Question: As described in a recent annual report,

> For each of the transactions in M4-6, indicate the amounts and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate + for increase, − for decreas

> Makani Corporation is planning to issue bonds with a face value of $800,000 and a coupon rate of 4 percent. The bonds mature in two years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. M

> Ethan Allen Interiors Inc. is a leading interior design company and manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Ethan Allen’s recent annual financial statements for fiscal year ending on Ju

> Prepare journal entries for each transaction listed. a. During the period, bad debts are written off in the amount of $14,500. b. At the end of the period, bad debt expense is estimated to be $16,000.

> Matching Definitions with Terms Match each definition with its related term by entering the appropriate letter in the space provided.

> Preparing a Trial Balance Nash Company has the following adjusted accounts and balances at year-end (June 30): Prepare an adjusted trial balance in good form for the Nash Company at June 30.

> Zion Company earned $6.50 per share and paid dividends of $3.50 per share. The company reported a dividend yield of 5 percent. What was the price of the stock?

> For each of the following events, which ones result in an exchange transaction for Dittman Company (Y for yes and N for no)? (1) Six investors in Dittman Company sold their stock to another investor. (2) The founding owner, Megan Dittman, purchased addit

> In the current year, Salmon Company reported sales of $1,420,000, interest expense of $12,000, income tax expense of $13,000, and net income of $52,000. What is Salmon’s times interest earned ratio?

> Compute the return on asset ratio for Year 2 given the following data:

> Skykomish Corporation purchased 20,000 shares of its own stock from investors for $45 per share. The next year, the company resold 5,000 of the repurchased shares for $50 per share, and the following year it resold 10,000 of the repurchased shares for $3

> Wapato Company sold bonds with a face value of $850,000 for $909,701. The bonds have a coupon rate of 8 percent, mature in 10 years, and pay interest annually every December 31. All of the bonds were sold on January 1 of this year. Using a premium accoun

> Oak Corporation’s financial statements for the current year showed the following: Compute Oak’s times interest earned ratio.

> Zues Corporation is planning to issue bonds with a face value of $800,000 and a coupon rate of 4 percent. The bonds mature in two years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Zue

> Alana Company sold bonds with a face value of $600,000 for $580,000. The bonds have a coupon rate of 10 percent, mature in 10 years, and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Record

> Alana Company sold bonds with a face value of $600,000 for $580,000. The bonds have a coupon rate of 10 percent, mature in 10 years, and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Using

> Wapato Company sold bonds with a face value of $850,000 for $909,701. The bonds have a coupon rate of 8 percent, mature in 10 years, and pay interest annually every December 31. All of the bonds were sold on January 1 of this year. Record the sale of the

> What is the present value of $500,000 to be paid in 10 years? The annual interest rate is 8 percent.

> Danali Corporation borrowed $290,000 on October 1. The note carried a 10 percent interest rate with the principal and interest payable on May 1 of next year. Prepare the journal entry to record the note on October 1. Prepare the adjusting entry to record

> Match each definition with its related term by entering the appropriate letter in the space provided. There should be only one definition per term (that is, there are more definitions than terms).

> Rainier Company borrowed $600,000 for three months. The annual interest rate on the loan was 11 percent. Rainiers fiscal year ends on December 31. Rainier borrowed the $600,000 one month prior to the end of its current fiscal year and paid back the $600,

> The following information was reported by Young’s Air Cargo Service for 2020: Compute the company’s fixed asset turnover ratio (rounded to two decimal places) for the year. What can you say about Youngâ€&#15

> JCPenney Company, Inc., is a major department store chain. The dominant portion of the company’s business consists of providing merchandise and services to consumers through department stores and online. In a prior annual report, JCPenney reported cost o

> Refer to M4-8. Prepare a statement of stockholders’ equity in good form for the current year. Beginning balances for stockholders’ equity accounts are: Common stock, $30; Additional paid-in capital, $670; and Retained

> Enchantment Corporation is planning to issue bonds with a face value of $400,000 and a coupon rate of 4 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of thi

> Refer to M4-4 and M4-6. Explain how the year-end adjustments affect the operating, investing, and financing activities on the statement of cash flows for Catena’s Marketing Company.

