The need for this method arose out of the increasing complexity of business transactions and a desire for more accurate financial information. Selling on credit and projects that provide revenue streams over a long period of time affect the company’s financial condition at the point of the transaction. Therefore, it makes sense that such events […]

Exercise 1-2 (E1-2)[AICPA adapted] General Problems1. Fast Corporation paid $50,000 cash for the net assets of Agge Company, which consisted of the following:Book Value Fair ValueCurrent assets ,000 $14,000Plant and equipment 40,000 55,000Liabilities assumed (10,000) (9,000)$40,000 $60,000The plant and equipment acquired in this business combination should be recorded at:2. On April 1, Jack Company paid […]

Instructions Identify as many internal control weaknesses as you can in this scenario, and suggest how each could be addressed. P7-3A On July 31, 2012, Fraiser Company had a cash balance per books of $6,140. The statement from Nashota State Bank on that date showed a balance of $7,690.80. A comparison of the bank statement […]

Hi I need help with financial statment analysis project. For more details check the aatached files. (The company to analyise is Autozone) Thanks. Document Preview: FINANCIAL STATEMENT ANALYSIS ASSIGNMENT ACTG 201: RUSS SPRING 2013 Due May 8, 2013 Project Overview Your assignment is to select a domestic corporation that is predominantly in a retail industry […]

Document Preview: Problem 3 Condensed financial data of Fairchild Company for 2012 and 2011 are presented below. FAIRCHILD COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2012 AND 201120122011Cash$1,801$1,091Receivables1,7571,301Inventory1,5941,900Plant assets1,8971,707Accumulated depreciation(1,205)(1,170)Long-term investments (held-to-maturity)1,299 1,462 $7,143 $6,291  Accounts payable$1,207$796Accrued liabilities203245Bonds payable1,4181,631Common stock1,8931,706Retained earnings2,422 1,913 $7,143 $6,291  FAIRCHILD COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012Sales$6,851Cost of goods sold4,691Gross margin2,160Selling and administrative expenses930Income from operations1,230Other revenues […]

Determine the number of periods for which the following amounts would have to be invested, under the terms specified, to accumulate to $10,000. Convert the number of periods to years. 1. $5,051 at 10% per annum, compounded semiannually.2. $5,002 at 8% per annum, compounded annually.3. $5,134 at 16% per annum, compounded quarterly.

The flexibility that is a key part of the estimates and judgments inherent in accrual accounting allows desperate managers to manipulate the reported numbers. Why not do away with this flexibility and just require companies to report raw cash flow data without any assumptions about bad debt percentage, depreciation life, estimated future warranty repairs, and […]

There are two general types of financial analysts:?c Buy-side analyst. An analyst employed by an entity, such as a mutual fund, which invests on its own accounts. Unlike that of the sell-side analysts employed by brokerage firms, research produced by buy-side analysts is usually unavailable outside the firm that hired the analyst.?c Sell-side analyst. An […]

Concordia Industries collected 4,214from customers in 2014. Of the amount collected, $27,665was from revenue accrued from services performed in 2013. In addition, Concordia recognized $45,721of revenue in 2014, which will not be collected until 2015.Concordia Industries also paid $73,323for expenses in 2014. Of the amount paid, $29,624was for expenses incurred on account in 2013. In […]

To maximize the amount of profit realized from a rate increase, charges should be increased most in departments with:(Points : 5)High charge payer mix/high write-offs for bad debt, charity, & discountsLow charge payer mix/low write-offs for bad debt, charity, & discountsHigh charge payer mix/low write-offs for bad debt, charity, & discountsLow charge payer mix/high write-offs […]

The cash account for Ace Co. on August 31, 2004, indicated a balance of $9,420. The bank statement indicated a balance of $12,785 on August 31, 2004. The following reconciling items were discovered. a) Checks outstanding totaled ,240. b) A deposit of $5,375, representing cash receipts of August 31, had been made too late to […]

In June, the Filbert Company established a petty cash account with a $200 balance. During June, the following expenditures were made from petty cash: supplies $95, FEDEX bills $42, and miscellaneous other receipts $38. When counted, there was $25 of cash remaining in the petty cash fund. Journalize the entries for June.

In drafting the memo:(a) You should explain the circumstances the company finds itself in.(b) Address the requirements under GAAP for the discount rate and expected rate of return on plan assets based on the FASB’s Accounting Standards Codification. When discussing the GAAP requirements, you should cite the relevant subsections of the FASB Accounting Standards Codification […]

ABER CORPORATION — Complete tutorial answers for the following requirements (inside the excel file attached) : a. Journal and Adjusting Entries — with T Accounts b. Adjusted Trial Balance, Dec. 31, 2010 c. Income Statement, Retained Earnings Statement, Balance Sheet, Dec. 31, 2010 Check Figures : b. Totals $ 646,995 c. Net Income $ 61,705

PV of multiple cash flows: Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows%u20140,000, $560,000, $750,000, $875,000, and $1,000,000. What is the present value of these […]

Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $72,000 cash. Instructions: (a) Give the entry for the issuance, assuming the par value of the common was $5 and the market value $30, and the par value of the preferred was $40 and the […]

“”I know headquarters wants us to add that new product line,”” said Dell Havasi, manager of Billings Company’s Office Products Division. “”But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.”” Billings Company is […]

Please see attached for description. No word minimum. PLease use APA when citing sources. Original work only. Document Preview: 1) A company that provides training, certification and consulting services to commercial, government, and non-profit organizations in applying best practices in balanced scorecard (BSC), strategic performance management and measurement, and transformation and change management has a […]

I have following assignemnt. I want all questions correct and solution should be with work so that I understood that solution. Show all work properly. I need it in 10 hours maximum. These are tax problems. Please tell me if you are able to give all correct solutions. What is the price you ask for? […]

Please see attachment Document Preview: 700000 1 490000 57.3 210000 42.7 175000 29.4 35000 13.3 7000 2.5 28000 0.108 471200 0.72099999999999997 114700 19 21080 4.8 13020 4.0999999999999996 620000 1 240560 0.47199999999999998 135160 21 244280 31.8 620000 1 1.53 0.68 Arial,Bold” 2FINANCIAL ACCOUNTING – Eighth Edition Arial,Bold” 2Solutions Manual Arial,Bold”Chapter 13: Financial Statement Analysis Arial,Bold”Page of […]

Evaluation of Correlation Data are gathered regarding the length of tenure top executives have at a major corporation and whether those executives have been divorced. The Human Resources department is evaluating this data to drive decision-making in regard to their hiring process. The data for eight executives is as follows: Tenure Divorce 1 9.0 No […]

