Questions from Financial Reporting

Q: Food Galore operates a chain of retail supermarkets. The supermarket business

Food Galore operates a chain of retail supermarkets. The supermarket business is highly competitive, and it is characterized by low profit margins. Food Galore recently entered into a credit agreement...

Q: Duke Energy Corporation’s 2018 annual report to shareholders contains the following note

Duke Energy Corporation’s 2018 annual report to shareholders contains the following note disclosure (edited for brevity): Regulated Operations Substantially all of Duke Energy’s regulated operations m...

Q: Big Energy Corporation received regulatory approval for its 20X1 electricity rate.

Big Energy Corporation received regulatory approval for its 20X1 electricity rate. The company has been authorized to charge customers $0.10 per kilowatt-hour (kwh), a rate lower than other utilities...

Q: Aardvark, Inc., began 20X1 with the following receivables-related

Aardvark, Inc., began 20X1 with the following receivables-related account balances: Accounts receivable…………………………………………….$575,000 Allowance for credit losses…………………………………..43,250 Aardvark’s transactio...

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 credi...

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

Fish Spotters, Inc., purchased a single-engine aircraft from National Aviation on January 1, 20X0. 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, 20X0. Mikeska paid $18,000 in cash and signed a five-year, 5% installment note for the remaining $90,000...

Q: The following notes for three fictional companies represent what analysts may see

The following notes for three fictional companies represent what analysts may see in practice. Required: How do the three companies record the transfer of their receivables—that is,...

Q: Refer to the 2017 General Electric Retiree Health and Life Benefits disclosure

Refer to the 2017 General Electric Retiree Health and Life Benefits disclosure appearing in Exhibit 15.9. Required: 1. Reconstruct the journal entries that GE would have made in 2017 to record the ef...

Q: Baer Enterprises’s balance sheet at October 31, 20X1 (fiscal year

Baer Enterprises’s balance sheet at October 31, 20X1 (fiscal year-end), includes the following: Transactions for fiscal year 20X2 include the following: a. Due to a product defect, p...