At the end of the day the clerk for Ken’s Variety Shop noticed an error in the amount of cash he should have. Total cash sales from the sales tape were $1,192, whereas the total cash in the register was $1,152. Ken keeps a $25 change fund in his shop. Prepare an appropriate general journal entry to record the cash sales as well as reveal the cash shortage.
> Balance this four-column account. What function does the PR column serve? When will Account 111 be used in the journalizing and posting process? Cash Acct. 111 Balance Date Explanation PR Dr. Cr. Dr. Cr. 201X Mar. 6 GJ 1 29 10 GJ 1 90 15 GJ 2 7 18 G
> From the following comparative balance sheet of Haynes Co., prepare a common-size comparative balance sheet. (Round all percentages to the nearest tenth of a percent.) 2016 2015 Current Assets $105,000 $64,000 Plant and Equipment 451,000 $556,000 31
> From the following, prepare a common-size income statement for Timothy Co. by converting the dollar amounts into percentages. (Round to the nearest hundredth of a percent.) Use net sales as 100%. 2016 2015 Net Sales $450,000 $400,000 Cost of Goods S
> Prepare a horizontal analysis of the comparative income statement for Auster Co. for the years ending December 31, 2015, and December 31, 2016. (Round to the nearest hundredth of a percent as needed.) 2016 2015 Net Sales $150,000 $70,000 Cost of Goo
> From the following, calculate the net cash flows from operating activities (use the indirect method): 2013 2014 Accounts Receivable $ 5,100 $7,600 Prepaid Insurance 904 850 Accounts Payable 3,997 4,604 Salaries Payable 1,050 1,950 For the year ended
> On January 1 Boxer Corporation sold $340,000 of 10-year sinking fund bonds. The corporation expects to earn 5% on the sinking fund balance and is required to deposit $23,608 at the end of each year with the trustee. Record the following entries: a. The
> On July 1, Henry Corporation issued 10%, 10-year bonds with a face value of $109,000 for $96,520 because the current market rate is 12%. Record the following entries, assuming that the interest method is used to amortize the discount on bonds. Round disc
> Redo the journal entries for Exercise 20A-3, assuming that bonds sold at 102. Exercise 20A-3: Hathaway Corporation issued $320,000 of 12%, 25-year bonds at 93 on May 1, 201X, with semiannual interest payable on May 1 and November 1. Amortization of dis
> Hathaway Corporation issued $320,000 of 12%, 25-year bonds at 93 on May 1, 201X, with semiannual interest payable on May 1 and November 1. Amortization of discount is by the straight-line method. Record the journal entries for the following: a. Issuance
> On July 1, 201X, Good now Corporation issued $700,000 of 6%, 30-year bonds to lenders at par (100). Interest is to be paid semiannually on January 1 and July 1. Journalize the following entries: a. Issued the bonds. b. Paid semiannual interest payment.
> From the following, prepare in proper form a statement of retained earnings for Thomas Company for the year ended December 31, 2015. Prior period adjustment: increase in recording expense for Land in Retained Earnings, January 2015 $36,000 2013 (dis
> Explain the difference between a stock dividend and a stock split.
> Given the following stockholders’ equity: Common Stock, $6 par value, authorized 106,000 shares, 82,000 shares issued and outstanding …………â€&brv
> From the following information, determine the book value per share for preferred and common stock assuming $14,800 of dividends are in arrears on the preferred stock. Stockholders’ Equity Preferred 6% Stock cumulative and nonparticipating, $17 par value
> Peterson Corporation began its business on January 1, 201X. It sold at $35 per share 5,600 shares of no-par common stock with a stated value of $15 per share. The charter of Peterson indicated that 36,000 shares were authorized. Retained earnings were $5
> On January 1, 201X, Dandy Corporation issued on a subscription basis 950 shares of $53 par-value common stock at $93 per share. Two equal installments were to be made on July 1 and December 31. Prepare the appropriate journal entries on January 1, July 1
> Paula Corporation was authorized to issue 28,000 shares of common stock. Record the journal entry for each of the following independent situations, assuming Paula issues 5,600 shares at $9 on July 20, 201X: a. Common stock has an $8 par value. b. Common
> A machine that cost $9,080 with $3,920 of accumulated depreciation was traded in for a similar machine having a $5,850 cash price. An $835 trade-in was offered by the seller. a. Calculate the book value of the old machine. b. Calculate the loss on the e
> August Co., whose accounting period ends on December 31, purchased a machine for $6,780 on January 1 with an estimated residual value of $790 and an estimated useful life of 4 years. Prepare depreciation schedules for the current as well as the following
> From the following, prepare depreciation schedules for the first 2 years for (a) straight-line, (b) units-of-production, and (c) double declining-balance at twice the straight-line rate methods. • Machine purchased on January 1, $1,470. • Residual value,
> Milton Sales uses the FIFO method with the perpetual inventory system. Enter the following information in the inventory record form for product 44BX. Be sure to keep the balance on hand up-to-date. 201X Nov. Balance on hand: 5 units at a cost of $20
> Journalize and post the preceding transactions (for Exercise 15A-2) using a two-column journal and T accounts. Exercise 15A-2: The RJM Company uses the perpetual inventory system with a subsidiary ledger for inventory. Enter the following information i
> Restrictions on retained earnings have to be updated in the ledger. Agree or disagree? Why?