> For the transactions in M2-6 (including the sample), identify each as an investing (I) activity or financing (F) activity on the statement of cash flows for January. M2-6: For each of the following transactions of JonesSpa Corporation for the month of J

> Refer to the adjusted trial balance for Catena’s Marketing Company in M4-8. Prepare the closing entry at the end of the current year. M4-8:

> Refer to M4-8. Prepare a classified balance sheet in good form for the end of the current year. M4-8:

> Complete M2-10 and then prepare a trial balance for JonesSpa Corporation as of January 31. M2-10:

> For each transaction in M2-6 (including the sample), post the effects to the appropriate T-accounts and determine ending account balances. Beginning balances are provided. M2-6: For each of the following transactions of JonesSpa Corporation for the mont

> Match each definition with its related term by entering the appropriate letter in the space provided. There should be only one definition per term (that is, there are more definitions than terms).

> At the end of a recent year, The Gap, Inc., reported total assets of $13,679 million, current assets of $4,516 million, total liabilities of $10,363 million, current liabilities of $3,209 million, and stockholders’ equity of $3,316 million. What is its c

> 4. The two components of the return on asset ratio are a. Gross profit margin ratio and return on equity ratio. b. Net profit margin ratio and earnings per share ratio. c. Net profit margin ratio and total asset turnover ratio. d. Return on equity ratio

> 4. Brad & Kelly Company has borrowed $100,000 from the bank to be repaid over the next five years, with payments beginning next month. Which of the following best describes the presentation of this debt in the balance sheet as of today (the date of borro

> On January 1 of this year, Phoebe Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Phoebe uses the effective-interest amortization method. The partially completed amortization schedule b

> Which of the following is false regarding a perpetual inventory system? a. Physical counts are not needed because records are maintained on a transaction-by-transaction basis. b. The balance in the inventory account is updated with each inventory purchas

> 3. On October 1, 2023, the $12,000 premium on a one-year insurance policy for the building was paid and recorded as Prepaid Insurance Expense. On December 31, 2023 (end of the accounting period), what adjusting entry is needed? 4. On June 1, 2022, Oakcre

> Refer to E4-3 and E4-5. Required: For each of the transactions in E4-3 and E4-5, indicate the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate + for

> Trotman’s Variety Store is completing the accounting process for the current year just ended, December 31. The transactions during the year have been journalized and posted. The following data with respect to adjusting entries are available: a. Wages ear

> Preparing an Income Statement Sysco Corp. is one of the nation’s leading distributors of food and related products to restaurants, universities, hotels, and other customers. A simplified version of its recent income statement contained

> Analyzing Revenues and Expenses and Preparing an Income Statement Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of the current year, you find (for January only) this informati

> Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Required: Compute ending inventory and cost of goods s

> Procter & Gamble is a multinational corporation that manufactures and markets many household products. In a recent year, sales for the company were $83,062 (all amounts in millions). The annual report did not disclose the amount of credit sales, so w

> Compute the component percentages for Trixy Magic’s income statement below. Discuss any trends you observe.

> Cintas designs and manufactures uniforms for corporations throughout the United States and Canada. The company’s stock is traded on the NASDAQ. Selected information from the company’s financial statements follows. Requ

> Last year, Spruce Company reported the following: This year, Spruce is considering whether to issue more debt to fund a $200,000 project or to issue additional shares of common stock. Both options will bring in exactly $200,000. Spruce’

> Caterpillar is the world’s leading manufacturer of construction and mining equipment. For each of the following transactions, indicate whether net cash inflows (outflows) from operating activities (NCFO), investing activities (NCFI), or financing activit

> Dell Technologies Inc. is a global technology provider that brings together hardware, software, and services. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are listed here. Indica

> A recent statement of cash flows for Apple contained the following information (dollars in millions): Required: For each of the asset and liability accounts listed on the statement of cash flows, determine whether the account balances increased or decrea

> Adidas AG is a global company that designs and markets sports and fitness products, including footwear, apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are

> Procter & Gamble (P&G) brands touch the lives of people around the world. Assume that in the current year the company had 10 billion shares of common stock authorized, 4 billion shares issued, and 3 billion shares outstanding. Par value is $1 per share.

