Questions from Financial Accounting

Q: Bill Wheeler established a partnership with June Cramer. The new company

Bill Wheeler established a partnership with June Cramer. The new company, W&C Fuels, purchased coal directly from mining companies and contracted to ship the coal via waterways to a seaport where it w...

Q: Best Auto Parts Company was started on January 1, Year 1

Best Auto Parts Company was started on January 1, Year 1, when the owners invested $120,000 cash in the business. During Year 1, the company earned cash revenues of $80,000 and incurred cash expenses...

Q: Tyler Corp. had the following stock issued and outstanding at January

Tyler Corp. had the following stock issued and outstanding at January 1, Year 2: 1. 60,000 shares of no-par common stock. 2. 15,000 shares of $100 par, 4 percent, cumulative preferred stock. (Dividend...

Q: Edwards Corporation reports the following information in its January 1, Year

Edwards Corporation reports the following information in its January 1, Year 1, balance sheet: During Year 1, Edwards was affected by the following accounting events: 1. Purchased 2,000 shares of tr...

Q: Edgar Corporation was authorized to issue 100,000 shares of $

Edgar Corporation was authorized to issue 100,000 shares of $8 par common stock and 50,000 shares of $80 par, 4 percent, cumulative preferred stock. Edgar Corporation completed the following transacti...

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

On January 1, Year 1, Kramer Co. borrowed cash from First City Bank by issuing a $90,000 face-value, three-year term note that had a 7 percent annual interest rate. The note is to be repaid by making...

Q: Burk Corp. completed the following transactions in Year 1, the

Burk Corp. completed the following transactions in Year 1, the first year of operation: 1. Issued 30,000 shares of $10 par common stock for $15 per share. 2. Issued 6,000 shares of $100 par, 5 percent...

Q: Dame Co. issued $250,000 of 10year, 6

Dame Co. issued $250,000 of 10year, 6 percent, callable bonds on January 1, Year 1, with interest payable annually on December 31. The bonds were issued at their face amount. The bonds are callable at...

Q: Andy and Jean Crocket are involved in divorce proceedings. When discussing

Andy and Jean Crocket are involved in divorce proceedings. When discussing a property settlement, Andy told Jean that he should take over their investment in an apartment complex because she would be...

Q: White Co. was formed when it acquired cash from the issue

White Co. was formed when it acquired cash from the issue of common stock. The company then issued bonds at a discount on January 1, Year 1. Interest is payable on December 31 with the first payment m...