Financial Accounting

1. On December 31, year 1, Day Co. leased a new machine from Parr with the follo

1. On December 31, year 1, Day Co. leased a new machine from Parr with the following pertinent information: Lease term 8 years Annual rental payable at beginning of each year $60,…

1. On February 1, 2016, Ellison Co. issued eight-year bonds with a face value of

1. On February 1, 2016, Ellison Co. issued eight-year bonds with a face value of $10,000,000 and a stated interest rate of 8%, payable semiannually on July 1 and January 1 . The b…

1. On February 1, 2016, Ellison Co. issued eight-year bonds with a face value of

1. On February 1, 2016, Ellison Co. issued eight-year bonds with a face value of $10,000,000 and a stated interest rate of 8%, payable semiannually on July 1 and January The bonds…

1. On February 10, 2015, Rose was in an automobile accident while she was going

1. On February 10, 2015, Rose was in an automobile accident while she was going to work. The doctor advised her to stay home for six months due to her injuries. On February 25, 20…

1. On February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22

1. On February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee. On August 22, Lucas paid a $0.42 dividend per share. On Novemb…

1. On January 1 a company determines it will need a new computer system costing

1. On January 1 a company determines it will need a new computer system costing $60,000 three years from now. It desires to make 3 equal deposits into its bank each of the next th…

1. On January 1 of the current year, Barton Corporation issued 10% bonds with a

1. On January 1 of the current year, Barton Corporation issued 10% bonds with a face value of $119,000. The bonds are sold for $113,050. The bonds pay interest semiannually on Jun…

1. On January 1 of year 1, Arthur and Aretha Franklin purchased a home for $1.4

1. On January 1 of year 1, Arthur and Aretha Franklin purchased a home for $1.4 million by paying $230,000 down and borrowing the remaining $1.17 million with a 15 percent loan se…

1. On January 1, 16 Brown Inc. acquired Larson Company\'s net assets in exchange

1. On January 1, 16 Brown Inc. acquired Larson Company's net assets in exchange for Brown's common stock with a par value of $100,000 and a fair value of $800,000. Brown also paid…

1. On January 1, 16 Brown Inc. acquired Larson Company\'s net assets in exchange

1. On January 1, 16 Brown Inc. acquired Larson Company's net assets in exchange for Brown's common stock with a par value of $100,000 and a fair value of $800,000. Brown also paid…

1. On January 1, 2008, Parent Company acquired 90 percent ownership of Subsidiar

1. On January 1, 2008, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date …

1. On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen

1. On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporti…

1. On January 1, 2010, Beyer Co. leased a building to Heins Corp. for a ten-year

1. On January 1, 2010, Beyer Co. leased a building to Heins Corp. for a ten-year term at an annual rental of $80,000. At inception of the lease, Beyer received $320,000 covering t…

1. On January 1, 2010, Leardon Inc. purchased equipment for $45,000. The company

1.       On January 1, 2010, Leardon Inc. purchased equipment for $45,000. The company is depreciating the equipment at the rate of $600 per month. At January 31,2011, the balance…

1. On January 1, 2012, Oakbasket Company issued bonds with a face value of $800,

1.   On January 1, 2012, Oakbasket Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1. Instructions: Prepare the jo…

1. On January 1, 2013, Eugene Inc. entered into a capital lease to acquire the u

1. On January 1, 2013, Eugene Inc. entered into a capital lease to acquire the use of a computer for 5 years. The present value of the lease payments is $42,500, the applicable in…

1. On January 1, 2013, VHF Industries acquired a machine and financed the purcha

1. On January 1, 2013, VHF Industries acquired a machine and financed the purchase price of this acquisition by issuing a 4-year loan to the vendor. The face value of the loan is …

1. On January 1, 2013, VHF Industries acquired a machine and financed the purcha

1. On January 1, 2013, VHF Industries acquired a machine and financed the purchase price of this acquisition by issuing a 4-year loan to the vendor. The face value of the loan is …

