Question: A hurricane destroyed the inventory of Coleman

> Determine whether the following items in China Imports’ bank reconciliation require adjusting or correcting entries on China Imports’ books. When an entry is required, record it in general journal format. a. The bank statement indicated that China Import

> The following data apply to Woods Sports Inc. for April Year 1: 1. Balance per the bank on April 30: $13,750. 2. Deposits in transit not recorded by the bank: $3,600. 3. Bank error; check written by Glen Woods on his personal checking account was drawn o

> Bill Lewis owns a construction business, Lewis Supply Co. The following cash information is available for the month of October Year 1. As of October 31, the bank statement shows a balance of $21,400. The October 31 unadjusted balance in the Cash account

> Connie Stevens is a partner in a regional accounting firm. Stevens was hired by a client to audit the company’s books. After extensive work, Stevens determined that she was unable to perform the appropriate audit procedures. Required: a. Name the type o

> The following data pertain to the petty cash fund of Marsh Company: 1. The petty cash fund was established on an imprest basis at $250 on March 1. 2. On March 31, a physical count of the fund disclosed $13 in currency and coins, vouchers authorizing meal

> The following is a bank reconciliation for BBQ Express for May 31, Year 1: Because of limited funds, BBQ Express employed only one accountant who was responsible for receiving cash, recording receipts and disbursements, preparing deposits, and preparin

> After reconciling its bank account, Addy Equipment Company made the following adjusting entries: Required: Identify the event depicted in each journal entry as an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also exp

> The following information is available for Pyle Garage for March Year 1: The following is a list of checks and deposits recorded on the books of Pyle Garage for March Year 1: Other Information 1. Check no. 1462 was outstanding from February. 2. A cre

> Austin Co. established a petty cash fund by issuing a check for $300 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month: There was $21 of currency in the petty cash box at the tim

> Following is a bank reconciliation for Zocar Enterprises for June 30, Year 1: When reviewing the bank reconciliation, Zocar’s auditor was unable to locate any reference to the NSF check on the bank statement. Furthermore, the clerk wh

> The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: 1. Inventory that had cost $21,200 was sold for $39,900 under terms 2/20, net/30. 2. Customers returned merchandise to Ozark five days after the purchase. The

> After reconciling its bank account, Watson Company made the following adjusting entries: Required: Identify the event depicted in each journal entry as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how ea

> The following information is available for Park Valley Spa for July Year 1: The following is a list of checks and deposits recorded on the books of the Park Valley Spa for July Year 1: Other Information 1. Check no. 2350 was outstanding from June. 2.

> Determine whether the following items included in Wong Company’s January Year 1 bank reconciliation will require adjusting or correcting entries on Wong’s books. When an entry is required, record it in general journal format. a. Service charges of $50 fo

> The following data apply to Pro Beauty Supply Inc. for May Year 1: 1. Balance per the bank on May 31: $9,150. 2. Deposits in transit not recorded by the bank: $1,510. 3. Bank error; check written by Best Beauty Supply was charged to Pro Beauty Supply&aci

> Rick Hall owns a card shop: Hall’s Cards. The following cash information is available for the month of August Year 1. As of August 31, the bank statement shows a balance of $16,140. The August 31 unadjusted balance in the Cash account of Hall’s Cards is

> The bank statement of Hibbert Supplies included a $300 NSF check that one of Hibbert’s customers had written to pay for services that were provided by Hibbert. Required: a. Show the effects of recognizing the NSF check on the financial

> a. Name and describe the two categories of internal controls. b. What is the purpose of internal controls?

> a. Explain what the acronym SOX refers to. b. Define the acronym COSO and explain how it relates to SOX. c. Name and briefly define the five components of COSO’s internal control framework. d. Define the acronym ERM and explain how it relates to COSO’s i

> Payton Inc. established a petty cash fund of $150 on January 2. On January 31, the fund contained cash of $8.20 and vouchers for the following cash payments: The three distinct accounting events affecting the petty cash fund for the period were (1) est

> Mountain Timber Company established a $180 petty cash fund on January 1, Year 1. Required: a. Is the establishment of the petty cash fund an asset source, use, or exchange transaction? b. Show the establishment of the petty cash fund in a horizontal sta

> The following information was taken from the accounts of Green Market, a small grocery store, at December 31, Year 1. The accounts are listed in alphabetical order, and all have normal balances. Dollar amounts are given in thousands. First, prepare an

> Burson Company had an unadjusted cash balance of $8,120 as of April 30. The company’s bank statement, also dated April 30, included a $200 NSF check written by one of Burson’s customers. There were $1,525 in outstanding checks and $900 in deposits in tra