Please show all work on an excel or word document. Document Preview: Sheet3 Sheet2 Sheet1 3) A/R Customers 9/30/15 Collected Amounts 9/30/15 Water Sewer Revenues Billed 9/30/15 A/R Beginning 9/30/14 5) Total P-P-E 9/30/15 Land 9/30/14 Buliding 9/30/14 Water Plant9/30/14 Sewer Plant 9/30/14 Water Line 9/30/14 Sewer Line 9/30/14 Machinery and Equipment 9/30/14 6) Total […]

31. A credit balance in Cash Over and Short is reported as a(n) (Points : 3) asset. liability. miscellaneous expense. miscellaneous revenue. Question 32. 32. A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $94. The entry to replenish the fund would (Points : 3) credit […]

I’ve enclosed everything needed to do this paper in the attachments below. Document Preview: 50000 70000 120000 180000 350000 280000 400000 300000 -170000 -100000 750000 730000 250000 210000 40000 10000 240000 240000 220000 270000 750000 730000 1200000 800000 250000 70000 30000 100000 14.5 80000 5000 40000 5000 198000 191250 Cash Accounts receivable (net) Merchandise inventory […]

WEEK 4 DQS ACC/422 Week 4 DQ 1 What are the criteria for classifying an item as a current liability? What are some examples of current liabilities? . Why is it important to classify a portion of long-term debt on a yearly basis as a current liability? What is the implication of misclassification a liability […]

see attachment Document Preview: Teldar Paper Company manufactures three products (computer paper, newsprint, and specialty paper) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: The activity bases identified […]

answer sheet Document Preview: Problem 1: 10 points, INCREMENTAL ANALYSIS Part A) MAKE SUB-ASSEMBLY PART BUY SUB-ASSEMBLY PART Part B) Should the company make or buy the component part? Why? Problem 2: 10 points, COST OF GOODS MANUFACTURED SCHEDULE Problem 3: 15 points, STATEMENT OF CASH FLOWS Cash flows from operating activities Adjustments to reconcile […]

Each DQ 150- words +. Cite work with reference. Post answer an attachment What do you think is the major purpose of financial statements? Why? Explain what type of information can be derived from financial statements. List references if you use a source other than the text. Why is budgeting so important? What are the […]

HA2042 Accounting Information Systems (T1, 2012) Group Assignment (20% of Final Mark) The assignment has two parts namely Part 1 (10 marks) & 2 (10 marks). Part 1 will require you to evaluate the payroll system for the Skip-Rope Manufacturing Company. Part 2 will involve a company called Kowal Manufacturing Company in which you are […]

MANAGERIAL ACCOUNTING Breakeven sales; sales to earn a target operating income, contribution margin income statement British Productions performs London shows. The average show sells 900 tickets at $65 per ticket. There are 155 shows a year. No additional shows can be held as the theater is also used by other production companies. The average show […]

Unit 2 Assignment 1 The Unit 2 Assignment 1 includes the following textbook problems: Exercise 4-34 found on pages 112-113 in your textbook Exercise 5-44 found on page 162 in your textbook Your assignment must be submitted in a single Excel document, using two different tabs, labeled according to the assignment numbers. Format the Excel […]

Please see excel spreadsheet Activity-based Costing ProblemView more Objectives: Complete the attached excel spreadsheet.Click the Assignment Files tab to submit your assignment. Document Preview: 1050000 2350000 3600000 1400000 R&D activities fall into four pools with the following annual costs: Market Analysis Product Design Product Development Prototype Testing Activity analysis determines that the appropriate cost drivers […]

PART I Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qualitative characteristics.) (a) Fair value changes are not recognized in the accounting records. (b) Lower of cost or market is used to value inventories. (c) Financial information is presented so that investors will not be misled. […]

ACG 3113 Practice Set 2 The Gremlin Ice Cream Company started business July 1, 2000. Gremlin uses the perpetual inventory system. Required: Using Excel, prepare general journal entries in good form for only the transactions listed below (Explanations are not necessary): July 1 2000 Issued 5,000 shares of $1 par value common stock for $95,000 […]

Problem 2-3 o On June 24th of year 1, Alec, Bryce, and Connor form Triplets Corporation. They transfer the following assets: Property Transferred Transferor Asset Basis to Transferor FMV Number of Common Shares Issued Alec Land 0,000.00 $50,000.00 500 Bryce Production Equipment – 25,000.00 250 Connor Accounting Services – 25,000.00 250 Alec purchased the land […]

Applying Decision-Making Skills As a manager, part of your role is to develop strategy, and share this strategy with various stakeholders within the organization. This assignment will allow you to take your findings as a manager and communicate these findings to those who are affected. Your company has been presented with a decision on replacing […]

Assignment 3: Analyze the Cash Flow of a Venture ABC Computers sells computer printers. Its forecasted sales over the last three months of the third quarter of 2007 are as follows: MonthSales ForecastJuly$1,200,000August$1,500,000September$2,000,000 At the end of June 2007, ABC Computers’s balance sheet was as follows: ABC ComputersBalance Sheet as of June 30, 2007Cash$ 100,000Accounts […]

the conceptual framework deals with the following issues:1. the objective of fianancial reporting. ( 15 marks )2. the qualitative characteristics of useful financial information. ( 15 marks )3. the elements of financial statements and their definitions. ( 15 marks )4. the recognition of the elements of financial statements. ( 15 marks )5.the measurements of elements […]

Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order. Account Balance Common stock ,100 Accounts payable $4,400 Service revenue $17,100 Land $28,800 Note payable $9,500 Cash $5,200 Dividends $6,100 Utilities expense $2,100 Accounts receivable $10,600 Delivery expense 0 […]

“Generally accepted” in the phrase generally accepted accounting principles means that the principles A. have been approved for use by the managements of business firms B. have been approved by the Internal Revenue Service C. have substantial authoritative support D. are proven theories of accounting Hess, Inc. sells a single product with a contribution margin […]

Question Prepare a business memo in Word addressed to Mark Zuckerberg discussing the following: 1. AccountBook obtains a $500,000 loan and Mark Zuckerberg contributes $250,000 of his own assets in exchange for common stock in the new company. a. What is the new company s total amount of liabilities plus equity? b. What is the […]

Problem #1 California Surplus, Inc. qualifies to use the Installment-Sales Method for tax purposes and sold an investment on an installment basis. The total gain of $75,000 was reported for financial reporting purposes in the period of sale. The Installment period is 3 years; one-third of the sale price is collected in 2012 and the […]

The Flamingo Grill is an upscale restaurant located in St. Petersburg, Florida. To help plan an advertising campaign for the coming season, Flamingo’s management team hired the advertising firm of Haskell and Johnson (HJ). The management team requested HJ’s recommendation concerning how the advertising budget should be distributed across television, radio, and newspaper advertisements. The […]

