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Accounting Questions




Question;PROBLEMS;The Hobbit Company made the following merchandise purchases and;sales during the July;July. 1 purchased;380 units at $15 each;July;5 purchased 270 units at $20;each;July;9 sold;500 units at $55each;July;14 purchased 300 units at $24;each;July;30 sold;250 units at$55 each;Required: SHOW ALL CALCULATIONS.;There is no beginning inventory. If the company uses the last-in;first-out (LIFO) perpetual inventory system;1);What is the value of ending;inventory at July 30? $;2) What is the value of cost of;goods sold at July 30? $;On September 30, Emerson Co. has $540,250 of accounts;receivable. Emerson uses the allowance method of accounting for bad debts and;has an existing credit balance in the allowance for doubtful accounts of;$13,750.;Required: Prepare journal entries to record the;following selected October transactions. The company uses the perpetual;inventory system.;October 1 - Sold $325,000 of merchandise (that cost;$178,500) to customers on credit.;October 10 - Received $425,100 cash in payment of accounts receivable.;October 23 - Wrote off $16,700 of uncollectible accounts receivable.;October 31 - In adjusting the accounts on October 31, its fiscal year-end, the;company estimated that 3.0% of accounts receivable will be uncollectible.;Mahoney Company had the;following transactions involving plant assets during year. Unless otherwise indicated, all transactions;were for cash.;January 2 Purchased a truck for $50,000 plus;sales taxes of $3,000. The truck is;expected to have a $4,000 salvage value;and a 4 year life.;January 3 Paid $1,500 to have the company?s logo;painted on the truck. This did not;change the truck?s salvage value.;December 31 Recorded straight-line depreciation on the;truck.;Required: Prepare the general journal entries to record;these transactions.;On April 1, Year 5 a;company discarded a machine that had cost $10,000 and had accumulated;depreciation of $8,000 as of December 31, Year 4. The asset had a 5-year life;and $0 salvage value.;Required: Prepare the journal entries to 1) record the updating of the;depreciation expense and2);discarding of this asset in Year 5.;On January 1, a machine;costing $260,000 with a 4-year life and an estimated $5,000 salvage value was;purchased. It was also estimated that the machine would produce 500,000 units;during its life. The actual units produced during its first year of operation;were 110,000.;Required: Determine the amount of depreciation expense;for the first year under each of the following assumptions;1.;The company uses the units-of-production method;of depreciation $;2.;The company uses the double-declining-balance;method of depreciation $;On November 1;Bob's Skateboards signed a $12,000, 90-day, 5% note payable to cover a past due;account payable. Required;What amount of interest expense on this note;should Bob's Skateboards report on year-end December 31?;b. Prepare Bob's journal entry to record the issuance of the note;payable.;c. Prepare Bob's journal entry to record the payment of the note on;February 1 of the following year.


Paper#38256 | Written in 18-Jul-2015

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