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All posts in General Questions

A retail store has three departments, A, B, and C, each of which has four full time employees. The store does general advertising that benefits all departments. Advertising expense totaled $90,000 for the current year, and departmental sales were:

How much advertising expense should be allocated to each department?

Companies today attempt to maximize their cash on hand by paying bills at the latest possible time while trying to collect their accounts receivable as soon as possible. This practice has become more and more pronounced in recent years. What are some reasons that companies today practice such tight cash management? What are some factors that have contributed to this?

1. Prepare the adjusting entry that would be made on December 31, 2009, the end of the year for the following: (Be sure and indicate what accounts you are debiting and crediting in your answer).
The company borrowed $20,000 on a 9% note on September 30, 2009.

2. Prepare the adjusting entry that would be made on December 31, 2009, the end of the year for the following: (Be sure and indicate what accounts you are debiting and crediting in your answer).

3.The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $32,000. The current pay period ends on Friday, Jan 3. What is the adjusting entry to record accrued salaries at the end of December?

4. Prepare the adjusting entry that would be made on December 31, 2009, the end of the year for the following: (Be sure and indicate what accounts you are debiting and crediting in your answer).
The supplies inventory on January 1, 2009 was $9,350. Supplies costing $18,150 were acquired during the year and charged to the supplies asset account. A count on December 31, 2009 indicated the supplies on hand of $6,810. Be sure and indicate what accounts you are debiting and crediting in your answer.

5. Prepare the adjusting entry that would be made on December 31, 2009, the end of the year for the following: (Be sure and indicate what accounts you are debiting and crediting in your answer).
Amber Company purchased an annual insurance policy on June 1, 2009 for $12,000 and debited insurance expense account.

What does it mean if the question states: Licenses are recorded net of accumulated amortization of $$$$$.

How would I figure out this: Notes receivable are due April 30, 2006 with interest receivable every april 30. notes bear interest at 12% (Hint: Accrue interest due on December 31, 2004.)

Where do the following fall on the balance sheet?

Short term Investments in Stock
Cash Restricted for Plant Expansion
Allowance for Doubtful Accounts
Licenses

If you have allowance for doubtful accounts don t you also have bad debt in the liabilities section?

If there is inventory in Assets, shouldn t there be a material expense in the liability section?

And if you have accumulated depreciation, is there a depreciation expense listed in the liabilities section?