Questions from Financial Accounting

Q: Nagy Company makes a lump-sum purchase of several assets on

Nagy Company makes a lump-sum purchase of several assets on January 1 at a total cash price of $1,800,000. The estimated market values of the purchased assets are building, $890,000; land, $427,200; l...

Q: A car dealer acquires a used car for $14,000

A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include $250 for transportation-in. $150 for ad...

Q: Refer to the information in QS 5-11 and assume the

Refer to the information in QS 5-11 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on specific identification. Of the...

Q: Refer to the information in QS 5-11 and assume the

Refer to the information in QS 5-11 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.

Q: Wright Company’s Cash account shows a $27,500 debit balance

Wright Company’s Cash account shows a $27,500 debit balance and its bank statement shows $25,800 on deposit at the close of business on May 31. Prepare its bank reconciliation using the following info...

Q: Refer to the information in QS 5-11 and assume the

Refer to the information in QS 5-11 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method.

Q: Assume you are a business consultant. The owner of a company

Assume you are a business consultant. The owner of a company sends you an e-mail expressing concern that the company is not taking advantage of its discounts offered by vendors. The company currently...

Q: Barga Co.’s net sales for Year 1 and Year 2

Barga Co.’s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $65,000; and Year 2, $123,000. a. Compute its days’...

Q: The following transactions are from Ohlm Company. Year 1

The following transactions are from Ohlm Company. Year 1 Dec. 16 Accepted a $10,800, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting en...

Q: Net Zero Products, a wholesaler of sustainable raw materials, prepares

Net Zero Products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis. (1) Estimate the balance of the Allowance for Doubtful Accounts using the aging of a...