> Assume General Motors Corporation is planning to issue bonds with a face value of $250,000 and a coupon rate of 6 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1

> Determine whether each of the following events results in an inflow or outflow of cash. For those that affect cash, state whether the inflow or outflow would be considered an operating, investing, or financing cash flow under GAAP. Required: 1. A bond wi

> Using the data from the previous exercise, complete the following requirements. Required: Determine the financial statement effects for each of the following: (a) the issuance of the note on November 1, (b) the impact of the adjusting entry at the end of

> On January 1, Steph Grant decided to deposit $58,800 in a savings account that will provide funds four years later to send his son to college. The savings account will earn 8 percent annually. Any interest earned will be added to the fund at year-end (ra

> Tootsie Roll Industries, Inc., is engaged in the manufacture and sale of confectionery products. Assume that last year, Tootsie Roll reported cost of goods sold of $352 million. This year, cost of goods sold was $342 million. Accounts payable was $9 mill

> Saks Fifth Avenue’s balance sheet for a recent year revealed the following information: Determine the amount of working capital reported in the balance sheet.

> In a recent 10-K report, United Parcel Service states it “is the world’s largest package delivery company, a leader in the United States less-than-truckload industry, and the premier provider of global supply chain man

> Abercrombie and Fitch is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Abercrombie annual report. She provided you with her notes, b

> Matching Financial Statement Items to Financial Statement Categories Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Rolls, Tootsie Roll Pops, Tootsie Pop Drops, Tootsie Flavor Rolls, Charms, and Bl

> The following transactions were selected from among those completed by Hailey Retailers in the current year: Required: 1. Give the appropriate journal entry for each of these transactions. Do not record cost of goods sold. 2. Compute Net Sales.

> Scott’s Cycles sells merchandise on credit terms of 2/15, n/30. A sale invoiced at $1,500 (cost of sales $975) was made to Shannon Allen on February 1. The company uses the gross method of recording sales discounts. Required: 1. Give the journal entry to

> Bentley Company’s June 30 bank statement and June ledger account for cash are summarized below: Required: 1. Reconcile the bank account. A comparison of the checks written with the checks that have cleared the bank shows outstanding che

> Assume that a retailer’s beginning inventory and purchases of a popular item during January included (1) 300 units at $7 in beginning inventory on January 1, (2) 450 units at $8 purchased on January 8, and (3) 750 units at $9 purchased on January 29. The

> Sanchez Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: Required: Compute the

> H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: Required: Compute the valuation that should be used for the cur

> Ford Motor Company is one of the world’s largest companies, with annual sales of cars and trucks in excess of $155 billion. A recent annual report for Ford contained the following note: Warranties We accrue obligations for warranty costs at the time of s

> Based on its physical count of inventory in its warehouse at year-end, December 31 of the current year, Plummer Company planned to report inventory of $34,000. During the audit, the independent CPA developed the following additional information: a. Goods

> Using the following categories, indicate the effects of the transactions listed in E6-10. Use + for increase and − for decrease and indicate the accounts affected and the amounts.

> Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. The “Ref.” column is for the

> Identifying Investing and Financing Activities Affecting Cash Flows Marriott International, Inc., is a leading global lodging company, with more than 7,000 properties in 134 countries. Information adapted from the company’s recent annua

> Facebook, Inc., which also owns Instagram, Messenger, WhatsApp, and Oculus (virtual reality products),generates substantially all of its revenue from selling advertising placements to marketers. Following is a trial balance listing accounts that Facebook

> Salesforce.com, inc., is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company helps its customers to connect with their customers through cloud, mobile, social, bloc

> Inferring Typical Investing and Financing Activities in Accounts The following T-accounts indicate the effects of normal business transactions: Required: 1. Describe the typical investing and financing transactions that affect each T-account. That is, wh

> Warren Corporation had the following transactions in Year 1: 1. On April 1, Warren received a $30,000, 10 percent note from a customer in settlement of a $30,000 account receivable. According to the terms, the principal and interest on the note are payab

> Kinney-Harvey, Inc., publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end (December 31): a. Did not accrue $1,400 owed to the company by another company renting part of the building as a storage facil

> Alphabet Inc. is the parent company for a collection of businesses—the largest of which is Google. The following activities were adapted from a recent annual report of Alphabet Inc. Dollars are in millions; shares are as shown. a. Issued 8,000 shares of

