• Q : Lifo and fifo inventory accounting methods....
    Accounting Basics :

    Consider the LIFO and FIFO inventory accounting methods. If the business was in a period of increasing costs for its inventory which method would you recommend to management and why?

  • Q : Internal control procedures-incoming merchandise....
    Accounting Basics :

    Problem: What internal control procedures would you establish regarding incoming merchandise and the related bills from the suppliers?

  • Q : Dollar value of the ending inventory....
    Accounting Basics :

    Assume that the company uses the average cost method. What is the dollar value of the ending inventory on November 30?

  • Q : Journalizing and posting transactions....
    Accounting Basics :

    The given errors were made in journalizing and posting transactions in May in the Unruh Company. 1. An $800 payment for repairs incurred on account and properly recorded in April was debited to Repa

  • Q : Perpetual inventory system-general journal entries....
    Accounting Basics :

    Prepare the necessary general journal entries for the month of October for the Dolan Company for each situation given below. Dolan uses a perpetual inventory system.

  • Q : Prepare the end of the period closing entries....
    Accounting Basics :

    Prepare the end of the period closing entries for the Falcon Cleaners and Laundry. You may omit journal entry explanations.

  • Q : Amount received credited to the unearned rent account....
    Accounting Basics :

    On January 1, 2000, a tenant in an apartment building owned by Marx Company paid $4,500 which represents six months' rent in advance. The amount received was credited to the Unearned Rent account

  • Q : Evaluating the firms ability....
    Accounting Basics :

    Question: The purpose fo the cuttent ratio is to evaluate the firm's ability to:

  • Q : Selling price for the bonds in the market....
    Accounting Basics :

    Problem: The $1,000 face value bonds issued by the Springfield Fabrication Corporation are perceived by investors as being less attractive than other bonds sold by other businesses ate the same time

  • Q : Invest in the stock market....
    Accounting Basics :

    Problem: Eric's credit card charges Eric 16% interest. His bank is offering him 5% interest on a savings account. The first thing Eric should do with any extra money he may have is to: a. Invest in

  • Q : Monthly cost of producing x statues....
    Accounting Basics :

    Crystal Images is a manufacturer of collectible statues. The price per statue at which x statues can be sold in a month is given by p(x)= 655 - 10x dollars. The monthly cost of producing x statues i

  • Q : Employer pay taxes on your behalf....
    Accounting Basics :

    Question: Does your employer pay taxes on your behalf? Explain your answer.

  • Q : Explaining current liability....
    Accounting Basics :

    Question: Chris Rock believes a current liability is a debt that can be expected to be paid in one year. Is Chris correct? Explain.

  • Q : Computing the revised annual depreciation....
    Accounting Basics :

    (a) Compute the revised annual depreciation on each asset in 2002. (Show computations.) (b) Prepare the entry (or entries) to record depreciation on the building in 2002.

  • Q : Transactions related to intangible assets....
    Accounting Basics :

    Hootie and the Blow Fish, Inc., organized in 2002, has the following transactions related to intangible assets.

  • Q : Computing the amount of accumulated depreciation....
    Accounting Basics :

    (a) Compute the amount of accumulated depreciation on each machine at December 31, 2002. (b) If machine 2 had been purchased on April 1 instead of January 1, what would be the depreciation expense f

  • Q : Making financial statements annually....
    Accounting Basics :

    On January 1, 2002, Case Western Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $4,700. Case Western Company prepares financial statements annually. During the yea

  • Q : Cash expenditures....
    Accounting Basics :

    Instructions: Match the cash expenditures given below with the appropriate accounting treatment. An individual classification may be used more than once, or not at all.

  • Q : Allowance for doubtful accounts-accounts receivable....
    Accounting Basics :

    If Allowance for Doubtful Accounts has a credit balance of $2,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and

  • Q : Stock split or stock dividend....
    Accounting Basics :

    The board of directors is considering a stock split or a stock dividend. They understand that total stockholders' equity will remain the same under either action. However, they are not sure of the

  • Q : Annual sinking fund....
    Accounting Basics :

    Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest. W

  • Q : Payroll and the payment of the payroll....
    Accounting Basics :

    (a) Fill in the missing amounts. (b) Journalize the February payroll and the payment of the payroll.

  • Q : Accounting-return on investment....
    Accounting Basics :

    Smolinski Company is considering an investment which will return a lump sum of $500,000 five years from now. What amount should Smolinski Company pay for this investment to earn a 15% return?

  • Q : Determining the qualifications of home buyers....
    Accounting Basics :

    Problem: What ratios do mortgage companies use in determining the qualifications of home buyers?

  • Q : What information does a ratio provide....
    Accounting Basics :

    What is a ratio? What are the different ways of expressing the relationship of two amounts? What information does a ratio provide?

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