Questions from Financial Accounting

Q: Design Service Co. purchased a new color copier at the beginning

Design Service Co. purchased a new color copier at the beginning of Year 1 for $47,000. The copier is expected to have a five-year useful life and a $7,000 salvage value. The expected copy production...

Q: Pete’s Pizza purchased a delivery van on January 1, Year 1

Pete’s Pizza purchased a delivery van on January 1, Year 1, for $35,000. In addition, Pete’s paid sales tax and title fees of $1,500 for the van. The van is expected to have a four-year life and a sal...

Q: A plant asset with a cost of $50,000 and

A plant asset with a cost of $50,000 and accumulated depreciation of $41,000 is sold for $10,000. Required: a. What is the book value of the asset at the time of sale? b. What is the amount of gain o...

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

On January 1, Year 1, Heflin Enterprises purchased a parcel of land for $20,000 cash. At the time of purchase, the company planned to use the land for future expansion. In Year 2, Heflin Enterprises c...

Q: On January 1, Year 1, Mead Machining Co. purchased

On January 1, Year 1, Mead Machining Co. purchased a compressor and related installation equipment for $72,500. The equipment had a three-year estimated life with a $12,500 salvage value. Straightline...

Q: Efficient Shredding Service has just completed a minor repair on a shredding

Efficient Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,900, and the book value prior to the repair was $6,000. In addition, the company spent $12,...

Q: Which of the following items should be classified as long-term

Which of the following items should be classified as long-term operational assets? a. Cash b. Buildings c. Production machinery d. Accounts receivable e. Prepaid rent f. Franchise g. Inventory h. Pate...

Q: Identify each of the following long-term operational assets as either

Identify each of the following long-term operational assets as either tangible (T) or intangible (I). a. Retail store building b. Shelving for inventory c. Trademark d. Gas well e. Drilling rig f. FCC...

Q: Dan Watson started a small merchandising business in Year 1. The

Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. 1...

Q: Oregon Logging Co. purchased an electronic saw to cut various types

Oregon Logging Co. purchased an electronic saw to cut various types and sizes of logs. The saw had a list price of $160,000. The seller agreed to allow a 5 percent discount because Oregon paid cash. D...