> The Mark Electric Company uses the perpetual inventory system. Record these transactions in a two-column journal. 201X Feb. 3 Purchased 50 model 77DX light fixtures on account from Solar Electric at total cost of $2,000; terms n/30. 5 Sold 10 model
> Use the table in the text to prove your answers for Exercise 14A-2. Exercise 14A-2: Determine the maturity date for each of the following without the use of tables: Note Issued Length of Time a. January 17, 201X 30 days b. July 14, 201x c. July 31
> Determine the maturity date for each of the following without the use of tables: Note Issued Length of Time a. January 17, 201X 30 days b. July 14, 201x c. July 31, 201X 80 days 4 months d. June 25, 201X 70 days
> Violet Company had credit sales of $210,000 during 2015. The balance in Allowance for Doubtful Accounts is a $970 debit balance. Journalize the Bad Debts Expense for December 31 using each of the following methods: a. Bad Debts Expense is estimated at 1.
> Jacob Co., which uses an Allowance for Doubtful Accounts, had the following transactions in 2015, 2016, and 2017. (Use the income statement approach.) a. Journalize the transactions. (The company uses the income statement approach in estimating bad deb
> Acres.com has requested that you prepare a partial balance sheet on December 31, 2015, from the following: Cash, $126,000; Petty Cash, $72; Accounts Receivable, $68,000; Bad Debts Expense, $49,000; Allowance for Doubtful Accounts, $10,000; Merchandise In
> On December 31, 2012, $290 of salaries has been accrued. (Salaries before the accrued amount totaled $24,500.) The next payroll to be paid will be on February 3, 2013, for $6,200. Please do the following: a. Journalize and post the adjusting entry (use
> From the worksheet in Exercise 12A-3, prepare the assets section of a classified balance sheet. Exercise 12A-3: From the partial worksheet in Figure 12.11, journalize the closing entries for December 31 for F. Henry Co. Figure 12.11: F. HENRY CO.
> From the partial worksheet in Figure 12.11, journalize the closing entries for December 31 for F. Henry Co. Figure 12.11: F. HENRY CO. WORKSHEET FOR YEAR ENDED DECEMBER 31, 201X Income Statement Balance Sheet Account Dr. Cr. Dr. Cr. 18900 449 00 56
> Give the category, the classification, and the report(s) on which each of the following appears (for example: Cash—asset, current asset, balance sheet): a. Salaries Payable b. Accounts Payable c. Mortgage Payable d. Unearned Legal Fees e. SIT Payable f.
> Distinguish among legal capital, par value, no-par value, and no-par value with a stated value.
