Questions from Financial Reporting

Q: On January 1, 2017, Hillock Brewing Company sold 50,

On January 1, 2017, Hillock Brewing Company sold 50,000 bottles of beer to various customers for $45,000 using credit terms of 3/10, n/30. These credit terms mean that customers receive a cash discoun...

Q: Keefer, Inc., began business on January 1, 2016.

Keefer, Inc., began business on January 1, 2016. Information on its inventory purchases and sales during 2016 and 2017 follow: Required: 1. Calculate ending inventory, cost of goods sold, and gros...

Q: Parque Corporation applied to Fairview Bank early in 2017 for a $

Parque Corporation applied to Fairview Bank early in 2017 for a $400,000 five-year loan to finance plant modernization. The company proposes that the loan be unsecured and repaid from future operating...

Q: The following is an excerpt from the financial statements of Talbot Industries

The following is an excerpt from the financial statements of Talbot Industries: Effective September 30, 2016, the Company changed its method of accounting for inventories from the LIFO method princi...

Q: JKW Corporation has been selling plumbing supplies since 1981. In 2003

JKW Corporation has been selling plumbing supplies since 1981. In 2003, the company adopted the LIFO method of valuing its inventory. The company has grown steadily over the years and a layer has been...

Q: Don Facundo Bacardy Maso founded the original Bacardi® rum business in

Don Facundo Bacardy Maso founded the original Bacardi® rum business in Cuba in 1862. The following information is excerpted from Bacardi Corporation’s annual report for th...

Q: Sirotka Retail Company began doing business in 2015. The following information

Sirotka Retail Company began doing business in 2015. The following information pertains to its first three years of operation: Assume the following: The income tax rate is 40%. Purchase and sale p...

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 technical support for $30,000. It does not sell the software...

Q: Appearing next is information pertaining to Garrels Company’s Allowance for doubtful accounts

Appearing next is information pertaining to Garrels Company’s Allowance for doubtful accounts. Examine this information and answer the following questions. Required: 1. Solve for th...

Q: Caldwell Corporation operates an ice cream processing plant and uses the FIFO

Caldwell Corporation operates an ice cream processing plant and uses the FIFO inventory cost flow assumption. A partial income statement for the year ended December 31, 2017, follows: Caldwellâ...