Category: Uncategorized

Eagle Corp. has the following information available regarding its inventory: Beginning Inventory $24,400 Gross Purchases $56,200 Freight-In $2,900 Purchase Allowances $1,300 Ending Inventory $46,300  NRV of Ending Inventory $42,000 What is the amount of Cost of Goods Sold reported for the year?

Eagle Corp. had accounts receivable of $140,000 at the beginning of the year and $85,000 at the end of the year and accounts payable at the beginning of the year of $60,000 and $85,000 at the end of the year. Cash sales for the year were $300,000 and sales on account for the year amounted to $450,000. The amount to be reported on the statement of cash flows for cash collections from customers under the direct method is:   Answer:  $_______

Eagle Corp. purchased a patent from Bobcat Inc. on January 1, 2024 for $450,000.  Bobcat Inc. had used the patent for five years prior to selling it to Eagle Corp.  Assuming Eagle Corp. plans to use the patent for its full legal life, what amount of amortization expense would Eagle Corp. record on its 2024 income statement?

Eagle Corp. had accounts receivable of $150,000 at the beginning of the year and $105,000 at the end of the year and accounts payable at the beginning of the year of $70,000 and $85,000 at the end of the year. Cash sales for the year were $400,000 and sales on account for the year amounted to $350,000. The amount to be reported on the statement of cash flows for cash collections from customers under the direct method is:   Answer:  $_______

Eagle Corp. pays its employees every Friday.  The Eagle Corp. employees earn $600,000 each five-day work week.  Assuming December 31, 2023 falls on a Wednesday, which of the following would be included in the journal entry Eagle Corp. would record on December 31, 2023 (to accrue for the salaries)?

Eagle Corp. paid $1,500,000 for a group purchase of land, a building, and equipment.  At the time of the acquisition, the land had a current market value of $500,000, the building had a current market value of $800,000, and the equipment had a current market value of $300,000.  In what amount should the equipment account be debited? (round to the nearest dollar)   Answer:  $_______

Eagle Corp. sold equipment with a book value of $80,000 for a $5,000 loss, sold Eagle Corp. common stock for $60,000, received repayment on a notes receivable for $160,000 (this amount included $16,000 of interest), paid dividends of $40,000, purchased treasury stock for $35,000, purchased a piece of equipment with a fair market value of $100,000 by paying $25,000 in cash and signing a notes payable for the balance, and received dividends in the amount of $20,000.  The net cash inflow from investing activities was:   Answer:  $_______

Eagle Corp. acquired three pieces of equipment in a single purchase. Equipment #1 is appraised at $400,000, equipment #2 is appraised at $300,000 and equipment #3 is appraised at $500,000. Eagle Corp. recorded equipment #2 on their books at the time of purchase at $237,500.  What was the total purchase price of all three pieces of equipment?   Answer:  $_______

On January 1, 2024, Eagle Corp. issued $4 million, 10 year, 8% bonds with interest to be paid annually.  Eagle Corp. issued the bonds for $4,587,200 since the market rate of interest was 6% on the issue date.  What is the total amount of interest expense that Eagle Corp. should report on its December 31, 2025 income statement? (round to the nearest dollar)   Answer:  $_______

Eagle Corp. sold equipment with a book value of $80,000 for a $5,000 loss, sold Eagle Corp. common stock for $60,000, received repayment on a notes receivable for $200,000 (this amount included $20,000 of interest), paid dividends of $40,000, purchased treasury stock for $35,000, purchased a piece of equipment for $100,000 by paying $25,000 in cash and signing a notes payable for the balance, and received dividends in the amount of $20,000.  The net cash inflow from investing activities was:   Answer:  $_______