Questions from Financial Reporting

Q: Duke Energy Corporation’s 2014 annual report to shareholders contains the following note

Duke Energy Corporation’s 2014 annual report to shareholders contains the following note disclosure (edited for brevity): Regulatory Accounting: A substantial majority of Duke Energy’s regulated opera...

Q: Aardvark, Inc., began 2017 with the following receivables-related

Aardvark, Inc., began 2017 with the following receivables-related account balances: Aardvark’s transactions during 2017 include the following: Accounts receivable ………………….…………………. $575,000 Allowance...

Q: Needham Corporation has a $200,000 balloon mortgage payment due

Needham Corporation has a $200,000 balloon mortgage payment due in early August. To meet its obligation, it decided on August 1 to accelerate collection of accounts receivable by assigning $260,000 of...

Q: Regulated utilities such as Duke Power Co. (a subsidiary of

Regulated utilities such as Duke Power Co. (a subsidiary of Duke Energy Corporation) are authorized to earn a specific rate of return on their capital investments. Energy regulators set a rate the uti...

Q: Atherton Manufacturing Company sold $200,000 of accounts receivable to

Atherton Manufacturing Company sold $200,000 of accounts receivable to a factor. Pertinent facts about this transaction include the following: 1. The factored receivables had a corresponding $4,000 b...

Q: On November 1, 2019, Gerakos Corporation sold software and a

On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Gerakos sells the same software without technical support for $60,000. It s...

Q: The following information is taken from the financial statements of Ramsay Health

The following information is taken from the financial statements of Ramsay Health Care Inc.: Required: 1. Reconstruct all journal entries relating to Gross accounts receivable and Allowance for doub...

Q: Fish Spotters, Inc., purchased a single-engine aircraft from

Fish Spotters, Inc., purchased a single-engine aircraft from National Aviation on January 1, 2014. Fish Spotters paid $55,000 cash and signed a three-year, 8% note for the remaining $45,000. Terms of...

Q: Mikeska Companies purchased equipment for $108,000 from Power-

Mikeska Companies purchased equipment for $108,000 from Power-line Manufacturing on January 1, 2015. Mikeska paid $18,000 in cash and signed a five-year, 5% installment note for the remaining $90,000...

Q: The following notes are excerpted from the financial statements of three companies

The following notes are excerpted from the financial statements of three companies: The Company and certain of its domestic subsidiaries regularly discount trade notes receivable on a full recourse ba...