> From the following accounts, prepare a cost of goods sold section in proper form: Merchandise Inventory, 12/31/1X, $9,000; Purchases Discount, $920; Merchandise Inventory, 12/01/1X, $4,000; Purchases, $62,000; Purchases Returns and Allowances, $970; Frei
> From the following, calculate (a) net sales, (b) cost of goods sold, (c) gross profit, and (d) net income: Sales, $22,000; Sales Discount, $470; Sales Returns and Allowances, $240; Beginning Inventory, $640; Net Purchases, $13,500; Ending Inventory, $510
> Journalize the following transactions. Assume the perpetual inventory system. 201X Аpг. 5 Sold merchandise for $1,350 cash. The cost of the merchandise was $725. 16 Made refunds to cash customers for defective merchandise, $50. The cost of defective
> Journalize the following transactions. Assume the perpetual inventory system. 201X Dec. 4 Sold merchandise for $450 cash. The cost of merchandise was $350. 9 Purchased merchandise from Ree Co. on account, $3,300, F.0.B. shipping point (buyer pays fr
> Journalize the following transactions. Assume a perpetual inventory system. 201X Apr. 8 Purchased merchandise on account from Bachand Supplies, $19,000; terms 3/10, n/30. 15 Sold merchandise on account, $3,500; terms 3/10, n/30. The cost of merchand
> Journalize, record, and post when appropriate the following transactions into the general journal (p. 2) for Jacob’s Clothing. All purchases discounts are 7/10, n/30. Assume the periodic inventory system. If using working papers, be sur
> Journalize the following transactions. Assume a perpetual inventory system. 201X 8 Sold merchandise on account, $630, to Ring Co.; terms 3/10, n/30. Cost of merchandise was $390. Jul. 12 Purchased office equipment on account from MEC Co., $1,600. 13
> From the general journal in Figure 10.29, record to the accounts payable subsidiary ledger and post to general ledger accounts as appropriate. Figure 10.29: GENERAL JOURNAL Page 2 Date Account Titles and Description PR Dr. Cr. 201X Jun. Purchases
> From the following facts calculate what Mike Hall paid Lakeville Co. for the purchase of a dining room set. Sale terms are 5/10, n/30. a. Sales ticket price before tax, $11,000, dated April 5. b. Sales tax, 10%. c. Returned one defective chair for credi
> From the following transactions for Ava Co., journalize, record, post, and prepare a schedule of accounts receivable when appropriate. You will have to set up your own accounts receivable subsidiary ledger and partial general ledger as needed. All sales
> Avan Corporation just published its financial statements. The president of Avan told the accountants not to include in the annual report any information about a pending lawsuit. The president thought it would only worry the stockholders. Do you think the
> Journalize, record, and post when appropriate the following transactions in the general journal (all sales carry terms of 5/10, n/30): Use the following account numbers: Accounts Receivable, 112; Sales, 411; Sales Returns and Allowances, 412; Sales Dis
> Mocha Company has four employees, and each employee earned $50,000 for the calendar year. Using a blank Form 940, complete Part 2, lines 3–8, to answer the following questions: Total annual payroll for the year …………………………………………. ? Payments made in exces
> Using a blank form 941, complete Part 1, lines 1–6, using the following information: Total employees during the first quarter ……………………………………………………… 3 Total wages during the first quarter, none came from tips ……………. $26,050.66 Federal income tax withheld
> The total wage expense for Edgar Co. was $166,000. Of this total, $26,000 was above the OASDI wage base limit and not subject to this tax. All earnings are subject to Medicare tax, and $55,000 was above the federal and state unemployment wage base limits
> From the following information, construct a bank reconciliation for Bang Co. as of February 28, 201X. Then prepare journal entries if needed. Checkbook balance $1,314 Outstanding checks $654 Bank statement balance 1,050 Bank service charge 65 NSF: T
> From the following accounts (not in order), prepare a post-closing trial balance for Wurley Co. on March 31, 201X. Note: These balances are before closing. Accounts Receivable $24,700 P. Wurley, Capital $25,320 Legal Supplies 10,400 P. Wurley, Withd
> From the following posted T accounts, reconstruct the closing journal entries for August 31, 201X. M. Fahy, Capital Withdrawals 100 7,000 (Aug. 1) Insurance Expense 275 Closing 275 375 Net Income M. Fahy, Withdrawals Wage Expense 100 Closing 100 400
> From the following T accounts, journalize the four closing entries on October 31, 201X. J. Kirsch, Capital Rent Expense 14,000 7,500 J. Kirsch, Withdrawals Wage Expense 5,000 8,100 Income Summary Insurance Expense 1,300 Fees Earned Depr. Expense, Of
> From the adjustments section of a worksheet (see Figure 5.21), prepare adjusting journal entries for the end of December. Figure 5.21: Adjust ments Dr. Cr. Prepaid Rent Office Supplies (A) 1 30000 (B) 45000 Accumulated Depreciation, Equipment (C) 3
> Jee Jones is in a partnership with Alvin Scott and Morry Flynn. Jee signed a long-term contract with a supplier without telling either partner. When Alvin heard about it, he hit the roof. He told Jee the partnership could not afford this contract and he
> From the completed worksheet in Exercise 4A-4, prepare Exercise 4A-4: From the following trial balance (Figure 4.19) and adjustment data, complete a worksheet for J. Revere as of January 31, 201X: Figure 4.19: a. an income statement for January. b.
