On May 1, Johnson Corporation purchased inventory for $40,000 on credit. On May 15, Johnson sold inventory with a cost of $10,000 for $25,000 on credit….

Question: On May 1, Johnson Corporation purchased inventory for $40,000 on credit. On May 15, Johnson sold inventory with a cost of $10,000 for $25,000 on credit. Prepare journal entries to record these transactions. Click the button below to view answer! If you happen to run into some problem while Read more…

You have been engaged for the audit of the Y Company for the year ended December 31, 2013. The Y Company is in the wholesale chemical business and makes all sales at 25% over cost…

Question: (Objective 21-5) You have been engaged for the audit of the Y Company for the year ended December 31, 2013. The Y Company is in the wholesale chemical business and makes all sales at 25% over cost. Following are portions of the client’s sales and purchases accounts for the calendar Read more…

Pop Corporation acquired 80 percent of the outstanding stock of Son Corporation for $1,120,000 cash on January 3, 2016, on which date Son’s stockholders’ equity consisted of capital stock of $800,000 and retained earnings of $200,000….

Question: Pop Corporation acquired 80 percent of the outstanding stock of Son Corporation for $1,120,000 cash on January 3, 2016, on which date Son’s stockholders’ equity consisted of capital stock of $800,000 and retained earnings of $200,000. There were no changes in the outstanding stock of either corporation during 2016 Read more…

Kimio Nakimura owns an ice cream stand that she operates during the summer months in Jackson Hole, Wyoming. Her store caters primarily to tourists passing through town on their way to Yellowstone National Park….

Question: The EconomistsApproachto Pricing Kimio Nakimura owns an ice cream stand that she operates during the summer months in Jackson Hole, Wyoming. Her store caters primarily to tourists passing through town on their way to Yellowstone National Park. Kimio is unsure of how she should price her ice cream cones Read more…

Kanthous Company provided the following bank reconciliation January 31 of the current year: Bank balance Add Deposit in transit 300,000 600,000 900,000 educt Outstanding checks…

Question:  Kanthous Company provided the following bank reconciliation January 31 of the current year: Bank balance Add Deposit in transit 300,000 600,000 900,000 educt Outstanding checks: No. 114 115 116 240,000 160,000 60,000 460,000 440,000 Adjusted bank balance All receipts of cash are deposited in the bank account. The bank Read more…