Questions from Financial Accounting

Q: Cascade Company was started on January 1, Year 1, when

Cascade Company was started on January 1, Year 1, when it acquired $60,000 cash from the owners. During Year 2, the company earned cash revenues of $35,000 and incurred cash expenses of $18,100. The c...

Q: Nowell Inc. had the following stock issued and outstanding at January

Nowell Inc. had the following stock issued and outstanding at January 1, Year 2: 1. 150,000 shares of no-par common stock. 2. 30,000 shares of $50 par, 4 percent, cumulative preferred stock. (Dividend...

Q: The following correctly prepared entries without explanations pertain to Corners Corporation:

The following correctly prepared entries without explanations pertain to Corners Corporation: The original sale (Entry 1) was for 400,000 shares, and the treasury stock was acquired for $5 per share...

Q: The following percentages apply to Thornton Company for Year 3 and Year

The following percentages apply to Thornton Company for Year 3 and Year 4: Required: Assuming that sales were $800,000 in Year 3 and $960,000 in Year 4, prepare income statements for the two years....

Q: On January 1, Year 1, Brown Co. borrowed cash

On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $100,000 face-value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annua...

Q: Tesla, Inc. began operations in 2003 but did not begin

Tesla, Inc. began operations in 2003 but did not begin selling its stock to the public until June 28, 2010. It has lost money every year it has been in existence, and by December 31, 2016, it had tota...

Q: Boyd Company has a line of credit with State Bank. Boyd

Boyd Company has a line of credit with State Bank. Boyd can borrow up to $400,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annu...

Q: b. Interest Expense: $48,000  Loss on

b. Interest Expense: $48,000  Loss on Bond Redemptions: $24,000 Arnold Corp. issued $600,000 of 20-year, 8 percent, callable bonds on January 1, Year 1, with interest payable annuall...

Q: Pine Land Co. was formed when it acquired cash from the

Pine Land Co. was formed when it acquired cash from the issue of common stock. The company then issued bonds at a premium on January 1, Year 1. Interest is payable annually on December 31 of each year...

Q: During Year 1 and Year 2, Agatha Corp. completed the

During Year 1 and Year 2, Agatha Corp. completed the following transactions relating to its bond issue. The corporation’s fiscal year is the calendar year. Year 1 Jan.  1 Issued $300,000 of 10year, 6...