(a) All purchases and sales were on account.
(b) Equipment costing $10,000 was sold for $3,000; a loss of $1,000 was recognized on the sale.
(c) Among other items, the operating expenses included depreciation expense of $7,000; interest expense of ..
(a) Assuming no Fair Value Adjustment (available-forsale) account balance at the beginning of the year, prepare the adjusting entry at the end of the year if Laura Company’s available-for-sale securities have a fair value $60,000 below cost.
(a) Describe the methods for establishing and maintaining an allowance for bad debts account.
(b) How would the percentages used in estimating uncollectible accounts be determined under each of the methods?..
(a) Determine the ending inventory under the conventional retail method for the furniture department of Mayron Department Stores from the following data.
(b) If the results of a physical inventory indicated an inventory at retail of $295,000, what i..
(a) How does a capital lease for equipment affect the lessee’s statement of cash flows?
(b) How would the treatment on the statement of cash flows differ if the contract was identified as a purchase of equipment with a down payment and a long-term ..
(a) How is the inventory turnover computed?
(b) What precautions are necessary in arriving at the inventory number to be used in the turnover calculation?
(c) How would you interpret a rising inventory turnover rate?..
(a) List several examples of areas for which changes in accounting estimates are often made.
(b) Explain briefly the proper accounting treatment for a change in estimate.
(c) Why is this procedure considered proper for recording changes in account..