Finer Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of May.May. 2 Sold merchandise costing $370 to B. Facer for $555 cash, invoice no. 5703.5 Purchased $2,300 of merchandise on credit from Marchant Corp.7 Sold merchandise […]

The common stock of Warner Inc. is currently selling at $117 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $8; book value is $73 per share. 6.01 million shares are issued and outstanding. Prepare the necessary journal entries […]

1. Construct a pro forma income statement for the first year and second year for the following assumptions: Units of Sales in Year 1: 110,000Price per Unit: $11Variable cost per unit: 30%Fixed Costs: $125,000Income taxes: 15%Interest Expense: $200,000In year 2, Price per unit increases to $11.50, and unit of sales increases by 5%, all other […]

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2011, Abbott and Abbott received the following information: ($in millions) Projected Benefit Obligation Balance, January 1 $120 Service cost 20 Interest cost 12 Benefits paid (9) Balance, December 31 $143 Plant Assets Balance, January 1 $80 Actual return on plan assets 9 […]

Week 2 DQs DQ1 What is meant by an in-substance defeasance, and how can a government use it to lower its interest costs? How must it recognize a gain or loss on defeasance if it accounts for the debt in a proprietary fund? How do the GASB standards pertaining to in-substance defeasances differ from those […]

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As you have learned in this week s readings the Accounting Equation is Assets = Liabilities + Owners Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation.

E2-2 (Qualitative Characteristics) The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. Relevance Timeliness Representational faithfulness Reliability Verifiability Comparability Predictive value Neutrality Consistency Feedback value Instructions Identify the appropriate qualitative characteristic(s) to be used given the information provided below. (a) Qualitative characteristic being employed when companies in the same industry […]

ACC 220 CheckPoint Budgets Matrix.docx ACC 220 CheckPoint Career Opportunities.docx ACC 220 CheckPoint Cash Management Matrix.docx ACC 220 CheckPoint Classified Balance Sheets.docx ACC 220 CheckPoint Cost Volume and Profit Questions.docx ACC 220 CheckPoint Flexible Budgets.docx ACC 220 CheckPoint Proprietorships Partnerships Corporations.docx ACC 220 Final Project Business Plan.docx ACC 220 WEEK 3 DISCUSSION QUESTIONS.docx ACC 220 […]

1 Which of the following is true of subsurface rights in real property? 2 Which of the following provisions protects the interest of a joint tenancy upon the death of a joint tenant? 3 Which of the following is true of a gift causa mortis? 4 The rights to the earth located beneath the surface […]

Final Exam !! 1.The Modified Accelerated Cost Recovery System (MACRS) specifies which of the following depreciation methods for buildings A. 150% declining-balance. B. Double-declining-balance. C. Straight line. D. Buildings are not depreciable assets. 2. The Modified Accelerated Cost Recovery System (MACRS) specifies which of the following depreciation methods for land A. 150% declining-balance. B. Double-declining-balance. […]

1 The Financial Management Decision Process. What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant. ____________________________________________________________________________ LO 3 1.2Sole Proprietorships and Partnerships – What are the four primary disadvantages to the sole proprietorship and partnership forms of business organization? […]

L. Rashid Company, a rapid growing chemical company needs to raise $3 million in external funds to finance the acquisition of a new chemical waste disposal system. After carefully analyzing alternative financing sources, Denise MacMahon, the firm’s vice president of finance reduced the financing alternatives to three choices: (1) debt (2) debt with warrants, and […]

Question 1. Prepare a budget for this year for the Administrative Department at Tom’s Toyota Company based on the following information: Last Year Forecasting Assumption Budget for this Year Salaries $60,000 2% increase ___________ Stationary $ 900 1% decrease ___________ Telephone $ 2,500 3% increase ___________ Electricity $ 1,200 2.5% increase ___________ Office Rent $10,000 […]

1. The Embroidery Shoppe had beginning retained earnings of $18,670. During the year, the company reported sales of $83,490, costs of $68,407, depreciation of $8,200, dividends of $950, and interest paid of $478. The tax rate is 35 %. What is the retained earnings balance at the end of the year? A. $21,883.25B. $22,193.95C. $22,833.24D. […]

MC Qu. 17 Ford Company had beginning raw materials… Ford Company had beginning raw materials inventory of $8,000. During the period, the company purchased $46,000 of raw materials on account. If the ending balance in raw materials was $5,000, the amount of raw materials transferred to work in process inventory is: $43,000. $46,000. $51,000. $49,000.

Question 1 The HRM unit is considered to be: A. action-oriented. B. people-oriented. C. globally oriented. D. All of the above Question 2 There is now evidence that an increase in the use of people first practices results in all of the following EXCEPT: A. a decrease in turnover. B. lower productivity. C. higher profits. […]

Mycrone Case ACBU 2223 Spring 2013 Instructions for faculty members Students can work by themselves or in teams of up to four persons, all from the same class. They should not discuss the case with anyone except their teammates (if any). If a student chooses to work alone, the student should not ask others for […]

Ordering and Carrying Costs, EOQ Q-Beck Company uses 50,000 circuit boards each year in its production of stereo units. The cost of placing an order is $50. The cost of holding one unit of inventory for one year is $5. Currently, Q-Beck orders 2,500 circuit boards in each order. 1.Compute the annual ordering cost.$ 2.Compute […]

P4-4A Mendocino Corporation produces two grades of wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,00 5-liter jugs. Mendocino also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called […]

Pemberton Corp. purchased a machine costing $300,000 that had an estimate useful life of six years and residual value of $18,000. The machine is expected to produce 3,525,000 units during its useful life, as follow: YEAR UNITS1 930,0002 800,0003 580,0004 500,0005 415,0006 300,000 3,525,000 a. What will be each year’s depreciation charge if Pemberton uses […]

5-53 Pricing and Confusing Variable and Fixed Costs Goklwyn Electronics had a fixed factory overhead budget for 20X1 of $10 million. The company planned to make and sell 2 million units of a particular communications device. All variable manu facturing costs per unit were $10.The budgeted income statement contained the following: Sales $40,000,000 Manufacturing cost […]

Problem 6.2A Marlow Company uses a perpetual inventory system. it entered into the following calendar year 2011 purchases and sales transactions. Date Jan 1. Beginning inventory 600 units @ $44/unit Feb 10. purchase 200 units @ $40 unit Mar 13. purchase 100 units @ $20 unit Mar 15. Sales 400 units @ $75 unit Aug […]