> The following information is available for Jenkins Company for the month of August: 1. The unadjusted balance per the bank statement on August 31 was $35,200. 2. Deposits in transit on August 31 were $3,750. 3. A debit memo was included with the bank sta

> As of May 31, Year 1, the bank statement showed an ending balance of $26,100. The unadjusted Cash account balance was $27,350. The following information is available: 1. Deposit in transit: $6,981. 2. Credit memo in bank statement for interest earned in

> Fresh Foods established a petty cash fund of $100 on January 2. On January 31, the fund contained cash of $9.20 and vouchers for the following cash payments: The three distinct accounting events affecting the petty cash fund for the period were (1) est

> Chen Company established a $200 petty cash fund on January 1, Year 1. Required: a. Is the establishment of the petty cash fund an asset source, use, or exchange transaction? b. Show the establishment of the petty cash fund in a horizontal statements mod

> The following information is available for Trinkle Company for the month of June: 1. The unadjusted balance per the bank statement on June 30 was $81,500. 2. Deposits in transit on June 30 were $3,150. 3. A debit memo was included with the bank statement

> As of June 30, Year 1, the bank statement showed an ending balance of $19,500. The unadjusted Cash account balance was $15,200. The following information is available: 1. Deposit in transit: $2,400. 2. Credit memo in bank statement for interest earned in

> a. Why are special controls needed for cash? b. What is included in the definition of cash?

> Assume you are the owner of a small business that has only two employees. a. Which of the internal control procedures are most important to you? b. How can you overcome the limited opportunity to use the segregation-of-duties control procedure?

> List and describe nine features of a strong internal control system discussed in this chapter.

> In Year 1, Kim Company sold land for $80,000 cash. The land had originally cost $60,000. Also, Kim sold inventory that had cost $110,000 for $198,000 cash. Operating expenses amounted to $36,000. Required: a. Prepare a Year 1 multistep income statement

> a. Discuss the requirements of Section 404 of the Sarbanes– Oxley Act and how it relates to COSO. b. What type of companies do these rules apply to?

> The trial balance of Pacilio Security Services, Inc. as of January 1, Year 6, had the following normal balances: During Year 6, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 5. 2. On March 1, Y

> The following cash and bank information is available for three companies at June 30, Year 1: Required: a. Organize the class into three sections and divide each section into groups of three to five students. Assign Peach Co. to section 1, Apple Co. to

> Obtain the Target Corporation’s annual report at http://investors.target.com using the instructions in Appendix B, and use it to answer the following questions: a. Who are the independent auditors for Target? b. What type of opinion did the independent a

> Using the most current annual report available on the company’s website, answer the following questions about the J. M. Smucker Company. Required: a. Instead of “Cash,” the company’s balance sheet uses the account name “Cash and cash equivalents.” How d

> The statement of financial position (balance sheet) of Omni-Pave Company reports assets of $7,800,000. Ellen Martin advises you that a major accounting firm has audited the statements and attested that they were prepared in accordance with generally acce

> The accounting firm of Eckert & Bell, CPAs, recently completed the audits of three separate companies. During these audits, the following events were discovered, and Eckert & Bell is trying to decide if each event is material. If an item is material, the

> The following excerpt was taken from Alphabet, Inc.’s 10-K report for its 2016 fiscal year. Alphabet, Inc. is the parent company of Google, Inc. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Our management, with the participati

> What is a situation in which estimates of the amount of inventory may be useful or even necessary?

> Assume that inventory is overstated by $1,500 at the end of Year 1 but is corrected in Year 2. What effect will this have on the Year 1 income statement? The Year 1 balance sheet? The Year 2 income statement? The Year 2 balance sheet?

> The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows: The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $15,000. 2. The goods in Event 1 we

> If the amount of goods available for sale is $123,000, the amount of sales is $130,000, and the gross margin is 25 percent of sales, what is the amount of ending inventory?

> How can management manipulate net income using inventory fraud?

