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Newman Consulting Company maintains its records on a cash basis. During 2021 the following cash flows were recorded: cash received for services rendered to clients, $420,000; and cash paid for salarie...
See AnswerQ: On December 12, 2021, Pace Electronics received $24,
On December 12, 2021, Pace Electronics received $24,000 from a customer toward a cash sale of $240,000 of diodes to be completed on January 16, 2022. What journal entries should Pace record on Decembe...
See AnswerQ: In Lizzie Shoes’ experience, gift cards that have not been redeemed
In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $18,000 during August 2021. $4,000 of cards were re...
See AnswerQ: Consider the following liabilities of Future Brands, Inc., at December
Consider the following liabilities of Future Brands, Inc., at December 31, 2021, the company’s fiscal year-end. Should they be reported as current liabilities or long-term liabilities? 1. $77 million...
See AnswerQ: AI Tool and Dye issued 8% bonds with a face amount
AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2021. The bonds sold for $150 million. For bonds of similar risk and maturity the market yield was 9%. Upon issuance, A...
See AnswerQ: On January 1, 2021, Nantucket Ferry borrowed $14,
On January 1, 2021, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year, $14,000,000, 6% note. Interest was payable annually on December 31. Prepare the journal entries for b...
See AnswerQ: Financial Machinery entered into an arrangement to provide Viable Bank with equipment
Financial Machinery entered into an arrangement to provide Viable Bank with equipment for the bank’s data center. The contract does not explicitly identify the equipment to be used to fulfill the cont...
See AnswerQ: Able Equipment entered into an arrangement to provide M. T.
Able Equipment entered into an arrangement to provide M. T. Bin Wholesale’s data center with Able’s newest server model. Due to security processes in place for its customer data, M. T. Bin requires ac...
See AnswerQ: On January 1, 2021, Jasperse Corporation leased equipment under a
On January 1, 2021, Jasperse Corporation leased equipment under a finance lease designed to earn the lessor a 12% rate of return for providing long-term financing. The lease agreement specified ten an...
See AnswerQ: A company reports 2021 pretax accounting income of $10 million,
A company reports 2021 pretax accounting income of $10 million, but because of a single temporary difference, taxable income is only $7 million. No temporary differences existed at the beginning of th...
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