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Managers should base pricing decisions on both cost and market factors. In addition, they must also consider legal issues. Describe the influence that the law has on pricing decisions.”It is impossible to use Discounted Cash Flow methods for evaluating investments in research and development. There are no cost savings to measure, and we don t […]

Question 1 On a multiple-step income statement, Income from Operations is computed as follows: net sales less cost of goods sold. cost of goods sold less total assets. operating expenses plus total assets. gross profit less total operating expenses. Question 2 The form of income statement that derives its name from the fact that the […]

Silmon Corporation makes a product with the following standard costs: In June the company produced 4,200 units using 21,830 grams of the direct material and 2,580 direct labor-hours. During the month the company purchased 24,100 grams of the direct material at a price of $6.80 per gram. The actual direct labor rate was $14.60 per […]

Chapter Two and Three Problems 1. Issuance of stock Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases: Jackson Corporation has common stock with a par value of $1 per share. Royal Corporation has no-par common with a stated value […]

There are three important dates associated with cash dividends. The date of declaration is the date the board of directors formally declares that a dividend is going to be paid. The date of record is the date on which the ownership of stock, and therefore the right to receive the dividend, is determined. The date […]

Waterways puts much emphasis on cash flow when it plans for capital investments.The company chose its discount rate of 8% based on the rate of return it must pay its owners andcreditors. Using that rate,Waterways then uses different methods to determine the best decisionsfor making capital outlays.In 2009 Waterways is considering buying five new backhoes […]

esearch and Evaluate – WELLS FARGO/WACHOVIA As a result of the financial crisis that rippled through the U.S. economy in 2008/2009, bank failure rates soared. The FDIC was able to identify many of the troubled banks, seize them and transfer their assets to healthy institutions successfully. However, the crisis did create a climate in which […]

a. How much is Wisconsin Corporation s current Sales in dollars? b. What is the target price per unit? c. What is the target cost per unit? Wisconsin Corporation sells a product for $400 per unit. Its market share is 25 percent of the units sold. The marketing manager believes that the market share can […]

During October 2012, ABC Co. had the following cash transactions:Cash paid for Taxes : 235,000Cash paid for Insurance : 116,000Cash received for Rents on income property :152,000Addtional information:i) Of Cash received for rents on property, 10,000 was reported as rent receivable, as of September 2012.ii) Of Cash received for Rents on property, 7,000 was a […]

1. A bonus usually differs from a salary in terms of:A. Amount and timing.B. Base, timing, and financial statement effect.C. Tax implications.D. Motivation effects.E. Base, pool, and payment terms.2. Of the three basic forms of management compensation (salary, bonus, benefits), the fastest growing part of total compensation is:A. Salary.B. Bonus.C. Benefits.D. Salary and bonus.3. As […]

The Goldwater Company s accounting year ends March 31, 20XX. Additional data as of March 31, 20XX (ADJUSTING ENTRIES): a. Interest earned on marketable securities, but not received $ 120 b. Unpaid salaries 100 c. An unrecorded and unpaid advertising bill was discovered 85 d. Supplies on hand determined by a physical count 90 e. […]

Exercise 8-6 Petty cash fund accounting L.O. P2 [The following information applies to the questions displayed below.] NetPerks Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $28 in cash along with receipts for the following expenditures: postage, $64; transportation-in, $19; delivery expenses, $36; and miscellaneous expenses, $53. […]

Lee Choi opened Choi s Window Washing, Inc. on July 1, 2008. During July the following transactions were completed. July 1 Issued $12,000 of common stock for $12,000 cash. 1 Purchased used truck for $6,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,300 on account. 5 Paid $2,400 cash […]

1. (TCO A) Below you will find selected information (in millions) from Coca-Cola Co. s 2012 Annual Report:Income Taxes Payable 1Short-term Investments and Marketable Securities 8,109Cash 8,442Other non-current Liabilities 10,449Common Stock 1,760Receivables 4,812Other Current Assets 2,973Long-term Investments 10,448Other Non-current Assets 3,585Property, Plant and Equipment 23,486Trademarks 6,527Other Intangible Assets 20,810Allowance for Doubtful Accounts 53Accumulated Depreciation 9,010Accounts […]

Z Company“s accountant forgot to make an adjustment at the end of the year to record depreciation expense on the equipment. What effect did this omission have on the company”s financial statements? a. Understated assets and liabilities b. Overstated assets and shareholders” equity c. Understated liabilities and overstated shareholders” equity d. Overstated assets and understated […]

Phillip”s Camera Store had a retained earnings balance of $1,000 on January 1, 2008. For year 2008, sales were $10,500 and expenses were $6,500.The company declared and distributed cash dividends of $2,500 on December 31, 2008.What was the amount of retained earnings on December 31,2008? a. $4,000 b. $1,500 c. $2,500 d. $1,s00

10. The quick ratio is a. Current liabilities divided by the sum of cash, accounts receivable, and short term investments b. Current assets divided by current liabilities c. Accounts receivable divided by current assets d. The sum of cash. accounts receivable, and short-term investments divided by current liabilities

SE3-2. Calculate net income and retained earnings. (LO 1) Capboy Company earned ,000 of revenues and incurred $2,950 worth of expenses during the period. Capboy also declared and paid dividends of $500 to its shareholders What was net income for the period? Assuming this is the first year of operations for Capboy, what is the […]

SE3-4. Account for supplies expense(.L O 1,3) MBI Corporation started the month with $600 worth of supplies on hand. During the month, the company purchased an additional $760 worth of supplies. At the end of the month, $390 worth of supplies was left on hand. What amount would MBI Corporation show as supplies expense on […]

SE3-5. Account for insurance expense(.L O 1, 3) Bovina Company was started on January l , 2005. During its first week of business, the company paid $3,600 for 18 months” worth of fire insurance with an effective date of January 1. When Bovina Company prepare sits income statement or the year ended December3 1,2005, how […]

SE3-6. Account for depreciation expense(.L O 1, 3) Suppose a company purchases a piece of equipment for $9,000a t the beginning of the year. The equipment is estimated to have a useful life of 3 years and no residual value. Using the depreciation method you learned about in this chapter, what is the depreciation expense […]

The correct amount of prepaid insurance shown on a company”s December 3t,2007 , balance sheet was $800. On July 1, 2008, the company paid an additional insurance premium of $400. On the December 31,2008, balance sheet, the amount of prepaid insurance was correctly shown as $500. What amount of insurance expense would appear on the […]

SE3-8.Account for unearned revenue.( LO 1, 3) Able Company received ,800 from a customer on April I for services to be provided in the coming year in an equal amount for each of the 12 months beginning April. In the Able information system, these cash receipts are coded as unearned revenue. What adjustment will Able […]

