Questions from General Accounting

Q: Holland Company constructed a warehouse for $280,000. Holland

Holland Company constructed a warehouse for $280,000. Holland estimates that the warehouse has a useful life of 20 years and no residual value. Construction records indicate that $40,000 of the cost o...

Q: Suppose the amounts presented here are basic financial information (in millions

Suppose the amounts presented here are basic financial information (in millions) from the 2014 annual reports of Nike and adidas. Instructions: Calculate the accounts receivable turnover and average...

Q: Parman Industries spent $300,000 on research and $600

Parman Industries spent $300,000 on research and $600,000 on development of a new product. Of the $600,000 in development costs, $400,000 was incurred prior to technological feasibility and $200,000 a...

Q: The financial statements of Zetar plc are presented in Appendix C.

The financial statements of Zetar plc are presented in Appendix C. Appendix C: Instructions: Use the company’s annual report, available in the Investors section at www.zetarplc.com...

Q: Hirdt Co. uses the percentage-of-receivables basis to

Hirdt Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $400,000 at the end of the...

Q: On March 3, Beachy Appliances sells $710,000 of

On March 3, Beachy Appliances sells $710,000 of its receivables to National Factors Inc. National Factors Inc. assesses a service charge of 4% of the amount of receivables sold. Instructions: Prepare...

Q: On May 10, Renn Company sold merchandise for $4,

On May 10, Renn Company sold merchandise for $4,000 and accepted the customer’s First Business Bank MasterCard. At the end of the day, the First Business Bank MasterCard receipts were deposited in the...

Q: On July 4, Susie’s Restaurant accepts a Visa card for a

On July 4, Susie’s Restaurant accepts a Visa card for a $250 dinner bill. Visa charges a 4% service fee. Instructions: Prepare the entry on Susie’s books related to the transaction.

Q: These are selected 2014 transactions for Amarista Corporation: Jan

These are selected 2014 transactions for Amarista Corporation: Jan. 1 Purchased a copyright for $120,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar....

Q: Suppose during 2014 that Federal Express reported the following information (in

Suppose during 2014 that Federal Express reported the following information (in millions): net sales of $35,497 and net income of $98. Its balance sheet also showed total assets at the beginning of th...