Accounting > STUDY GUIDE > ACCT 301 Connect Homework Chapter 1 answers complete solutions (All)

ACCT 301 Connect Homework Chapter 1 answers complete solutions

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Question 1 Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $330,000; Cash paid for rent, $38,000; Cash paid t ... o employees for services rendered during the year, $118,000; Cash paid for utilities, $48,000. In addition, you determine that customers owed the company $58,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,800 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year. Question 2 Identify the accounting concept that was violated in each of the following situations. Astro Turf Company recognizes an expense, cost of goods sold, in the period the product is manufactured. McCloud Drug Company owns a patent that it purchased three years ago for $2 million. The controller recently revalued the patent to its approximate market value of $8 million. Philips Company pays the monthly mortgage on the home of its president, Larry Crosswhite, and charges the expenditure to miscellaneous expense. Question 3 Listed below are several transactions that took place during the second and third years of operations for the RPG Company. [Show More]

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