SE3-9.Account for supplies expense(.L O 1,3) Peter”s Pizza started the month with $500 worth of supplies. During the month, Peter”s Pizza purchased an additional $300 worth of supplies. At the end of the month, $175 worth of supplies remained unused. Give the amounts that would appear on the financial statements for the month for supplies […]

SE3-10. Identify accounts(.LO1,2,3) From the following list of accounts: (1) Identify the assets or liabilities that commonly require an adjustment at the end of the accounting period, and (2) indicate whether it relates to a deferral or accrual. Cash Accounts receivable Prepaid insurance Supplies Building Accumulated depreciation-building Uneamed revenue Interest payable ACCOUNTING Salaries payable Common […]

SE3-11.Account for unearned revenue.( LO 1, 3) On January 1,2006, the law firm of Munns and Munns was formed. On February 1,2006, the company received $18,000 from clients in advance for services to be performed monthly during the next 18 months. During the year, the firm incurred and paid expenses of $5,000. Is the adjustment […]

SE3-14. Calculate working capital and quick ratio. (LO 5) Suppose a firm had a current ratio of 1.5 at year-end, with current assets of $300,000. How much working capital did the firm have? If current assets were made up of $50,000 accounts receivable,$ 100,000 cash and $150,000 inventory, what was the quick ratio at year-end?

E3-1 A. Account for salaries expense(.L O 1,2) Royal Company pays all salaried employees biweekly. Overtime pay, however, is paid in the next biweekly period. Royal accrues salary expense only at its December 31 year-end. Information about salaries earned in December 2007 is as follows: · Last payroll was paid on December 26,2007 , for […]

E3-24. Account for unearned revenue.( LO 1, 3) The TJ Company collects all service revenue in advance. The company showed a $12,500 liability on its December 31, 2006,balance sheet for unearned service revenue. During 2007, customers paid $50,000 for future services, and the income statement for the year ended December 3 l, 2007 , reported […]

E3-5A. Account for rent expense(L. O 1, 3) Susan rented office space for her new business on March 1, 2008. To receive a discounts he paid $3,600f or 12 months” rent in advance How will this advance payment appear on the financial statements prepared at year-end, December 31? Assume no additional rent was paid in […]

E3-9A. Analyze timing of revenue recognition. (LO I, 2, 3) Show each of the following transactions in the accounting equation. Then, tell whether or not the original transaction as given is one that results in the recognition of revenue or expenses. a. Dell Inc. paid its computer service Technicians $ 80,000 in salaries for the […]

E3-I2A^. Account for rent expense and prepare financial statements. (LO 4) On March l, 2007, Quality Consulting Inc. was formed when the owners contributed $35,000c ashin the business in exchange for common stock. On April l, 2007, the company paid $24,000 cash to rent office space for the coming year. The consulting services generated ,000 […]

E3-13A. Account for depreciation expense and prepare financial statements(.L O 3, 4) Southeast Pest Control Inc. was started when its owners invested$ 20,000i n the business in exchange for common stock on January 1,2006. The cash received by the company was immediately used to purchase a $15,000h heavy-duty chemical truck, which had no residual value […]

Mt. Horeb Company, a ski tuning and repair shop, opened in November 2011. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski season, April 30, 2012. Cash Cash Receipts Payments Issue of common shares $20,000 Payment for repair equipment $9,200 […]

The ledger of Sagovic Rental Agency on March 31 of the current year includes the selected accounts on page 206 before adjusting entries have been prepared. Debits Credits Prepaid Insurance $3,600 Supplies 3,000 Equipment 25,000 Accumulated Depreciation—Equipment $8,400 Notes Payable 20,000 Unearned Rent Revenue 12,400 Rent Revenue 60,000 Interest Expense 0 Salaries and Wages Expense […]

Adam Singh, D.D.S., opened an incorporated dental practice on January 1, 2012. During the first month of operations the following transactions occurred: 1. Performed services for patients who had dental plan insurance. At January 31, $760 of such services was earned but not yet billed to the insurance companies. 2. Utility expenses incurred but not […]

The unadjusted trial balance for Sierra Corp. is shown in Illustration 4-4 (page 168). In lieu of the adjusting entries shown in the text at October 31, assume the following adjustment data. 1. Supplies on hand at October 31 total $500. 2. Expired insurance for the month is $100. 3. Depreciation for the month is […]

This is a partial adjusted trial balance of Fenske Company. FENSKE COMPANY Adjusted Trial Balance January 31, 2012 Debit Credit Supplies $700 Prepaid Insurance 1,560 Salaries and Wages Payable $1,060 Unearned Service Revenue 750 Supplies Expense 950 Insurance Expense 520 Salaries and Wages Expense 1,800 Service Revenue 2,000 Instructions Answer these questions, assuming the year […]

This is a partial adjusted trial balance of Barone Company.   BARONE COMPANY Adjusted Trial Balance January 31, 2014     Debit Credit Supplies $ 700   Prepaid Insurance 1,560   Salaries and Wages Payable   $1,060 Unearned Service Revenue   750 Supplies Expense 950   Insurance Expense 520   Salaries and Wages Expense 1,800 […]

Selected accounts of Sandin Company are shown here. Supplies Expense Salaries and Wages Payable 31-Jul 750 31-Jul 1000 Salaries and Wages Expense Accounts Receivable 15-Jul 1,000 31-Jul 500 31 1,000 Service Revenue Unearned Service Revenue 14-Jul 3,800 31-Jul 900 1-Jul Bal. 1,500 31 900 20 600 31 500 Supplies 1-Jul Bal. 1,100 31-Jul 750 10 […]

The trial balances shown on page 208 are before and after adjustment for Amit Company at the end of its fiscal year. AMIT COMPANY Trial Balance August 31, 2012 Before Adjustment After Adjustment Dr. Cr. Dr. Cr. Cash $10900 $10900 Accounts Receivable 8800 9400 Supplies 2500 500 Prepaid Insurance 4000 2500 Equipment 16000 16000 Accumulated […]

The following selected data are taken from the comparative financial statements of Superior Curling Club. The club prepares its financial statements using the accrual basis of accounting. September 30 2012 2011 Accounts receivable for member dues $ 15,000 $ 19,000 Unearned sales revenue 20,000 23,000 Service revenue (from member dues) 151,000 $135,000 Dues are billed […]

Gil Vogel started his own consulting firm, Vogel Consulting, on June 1, 2012. The trial balance at June 30 is as follows. VOGEL CONSULTING Trial Balance June 30, 2012 Debit Credit Cash 6,850 Accounts Receivable 7,000 Prepaid Insurance 2,880 Supplies 2,000 Equipment 15,000 Accounts Payable $ 4,230 Unearned Service Revenue 5,200 Common Stock 22,000 Service […]