> The following accounting information pertains to Mobile and Casper companies. The only difference between the two companies is that Mobile uses FIFO, while Casper uses LIFO. Required: a. Compute the gross margin percentage for each company and identify

> The following income statement was prepared for Rice Company for Year 1: During the year-end audit, the following errors were discovered: 1. An $1,800 payment for repairs was erroneously charged to the Cost of Goods Sold account. (Assume that the perpe

> Sam Todd, owner of Todd Company, is reviewing the quarterly financial statements and thinks the cost of goods sold is out of line with past years. The following historical data are available for Year 1 and Year 2: At the end of the first quarter of Yea

> At the end of the year, Ronaldo Jewelers had the following items in inventory: Required: a. Determine the amount of ending inventory using the lower-of-cost-or market rule applied to each individual inventory item. b. Provide the general journal entry

> Donovan, Inc. had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 120 items at $80 each. Donovan uses the FIFO cost flow assumption and keeps perpetual inventory records. Required: a. Record the inventory t

> The accounting records of Allen Insulation, Inc. reflected the following balances as of January 1, Year 2: The following five transactions occurred in Year 2: 1. First purchase (cash)    â&#12

> Pam’s Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 60 items at $350 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records. Required: a

> Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $70,000 cash from the issue of common stock. 2. Paid $41,000 cash to purchase inventory. 3. Sold inventory costing $37,500 fo

> The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 2: The following five transactions occurred in Year 2: 1. First purchase (cash): 150 units @ $155 2. Second purchase (cash): 160 units

> The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO. Required: a. Compute the gross margin percentage for each

> The following income statement was prepared for Frame Supplies for Year 1: During the year-end audit, the following errors were discovered: 1. A $2,500 payment for repairs was erroneously charged to the Cost of Goods Sold account. (Assume that the perp

> Toyland wishes to produce quarterly financial statements, but it takes a physical count of inventory only at year-end. The following historical data were taken from the Year 1 and Year 2 accounting records: At the end of the first quarter of Year 3, To

> The inventory of Don’s Grocery was destroyed by a tornado on October 6 of the current year. Fortunately, some of the accounting records were at the home of one of the owners and were not damaged. The following information was available

> At the end of the year, Randy’s Parts Co. had the following items in inventory: Required: a. Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each individual inventory item. b. Provide the gen

> Marley Company sells coffee makers used in business offices. Its beginning inventory of coffee makers was 400 units at $50 per unit. During the year, Marley made two batch purchases of coffee makers. The first was a 500-unit purchase at $55 per unit; the

> Harris Co. started the year with no inventory. During the year, it purchased two identical inventory items. The inventory was purchased at different times. The first purchase cost $3,600 and the other, $4,200. One of the items was sold during the year.

> Po River Winery Inc. has inventory that cost $500,000. The aging process for the inventory requires several years. At the company’s closing date (December 31, Year 1), the inventory had a market value of $400,000. During Year 2, the market value recovere

> The following note related to accounting for inventory was taken from the 2016 annual report of Wal-Mart Stores, Inc.: Inventories The Company values inventories at the lower of cost or market as determined primarily by the retail inventory method of acc

> The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $60,000 cash from the issue of common stock. 2. Purchased $65,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cos

> Obtain the Target Corporation’s annual report at http://investors.target.com using the instructions in Appendix B, and use it to answer the following questions: a. What was Target’s gross margin percentage for the fiscal year ended January 28, 2017 (2016

> 1. What is motivation? 2. Why is understanding motivation important?

> 1. How is the National Labor Relations Act different from the Fair Labor Standards Act? 2. How does the Civil Rights Act influence the selection and promotion of employees? 3. What is the Occupational Safety and Health Act? 4. What is the purpose of the

> 1. What is the difference between employee training and management development? 2. What are the primary training and development methods used by firms?

> 1. Identify the major compensation decisions that HRM managers make. 2. What are the different forms of compensation? 3. What are the major types of employee benefits? 4. How do flexible benefit plans work?

> 1. What are the differences between internal and external recruiting? 2. Under what conditions are each one of them used? 3. Identify and briefly describe the types of practices and tools that are used in the selection process.

> 1. What is job analysis? 2. What is job specification? 3. How can it be used to hire the right person for the job?

> 1. What is cultural diversity in an organization? 2. What are some of the benefits and challenges of cultural diversity in an organization?

> 1. How do firms forecast the demand for human resources? 2. What are the techniques used to forecast human resources supply? 3. To match human resources supply and demand, how is attrition used?

> 1. What are the three phases of human resources management? 2. Identify the activities associated with each phase. 3. How does the responsibility of HRM change with the size of a firm?

> 1. What are the main objectives of performance appraisal? 2. What methods are used? 3. Describe the three approaches to performance feedback interviews.

> Identify and describe the major types of teams.

