Questions from General Accounting

Q: Prepare the journal entry to record Autumn Company’s issuance of 63,

Prepare the journal entry to record Autumn Company’s issuance of 63,000 shares of no-par value common stock assuming the shares: a. Sell for $29 cash per share. b. Are exchanged for land val...

Q: Prepare journal entries to record the following transactions for Emerson Corporation.

Prepare journal entries to record the following transactions for Emerson Corporation. July 15 Declared a cash dividend payable to common stockholders of $165,000. Aug. 15 Date of record is August...

Q: Murray Company borrows $340,000 cash from a bank and

Murray Company borrows $340,000 cash from a bank and in return signs an installment note for five annual payments of equal amount, with the first payment due one year after the note is signed. Use T...

Q: On September 15, Krug Company purchased merchandise inventory from Makarov with

On September 15, Krug Company purchased merchandise inventory from Makarov with an invoice price of $35,000 and credit terms of 2/10, n/30. Krug Company paid Makarov on September 28. Prepare any req...

Q: Compute the debt-to-equity ratio for each of the

Compute the debt-to-equity ratio for each of the following companies. Which company appears to have a riskier financing structure? Explain.  

Q: Garcia Company issues 10%, 15-year bonds with a par

Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 14%, which implies a selling price...

Q: Garcia Company issues 10%, 15-year bonds with a par

Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price o...

Q: Madrid Company plans to issue 8% bonds on January 1,

Madrid Company plans to issue 8% bonds on January 1, 2015, with a par value of $4,000,000. The company sells $3,600,000 of the bonds on January 1, 2015. The remaining $400,000 sells at par on March 1,...

Q: Jin Li, an employee of ETrain.com, leases a

Jin Li, an employee of ETrain.com, leases a car at O’Hare airport for a three-day business trip. The rental cost is $250. Prepare the entry by ETrain.com to record Jin Li’s short-term car lease cost....

Q: Algoma, Inc., signs a five-year lease for office

Algoma, Inc., signs a five-year lease for office equipment with Office Solutions. The present value of the lease payments is $15,499. Prepare the journal entry that Algoma records at the inception of...