> Gig Harbor Company purchased a new piece of shipping equipment at the beginning of Year 1 for $1,800,000. The expected life of the asset is 15 years with no residual value. The company uses straight-line depreciation for financial reporting purposes and

> Preparing a Summarized Income Statement, Statement of Stockholders’ Equity, and Balance Sheet Bennett Inc. was organized four years ago. At the end of the current year, the following financial data are available:

> Preparing a Statement of Stockholders’ Equity Plummer Stonework Corporation was organized on January 1, 2022. For its first two years of operations, it reported the following: Required: On the basis of the data given, prepare a statemen

> The following accounts are used by Emily Consultants Company, with a fiscal year ending December 31. Required: For each of the following independent situations, prepare the journal entry by entering the appropriate code(s) and amount(s). The first transa

> Refer to E4-9. Required: For each of the transactions in E4-9, indicate the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate + for increase, − for d

> Refer to E4-8. Required: For each of the transactions in E4-8, indicate the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate + for increase, â

> Jameson Consultants, Inc., provides marketing research for clients in the retail industry. At the end of the current year, the company had the following unadjusted accounts with normal debit and credit balances: Required: Prepare in good form an unadjust

> Penny’s Pool Service & Supply, Inc. (PPSS) is completing the accounting process for the first year of operations ended on December 31. Transactions during the year have been journalized and posted. The following trial balance spread

> Pool Corporation, Inc., sells swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. The majority of Pool’s customers are small, family-owned businesses. Required: 1. Using the SEC EDGAR service at s

> Pool Corporation, Inc., sells swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. The majority of Pool’s customers are small, family-owned businesses. The company issued the following press releas

> Pool Corporation, Inc., sells swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. The majority of Pool’s customers are small, family-owned businesses. Assume Pool Corporation completed the followi

> Ramirez Foods Company acquired a corn flour milling machine for $20,000 and depreciated it on a straight-line basis over an eight-year useful life with a residual value of $3,000. At the end of the prior year, the machine had been depreciated for a full

> Pool Corporation, Inc., is the world’s largest wholesale distributor of swimming pool supplies and equipment. Required: 1. Pool Corp. reported the following information related to bad debt estimates and write-offs for a recent year. Pre

> Becky Olson established her corporation, Olson Sports, Inc., several years ago in Boulder, Colorado, to sell hiking and ski equipment in her store and online. The annual reporting period for the company ends December 31. Becky prepared the adjusted trial

> Easley-O’Hara Office Equipment sells furniture and technology solutions to consumers and to businesses. Most consumers pay for their purchases with credit cards and business customers make purchases on open account with terms 1/10, net

> Comparing Companies within an Industry Refer to the financial statements of Target Corporation in Appendix B and Walmart Inc. in Appendix C. Required: 1. Total assets is a common measure of the size of a company. Which company had the higher total assets

> Finding Financial Information Refer to the financial statements of Walmart Inc. in Appendix C at the end of this book. All dollar amounts are in millions. Required: 1. What is the amount of “Consolidated net income” for the most recent year?______ 2. Wha

> Refer to the financial statements of Target Corporation in Appendix B at the end of this book. Required: Skim the annual report. Look at the income statement, balance sheet, and cash flow statement closely and attempt to infer what kinds of information t

> Analysis of Investing and Financing Activities of a Public Company (an Individual or Team Project) In your web browser, search for the investor relations page of a public company you are interested in (e.g., Papa John’s investor relations).Select SEC Fil

> In your web browser, search for the investor relations page of a public company you are interested in (e.g., Papa John’s investor relations). Select SEC Filings or Annual Report or Financials to obtain the 10-K for the most recent year available.* Requir

> Refer to the financial statements of Target (Appendix B) and Walmart (Appendix C) and the Industry Ratio Report (Appendix D) at the end of this book. Required: 1. Compute the receivables turnover ratio for both companies for the most recent year. For Tar

> Refer to the financial statements of Target (Appendix B) and Walmart (Appendix C) at the end of this book. Required: 1. (a) Compute return on assets for the most recent year. Round the percentage to two decimal places. (b) Which company provided the high