> Complete the following table. Which Financial Account Category Normal Balance Statement(s) Found Accumulated Depreciation, Office Equipment Prepaid Rent Office Equipment Depreciation Expense, office Equipment B. Reel, Capital B. Reel, Withdrawals Wa
> You have been hired to correct the trial balance in Figure 3.32 that has been recorded improperly from the ledger to the trial balance. Figure 3.32: SALT LAKE CO. TRIAL BALANCE ОСТОВER 31, 201X Account Dr. Cr. Accounts Payable 390000 12 250 00 9500
> From the following transactions for Lucas Company for the month of May, (a) prepare journal entries (assume that it is page 1 of the journal), (b) post journal entries to the ledger (use a four-column account), and (c) prepare a trial balance. A partia
> Post the journal entries in Figure 3.31 to the ledger of Kramer Company. The partial ledger of Kramer Company is Cash, 111; Equipment, 121; Accounts Payable, 211; and A. Kramer, Capital, 311. Please use four column accounts in the posting process. Figur
> From the trial balance of Hugo’s Cleaners in Figure 2.5, prepare the following for July: • Income statement • Statement of owner’s equity • Balance sheet HUGO
> Complete the following table. For each account listed on the left, fill in what category it belongs to, whether increases and decreases in the account are marked on the debit or credit sides, and on which financial statement the account appears. A sample
> From the following account balances, prepare in proper form for November (a) an income statement, (b) a statement of owner’s equity, and (c) a balance sheet for Frederick Realty. Cash $4,800 S. Frederick, Withdrawals $ 120 Accounts
> Record the following transactions in the expanded accounting equation. Do not calculate a running balance. a. Black invested $60,000 in a computer company. b. Bought computer equipment on account, $7,000. c. Black paid personal telephone bill from comp
> From the following, prepare a balance sheet for Rideout Co. Cleaners at the end of November 201X: Cash, $71,000; Equipment, $12,000; Accounts Payable, $15,100; B. Rideout, Capital.
> Pete went to an auto dealer to buy a new Jeep. The salesperson told Pete that cars really appreciate in value. He cited antique cars as a perfect example. The dealer went on to tell Pete that buying a car represents some great tax savings. He told Pete t
> Record the following into the general journal of Remy’s Auto Shop. 201X May 1 Remy Tarsia invested $150,000 cash in the auto shop. 5 Paid $6,000 for auto equipment. 8 Bought auto equipment from Littleton Co. for $4,000 on account.
> Prepare journal entries for the following transactions that occurred during April: 201X April 1 Jamie Moore invested $110,000 cash and $12,000 of equipment into her new business. 3 Purchased building for $70,000 on account. 12 Purchased a truck from
> From the trial balance in Figure 25.20 and the provided year-end information, prepare a worksheet for Jenks Corporation (assume no adjustments). Figure 25.20: Year-End Figures Raw materials inventory ……â&#
> As the bookkeeper of Queen Manufacturing, you are to record the following transactions in the general journal for the month of November: a. Raw materials of $74,000 were issued from the storeroom. b. Charged $60,000 of direct labor to production. c. Supp
> An analysis of the accounts of Payson Manufacturing reveals the following data for the month ended April 30, 201X: Costs Incurred: Raw materials purchased, $120,000; direct labor, $133,000; manufacturing overhead, $49,700. These specific overheads incl
> Greer Company requested that you (1) assign indirect expenses to its jewelry and shoes departments as appropriate and (2) prepare an income statement for August 201X showing departmental contribution margins along with net income. Assume a 30% tax rate.
> From the following partial data, prepare an income statement showing departmental income before tax along with net income for Jay’s Corporation for the year ended December 31, 201X. Net Sales, TVs …â€&brv
> Given the following information about the clothing and hardware departments of Eustis Company, prepare a departmental expense allocation sheet showing expenses by department. Allocation Basis Rent and Insurance: …â€&brvb
> From the following data, prepare in proper form an income statement showing departmental gross profit (assume a 22% tax rate) for Speedy Stop for the year ended December 31, 201X. Cash ……………………………………………………………………………….. $10,000 Accounts Receivable …………………
> The Stevens Company uses a voucher system and records invoices at gross. Record the following transactions in the voucher register and/or check register as appropriate: 201X Aug. Voucher no. 450 was prepared for the purchase of $3,800 worth of merch
> Identify where each title is placed on the worksheet. a. Direct labor b. Ending finished goods inventory c. Beginning finished goods inventory d. Ending raw materials inventory
> Janus Corporation has been using a voucher system for several years and records invoices at gross. Prepare entries in the voucher register and check register for the following transactions: 201X Sept. Purchased merchandise inventory on account from
