Questions from Financial Reporting

Q: Smithfield Farms purchased a combine from John Deere for $175,

Smithfield Farms purchased a combine from John Deere for $175,000 on January 2, 2017. Smithfield paid $25,000 in cash and signed an installment note calling for five annual payments of $39,569.58 begi...

Q: Central Valley Construction (CVC) purchased $80,000 of

Central Valley Construction (CVC) purchased $80,000 of sheet metal fabricating equipment from Buffalo Supply on January 1, 2017. CVC paid $15,000 cash and signed a five-year, 10% note for the remainin...

Q: At the close of its first year of operations on December 31

At the close of its first year of operations on December 31, 2017, Clemens Company had accounts receivable of $300,000, which were net of the related allowance for doubtful accounts. During 2017, the...

Q: Echo Corporation had the following balances immediately prior to writing off a

Echo Corporation had the following balances immediately prior to writing off a $100 uncollectible account: Current assets ………â€&b...

Q: The following information is available for Fess Company: Credit

The following information is available for Fess Company: Credit sales during 2017 ………………….………………….…………………. $150,000 Allowance for doubtful accounts at December 31, 2016 ………………….1,450 Accounts receiva...

Q: Robertson, Inc., manufactures metal products. As part of the

Robertson, Inc., manufactures metal products. As part of the manufacturing process, metal shavings are produced. Rather than disposing of the metal shavings, Robertson sells them to a metal recycler....

Q: a. On January 1, 2017, Frances Corporation started doing

a. On January 1, 2017, Frances Corporation started doing business and the owners contributed $200,000 capital in cash. b. The company paid $24,000 to cover the rent for the office space for the 24-mo...

Q: Lake Company sold some machinery to View Company on January 1,

Lake Company sold some machinery to View Company on January 1, 2017, for which the cash selling price was $758,200. View entered into an installment sales contract with Lake at a 10% interest rate. Th...

Q: Weaver, Inc., received a $60,000, six

Weaver, Inc., received a $60,000, six-month, 12% interest-bearing note from a customer. The note was discounted (sold) the same day to Third National Bank at 15%. Compute the amount of cash Weaver rec...

Q: On January 1, 2017, Wade Crimbring, Inc., a

On January 1, 2017, Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC milling machine to Fletcher Bros., a new business that plans to fabricate utility trailers. To conserve c...