Questions from General Accounting

Q: On January 1, 2014, Wolf Creek Country Club purchased a

On January 1, 2014, Wolf Creek Country Club purchased a new riding mower for $15,000. The mower is expected to have a 10-year life with a $1,000 salvage value. What journal entry would Wolf Creek make...

Q: Suppose in 2014, Campbell Soup Company reported average total assets of

Suppose in 2014, Campbell Soup Company reported average total assets of $6,265 million, net sales of $7,586 million, and net income of $736 million. What was Campbell Soup’s return on assets?

Q: Record the following transactions on the books of Cohen Co. (

Record the following transactions on the books of Cohen Co. (Omit cost of goods sold entries.) (a) On July 1, Cohen Co. sold merchandise on account to Tracy Inc. for $23,000, terms 2/10, n/30. (b) On...

Q: At the end of 2013, Morley Co. has accounts receivable

At the end of 2013, Morley Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $25,000. On January 24, 2014, it is learned that the company’s receivable from Spears Inc....

Q: Consider these transactions: (a) Draber Restaurant accepted a

Consider these transactions: (a) Draber Restaurant accepted a Visa card in payment of a $200 lunch bill. The bank charges a 3% fee. What entry should Draber make? (b) Marin Company sold its accounts r...

Q: Speedy Taxi Service uses the units-of-activity method in

Speedy Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 150,000 miles. Taxi 10 cost $27,500 and is expected to have a salvage...

Q: On January 1, 2014, the Ferman Company ledger shows Equipment

On January 1, 2014, the Ferman Company ledger shows Equipment $36,000 and Accumulated Depreciation $13,600. The depreciation resulted from using the straight line method with a useful life of 10 years...

Q: Gerish Company buys merchandise on account from Mangus Company. The selling

Gerish Company buys merchandise on account from Mangus Company. The selling price of the goods is $900 and the cost of the goods sold is $590. Both companies use perpetual inventory systems. Journaliz...

Q: Assume the same information as BE8-3 and that on March

Assume the same information as BE8-3 and that on March 4, 2014, Morley Co. receives payment of $4,300 in full from Spears Inc. Prepare the journal entries to record this transaction.

Q: From the information in BE5-3, prepare the journal entries

From the information in BE5-3, prepare the journal entries to record these transactions on Bernadina Company’s books under a perpetual inventory system. BE5-3: (a) On March 2, Horst Company sold $800...