Questions from Financial Accounting

Q: Boltwood Manufacturing bought three used machines in a $148,000

Boltwood Manufacturing bought three used machines in a $148,000 lump-sum purchase. An independent appraiser valued the machines as shown: What is each machine’s individual cost? Im...

Q: Assume Blynn Athletic Products, Inc., purchased conveyor-belt machinery

Assume Blynn Athletic Products, Inc., purchased conveyor-belt machinery. Classify each of the following expenditures as a capital expenditure or an immediate expense related to machinery: a. Major ove...

Q: During 2016, Liang’s Book Store paid $484,000 for

During 2016, Liang’s Book Store paid $484,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Liang’s $1,300 for a building permit, which Liang’s paid....

Q: Langley Pizza bought a used Chevrolet delivery van on January 2,

Langley Pizza bought a used Chevrolet delivery van on January 2, 2016, for $18,600. The van was expected to remain in service for four years (57,000 miles). At the end of its useful life, Langley offi...

Q: Assume that on January 1, 2016, Shipley Sushi purchased a

Assume that on January 1, 2016, Shipley Sushi purchased a building, paying $56,000 cash and signing a $101,000 note payable. The restaurant paid another $63,000 to remodel the building. Furniture and...

Q: Consider Walmart, a large retailer. Classify the following items as

Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders’ equity (S) for Walmart:

Q: 1. Identify the two basic categories of items on an income

1. Identify the two basic categories of items on an income statement. 2. What do we call the bottom line of the income statement?

Q: Regal Signs, Inc., needs funds, and Megan Regal,

Regal Signs, Inc., needs funds, and Megan Regal, the president, has asked you to consider investing in the business. Answer the following questions about the different ways that Regal might organize t...

Q: Mason Olson is chairman of the board of Healthy Fast Foods,

Mason Olson is chairman of the board of Healthy Fast Foods, Inc. Suppose Olson has just founded Healthy Fast Foods, and assume that he treats his home and other personal assets as part of Healthy Fast...

Q: Identify the accounting concept, assumption, or principle that best applies

Identify the accounting concept, assumption, or principle that best applies to each of the following situations: a. Burger King, the restaurant chain, sold a store location to McDonald’s. How can Bur...