Q1 Carol Steven and Ruth borrowed $23,143 on a 7-month, 79% note from Gem State Bank to open their business, Sheridan’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. (a)-(b), (d) Your answer is correct. (a)Prepare a tabular summary to record the receipt of the funds … Read more
Q1 The following expenditures relating to plant assets were made by Glenn Company during the first 2 month Indicate the account each expenditure would increase. 1.Paid $7,000 of accrued taxes at the time the plant site was acquired. 2.Paid $200 insurance to cover a possible accident loss on new factory machinery … Read more
Q1 This information relates to Sunland Co. 1.On April 5, purchased merchandise from Blossom Company for $26,600 on account. 2.On April 7, purchased equipment on account for $28,200. 3.On April 8, returned $3,500 of April 5 merchandise to Blossom Company. 4.On April 15, paid the amount due to Blossom Company in full. Prepare a tabular … Read more
Q1 The following control procedures are used in Keaton Company for over-the-counter cash receipts. For each procedure, explain the weakness in internal control and identify the control principle that is violated. Procedure Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. All over-the-counter receipts … Read more
Q1 Identify the accounting concept that describes each situation below. (a)Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) (b)Indicates that personal and business recordkeeping should be separately maintained. (c)Ensures that all relevant financial information is reported. d)Assumes that the dollar is the “measuring … Read more
Q1 Identify the accounting assumption or principle that is described below. Belief that a company will remain in operation for the foreseeable future. Indicates that personal and business recordkeeping should be separately maintained. Only those items that can be expressed in money are included in the accounting record Separates financial information into time periods for … Read more
Q1. The Bonita Vista Golf & Country Club details the following accounts in its financial statements. Classify each of the following accounts as an asset, liability, stockholders’ equity, revenue, or expense item. CLASSIFY EACH ACCOUNT Accounts payable Accounts receivable Equipment Sales revenue Service revenue … Read more
This course contains a Course Project, which will be due at the end of Week 7. There is a template for the project: Link to Course Project TemplateLinks to an external site.Open this document with ReadSpeaker docReader Links to an external site. The key information and instructions related to the project is listed below: The … Read more
The management of Kunkel Company is considering the purchase of a $29,000 machine that would reduce operating costs by $6,500 per year. At the end of the machine’s five-year useful life, it will have zero salvage value. The company’s required rate of return is 16%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the … Read more
Which of the following capital budgeting methods considers cash flows, but not the time value of money? Which of the following equations can be used in certain situations to calculate the payback period? A company’s cost of capital is 4. Which of the following equations is used to calculate the profitability index? … Read more