Cookie, Corp. needed to update their baking equipment such t…

Cookie, Corp. needed to update their baking equipment such that they made a lump-sum purchase from Stella’s Bakery for the following three items.  Cookie, Corp. paid $7,000 for all three items. Book value on Stella’s Bakery Balance Sheet Appraised (fair) value Oven 7,500 5,060 Mixer 2,300 1,380 Dishwasher 3,300 2,760 At what value would Cookie, Corp. capitalize the dishwasher on their balance sheet?

Tripod, Inc. purchased Maxwell, Industries for $500,000 when…

Tripod, Inc. purchased Maxwell, Industries for $500,000 when the balance sheet for Maxwell, Industries included the following: Cash $50,000 Accounts payable $200,000 Accounts receivable 90,000 Stockholders’ equity 235,000 Inventory 100,000 Land 40,000 Equipment (net) 155,000 The recorded amounts of Maxwell’s assets and liabilities approximates fair value, except for Land, which has an estimated fair value of $100,000 (or, $60,000 greater than cost). What amount of goodwill will Tripod report on their balance sheet as a result of this purchase?

The unadjusted trial balance of B&B, Inc. shows the followin…

The unadjusted trial balance of B&B, Inc. shows the following amounts as of 12/31/20: Prepaid Expenses $3,000 Unearned revenue 5,000 Service revenue 500,000 Operating expenses 350,000 The following information relates to adjusting journal entries that must be made as of 12/31/20: The prepaid expense balance relates to a $3,000 12-month maintenance contract that B&B paid for on 6/1/20.   The unearned revenue balance relates to service revenue that B&B fully earned during the month of December. B&B estimates that they provided $30,000 of services to customers during the month of December for which they have not yet issued invoices.  They will need to accrue this revenue. B&B estimates that their December utility bills will be $5,000.  They anticipate receiving these bills and paying the expenses in January. What amount will B&B report as their adjusted net income after adjusting entries are made for each of the above items:

Orange, Co. is being sued by a customer related to a faulty…

Orange, Co. is being sued by a customer related to a faulty product.  While the outcome of the lawsuit is unknown as of December 31, 2020, in consultation with their legal team, Orange, Co. believes that it is probable they will incur a loss and the best estimate of the loss is $750,000.  Select the correct adjusting journal entry that Orange Co. should make as of December 31, 2020:

HP Company sold 200,000 units of their product during March….

HP Company sold 200,000 units of their product during March.  The products sell for $7.5/unit and carries a cost of $2/unit.  HP Company accepts product returns for 4-months post sale. During March, 50 units of product were returned.  As of March 31, a balance sheet date, HP Company estimates that another 80 products will be returned before the right of return expires. When HP Company prepares their income statement on March 31, what is the net amount of revenue (revenue – sales returns and allowances) they will report related to the sale of these products?