Questions from General Accounting

Q: An analysis of the transactions made by S. Moses & Co

An analysis of the transactions made by S. Moses & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $650 for rent, $4,900 for salaries, and $500 f...

Q: Karen Sommers Travel Agency purchased land for $90,000 cash

Karen Sommers Travel Agency purchased land for $90,000 cash on December 10, 2010. At December 31, 2010, the land’s value has increased to $93,000. What amount should be reported for land on Karen Somm...

Q: Premier Bank and Trust is considering giving Lima Company a loan.

Premier Bank and Trust is considering giving Lima Company a loan. Before doing so, they decide that further discussions with Lima’s accountant may be desirable. One area of particular concern is the i...

Q: Smart Company identifies the following items for possible inclusion in the taking

Smart Company identifies the following items for possible inclusion in the taking of a physical inventory. Indicate whether each item should be included or excluded from the inventory taking. (a) Good...

Q: The ledger of Gomez Company includes the following items: (

The ledger of Gomez Company includes the following items: (a) Freight-in, (b) Purchase Returns and Allowances, (c) Purchases, (d) Sales Discounts, (e) Purchase Discounts. Identify which items are...

Q: Kale Thompson, an auditor with Sneed CPAs, is performing a

Kale Thompson, an auditor with Sneed CPAs, is performing a review of Strawser Company’s inventory account. Strawser did not have a good year and top management is under pressure to boost reported inco...

Q: On December 1, Bargain Electronics Ltd. has three DVD players

On December 1, Bargain Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purch...

Q: In its first month of operations, Quirk Company made three purchases

In its first month of operations, Quirk Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assuming there are...

Q: Data for Quirk Company are presented in BE6-3. Compute

Data for Quirk Company are presented in BE6-3. Compute the cost of the ending inventory under the average-cost method, assuming there are 360 units on hand. Exercise 6-3: In its first month of operat...

Q: Boarders sells a snowboard, Xpert that is popular with snowboard enthusiasts

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