Questions from Financial Accounting

Q: Bryant Co. reports net income of $20,000.

Bryant Co. reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of $3,000 from sale of machinery. It also had a $2,000 loss from retirement of not...

Q: Prepare Natura Co.’s journal entries to record the following transactions

Prepare Natura Co.’s journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On...

Q: Indicate the effect, if any, that each separate transaction has

Indicate the effect, if any, that each separate transaction has on financing cash flows. a. Notes payable with a carrying value of $15,000 are retired for $16,000 cash, resulting in a $1,000 loss. b....

Q: Refer to the data in QS 12-7. 1

Refer to the data in QS 12-7. 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2020? 2. Assume that no additional notes payable are issued in 2020. What...

Q: Use the following information for VPI Co. to prepare a statement

Use the following information for VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect method.

Q: Revo Co. reports average total assets of $200,000

Revo Co. reports average total assets of $200,000, revenue of $90,000, net income of $30,000, and cash flow from operations of $38,000. 1. Compute its cash flow on total assets. 2. Is Revo’s cash flow...

Q: A company uses a spreadsheet to prepare its statement of cash flows

A company uses a spreadsheet to prepare its statement of cash flows. Indicate whether each of the following items would be recorded in the Debit column or Credit column of the spreadsheet’s statement...

Q: Russell Co. reports sales revenue of $30,000 and

Russell Co. reports sales revenue of $30,000 and interest revenue of $5,000. Its comparative balance sheet shows that accounts receivable decreased $4,000 and interest receivable increased $1,000. Com...

Q: Bioware Co. reports cost of goods sold of $42,

Bioware Co. reports cost of goods sold of $42,000. Its comparative balance sheet shows that inventory decreased $7,000 and accounts payable increased $5,000. Compute cash payments to suppliers using t...

Q: BTN Inc. reports operating expenses of $27,000.

BTN Inc. reports operating expenses of $27,000. Its comparative balance sheet shows that accrued liabilities decreased $6,000 and prepaid expenses increased $2,000. Compute cash used in operating acti...