• Q : Fractional years to the nearest month....
    Accounting Basics :

    On April 30, 2009, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value.

  • Q : Depreciation expense recognized on this machinery....
    Accounting Basics :

    On April 30, 2009, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value.

  • Q : Compute the present value for each contract....
    Accounting Basics :

    You have been asked to help your classmate, who was just offered a professional soccer contract, with selecting her choice of contract offers.

  • Q : What is the ending inventory balance....
    Accounting Basics :

    Refer to Deana, Inc. If Deana, Inc. had $20,000 in beginning inventory, and sold goods costing $300,000, what is the ending inventory balance?

  • Q : Determine break even in dollars....
    Accounting Basics :

    Pitre, Inc. earned net income of $150,000 during 2010. The company wants to earn net income of $25,000 more during 2011. The company's fixed costs have been and are expected to remain at $40,000.

  • Q : What will be the effect on apex debt....
    Accounting Basics :

    The current balance sheet of Apex reports total assets of $20 million, total liabilities of $2 million, and owners' equity of $18 million. Apex is considering several financing possibilities in orde

  • Q : The investing activities section of the statement....
    Accounting Basics :

    Badges Framing's cost formula for its supplies cost is $2,240 per month plus $6 per frame. For the month of May, the company planned for activity of 808 frames, but the actual level of activity was

  • Q : Chi-square test for independence....
    Accounting Basics :

    A pie chart would be most appropriate with which of the following tests? chi-square goodness-of-fit, chi-square test for independence, or correlation?

  • Q : What is the depreciation base....
    Accounting Basics :

    Ferguson Company purchased a depreciable asset for $100,000. The estimated salvage value is $10,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciatio

  • Q : Discuss statement of cash flows prepared by indirect method....
    Accounting Basics :

    The net income reported on the income statement for the current year was $310,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectivel

  • Q : Value of the equipment at the beginning....
    Accounting Basics :

    Mitchell Corporation bought equipment on January 1, 2010. The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years.

  • Q : What assets are subject to depreciation recapture....
    Accounting Basics :

    What is the difference between an ordinary, capital, and Section 1231 asset? Why is this distinction important? What assets are subject to depreciation recapture? Compare and contrast Section 1245 a

  • Q : How much depreciation expense should danford record....
    Accounting Basics :

    Danford Trucking purchased a tractor trailer for $147,000. Danford uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1,000,000 miles over its 12-year usefu

  • Q : What is the amount of depreciation....
    Accounting Basics :

    Equipment with a cost of $240,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method.

  • Q : The amount of annual depreciation....
    Accounting Basics :

    A company purchased factory equipment for $150,000. It is estimated that the equipment will have a $15,000 salvage value at the end of its estimated 5-year useful life.

  • Q : A statement of owners equity for the current year ended....
    Accounting Basics :

    Following are the amounts of the assets and liabilities of Oriental Travel Agency at December 31, 2014, the end of the current year, and its revenue and expenses for the year.

  • Q : What costs are relevant to this decision....
    Accounting Basics :

    Lispell Co. manufactures in-line skates that sell for $128 a pair. The company is currently operating at capacity, 2,000 pairs. A special order from a foreign distributor for 400 pairs of skates at

  • Q : The double-declining-balance method is used is....
    Accounting Basics :

    A company purchased office equipment for $20,000 and estimated a salvage value of $4,000 at the end of its 5-year useful life.The constant percentage to be applied against book value each year if t

  • Q : What should be the balance in the prepaid insurance account....
    Accounting Basics :

    On April 1, Bear, Inc. paid $2,400 for an insurance premium on a three-year insurance policy. At the end of December, Bear's fiscal year-end, what should be the balance in the prepaid insurance acc

  • Q : What is the receivables turnover....
    Accounting Basics :

    The financial statements of the Phelps Manufacturing Company reports net sales of $400,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and end of year, respectively.

  • Q : Important tool in predicting the volume....
    Accounting Basics :

    An important tool in predicting the volume of activity, the costs to be incurred, the sales to be earned, and the profit to be received is Target income analysis.

  • Q : A two-year premium paid on a fire insurance policy....
    Accounting Basics :

    Which of the following is an example of an accrued expense? a. Salary owed but not yet paid b. Fees received but not yet earned c. Supplies on hand d. A two-year premium paid on a fire insurance pol

  • Q : What is the average collection period....
    Accounting Basics :

    The financial statements of the Melton Manufacturing Company reports net sales of $500,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year and end of year, respectively.

  • Q : Find the present value of the contract....
    Accounting Basics :

    You have been asked to help your classmate, who was just offered a professional soccer contract, with selecting her choice of contract offers.

  • Q : What entry will rosen company make upon receiving....
    Accounting Basics :

    Rosen Company receives a $3,000, 3-month, 6% promissory note from Bay Company in settlement of an open accounts receivable. What entry will Rosen Company make upon receiving the note?

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