Questions from General Accounting

Q: An inexperienced accountant prepared this condensed income statement for Sundberg Company,

An inexperienced accountant prepared this condensed income statement for Sundberg Company, a retail firm that has been in business for a number of years. SUNDBERG COMPANY Income Statement For the Yea...

Q: The trial balance of Customer Choice Wholesale Company contained the accounts shown

The trial balance of Customer Choice Wholesale Company contained the accounts shown at December 31, the end of the company’s fiscal year. Adjustment data: 1. Depreciation is $8,000...

Q: At the end of Ermler Department Store’s fiscal year on November 30

At the end of Ermler Department Store’s fiscal year on November 30, 2014, these accounts appeared in its adjusted trial balance. Freight-In ……………………………………………………. $ 5,060 Inventory (beginning) ……………………...

Q: During its first year of operations, Gehrig Company had credit sales

During its first year of operations, Gehrig Company had credit sales of $3,000,000, of which $400,000 remained uncollected at year-end. The credit manager estimates that $18,000 of these receivables w...

Q: Yang Inc. operates a retail operation that purchases and sells snowmobiles

Yang Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all inventory on credit and uses a periodic inventory system. The Accoun...

Q: At the beginning of the current season on April 1, the

At the beginning of the current season on April 1, the ledger of Flint Hills Pro Shop showed Cash $2,500; Inventory $3,500; and Common Stock $6,000. The following transactions occurred during April 20...

Q: P6-1A Aber Limited is trying to determine the value of

P6-1A Aber Limited is trying to determine the value of its ending inventory as of February 28, 2014, the company’s year-end. The accountant counted everything that was in the warehouse, as of February...

Q: Dunbar Distribution markets CDs of numerous performing artists. At the beginning

Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 2,500 CDs with a unit cost of $7. During March, Dunbar made the following p...

Q: Groves Company Inc. had a beginning inventory of 100 units of

Groves Company Inc. had a beginning inventory of 100 units of Product MLN at a cost of $8 per unit. During the year, purchases were: Groves Company uses a periodic inventory system. Sales totaled 1,...

Q: The management of Tinker Inc. asks your help in determining the

The management of Tinker Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2014, the accounting records show these data. Inventory, Janu...