> 1. What effect does low turnover have on the Container Store’s ability to forecast human resources supply and match supply with demand? 2. Do you agree with the Container Store’s decision to allow employees access to all kinds of company information exce

> Select the correct answer. 1. T F A product's classification largely determines the appropriate marketing strategy. 2. T F The most important element in the success of a branded product is consumers' confi- dence in the product. 3. T F If a firm is

> Select the correct answer. 1. T F Business-to-business markets, which include churches, schools, and civic clubs, are a type of industrial market. 2. T F Sales forecasts usually are generated by complex software and should not be biased by manageria

> Select the correct answer. 1. T F The way an employee feels about his or her job, superiors, and place of work is called morale. 2. T F Herzberg recognized only two dimensions: motivation and hygiene. 3. T F Equity theory is based on the idea that e

> Select the correct answer. 1. T F The three phases of human resources management are acquiring, developing, and termi- nating human resources. 2. T F Perhaps the most humane method of reducing the size of a firm's workforce is through attrition. 3.

> Select the correct answer. 1. T F Financial planning begins with establishing a set of valid goals and objectives. 2. T F Debt capital is financing provided by the owner or owners of the business. 3. T F Commercial paper is a short-term promissory n

> Select the correct answer. 1. T F As a result of the Sarbanes-Oxley Act, the FDIC is responsible for establishing a full-time federal oversight board that will police the accounting industry. 2. T F A database is a single collection of data and info

> Select the correct answer. 1. T F Sentiment analysis is a quantitative social media measurement. 2. T F Each source of revenue flowing into a firm is referred to as a revenue stream. 3. T F The terms e-commerce and e-business are synonymous. 4. T F

> Select the correct answer. 1. T F The most direct channel of distribution is from a producer to a retailer to the consumer. 2. T F Producers utilizing intensive distribution place many requirements, including inventory levels and service quality, on

> Circle the letter before the most accurate answer. 6. Which of the following is not one of the four commonly recognized forms of utility? a. Form b. Time c. Production d. Place e. Possession 7. When goods and services are purchased to maintain highways,

> What are the major requirements for a group of individuals and organizations to be a market? How does a consumer market differ from a business-to-business market?

> Circle the letter before the most accurate answer. 6. Motivation is the internal process that __________, directs, and sustains behavior. a. irritates b. energizes c. inspects d. satisfies e. manages 7. The application of scientific principles to the man

> Circle the letter before the most accurate answer. 6. The activities involved in acquiring, maintaining, and developing an organization’s human resources are called a. human resources management. b. human resources planning. c. skills inventory. d. recru

> Circle the letter before the most accurate answer. 6. A budgeting approach in which every expense in every budget must be justified is referred to as __________ budgeting. a. zero-base b. financial-based c. traditional d. TQM e. efficient-market 7. The m

> Circle the letter before the most accurate answer. 6. A _______ is a measure that summarizes a particular characteristic of an entire group of numbers. a. pie chart b. statistic c. database d. datum e. tabular display 7. If assets total $125,000 and owne

> Circle the letter before the most accurate answer. 6. A type of computer usage in which services stored on the Internet are provided to users on a temporary basis is known as a. data mining. b. cloud computing. c. a cookie. d. crowdsourcing. e. malware.

> Circle the letter before the most accurate answer. 6. A middleman that takes title to products and then sells the products to other firms is commonly referred to as a(n) a. retailer. b. agent. c. producer. d. wholesaler. e. commissioner. 7. __________ ma

> Circle the letter before the most accurate answer. 6. All of the following are characteristics of the decline stage of the product life-cycle except a. a sharp decrease in sales volume. b. a decline in the number of competing firms. c. increased consumer

> Select the correct answer. 1. T F When buyers, sellers, marketing intermediaries, and facilitating agencies work together, the cooperative relationship results in compromise and adjustments that meet customer needs. 2. T F The most expensive promoti

> Select the correct answer. 1. T F Generally, the product life-cycle consists of five stages: development, introduction, growth, maturity, and decline. 2. T F A narrow product mix allows a firm to gain stability by concentrating on just a few markets

> Select the correct answer. 1. T F Influences in a society and its culture that result in changes in attitudes, beliefs, norms, customers, and lifestyles are known as economie forces. 2. T F The business philosophy that involves the entire organizati

> 1. Social Media Exercise 1. Visit the YouTube channel for Turbo Tax (www.youtube.com/user/TurboTax). Do you think social media is an effective method of obtaining the tax information you might need to prepare your taxes? 2. Can you think of other compani

> Select the correct answer. 1. T F Motivation is the internal process that energizes, directs, and sustains behavior. 2. T F A main discovery of the Hawthorne Studies was that human factors are at least as im- portant to motivation as pay rates. 3. T