Questions from General Accounting

Q: Blake and Matthew are partners who agree that Blake will receive a

Blake and Matthew are partners who agree that Blake will receive a $100,000 salary allowance and that any remaining income or loss will be shared equally. If Matthew’s capital account is credited for...

Q: Jules and Johnson are partners, each with $40,000

Jules and Johnson are partners, each with $40,000 in their partnership capital accounts. Kwon is admitted to the partnership by investing $40,000 cash. Make the entry to show Kwon’s admission to the p...

Q: On August 1, Gilmore Company purchased merchandise from Hendren with an

On August 1, Gilmore Company purchased merchandise from Hendren with an invoice price of $60,000 and credit terms of 2/10, n/30. Gilmore Company paid Hendren on August 11. Prepare any required journal...

Q: Stein agrees to pay Choi and Amal $10,000 each

Stein agrees to pay Choi and Amal $10,000 each for a one-third (331⁄3%) interest in the Choi and Amal partnership. Immediately prior to Stein’s admission, each partner had a $30,000 capital balance. M...

Q: Stockholders’ equity of Ernst Company consists of 80,000 shares of

Stockholders’ equity of Ernst Company consists of 80,000 shares of $5 par value, 8% cumulative preferred stock and 250,000 shares of $1 par value common stock. Both classes of stock have been outstand...

Q: Murray Company reports net income of $770,000 for the

Murray Company reports net income of $770,000 for the year. It has no preferred stock, and its weighted average common shares outstanding is 280,000 shares. Compute its basic earnings per share.

Q: Epic Company earned net income of $900,000 this year

Epic Company earned net income of $900,000 this year. The number of common shares outstanding during the entire year was 400,000, and preferred shareholders received a $20,000 cash dividend. Compute E...

Q: The stockholders’ equity section of Montel Company’s balance sheet follows. The

The stockholders’ equity section of Montel Company’s balance sheet follows. The preferred stock’s call price is $40. Determine the book value per...

Q: Air France-KLM reports the following equity information for its fiscal

Air France-KLM reports the following equity information for its fiscal year ended March 31, 2014 (euros in millions). Prepare its journal entry, using its account titles, to record the issuance of cap...

Q: Prepare the journal entry to record Zende Company’s issuance of 75,

Prepare the journal entry to record Zende Company’s issuance of 75,000 shares of $5 par value common stock assuming the shares sell for: a. $5 cash per share. b. $6 cash per share.