Weisbro and Sons purchase their inventory one quarter prior to the quarter of sale. The purchase price is 60 percent of the sales price. The accounts payable period is 60 days. The accounts payable balance at the beginning of quarter…
Reid had a business building destroyed in a fire. the old building was purchased for $375,000 and $60,000 of depreciation deductions had been taken. although the old building had a fair market value of $425,000 at the time of the…
A cash-basis sole proprietor had the following cash receipts and disbursement for the year: Net sales $80,000Cost of goods sold 40,000Operating expenses 20,000Employee payroll taxes 3,000Dividend income 900 Interest income from a personal savings account 200 What is the amount…
Janson Pharmaceuticals incurred the following costs in 2013 related to a new cancer drug: Research for new formulas $ 2,425,000 Development of a new formula 1,600,000 Legal and filing fees for a patent for the new formula 60,000 Total $…
At the beginning of 2013, George company had retained earnings of $180,000. During the year George reported net income of $75,000, sold treasury stock at a “gain” of $27,000, declared cash dividend of $45,000, and declared and issued a small…
A firm has common stock of $90, paid-in surplus of $180, total liabilities of $360, current assets of $430, and fixed assets of $590. What is the amount of the shareholders’ equity?
Pacific Travels is a travel agency and sells flight tickets of reputed Airlines to customers for a commission of 3% of the ticket price. In the month of June 2013, Pacific sold $600,000 flight tickets of American Airlines to customers…
Assume for 2013 that Don made one transfer involving his grandson as follows: Don opened a joint checking account with his grandson, with right of survivorship, for his grandson’s college expenses. Don made an initial deposit of $100,000. During 2013,…
Wynn, Inc. has a contract to construct a large hotel for $12,000,000. The contract was signed on January 2, 2010 and it was expected that the hotel would be complete on December 31, 2013. At the date the contract was…
Assume that Smith Corporation will need to purchase 200,000 British pounds in 90 days. A call option exists on British pounds with an exercise price of $1.68, a 90day expiration date, and a premium of $.04. A put option exists…