1. On January 1, 2014, Bay State Corporation issued the following bonds each at

1. On January 1, 2014, Bay State Corporation issued the following bonds each at a price to yield 10% annual return, with interest paid on January 1 each year. Issue 1: $1,000,000 …

1. On January 1, 2014, Jannison Inc. acquired 90% of Techron Co. by paying $477,

1. On January 1, 2014, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There is no active trading market for Techron stock. Techron Co. reported a Common Stock …

1. On January 1, 2015, you establish a business that provides technology consult

1. On January 1, 2015, you establish a business that provides technology consulting services. You plan to target small businesses by providing convenient, on-site and remote servi…

1. On January 1, 2016, Halsted, Inc. purchased a new machine for $120,000. Its e

1. On January 1, 2016, Halsted, Inc. purchased a new machine for $120,000. Its estimated useful life is eight years with an expected salvage value of $12,000. Assuming double-decl…

1. On January 1, 2016, Ott Co. sold goods to Flynn Company. Flynn signed a zero-

1.    On January 1, 2016, Ott Co. sold goods to Flynn Company. Flynn signed a zero-interest-bearing note requiring payment of $150,000 annually for seven years. The first payment …

1. On January 1, 2017, Flying High Airlines leased a new airplane for a term of

1. On January 1, 2017, Flying High Airlines leased a new airplane for a term of 10 years The expected life of the airplane is 20 years. There are no rights to purchase the asset a…

1. On January 1, 2017, a Corporation purchased a parcel of land as a factory sit

1. On January 1, 2017, a Corporation purchased a parcel of land as a factory site for $600,000. An old building on the property was demolished, and construction began on a new bui…

1. On January 1, 201X, Acorn Corporation issued $600,000 of 10%, 20-year bonds f

1. On January 1, 201X, Acorn Corporation issued $600,000 of 10%, 20-year bonds for $509,580, yielding a market rate of 12%. Interest is paid on July 1 and December 31. Acorn uses …

1. On January 1, 20X6, Climber Corporation acquired 90 percent of Wisden Corpora

1.     On January 1, 20X6, Climber Corporation acquired 90 percent of Wisden Corporation for $180,000 cash. Wisden reported net income of $30,000 and dividends of $10,000 for 20X6…

1. On January 1, Garrison Corporation had 1,090,000 shares of $9 par value commo

1. On January 1, Garrison Corporation had 1,090,000 shares of $9 par value common stock outstanding. On March 31, the company declared a 9% stock dividend. Market value of the sto…

1. On January 1, Harrington, Inc. borrows $63,000 from First Estate Bank. The lo

1.      On January 1, Harrington, Inc. borrows $63,000 from First Estate Bank. The loan is due in one year along with 4% interest. The company is preparing its quarterly report fo…

1. On January 1, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. T

1. On January 1, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year …

1. On January 1, Year 1, Blaze Mining Enterprises purchases an existing coal min

1. On January 1, Year 1, Blaze Mining Enterprises purchases an existing coal mine. Blaze expects to operate the min for four years, after which it is legally required to dismantle…

1. On January 1, Year 1, Pungent Corporation acquired 75% of Summer Corporation\

1. On January 1, Year 1, Pungent Corporation acquired 75% of Summer Corporation's 200,000 outstanding common shares for $2,850,000. On January 1, the book value of Summer's net as…

1. On January 1, Year One, a company started a defined benefit pension plan for

1. On January 1, Year One, a company started a defined benefit pension plan for its employees. Assume that the annual service cost is $200,000. Funding is $150,000 each December 3…

1. On January 28 Wild\'s Flowers purchased from a supplier 30 vases for $10 each

1. On January 28 Wild's Flowers purchased from a supplier 30 vases for $10 each ($300) and also paid $30 of freight under terms 2/10, n/30, FOB shipping point. The vases will be s…

