Questions from Financial Accounting

Q: Zen began a new consulting firm on January 5. Following is

Zen began a new consulting firm on January 5. Following is a financial summary, including balances, for each of the company’s first five transactions (using the accounting equation f...

Q: The following table shows the effects of transactions 1 through 5 on

The following table shows the effects of transactions 1 through 5 on the assets, liabilities, and equity of Mulan’s Boutique. Identify the explanation from a through j that best des...

Q: A&J Co. incurred the following expenses related to patented

A&J Co. incurred the following expenses related to patented drugs. 1. Indicate costs that are reported as research and development expenses on the income statement. 2. Indicate costs that are capi...

Q: Anna’s Cookies combines cash and cash equivalents on the balance sheet.

Anna’s Cookies combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported for cash and cash equivalents. $100 in coins held in store regist...

Q: During the current year, Reed Consulting acquired long-term available

During the current year, Reed Consulting acquired long-term available-for-sale debt securities on July 1 at a $70,000 cost. At its December 31 year-end, these securities had a fair value of $58,000. T...

Q: For each transaction a through f, identify its impact on the

For each transaction a through f, identify its impact on the accounting equation (select from 1 through 5 below). 1. Decreases an asset and decreases equity. 2. Increases an asset and increases a liab...

Q: Shep Company’s records show the following information for the current year.

Shep Company’s records show the following information for the current year. Determine net income (loss) for each of the following separate situations. a. Additional common stock of $...

Q: Identify the fraud triangle risk factor (Opportunity, Pressure, or

Identify the fraud triangle risk factor (Opportunity, Pressure, or Rationalization) in each situation. 1. The business has no cameras or security devices at its warehouse. 2. Managers are expected to...

Q: For each transaction, (a) determine whether the transaction

For each transaction, (a) determine whether the transaction appears on the statement of cash flows under cash flows from operating activities, cash flows from investing activities, or cash flows from...

Q: On December 1, Jasmin Ernst organized Ernst Consulting. On December

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On December 31, the company&acir...