The Vang Hotel opened for business on May 1, 2012. Here is its trial balance before adjustment on May 31 VANG HOTEL Trial Balance May 31, 2012 Debit Credit Cash $ 2,500 Prepaid Insurance 1,800 Supplies 2,600 Land 15,000 Buildings 70,000 Equipment 16,800 Accounts Payable $ 4,700 Unearned Rent Revenue 3,300 Mortgage Payable 36,000 Common […]

Rolling Hills Golf Inc. was organized on July 1, 2012. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here. ROLLING HILLS GOLF INC. Trial Balance September 30, 2012 Unadjusted Adjusted Dr. Cr. Dr. Cr. Cash $ 6,700 $ 6,700 Accounts Receivable 400 1,000 Prepaid Rent 1,800 […]

A review of the ledger of Terrell Company at December 31, 2012, produces these data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $15,200. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on July 1, 2011, for $9,600. The policy […]

Open Road Travel Court was organized on July 1, 2011, by Tiffany Lampkins. Tiffany is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Tiffany prepared the following income statement for her fourth quarter, which ended June 30, 2012. OPEN ROAD TRAVEL COURT Income Statement For the Quarter […]

On November 1, 2012, the following were the account balances of Tate Equipment Repair. Debits Credits Cash $ 2,790 Accumulated Depreciation—Equipment $ 500 Accounts Receivable 2,910 Accounts Payable 2,300 Supplies 1,120 Unearned Service Revenue 400 Equipment 10,000 Salaries and Wages Payable 620 Common Stock 10,000 Retained Earnings 3,000 $16,820 $16,820 During November, the following summary […]

Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed. July 1 Issued 12,000 shares of common stock for $12,000 cash. 1 Purchased used truck for $8,000, paying $2,000 cash and the balance on account. 3 Purchased cleaning supplies for $900 on account. 5 Paid $1,800 […]

The following data are taken from the comparative balance sheets of Glenview Club, which prepares its financial statements using the accrual basis of accounting. December 31 2012 2011 Accounts receivable for member fees $12,000 $18,000 Unearned service revenue 17,000 11,000 Fees are billed to members based upon their use of the club”s facilities. Unearned service […]

Pamela Quinn started her own consulting firm, Quinn Consulting, on May 1, 2012. The trial balance at May 31 is as shown below. QUINN CONSULTING Trial Balance May 31, 2012 Debit Credit Cash $ 7,500 Accounts Receivable 3,000 Prepaid Insurance 3,600 Supplies 2,500 Equipment 12,000 Accounts Payable $ 3,500 Unearned Service Revenue 4,000 Common Stock […]

Maquoketa Valley Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is presented here. MAQUOKETA VALLEY RESORT Trial Balance August 31, 2012 Debit Credit Cash $ 24,600 Prepaid Insurance 5,400 Supplies 4,300 Land 40,000 Buildings 132,000 Equipment 36,000 Accounts Payable $ 6,500 Unearned Rent Revenue […]

A review of the ledger of Felipe Company at December 31, 2012, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable $0: There are eight salaried employees. Salaries are paid every Friday for the current week. Six employees receive a salary of $800 each per week, and […]

The Fly Right Travel Agency was organized on January 1, 2010, by Joe Kirkpatrick. Joe is a good manager but a poor accountant. From the trial balance prepared by a parttime bookkeeper, Joe prepared the following income statement for the quarter that ended March 31, 2012. FLY RIGHT TRAVEL AGENCY Income Statement For the Quarter […]

On September 1, 2012, the following were the account balances of Worthington Equipment Repair. Debits Credits Cash $4,880 Accumulated Depreciation—Equipment $1,600 Accounts Receivable 3,420 Accounts Payable 3,100 Supplies 800 Unearned Service Revenue 400 Equipment 15,000 Salaries and Wages Payable 700 Common Stock 10,000 Retained Earnings 8,300 $24,100 $24,100 During September, the following summary transactions were […]

Gina Balistrieri opened Genie Cleaners on March 1, 2012. During March, the following transactions were completed. Mar. 1 Issued 10,000 shares of common stock for $15,000 cash. 1 Purchased used truck for $8,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,500 on account. 5 Paid $2,400 cash on a […]

The financial statements of Tootsie Roll are presented in Appendix A at the end of this book. Instructions (a) Using the consolidated income statement and balance sheet, identify items that may result in adjusting entries for deferrals. (b) Using the consolidated income statement, identify two items that may result in adjusting entries for accruals. (c) […]

The financial statements of The Hershey Company are presented in Appendix B, following the financial statements for Tootsie Roll in Appendix A. Instructions (a) Identify two accounts on Hershey”s balance sheet that provide evidence that Hershey uses accrual accounting. In each case, identify the income statement account that would be affected by the adjustment process. […]

The February 13, 2010, issue of the Wall Street Journal includes an article by Scott Thurm entitled “For Some Firms, a Case of ‘Quadrophobia”.” Instructions Read the article and answer the following. (a) What method did the study”s authors use to determine that companies were “managing” their earnings per share calculation? (b) For the average […]

Laser Recording Systems, founded in 1981, produces disks for use in the home market. The following is an excerpt from Laser Recording Systems” financial statements (all dollars in thousands). LASER RECORDING SYSTEMS Management Discussion Accrued liabilities increased to $1,642 at January 31, from $138 at the end of the previous fiscal year. Compensation and related […]

Purpose: To learn about the functions of the Securities and Exchange Commission (SEC). Address: www.sec.gov/about/whatwedo.shtml, or go to www.wiley.com/college/kimmel Instructions Use the information in this site to answer the following questions. (a) What event spurred the creation of the SEC? Why was the SEC created? (b) What are the four divisions of the SEC? Briefly […]

Council Bluff Park was organized on April 1, 2011, by Lori Delzer. Lori is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Lori prepared the following income statement for the quarter that ended March 31, 2012. COUNCIL BLUFF PARK Income Statement For the Quarter Ended March 31, […]

On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue because if this basis were used, it would mean that billions in unrecorded liabilities would have to be booked and the federal deficit would increase substantially. Instructions (a) What is the difference between […]

Prism Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing the sale of several of Prism”s chemical pesticides. During the coming year, Prism will have environmentally safe and competitive replacement chemicals to replace these discontinued products. Sales in the next year are expected to greatly exceed […]

Companies prepare balance sheets in order to know their financial position at a specific point in time. This enables them to make a comparison to their position at previous points in time and gives them a basis for planning for the future. In order to evaluate yourfinancial position, you can prepare a personal balance sheet. […]

