Questions from General Accounting

Q: On December 1, 2022, Hocking Inc. obtained a four

On December 1, 2022, Hocking Inc. obtained a four-month working capital loan from its bank. The face amount of the note signed by the treasurer was $100,000. The interest rate charged by the bank was...

Q: On December 1, 2022, an advance rent payment of $

On December 1, 2022, an advance rent payment of $25,800, representing a three-month prepayment for the months of December, January, and February, was received in cash from the company’s tenant. Requir...

Q: For the payroll period ended on May 28, 2022, gross

For the payroll period ended on May 28, 2022, gross pay was $119,000, net pay was $91,000, FICA tax withholdings were $7,000, income tax withholdings were $17,000, and medical insurance contributions...

Q: The balance of the Estimated Warranty Liability account was $25,

The balance of the Estimated Warranty Liability account was $25,000 on January 1, 2022, and $34,400 on December 31, 2022. Based on an analysis of warranty claims during the past several years, this ye...

Q: Vicki Co. issued $1 million face amount of 8%,

Vicki Co. issued $1 million face amount of 8%, 20-year bonds on April 1, 2022. The bonds pay interest on an annual basis on December 31 each year. Required: a. Assume that market interest rates were s...

Q: On July 1, 2022, $60 million face amount of

On July 1, 2022, $60 million face amount of 7%, 10-year bonds were issued. The bonds pay interest on an annual basis on June 30 each year. The market interest rates were slightly higher than 7% when t...

Q: The balance sheet caption for common stock is the following:

The balance sheet caption for common stock is the following: Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of...

Q: You were asked to obtain a recent annual report of a company

You were asked to obtain a recent annual report of a company that you were interested in reviewing throughout this term. Required: a. Please locate the five-year (or longer) selected financial data (u...

Q: Altuve Co. was incorporated on January 1, 2022, at

Altuve Co. was incorporated on January 1, 2022, at which time 250,000 shares of $1 par value common stock were authorized, and 110,000 of these shares were issued for $17 per share. Net income for the...

Q: Bill & Lisa Ltd. did not pay dividends on its 6

Bill & Lisa Ltd. did not pay dividends on its 6.5%, $100 par value cumulative preferred stock during 2021 or 2022. Since 2015, 275,000 shares of this stock have been outstanding. Bill & Lisa Ltd. Has...