10-Basic-Accounting-Questions-homework-help

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Answer the following 10 questions thoroughly please. (Not just couple of sentences)

1. Name three (3) different, separate, and distinct groups or entities that would regularly use the financial statements of a corporation and what kind of specific conclusions and benefits would each group derive.

2. If assets are valuable resources and asset accounts have debit balances, why do expense accounts also have debit balances?

3. Credits to customer accounts and credits to Other Accounts are individually posted from a cash receipts journal. Why not put both types of credits in the same column and save journal space?

4. Assume that we tour Polaris’ factory where it makes its products. List three direct costs and three indirect costs that we are likely to see.

5. Explain why product costs are capitalized but period costs are expensed in the current accounting period.

6. 
In comparing the accounts of a merchandising company with those of a service company, what additional accounts would the merchandising company likely use, assuming it employs a perpetual inventory system?

7. Refer to Arctic Cat’s financial statements in Appendix A. Identify Arctic Cat’s net earnings ( income) for the year ended March 31, 2011. Is its net earnings equal to the increase in cash and cash equivalents for the year? Explain the difference between net earnings and the increase in cash and cash equivalents.
8. Refer to the financial statements for Piaggio in Appendix A. How much were its cash payments for treasury stock purchases for the year ended December 31, 2011?
9. At the end of the year, the M. I. Wright Company showed the following selected account balances:

Sales (all on credit)……………………………………………………………………………$300,000
Accounts Receivable…………………………………………………………………………….800,000
Allowance for Doubtful Accounts………………………………………………………………38,000

Required:
Assume the company estimates that 1% of all credit sales will not be collected.
a.Prepare the proper journal entry to recognize the expense involved.
b. Present the balances in Accounts Receivable and Allowance for Doubtful Accounts as they would appear on the balance sheet. Also show the net realizable Accounts Receivable.

10. A new machine costs $120,000, has an estimated useful life of five years and an estimated salvage value of $15,000 at the end of that time. It is expected that the machine can produce 210,000 widgets during its useful life.

The New Times Company purchases this machine on January 1, 2013, and uses it for exactly three years. During these years the annual production of widgets has been 80,000, 50,000, and 30,000 units, respectively. On January 1, 2016, the machine is sold for $45,000.

 Required:

Calculate the depreciation expense for each of the first three years using:

a.  Straight-line
b.  Units-of-production
c.Double-declining-balance

 
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