GAAP: (a) provides very detailed, industry-specific guidance on revenue recognition, compared to the general guidance provided by IFRS. (b) provides only general guidance on revenue recognition, compared to the detailed guidance provided by IFRS. (c) allows revenue to be recognized when a customer makes an order. (d) requires that revenue not be recognized until cash […]

Dicker Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (overstated or understated). (a) Supplies of $400 are on hand. Supplies account shows Supplies account shows $1,600 balance. (b) Service Revenue earned but […]

Dicker Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (overstated or understated). (a) Supplies of $400 are on hand. Supplies account shows Supplies account shows $1,600 balance. (b) Service Revenue earned but […]

At the end of its first year, the trial balance of Jules Company shows Equipment ,000 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $2,750. Prepare the adjusting entry for depreciation at December 31, post the adjustments to T accounts, and indicate the balance sheet presentation […]

The bookkeeper for Forseth Company asks you to prepare the following accrual adjusting entries at December 31. (a) Interest on notes payable of $300 is accrued. (b) Service revenue earned but unbilled totals $1,700. (c) Salaries of $780 earned by employees have not been recorded. Use these account titles: Service Revenue, Accounts Receivable, Interest Expense, […]

The trial balance of LaGrace Company includes the following balance sheet accounts. Identify the accounts that might require adjustment. For each account that requires adjustment, indicate (1) the type of adjusting entry (prepaid expenses, unearned revenues, accrued revenues, and accrued expenses) and (2) the related account in the adjusting entry. (a) Accounts Receivable. (b) Prepaid […]

The adjusted trial balance of Hanlon Corporation at December 31, 2012, includes the following accounts: Retained Earnings ,200; Dividends $6,000; Service Revenue $32,000; Salaries and Wages Expense $14,000; Insurance Expense $1,800; Rent Expense $3,900; Supplies Expense $1,500; and Depreciation Expense $1,000. Prepare an income statement for the year.

The following selected accounts appear in the adjusted trial balance for Cohen Company. Indicate the financial statement on which each account would be reported. (a) Accumulated Depreciation. (b) Depreciation Expense. (f ) Supplies. (c) Retained Earnings (beginning). (d) Dividends. (e) Service Revenue. (g) Accounts Payable.

The income statement for the Timberline Golf Club Inc. for the month ended July 31 shows Service Revenue $16,000; Salaries and Wages Expense $8,400; Maintenance and Repairs Expense $2,500; and Income Tax Expense Income Tax Expense $1,000. The statement of retained earnings shows an opening balance for Retained Earnings of $20,000 and Dividends $1,300. (a) […]

The required steps in the accounting cycle are listed in random order below. List the steps in proper sequence. (a) Prepare a post-closing trial balance. (b) Prepare an adjusted trial balance. (c) Analyze business transactions. (d) Prepare a trial balance. (e) Journalize the transactions. (f ) Journalize and post closing entries. (g) Prepare financial statements. […]

The following selected accounts appear in the adjusted trial balance for Cohen Company. Indicate the financial statement on which each account would be reported. (a) Accumulated Depreciation. (b) Depreciation Expense.. (c) Retained Earnings (beginning) (d) Dividends. (e) Service Revenue. (g) Accounts Payable. (f ) Supplies

The ledger of Witzling, Inc. on March 31, 2012, includes the following selected accounts before adjusting entries. Debit Credit Prepaid Insurance 2,400 Supplies 2,500 Equipment 30,000 Unearned Service Revenue 10,000 An analysis of the accounts shows the following: 1. Insurance expires at the rate of $300 per month. 2. Supplies on hand total $900. 3. […]

The following independent situations require professional judgment for determining when to recognize revenue from the transactions. (a) Southwest Airlines sells you an advance-purchase airline ticket in September for your flight home at Christmas. (b) Ultimate Electronics sells you a home theatre on a “no money down and full payment in three months” promotional deal. (c) […]

These are the assumptions, principles, and constraints discussed in this and previous chapters. Economic entity assumption. 6. Materiality constraint. Expense recognition principle. 7. Full disclosure principle. Monetary unit assumption. 8. Going concern assumption. Periodicity assumption. 9. Revenue recognition principle. Cost principle. 10. Cost constraint. Instructions Identify by number the accounting assumption, principle, or constraint that […]

Your examination of the records of a company that follows the cash basis of accounting tells you that the company”s reported cash basis earnings in 2012 are $33,640. If this firm had followed accrual basis accounting practices, it would have reported the following year-end balances. 2012 2011 Accounts receivable $3,400 $2,800 Supplies on hand 1,300 […]

In its first year of operations, Lazirko Company earned ,000 in service revenue, $6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers. The company incurred operating expenses of $15,800. Of these expenses, $12,000 were paid in cash; $3,800 was still owed on account at […]

KidVid, a maker of electronic games for kids, has just completed its first year of operations. The company”s sales growth was explosive. To encourage large national stores to carry its products, KidVid offered 180-day financing—meaning its largest customers do not pay for nearly 6 months. Because KidVid is a new company, its components suppliers insist […]

Stagg Advertising Company“s trial balance at December 31 shows Supplies ,800 and Supplies Expense $0. On December 31 there are $1,100 of supplies on hand. Prepare the adjusting entry at December 31 and, using T accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.

Revisit the June 22 transaction described in Question 4.3. Now, two additional provisions have been added—a commission and an allowance for nonpayment. You ship 3,500 NCDs on June 22 to OEM Communications for a gross price of $26 per unit to be paid within 30 days. A commission of 20 percent is payable to Lavalier […]

You ship 9,500 NCDs on September 22 to OEM Communications for a gross price of $27.50 per unit to be paid within 30 days. A commission of 20 percent is payable to Lavalier Sales and Marketing (Channel Islands). Based on the prior experience of Lavalier Corporation, you predict that 3 percent of the sale is […]

You sell 10,000 NCDs on October 25 to Excellent Acoustics for $26 against a cash payment in full. Lavalier Sales and Marketing (Channel Islands) was not involved in the transaction, so no commission is payable. Despite the advance payment, you decide to expense for uncollectibles anyway. You decide to reserve 4 percent of sales as […]

Micro Computer Services Inc. began operations on August 1, 2010. At the end of August 2010, management attempted to prepare monthly financial statements. The following information relates to August. 1. At August 31 the company owed its employees $800 in salaries that will be paid on September 1. 2. On August 1 the company borrowed […]

What is the time period assumption? (a) Companies should recognize revenue in the accounting period in which it is earned. (b) Companies should match expenses with revenues. (c) The economic life of a business can be divided into artificial time periods. (d) The fiscal year should correspond with the calendar year.

