Questions from Financial Accounting


Q: Gamma, Inc., owns Cressida Corp. These two companies’ individual

Gamma, Inc., owns Cressida Corp. These two companies’ individual balance sheets follow: Requirements 1. Prepare a consolidated balance sheet of Gamma, Inc. It is sufficient to com...

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Q: Translate into dollars the balance sheet of Ohio Leather Goods’ Greek subsidiary

Translate into dollars the balance sheet of Ohio Leather Goods’ Greek subsidiary. When Ohio Leather Goods acquired the foreign subsidiary, a euro was worth $1.06. The current exchange rate is $1.36. D...

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Q: During fiscal year 2016, Ellis Bakery reported a net income of

During fiscal year 2016, Ellis Bakery reported a net income of $130.7 million. Ellis Bakery received $1.4 million from the sale of other businesses. Ellis Bakery made capital expenditures of $10.6 mill...

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Q: At the end of the year, Blue Moon Properties’ statement of

At the end of the year, Blue Moon Properties’ statement of cash flows reported the following for investing activities: Requirement 1. For each item listed, make the...

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Q: Shriver Corp. purchased five $1,000 7% bonds

Shriver Corp. purchased five $1,000 7% bonds of Geotherm Corporation when the market rate of interest was 8%. Interest is paid semiannually, and the bonds will mature in five years. Using the PV functio...

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Q: Ivanhoe Sports Authority purchased inventory costing $28,000 by signing

Ivanhoe Sports Authority purchased inventory costing $28,000 by signing a 7% short-term, one-year note payable. The purchase occurred on July 31, 2016. Ivanhoe pays annual interest each year on July 3...

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Q: The accounting records of Jim’s Appliances included the following balances at the

The accounting records of Jim’s Appliances included the following balances at the end of the period: In the past, Jim’s warranty expense has been 9% of sales. Dur...

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Q: TransWorld Publishing completed the following transactions for one subscriber during 2016:

TransWorld Publishing completed the following transactions for one subscriber during 2016: Requirement 1. Journalize these transactions (explanations not required). Then report any liability on the...

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Q: Perrault has an annual payroll of $190,000. In

Perrault has an annual payroll of $190,000. In addition, the company incurs payroll tax expense of 8%. At December 31, Perrault owes salaries of $8,200 and FICA and other payroll tax of $700. The comp...

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Q: Assume that Cart Sales Company completed the following note payable transactions:

Assume that Cart Sales Company completed the following note payable transactions: Requirements 1. How much interest expense must be accrued at December 31, 2016? (Round your answer to the nearest w...

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