Questions from Financial Reporting

Q: Apex Company purchased a tooling machine on January 3, 20W1,

Apex Company purchased a tooling machine on January 3, 20W1, for $30,000. The machinewas being depreciated on the straight-line method over an estimated useful life of 20 years, withno salvage value....

Q: Samson Manufacturing Company, a calendar-year company, purchased a

Samson Manufacturing Company, a calendar-year company, purchased a machine for $65,000on January 1, 20X0. At the date of purchase, Samson incurred the following additional costs: The machineâ
...

Q: On January 1, 20X1, Hardy, Inc., purchased certain

On January 1, 20X1, Hardy, Inc., purchased certain plant assets under a deferred paymentcontract. The agreement called for making annual payments of $10,000 for five years. The firstpayment is due on...

Q: In November and December 20X1, Gee Company, a newly organized

In November and December 20X1, Gee Company, a newly organized magazine publisher, received $36,000 for 1,000 three-year subscriptions at $12 per year, starting with the January 20X2 issue of the magaz...

Q: Joel Hamilton, D.D.S., keeps his accounting

Joel Hamilton, D.D.S., keeps his accounting records on the cash basis. During 20X1, he collected $200,000 in fees from his patients. At December 31, 20X0, Dr. Hamilton had accounts receivable of $18,0...

Q: Under Hart Company’s accounting system, all insurance premiums paid are debited

Under Hart Company’s accounting system, all insurance premiums paid are debited to prepaid insurance. Hart then makes monthly charges to Insurance expense with credits to prepaid insurance as the insu...

Q: The following information is provided for Kelly Plumbing Supply. Cash received

The following information is provided for Kelly Plumbing Supply. Cash received from customers during December 20X1 $387,000 Cash paid to suppliers for inventory during December 20X1 131,000 Cash recei...

Q: Presented below is a combined single-step income and retained earnings

Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 20X1. Additional facts gleaned from notes to Hardrock’s financial stateme...

Q: Krewatch, Inc., is a vertically integrated manufacturer and retailer of

Krewatch, Inc., is a vertically integrated manufacturer and retailer of golf clubs and accessories (gloves, shoes, bags, etc.). Krewatch maintains separate financial reporting systems for each of its...

Q: As a senior partner at one of the nation’s largest public accounting

As a senior partner at one of the nation’s largest public accounting firms, you serve as chair ofthe firm’s financial reporting policy committee. You are also the firm’s chief spokesperson onfinancial...