A company is formed by issuing common stock for $1,000 in cash
and then transacts as...
A company is formed by issuing common stock for $1,000 in cash
and then transacts as follows over its first five days of business,
with all purchases and sales on credit:
Day 1 - Buys one unit of inventory for $10.
Day 2 - Buys one unit of inventory for $15.
Day 3 - Buys one unit of inventory for $20.
Day 4 - Sells one unit of inventory for $100.
Day 5 - Sells two units of inventory for...
The Platte Corporation issues a 5-year note payable on January
1, 2016 for $5,000. The interest...
The Platte Corporation issues a 5-year note payable on January
1, 2016 for $5,000. The interest rate is 5% and the annual payment
of $1,156, due each December 31, includes both interest and
principal.
Which of the following shows the effect of the December 31, 2016
payment?
Assets
=
Liab
+
Equity
Revenue
-
Expense
=
Net
Inc
Cash
Flow
A.
(1,156)
=
(1,156)
+
NA
NA
-
NA
=
NA
(1,156)FA
B.
(1,156)
=
(906)
+
(250)
NA
-...
On April 1, Year 1, a company realizes that one of its main
suppliers is having...
On April 1, Year 1, a company realizes that one of its main
suppliers is having difficulty meeting delivery schedules, which is
hurting the company's business. The supplier explains that it has a
temporary lack of funds that is slowing its production cycle. The
company agrees to lend $490,000 to its supplier using a 12-month,
10% note.
Required:
The loan of $490,000 and acceptance of the note receivable on
April 1, Year 1.
The adjustment for accrued interest on December...
Riley Company borrowed $30,000 on April 1, Year 1 from the Titan
Bank. The note issued...
Riley Company borrowed $30,000 on April 1, Year 1 from the Titan
Bank. The note issued by Riley carried a one year term and a 7%
annual interest rate. Riley earned cash revenue of $960 in Year 1
and $1,090 in Year 2. Assume no other transactions.
The amount of total liabilities that would appear on Riley's
December 31 balance sheets for Year 1 and Year 2, respectively,
would be:
imes interest earned
Berry Company reported the following on the company's income
statement in two recent...
imes interest earned
Berry Company reported the following on the company's income
statement in two recent years:
Current
Year
Prior
Year
Interest expense
$353,000
$423,600
Income before income tax expense
5,542,100
6,777,600
a. Determine the number of times interest
charges were earned for current Year and prior Year. Round to one
decimal place.
Current Year
fill in the blank 1
Prior Year
fill in the blank 2
b. Is the number of times interest charges are
earned improving or declining?
Cast Iron Grills, Inc., manufactures premium gas barbecue
grills. The company uses a periodic inventory system...
Cast Iron Grills, Inc., manufactures premium gas barbecue
grills. The company uses a periodic inventory system and the LIFO
cost method for its grill inventory. Cast Iron's December 31, 2018,
fiscal year-end inventory consisted of the following (listed in
chronological order of acquisition):
Units
Unit Cost
8,200
$
700
5,600
800
9,200
900
The replacement cost of the grills throughout 2019 was $1,000. Cast
Iron sold 43,000 grills during 2019. The company's selling price is
set at 200% of the...
On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used as its office headquarters.
The building was completed on September 30, 2019. Expenditures on
the project were as follows:
January 1, 2018 $ 1,820,000
March 1, 2018 1,440,000
June 30, 2018 1,640,000
October 1, 2018 1,440,000
January 31, 2019 396,000
April 30, 2019 729,000
August 31, 2019 1,026,000
On January 1, 2018, the company obtained a $4,400,000
construction loan with a 14% interest rate....
Part 1
On September 30, the bank statement of Fine Company showed a
balance of $13,250....
Part 1
On September 30, the bank statement of Fine Company showed a
balance of $13,250. The following information was revealed by
comparing the bank statement to the cash balance in Fine's
accounting records:
(1) deposits in transit amounted to $5,415
(2) outstanding checks amounted to $9,710
(3) a $780 check was incorrectly drawn on Fine's account
(4) NSF checks returned by the bank were $1,280
(5) bank service charge was $45
(6) credit memo for $190 for the collection...
On June 1, 2018, Flounder Company and Culver Company merged to
form Larkspur Inc. A total...
On June 1, 2018, Flounder Company and Culver Company merged to
form Larkspur Inc. A total of 877,000 shares were issued to
complete the merger. The new corporation reports on a calendar-year
basis.
On April 1, 2020, the company issued an additional 652,000 shares
of stock for cash. All 1,529,000 shares were outstanding on
December 31, 2020.
Larkspur Inc. also issued $600,000 of 20-year, 8% convertible bonds
at par on July 1, 2020. Each $1,000 bond converts to 44 shares...