forklift for $150,000 cash

Ford Construction Company purchased a forklift for $150,000 cash. It had an estimated useful life of four years and a $10,000 salvage value. At the beginning of the third year of use, the company spen...

Q: On January 1, Year 1, Mid state Power Company overhauled

On January 1, Year 1, Mid state Power Company overhauled four turbine engines that generate power for customers. The overhaul resulted in a slight increase in the capacity of the engines to produce po...

Q: Fulton Sand and Gravel paid $800,000 to acquire 1

Fulton Sand and Gravel paid $800,000 to acquire 1,200,000 cubic yards of sand reserves. The following statements model reflects Fulton’s financial condition just prior to purchasing...

Q: Horn Co. acquired the business Medical Supply Co. for $

Horn Co. acquired the business Medical Supply Co. for $275,000 cash and assumed all liabilities at the date of acquisition. Medical’s books showed tangible assets of $250,000, liabil...

Q: Garth Manufacturing paid cash to acquire the assets of an existing company

Garth Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Garth’s financial condition just prior to the purcha...

Q: Tri-Cities Equipment Rentals, LLC rents equipment such as cranes

Tri-Cities Equipment Rentals, LLC rents equipment such as cranes and bulldozers to construction companies, while Sam’s Tax Services, LLC provides income tax and accounting services t...

Q: The Transnational Business Inc. (TBI) purchased an asset that

The Transnational Business Inc. (TBI) purchased an asset that cost $60,000 on January 1, Year 1. The asset had a four-year useful life and a $10,000 salvage value. Required: a. Determine the amount o...

Q: The following information is available for two different types of businesses for

The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. S...

Q: Assume the following. Madrid Company purchased a parcel of land on

Assume the following. Madrid Company purchased a parcel of land on January 1, Year 1, for $600,000. It constructed a building on the land at a cost of $3,000,000. The building was occupied on January...

Q: Required: Give some examples of long term operational assets that

Required: Give some examples of long term operational assets that each of the following companies is likely to own: (a) Sears, (b) Princess Cruise Lines, (c) Southwest Airlines, and (d) Harley-Davidso...