Questions from Financial Accounting

Q: University Car Wash built a deluxe car wash across the street from

University Car Wash built a deluxe car wash across the street from campus. The new machines cost $270,000 including installation. The company estimates that the equipment will have a residual value of...

Q: The following information relates to the intangible assets of University Testing Services

The following information relates to the intangible assets of University Testing Services (UTS): a. On January 1, 2021, UTS completed the purchase of Heinrich Corporation for $3,510,000 in cash. The f...

Q: Solich Sandwich Shop had the following long-term asset balances as

Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021: Solich purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 10-y...

Q: New Morning Bakery is in the process of closing its operations.

New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $700,000. The ovens originally cost $910,000, had an estimated service...

Q: Sub Station and Planet Sub reported the following selected financial data ($

Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best-tasting sandwich with the highest- qua...

Q: Listed below are several terms and phrases associated with current liabilities.

Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.

Q: Precision Castparts, a manufacturer of processed engine parts in the automotive

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $41 million cash on October 1, 2021, to provide working capital for anticipated expansio...

Q: Brooke Remming is the Chief Executive Officer of Dundem Corp. The

Brooke Remming is the Chief Executive Officer of Dundem Corp. The board of directors has agreed to pay Brooke a salary of $400,000 plus a 15% bonus if the company’s pretax income increases by at least...

Q: Caribbean Tours’ total payroll for the month of January was $600

Caribbean Tours’ total payroll for the month of January was $600,000. The following withholdings, fringe benefits, and payroll taxes apply: Assume that none of the withholdings or pa...

Q: Vacation Destinations offers its employees the option of contributing up to 7

Vacation Destinations offers its employees the option of contributing up to 7% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 10...