Questions from General Accounting

Q: Danny Venable, the new controller of Seratelli Company, has reviewed

Danny Venable, the new controller of Seratelli Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2014. Here are his findings: All...

Q: Wang Co. has delivery equipment that cost $50,000

Wang Co. has delivery equipment that cost $50,000 and has been depreciated $24,000. Instructions: Record entries for the disposal under the following assumptions. (a) It was scrapped as having no val...

Q: Here are selected 2014 transactions of Cleland Corporation. Jan

Here are selected 2014 transactions of Cleland Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $62,000 and had a useful life of 10 years w...

Q: This information relates to Crisp Co. 1. On April

This information relates to Crisp Co. 1. On April 5, purchased merchandise from Frost Company for $28,000, terms 2/10, n/30. 2. On April 6, paid freight costs of $700 on merchandise purchased from Fro...

Q: The following transactions are for Solarte Company. 1. On

The following transactions are for Solarte Company. 1. On December 3, Solarte Company sold $500,000 of merchandise to Rooney Co., terms 1/10, n/30. The cost of the merchandise sold was $330,000. 2. On...

Q: On June 10, Purcey Company purchased $9,000 of

On June 10, Purcey Company purchased $9,000 of merchandise from Guyer Company, terms 3/10, n/30. Purcey pays the freight costs of $400 on June 11. Goods totaling $600 are returned to Guyer for credit...

Q: Beth Pitchford is the new owner of Brigham Co. She has

Beth Pitchford is the new owner of Brigham Co. She has heard about internal control but is not clear about its importance for her business. Explain to Beth the four purposes of internal control, and g...

Q: Delmott sells a snowboard, Xpert, that is popular with snowboard

Delmott sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Delmott’s purchases of Xpert snowboards during September. During the sa...

Q: Horne Inc. uses a periodic inventory system. Its records show

Horne Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 74 units were sold. Instructions: Calculate the ending inventory at May 31 using the (a) F...

Q: In its income statement for the year ended December 31, 2014

In its income statement for the year ended December 31, 2014, Gavin Company reported the following condensed data. Instructions: (a) Prepare a multiple-step income statement. (b) Calculate the profi...