1. On July 1, 2014, Seng Co. pays $15,300 to Nance Insurance Co. for a 2-year in

1. On July 1, 2014, Seng Co. pays $15,300 to Nance Insurance Co. for a 2-year insurance contract. Both companies have fiscal years ending December 31. -For Seng Co., journalize th…

1. On July 1, 2014, Seng Co. pays $17,100 to Nance Insurance Co. for a 1-year in

1. On July 1, 2014, Seng Co. pays $17,100 to Nance Insurance Co. for a 1-year insurance contract. Both companies have fiscal years ending December 31. -Journalize the entry on Jul…

1. On July 1, 2017, the Daisy Co. sold $400,000 in long-term bonds to the Jewel

1. On July 1, 2017, the Daisy Co. sold $400,000 in long-term bonds to the Jewel Co. The bonds will mature in 10 years and have a stated interest rate of 9%. The market rate at tim…

1. On July 1, Alaskan Adventures issues a $200,000, eight-month, 6.25% note. Int

1. On July 1, Alaskan Adventures issues a $200,000, eight-month, 6.25% note. Interest is payable at maturity. What is the amount of interest expense that the company would record …

1. On July 6, Marigold Company acquired the plant assets of Doonesbury Company,

1. On July 6, Marigold Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land Buildings Equipment…

1. On July 6, Splish Company acquired the plant assets of Doonesbury Company, wh

1. On July 6, Splish Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land Buildings Equipment 5…

1. On July 6, Zonker Company acquired the plant assets of Doonesbury Company, wh

1. On July 6, Zonker Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: $418,200 1,230,000 Zonker …

1. On March 1, 2017, Concord Corporation purchased land for an office site by pa

1. On March 1, 2017, Concord Corporation purchased land for an office site by paying $2780000 cash Concord began corstruction on the office building os March 1. The following expe…

1. On May 1, 20 a firm purchased a 1-year insurance policy for $1800 and paid th

1. On May 1, 20 a firm purchased a 1-year insurance policy for $1800 and paid the full premium in advance. The insurance expense associated with this policy a. 600 b. 1200 c. 1800…

1. On May 1, 2015, ACE Corp. purchased parts from SUPPLY Corp. In payment for th

1. On May 1, 2015, ACE Corp. purchased parts from SUPPLY Corp. In payment for the $48,000 purchase, ACE issued a 1-year installment note to be paid in equal monthly payments at th…

1. On November 1, CSI Systems purchases merchandise for $2,200 on credit with te

1. On November 1, CSI Systems purchases merchandise for $2,200 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated November 1. 2. On November 5, CSI Systems pays …

1. On November 2, Newsprint Manufacturing purchases 5 rolls of paper on account

1.        On November 2, Newsprint Manufacturing purchases 5 rolls of paper on account at $125 per roll for use within the production process. On November 5, 4 rolls of this paper…

1. On November 26, Civic Company purchased $1,200 of supplies on account. The jo

1. On November 26, Civic Company purchased $1,200 of supplies on account. The journal entry to record this transaction will include _____. a debit to Supplies and a credit to Cash…

1. On November 30, 2017, Rocky Co. decided to dispose of a component A. The sale

1. On November 30, 2017, Rocky Co. decided to dispose of a component A. The sale was not complete at the end of 2017. During 2017, this component generated operating income of $20…

1. On Oct 12, Prescott arranged with a supplier to replace Prescott’s overdue $1

1. On Oct 12, Prescott arranged with a supplier to replace Prescott’s overdue $10,000 account payable by paying $2,500 cash and signing a note for the remainder. The note matures …

1. On Oct. 1, Maroon Out Co. sold merchandise on account, $18,000, terms 2/15, n

1. On Oct. 1, Maroon Out Co. sold merchandise on account, $18,000, terms 2/15, net 45. The cost of the merchandise sold is S15,500. On Oct. 3, Maroon Out Co. issued a credit memo …