Questions from Financial Accounting

Q: Friendly Corporation purchased a delivery van for $28,500 in

Friendly Corporation purchased a delivery van for $28,500 in Year 1. The firm’s financial condition immediately prior to the purchase is shown in the following horizontal statements...

Q: Todd Service Company purchased a copier on January 1, Year 1

Todd Service Company purchased a copier on January 1, Year 1, for $25,000 and paid an additional $500 for delivery charges. The copier was estimated to have a life of four years or 1,000,000 copies. S...

Q: Floyd Company made several purchases of long-term assets in Year

Floyd Company made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment 1. List price: $50,000; terms: 1/10 n/30; paid within the dis...

Q: Tringle Inc. recorded the following transactions over the life of a

Tringle Inc. recorded the following transactions over the life of a piece of equipment purchased in Year 1: Jan. 1, Year 1 Purchased the equipment for $38,000 cash. The equipment is estimated to have...

Q: Delta Manufacturing paid $62,000 to purchase a computerized assembly

Delta Manufacturing paid $62,000 to purchase a computerized assembly machine on January 1, Year 1. The machine had an estimated life of eight years and a $2,000 salvage value. Delta’...

Q: Metals Exploration Corporation engages in the exploration and development of many types

Metals Exploration Corporation engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities: Jan. 1, Year 1...

Q: Doug’s Diner acquired a fast food restaurant for $1,500

Doug’s Diner acquired a fast food restaurant for $1,500,000. The fair market values of the assets acquired were as follows. No liabilities were assumed. Required: a. Calculate the...

Q: TRS Company experienced the following events: 1. Purchased merchandise

TRS Company experienced the following events: 1. Purchased merchandise inventory for cash. 2. Sold merchandise inventory on account. Label the revenue recognition 2a and the expense recognition 2b. 3....

Q: Bostick Co. acquired the assets of Belk Co. for $

Bostick Co. acquired the assets of Belk Co. for $1,200,000 in Year 1. The estimated fair market value of the assets at the acquisition date was $1,000,000. Goodwill of $200,000 was recorded at acquisi...

Q: Three different companies each purchased a machine on January 1, Year

Three different companies each purchased a machine on January 1, Year 1, for $64,000. Each machine was expected to last five years or 200,000 hours. Salvage value was estimated to be $6,000. All three...