Questions from General Accounting

Q: Depreciation information for Howe Chemicals Company is given in BE9-3

Depreciation information for Howe Chemicals Company is given in BE9-3. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and...

Q: Tolbert Company incurs these expenditures in purchasing a truck: cash price

Tolbert Company incurs these expenditures in purchasing a truck: cash price $24,000; accident insurance (during use) $2,000; sales taxes $1,080; motor vehicle license $300; and painting and lettering...

Q: Howe Chemicals Company acquires a delivery truck at a cost of $

Howe Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2014. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Compute annual d...

Q: Harmon Company had the following two transactions related to its delivery truck

Harmon Company had the following two transactions related to its delivery truck. 1. Paid $38 for an oil change. 2. Paid $400 to install special shelving units, which increase the operating efficiency...

Q: Suppose in its 2014 annual report, McDonald’s Corporation reports beginning total

Suppose in its 2014 annual report, McDonald’s Corporation reports beginning total assets of $28.46 billion; ending total assets of $30.22 billion; net sales of $22.74 billion; and net income of $4.55...

Q: Quinn Company sells office equipment on July 31, 2014, for

Quinn Company sells office equipment on July 31, 2014, for $21,000 cash. The office equipment originally cost $72,000 and as of January 1, 2014, had accumulated depreciation of $42,000. Depreciation f...

Q: Downs Company purchases a patent for $156,000 on January

Downs Company purchases a patent for $156,000 on January 2, 2014. Its estimated useful life is 6 years. (a) Prepare the journal entry to record amortization expense for the first year. (b) Show how th...

Q: Dobler Company just took its physical inventory on December 31. The

Dobler Company just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $300,000. In reviewing th...

Q: Farwell Company sells three different categories of tools (small, medium

Farwell Company sells three different categories of tools (small, medium and large). The cost and market value of its inventory of tools are as follows. Determine the value of the companyâ...

Q: Petrino Company incurred the following costs. 1. Sales tax

Petrino Company incurred the following costs. 1. Sales tax on factory machinery purchased……………………………………… $ 5,000 2. Painting of and lettering on truck immediately upon purchase ………………700 3. Installati...