Questions from Financial Accounting

Q: Beau Dawson and Willow McDonald formed a partnership, investing $276

Beau Dawson and Willow McDonald formed a partnership, investing $276,000 and $92,000, respectively. Determine their participation in the year’s net income of $380,000 under each of the following indep...

Q: Using each of the five assumptions as to income division listed in

Using each of the five assumptions as to income division listed in Exercise 12-3, determine the income participation of Dawson and McDonald if the year’s net income is $136,000. Assumptions listed in...

Q: Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership

Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership agreement provided for salary allowances of $58,000 and $41,000, respectively. Determine the division of a $33,000 net...

Q: Exploit Media, LLC, has three members: WACS Partners,

Exploit Media, LLC, has three members: WACS Partners, Elyse O’Reilly, and Encounter Newspaper, LLC. On January 1, 20Y2, the three members had equity of $275,000, $55,000, and $220,000, respectively. W...

Q: Internal Insights Inc., a developer of radiology equipment, has stock

Internal Insights Inc., a developer of radiology equipment, has stock outstanding as follows: 70,000 shares of cumulative preferred 2% stock, $60 par, and 100,000 shares of $10 par common. During its...

Q: Kroger, a grocery store chain, recently had a price-

Kroger, a grocery store chain, recently had a price-earnings ratio of 7.6, while the average price-earnings ratio in the grocery store industry was 18.6. What might explain this difference?

Q: Advanced Life Co. is an HMO for businesses in the Albuquerque

Advanced Life Co. is an HMO for businesses in the Albuquerque area. The following account balances appear on the balance sheet of Advanced Life Co.: Common stock (600,000 shares authorized; 400,000 sh...

Q: Yeoman Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the

Yeoman Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Yeoman Grill Restaurant Corporation, which had 35,000 shares of common stock outstanding, decla...

Q: Yard Spray Inc. develops and produces spraying equipment for lawn maintenance

Yard Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Yard Spray Inc. reacquired 42,000 shares of its common stock at $3...

Q: The following accounts and their balances were selected from the adjusted trial

The following accounts and their balances were selected from the adjusted trial balance of Block Ayala Group Inc., a freight forwarder, at October 31, the end of the current fiscal year: Common Stock,...