Questions from Financial Accounting

Q: Timberly Construction makes a lump-sum purchase of several assets on

Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $900,000. The estimated market values of the purchased assets are building, $508,800; land, $297...

Q: A machine costing $257,500 with a four-year

A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machi...

Q: Champion Contractors completed the following transactions involving equipment. Year 1

Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new lo...

Q: Mercury Delivery Service completed the following transactions involving equipment. Year

Mercury Delivery Service completed the following transactions involving equipment. Year 1 Jan. 1 Paid $25,860 cash plus $1,810 in sales tax for a new delivery van that was estimated to have a five-yea...

Q: Using the information in QS 6-12, prepare the adjusting

Using the information in QS 6-12, prepare the adjusting journal entries that Organic Food Co. must record as a result of preparing the bank reconciliation.

Q: Identify the internal control principle that was violated in each of the

Identify the internal control principle that was violated in each of the following separate situations. a. The record-keeper left town after the owner discovered a large sum of money had disappeared....

Q: Whole Fruits Market took the following actions to improve internal controls.

Whole Fruits Market took the following actions to improve internal controls. For each of the following actions, identify the internal control principle the company followed. a. The record-keeper is pr...

Q: Determine whether each procedure described below is an internal control strength or

Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control principle violated or followed for each procedure. 1. The same employee...

Q: Determine whether each policy below is good or bad cash management;

Determine whether each policy below is good or bad cash management; then identify the cash management strategy violated or followed for each policy. 1. Bills are paid as soon as they are received. 2....

Q: Specter Co. combines cash and cash equivalents on the balance sheet

Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $3,000...