Questions from Financial Accounting

Q: On May 15, Franklin Co. borrowed cash from Dakota Bank

On May 15, Franklin Co. borrowed cash from Dakota Bank by issuing a 90-day note with a face amount of $180,000. a. Determine the proceeds of the note, assuming that the note carries an interest rate o...

Q: The payroll register of Shortman Co. indicates $3,240

The payroll register of Shortman Co. indicates $3,240 of social security withheld and $810 of Medicare tax withheld on total salaries of $54,000 for the period. Earnings of $5,000 are subject to state...

Q: Nakajima Company provides its employees with vacation benefits and a defined contribution

Nakajima Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $25,500 for the period. The pension plan requires a contributio...

Q: Vandiver Company provides its employees with vacation benefits and a defined benefit

Vandiver Company provides its employees with vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $62,000 for the period. The pension formula indicated a pension cost...

Q: Fitzpatrick Co. sold $391,000 of equipment during January

Fitzpatrick Co. sold $391,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 3% of the sales price. On August 15, a customer requi...

Q: Gupta Industries sold $436,000 of consumer electronics during July

Gupta Industries sold $436,000 of consumer electronics during July under a nine-month warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a...

Q: Basted Company reported the following current assets and liabilities for December 31

Basted Company reported the following current assets and liabilities for December 31 for two recent years: a. Compute the quick ratio on December 31 of both years. b. Interpret the companyâ...

Q: Aloha Company reported the following current assets and liabilities for December 31

Aloha Company reported the following current assets and liabilities for December 31 for two recent years: a. Compute the quick ratio on December 31 of both years. b. Interpret the companyâ€...

Q: TearLab Corp. is a health care company that specializes in developing

TearLab Corp. is a health care company that specializes in developing diagnostic devices for eye disease. TearLab reported the following data (in thousands) for three recent years: 1. Determine the m...

Q: On January 26, McMaster Co. borrowed cash from Quantum Bank

On January 26, McMaster Co. borrowed cash from Quantum Bank by issuing a 45-day note with a face amount of $324,000. a. Determine the proceeds of the note, assuming that the note carries an interest r...