Questions from General Accounting

Q: Dorsey Co. has expanded its operations by purchasing a parcel of

Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $310,000. The appraised value of the land is $105,000, and the appraised value of the buil...

Q: Glennelle’s Boutique Inc. operates in a city in which real estate

Glennelle’s Boutique Inc. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2022 are issued in May 2023 and are payable in Ju...

Q: Kohl Co. provides warranties for many of its products. The

Kohl Co. provides warranties for many of its products. The January 1, 2022, balance of the Estimated Warranty Liability account was $25,100. Based on an analysis of warranty claims during the past sev...

Q: Record transactions and calculate financial statement amounts. The transactions relating to

Record transactions and calculate financial statement amounts. The transactions relating to the formation of Blue Co. Stores Inc. and its first month of operations follow. Prepare an answer sheet with...

Q: Prist Co. had not provided a warranty on its products,

Prist Co. had not provided a warranty on its products, but competitive pressures forced management to add this feature at the beginning of 2022. Based on an analysis of customer complaints made over t...

Q: NightWoundsTime Brewing Co. distributes its products in an aluminum keg.

NightWoundsTime Brewing Co. distributes its products in an aluminum keg. Customers are charged a deposit of $80 per keg; deposits are recorded in the Keg Deposits account. Required: a. Where on the ba...

Q: Kirkland Theater sells season tickets for six events at a price of

Kirkland Theater sells season tickets for six events at a price of $378. For the 2022 season, 1,200 season tickets were sold. Required: a. Use the horizontal model (or write the journal entry) to show...

Q: Jessie Co. issued $3 million face amount of 9%,

Jessie Co. issued $3 million face amount of 9%, 20-year bonds on July 1, 2022. The bonds pay interest on an annual basis on June 30 each year. Required: a. Assume that market interest rates were sligh...

Q: Alexi Co. issued $75 million face amount of 6%,

Alexi Co. issued $75 million face amount of 6%, 10-year bonds on June 1, 2022. The bonds pay interest on an annual basis on May 31 each year. Required: a. Assume that the market interest rates were sl...

Q: On August 1, 2014, Bonnie purchased $40,000

On August 1, 2014, Bonnie purchased $40,000 of Huber Co.’s 10%, 20-year bonds at face value. Huber Co. has paid the semiannual interest due on the bonds regularly. On August 1, 2022, market rates of i...