Questions from General Accounting

Q: Santana, Inc. reports the following liabilities (in thousands)

Santana, Inc. reports the following liabilities (in thousands) on its January 31, 2014, balance sheet and notes to the financial statements. Instructions: (a) Identify which of the above liabilities...

Q: Suppose McDonald’s 2014 financial statements contain the following selected data (in

Suppose McDonald’s 2014 financial statements contain the following selected data (in millions). Instructions: (a) Compute the following values and provide a brief interpretation of...

Q: Suppose 3M Company reported the following financial data for 2014 and 2013

Suppose 3M Company reported the following financial data for 2014 and 2013 (in millions). Instructions: (a) Calculate the current ratio for Sedgewick Boutique for 2014 and 2013. (b) Suppose that at...

Q: Prophet Company issued $500,000, 6%, 30-

Prophet Company issued $500,000, 6%, 30-year bonds on January 1, 2014, at 103. Interest is payable annually on January 1. Prophet uses straight-line amortization for bond premium or discount. Instruc...

Q: Canyon Company issued $600,000, 10-year,

Canyon Company issued $600,000, 10-year, 6% bonds at 103. Instructions: (a) Prepare the journal entry to record the sale of these bonds on January 1, 2014. (b) Suppose the remaining Premium on Bonds...

Q: Cole Corporation issued $400,000, 7%, 20-

Cole Corporation issued $400,000, 7%, 20-year bonds on January 1, 2014, for $360,727. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. C...

Q: Gomez Company issued $380,000, 7%, 10-

Gomez Company issued $380,000, 7%, 10-year bonds on January 1, 2014, for $407,968. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Gome...

Q: Nance Co. receives $280,000 when it issues a

Nance Co. receives $280,000 when it issues a $280,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments o...

Q: Goins Corporation issued a $50,000, 10%, 10

Goins Corporation issued a $50,000, 10%, 10-year installment note payable on January 1, 2014. Payments of $8,137 are made each January 1, beginning January 1, 2015. Instructions: (a) What amounts sho...

Q: Leiker Corporation has these accounts at December 31: Common Stock,

Leiker Corporation has these accounts at December 31: Common Stock, $10 par, 5,000 shares issued, $50,000; Paid-in Capital in Excess of Par Value $22,000; Retained Earnings $42,000; and Treasury Stock...