Blog

Explain the journal entries from the perspective of RTVVF Corporation, in the space below, for the following transactions: On August 3, RTVVF sells merchandise with a cost of $15,000 to Meathead in exchange for $20,000.  Terms of purchase are FOB Shipping Point, 3/10, n/30.  The goods are shipped the same day. The goods sold to Meathead arrive on August 10.  Meathead makes full payment on account. You do NOT need to worry form.  Just tell me the date and what accounts are debited and credited and the amounts.  For example, your response might be on January 1, debit Supplies 100 and credit Accounts Payable 100.

Augustus Corporation spent $2,400,000 to develop a new product; it incurred additional expenses of $600,000 associated with patent filing fees and legal fees to defend the patent.  The patent has a life of 20 years but it only expected to provide an economic benefit for 15 years.  How much amortization expense should Augustus Corporation recognize per year? SHOW YOUR WORK FOR POTENTIAL OF EARNING PARTIAL CREDIT IN THE CASE OF AN INCORRECT ANSWER.

Casanova Company provided the following information for the preparation of its Year 3 Statement of Cash Flows; net income was $125,000 and the beginning Year 3 Cash balance was $40,000. Decrease in Accounts Receivable                       $27,000 Cash Received for Issuance of Bonds               $70,000 Cash Received for Sale of Building            $108,000 Decrease in Inventory                                 $14,000 Cash Paid to Purchase Equipment                      $52,000 Loss on Sale of Building                                             $16,000 Cash Paid to Reduce Long-Term Debt               $19,000 Cash Paid for Dividends                                            $26,000 Common Stock Exchanged for Land          $41,000 Depreciation Expense                                 $12,000  In the Operating section of the Statement of Cash Flows, the company will report:

Non Ti Scordare di Me Company purchased equipment on January 1, Year 1 with a cost of $250,000, a useful life of 7 years, and a $40,000 salvage value.  Calculate accumulated depreciation after Year 2 if the company used the activity method, assuming production of 50,000 units in Year 1 and an increase of 10,000 units per year for every year thereafter.  SHOW YOUR WORK FOR POTENTIAL OF EARNING PARTIAL CREDIT IN THE CASE OF AN INCORRECT ANSWER.

On January 1, Year 1, Twice on Sundays Corporation issued 8%, five-year bonds with a par value of $100,000; the bonds pay interest semiannually.  The bonds were issued when the market rate was 6% and were sold for $108,531.  The company uses the effective-interest method to amortize bond premium and discount.  How much interest expense is recognized in Year 1?

Explain the journal entry from the perspective of RTVVF Corporation, in the space below, for the following transaction: On January 1, Year 1, shareholders of RTVVF Corporation invested $225,000 cash and a building with a $300,000 fair value into the business.  The building was encumbered by a note payable of $90,000. You do NOT need to worry about form.  Just tell me what accounts are debited and credited and the amounts.  For example, your response might be on January 1, debit Supplies 100 and credit Accounts Payable 100.

The accountant for Beauty Beavis Corporation failed to make an adjusting entry for the systematic expensing of a fixed asset.  This error results in:

Woody Organization issued a five-year note on January 1, Year 1 with a face value of $100,000 and a stated interest rate of 3%, in exchange for a vehicle.  Annual payments of principal and interest are required on December 31st of each year.  What is the amount of interest expense that the company will recognize in Year 1?

The word LABORIOUS most nearly means

The first step in tissue repair involves: