Questions from General Accounting

Q: At the beginning of the current season, the ledger of Connors’

At the beginning of the current season, the ledger of Connors’ Tennis Shop showed Cash $3,500; Inventory $1,700; and Common Stock $5,200. The following transactions were completed during April 2014. A...

Q: Parker Department Store is located near the Mark Twain Shopping Mall.

Parker Department Store is located near the Mark Twain Shopping Mall. At the end of the company’s fiscal year on December 31, 2014, the following accounts appeared in its adjusted trial balance. Accou...

Q: An inexperienced accountant prepared this condensed income statement for Wright Company,

An inexperienced accountant prepared this condensed income statement for Wright Company, a retail firm that has been in business for a number of years. WRIGHT COMPANY Income Statement For the Year En...

Q: The trial balance of Buse’s Fashion Center contained the accounts below at

The trial balance of Buse’s Fashion Center contained the accounts below at November 30, the end of the company’s fiscal year. Adjustment data: 1. Store supplies o...

Q: At the end of Alma’s Department Store’s fiscal year on December 31

At the end of Alma’s Department Store’s fiscal year on December 31, 2014, these accounts appeared in its adjusted trial balance. Freight-In ………………………………………………………. $ 7,200 Inventory (beginning) ………………...

Q: Sandy Melon operates a clothing retail operation. She purchases all inventory

Sandy Melon operates a clothing retail operation. She purchases all inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory purchases onl...

Q: At the beginning of the current season on November 1, the

At the beginning of the current season on November 1, the ledger of Winona Sports showed Cash $3,300, Inventory $4,700, and Common Stock $8,000. The following transactions occurred during November 201...

Q: Nickels Company reports net income of $92,000 in 2014

Nickels Company reports net income of $92,000 in 2014. However, ending inventory was understated by $7,000. What is the correct net income for 2014? What effect, if any, will this error have on total...

Q: Lifetime Distribution markets classic children’s books. At the beginning of June

Lifetime Distribution markets classic children’s books. At the beginning of June, Lifetime had in beginning inventory 1,200 books with a unit cost of $3. During June, Lifetime made the following purch...

Q: Smythe Company Inc. had a beginning inventory of 200 units of

Smythe Company Inc. had a beginning inventory of 200 units of Product ERV at a cost of $6 per unit. During the year, purchases were: Smythe Company uses a periodic inventory system. Sales totaled 1,...