Questions from Financial Accounting

Q: Wi-Fi, Inc., has the following selected transactions during

Wi-Fi, Inc., has the following selected transactions during the year. 1. Issues $20 million in bonds. 2. Purchases equipment for $80,000. 3. Pays a $20,000 account payable. 4. Collects a $15,000 accou...

Q: Ernie’s Electronics had the following transactions with Bert’s Bargain House:

Ernie’s Electronics had the following transactions with Bert’s Bargain House: 1. Ernie sold Bert land, originally purchased for $180,000, at a sales price of $195,000, resulting in a gain on sale of l...

Q: Refer to the transactions between Ernie’s Electronics and Bert’s Bargain House recorded

Refer to the transactions between Ernie’s Electronics and Bert’s Bargain House recorded in E11–5. Required: Analyze each of the four transactions from the perspective of Bert’s Bargain House. Indicate...

Q: Technology Solutions’ format for the statement of cash flows was corrupted by

Technology Solutions’ format for the statement of cash flows was corrupted by a computer virus, as follows: Required: Prepare a correct format for Technology Solutions to use in prep...

Q: Hardware Suppliers reports net income of $165,000. Included

Hardware Suppliers reports net income of $165,000. Included in net income is a gain on the sale of land of $20,000. A comparison of this year’s and last year’s balance sheets reveals an increase in ac...

Q: Software Distributors reports net income of $65,000. Included

Software Distributors reports net income of $65,000. Included in that number is depreciation expense of $15,000 and a loss on the sale of land of $6,000. A comparison of this year’s and last year’s ba...

Q: Match (by letter) the following items with the description or

Match (by letter) the following items with the description or example that best fits. Each letter is used only once. Descriptions a. A company’s ability to pay its current liabilitie...

Q: The income statement for Stretch-Tape Corporation reports net sales of

The income statement for Stretch-Tape Corporation reports net sales of $540,000 and net income of $65,700. Average total assets for the year are $900,000. Stockholders’ equity at the beginning of the...

Q: The Tony Hawk Skate Park was built in early 2021. The

The Tony Hawk Skate Park was built in early 2021. The construction was financed by a $3,000,000, 7% note due in 6 years, with payments of $51,147 required each month. The first year has not been as pr...

Q: As an auditor for Bernard and Thomas, you are responsible for

As an auditor for Bernard and Thomas, you are responsible for determining the proper classification of income statement items in the audit of California Sports Grill. a. One of the company’s restauran...