The ledger of Thurston Rental Agency on March 31 of the current year includes these selected accounts before adjusting entries have been prepared. Debits Credits Prepaid Insurance $3,600 Supplies $3,000 Equipment 25,000 Accumulated Depreciation—Equipment 8,400 Notes Payable 20,000 Unearned Rent Revenue 10,200 Rent Revenue 60,000 Interest Expense 0 Wage Expense 14,000 An analysis of the […]

Mark Bennett, D.D.S., opened an incorporated dental practice on January 1, 2010. During the first month of operations the following transactions occurred: 1. Performed services for patients who had dental plan insurance. At January 31, $680 of such services was earned but not yet billed to the insurance companies. 2. Utility expenses incurred but not […]

The income statement of Marx Co. for the month of July shows net income of $1,500 based on Service Revenue $5,500; Wages Expense $2,300; Supplies Expense $900, and Utilities Expense $800. In reviewing the statement, you discover the following: 1. Insurance expired during July of $350 was omitted. 2. Supplies expense includes 0 of supplies […]

The financial statements of Tootsie Roll are presented in Appendix A at the end of this book. Instructions (a) Using the consolidated income statement and balance sheet, identify items that may result in adjusting entries for prepayments. (b) Using the consolidated income statement, identify two items that may result in adjusting entries for accruals. (c) […]

The financial statements of Hershey Foods are presented in Appendix B, following the financial statements for Tootsie Roll in Appendix A. Instructions (a) Identify two accounts on Hershey Foods’ balance sheet that provide evidence that Hershey uses accrual accounting. In each case, identify the income statement account that would be affected by the adjustment process. […]

The August 16, 2007, issue of the Wall Street Journalincludes an article by Michael Corkery and David Reilly titled “Beazer’s Accounting Woes Extend Roller-Coaster Ride.” Instructions Read the article and answer the following. (a) Explain what is meant by cookie-jar accounting? Why might a company engage in cookie-jar accounting? (b) The article says the company […]

Laser Recording Systems, founded in 1981, produces disks for use in the home market. The following is an excerpt from Laser Recording Systems’ financial statements (all dollars in thousands). Instructions (a) Can you tell from the discussion whether Laser Recording Systems has prepaid its legal expenses and is now making an adjustment to the asset […]

On numerous occasions proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue because if this basis were used, it would mean that billions in unrecorded liabilities would have to be booked and the federal deficit would increase substantially. Instructions (a) What is the difference between […]

Diamond Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing the sale of several of Diamond’s chemical pesticides. During the coming year, Diamond will have environmentally safe and competitive replacement chemicals to replace these discontinued products. Sales in the next year are expected to greatly exceed […]

Companies prepare balance sheets in order to know their financial position at a specific point in time. This enables them to make a comparison to their position at previous points in time and gives them a basis for planning for the future. In order to evaluate yourfinancial position, you can prepare a personal balance sheet. […]

The ledger of Hammond, Inc., on March 31, 2010, includes these selected accounts before adjusting entries are prepared. Debit Credit Prepaid Insurance $3,600 Office Supplies 2,800 Office Equipment 25,000 Accumulated Depreciation—Office Equipment $5,000 Unearned Service Revenue 9,200 An analysis of the accounts shows the following. 1. Insurance expires at the rate of $100 per month. […]

Skolnick Co. was organized on April 1, 2010. The company prepares quarterly financial statements. The adjusted trial balance amounts at June 30 are shown below: Debits Credits Cash $6,700 Accumulated Depreciation—Equipment $850 Accounts Receivable 600 Notes Payable 5,000 Prepaid Rent 900 Accounts Payable 1,510 Supplies 1,000 Salaries Payable 400 Equipment 15,000 Interest Payable 50 Dividends […]

Terry Thomas and a group of investors incorporate the Green Thumb Lawn Care Corporation on April 1. At April 30 the trial balance shows the following balances for selected accounts. Prepaid Insurance $3,600 Equipment 28,000 Notes Payable 20,000 Unearned Service Revenue 4,200 Service Revenue 1,800 Analysis reveals the following additional data pertaining to these accounts. […]

The trial balance shows Supplies trial balance shows Supplies $1,350 and Supplies Expense Supplies Expense $0. If $600 of supplies are on hand at the end of the period, the adjusting entry is: a Supplies 600 Supplies Expense 600 b Supplies 750 Supplies Expense 750 c Supplies Expense 750 Supplies 750 d Supplies Expense 600 […]

Queenan Company computes depreciation on delivery equipment at $1,000 for the month of June. The adjusting entry to record this depreciation is as follows: a Depreciation Expense $1,000 Accumulated Depreciation Queenan Company 1000 b Depreciation Expense 1000 Delivery Equipment 1,000 c Depreciation Expense 1000 Accumulated Depreciation Delivery Equipment 1,000 d Delivery Equipment Expense 1000 Accumulated […]

Transactions that affect earnings do not necessarily affect cash. Instructions Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example. Cash $100 0 (a)Purchased $100 of supplies for cash. (b) Recorded an adjusting entry to record use of […]

CE7-4 The controller for Nesheim Construction Company believes that it is appropriate to offset a note payable to Oregon Bank against an account receivable from Oregon Bank related to remodeling services provided to the bank. What is the authoritative guidance concerning the criteria to be met to allow such offsetting?

In what accounts should the following items be classified? (a) Coins and currency. (b) U.S. Treasury (government) bonds. (c) Certificate of deposit. (d) Cash in a bank that is in receivership. (e) NSF check (returned with bank statement). (f) Deposit in foreign bank (exchangeability limited). (g) Postdated checks. (h) Cash to be used for retirement […]

Because of calamitous earthquake losses, Bernstein Company,one of your client”s oldest and largest customers, suddenly and unexpectedly became bankrupt. Approximately 30% of your client”s total sales have been made to Bernstein Company during each of the past several years. The amount due from Bernstein Company—none of which is collectible—equals 22% of total accounts receivable, an […]

On January 1, 2012, Lombard Co. sells property for which it had paid $690,000 to Sargent Company, receiving in return Sargent”s zero-interest-bearing note for $1,000,000 payable in 5 years. What entry would Lombard make to record the sale, assuming that Lombard frequently sells similar items of property for a cash sales price of $640,000?

Moon Hardware is planning to factor some of its receivables. The cash received will be used to pay for inventory purchases. The factor has indicated that it will require “recourse” on the sold receivables. Explain to the controller of Moon Hardware what “recourse” is and how the recourse will be reflected in Moon”s financial statements […]

Horizon Outfitters Company includes in its trial balance for December 31 an item for Accounts Receivable $789,000. This balance consists of the following items: Due from regular customers $523,000 Refund receivable on prior year’s income taxes (an established claim) 15,500 Travel advance to employees 22,000 Loan to wholly owned subsidiary 45,500 Advances to creditors for […]