Questions from Financial Accounting


Q: On the first day of its fiscal year, Pretender Company issued

On the first day of its fiscal year, Pretender Company issued $18,500,000 of five-year, 10% bonds to finance its operations of producing and selling home improvement products. Interest is payable semi...

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Q: On February 22, Kountry Repair Service extended an offer of $

On February 22, Kountry Repair Service extended an offer of $200,000 for land that had been priced for sale at $250,000. On April 3, Kountry Repair Service accepted the seller’s counteroffer of $230,0...

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Q: On February 10, 15,000 shares of Sting Company are

On February 10, 15,000 shares of Sting Company are acquired at a price of $25 per share plus a $150 brokerage commission. On April 12, a $0.40-per-share dividend was received on the Sting Company stoc...

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Q: Lerner Corporation wholesales repair products to equipment manufacturers. On April 1

Lerner Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Lerner Corporation issued $12,000,000 of five-year, 8% bonds at a market (effective) interest rate of 6%, re...

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Q: Parilo Company acquired $170,000 of Makofske Co., 5

Parilo Company acquired $170,000 of Makofske Co., 5% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 2016, Parilo Company sold $50,000...

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Q: Equipment acquired on January 6, 2013, at a cost of

Equipment acquired on January 6, 2013, at a cost of $425,000, has an estimated useful life of 16 years and an estimated residual value of $65,000 a. What was the annual amount of depreciation for the...

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Q: During 2016, the accountant discovered that the physical inventory at the

During 2016, the accountant discovered that the physical inventory at the end of 2015 had been understated by $42,750. Instead of correcting the error, however, the accountant assumed that the error w...

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Q: List any errors you can find in the following partial balance sheet

List any errors you can find in the following partial balance sheet:

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Q: On April 1, 2016, Rizzo Company purchased $80,

On April 1, 2016, Rizzo Company purchased $80,000 of 4.5%, 20-year Energizer Company bonds at their face amount plus one month’s accrued interest. The bonds pay interest on March 1 and September 1. On...

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Q: On March 4, Breen Corporation acquired 7,500 shares of

On March 4, Breen Corporation acquired 7,500 shares of the 200,000 outstanding shares of Melton Co. common stock at $40 plus commission charges of $175. On June 15, a cash dividend of $2.10 per share...

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