Questions from General Accounting

Q: Jack Woodling is concerned with control over mail receipts at Yount Sporting

Jack Woodling is concerned with control over mail receipts at Yount Sporting Goods. All mail receipts are opened by Bill Morten. Bill sends the checks to the accounting department, where they are stam...

Q: Doug Nicklas owns Doug Blankets. Doug asks you to explain how

Doug Nicklas owns Doug Blankets. Doug asks you to explain how he should treat the following reconciling items when reconciling the company’s bank account. 1. Outstanding checks 2. A deposit in transit...

Q: Hull Corporation’s management wants to maintain a minimum monthly cash balance of

Hull Corporation’s management wants to maintain a minimum monthly cash balance of $8,000. At the beginning of September, the cash balance is $12,270; expected cash receipts for September are $97,200;...

Q: Berkman Wholesalers accepts from Almonte Stores a $6,200,

Berkman Wholesalers accepts from Almonte Stores a $6,200, 4-month, 9% note dated May 31 in settlement of Almonte’s overdue account. The maturity date of the note is September 30. What entry does Berkm...

Q: Lounow Distributors is a growing company whose ability to raise capital has

Lounow Distributors is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets and sales. Lounow’s local banker has indicated that the company cannot i...

Q: At December 31, 2013, Weiss Imports reported this information on

At December 31, 2013, Weiss Imports reported this information on its balance sheet. Accounts receivable ………………………………………………..$600,000 Less: Allowance for doubtful accounts …………………………. 37,000 During 2...

Q: Shellhammer Company purchased a delivery truck. The total cash payment was

Shellhammer Company purchased a delivery truck. The total cash payment was $30,020, including the following items. Negotiated purchase price ………………$24,000 Installation of special shelving ……………. 1,10...

Q: Relaford Corporation purchased a piece of equipment for $50,000

Relaford Corporation purchased a piece of equipment for $50,000. It estimated an 8-year life and $2,000 salvage value. At the end of year four (before the depreciation adjustment), it estimated the ne...

Q: Thornton Company has an old factory machine that cost $50,

Thornton Company has an old factory machine that cost $50,000. The machine has accumulated depreciation of $28,000. Thornton has decided to sell the machine. (a) What entry would Thornton make to reco...

Q: Melissa Adduci has prepared the following list of statements about depreciation.

Melissa Adduci has prepared the following list of statements about depreciation. 1. Depreciation is a process of asset valuation, not cost allocation. 2. Depreciation provides for the proper matching...