> Saffron Corporation uses a voucher system and records invoices at gross. Record the following transactions in the voucher register and/or check register as appropriate: 201X July Purchased merchandise on account for $1,600 from Dallas Company; terms
> From the information about Valdemar Corporation in Figures 22.16 and 22.17, do the following: Figures 22.16: Figures 22.17: a. For each year calculate its current ratio and acid test ratio. b. For each year prepare the income statement in common-siz
> From the income statement and balance sheet of Anderson Company (Figures 22.14 and 22.15), compute the following for 2016: (a) current ratio, (b) acid test ratio, (c) accounts receivable turnover, (d) average collection period, (e) inventory turnover, (f
> From the comparative income statement of Carney Company in Figure 22.13, do the following: Figure 22.13: a. Prepare a horizontal analysis with the amount of increase or decrease during 2016 along with the percent increase or decrease during 2015 (to t
> From the comparative balance sheet of Hesler Corporation in Figure 22.12, do the following: (a) Prepare a horizontal analysis of each item for the amount of increase or decrease as well as the percent increase or decrease (to the nearest tenth of a perce
> From the financial statements and additional information provided in Problem 21B-1 for Cygan Company, prepare a statement of cash flows using the direct method. Problem 21B-1: From the following income statement (Figure 21.14), balance sheet (Figure 21
> From the following income statement (Figure 21.14), balance sheet (Figure 21.15), and additional data for Cygan Company, prepare a statement of cash flows using the indirect method. Figure 21.14: Figure 21.15: Additional Data 1. All Plant and Equipme
> On April 1, 201X, Plimpton Corporation issued $210,000 of 10%, 5-year bonds for $227,126, yielding a market rate of 8%. Interest is paid on October 1 and April 1. Plimpton Corporation uses the interest method to amortize the premium. 1. Prepare an amort
> On January 1, 201X, Austin Corporation issued $300,900 of 11%, 10-year bonds for $252,958, yielding a market rate of 14%. Interest is paid on July 1 and December 31. Austin uses the interest method to amortize the discount. 1. Prepare an amortization sc
> Calculate the contribution margin for each department and income before taxes, based on the following: Dept. A 1,000 square feet Dept. B 2,200 square feet Net Sales $6,100 $11,000 Cost of Goods Sold 1,700 6,000 $ 950 (40% directly related to Dept. A
> On May 1, 201X, Lance Corporation issued $900,000 of 15%, 20-year bonds at 102. The interest is payable on November 1 and May 1. The premium is amortized by the straight-line method. Prepare an amortization schedule for the first three semiannual periods
> On January 1, 201X, Langston Corporation sold $450,000 of 9%, 10-year bonds at 97. Interest is to be paid on June 30 and December 31. The straightline method of amortizing the discount is used. Prepare (1) an amortization schedule for the first three sem
> The following is the stockholders’ equity of Pierotti Corporation on October 1, 201X: 1. Journalize the transactions in general journal form. 2. Prepare the stockholders’ equity section of the balance sheet using the
> At the beginning of January 201X, the stockholders’ equity of Plain View Corporation consisted of the following: 1. Record the transactions in general journal form. 2. Prepare the stockholders’ equity section at year
> Racette Corporation has 390,000 shares of $7 par-value common stock issued and outstanding. Record the following entries into the general journal for Racette: 201X July 2 Declared a cash dividend of $0.60 per share. Aug. 1 Paid the $0.60 cash divide
> The stockholders’ equity of Lock Company is as follows: Given a redemption value of $104 per share for the preferred stock, calculate the book value per share of preferred and common stock, assuming the following: a. No preferred divi
> From the following partial mixed list, select the appropriate titles and prepare a stockholders’ equity section using the source-of-capital approach as shown in the Blueprint example for Helium Corporation on July 31, 201X. Office Equipment ………………………………
> Kirk Corporation has 22,500 shares outstanding of $7 par value, 9% preferred stock, and 45,000 shares outstanding of $7 par-value common stock. In its first 5 years of operation, the company paid the following dividends: 2011, $0; 2012, $14,175; 2013, $4
> The following is the Paid-In Capital section of stockholders’ equity for the Kodokan Corporation on June 1, 201X: Paid-In Capital: Preferred Stock, $92 par, authorized 21,000 shares, 6,000 shares issued …â
> The partnership of Josephson, Ramirez, and Smith is being liquidated. All gains and losses are shared in a 3:2:1 ratio. Before liquidation their balance sheet looks as follows: Journalize the entries needed in the liquidation process under the followin
> From the following, calculate departmental income before tax. Assume a tax rate of 35%. Dept. A Dept. B Net Sales $4,600 $6,300 Cost of Goods Sold 2,500 2,400 Delivery Expense 630 870 Advertising Expense 540 620 Depreciation Expense 330 380
> Jeremey, Matthew, and Grace are partners. On July 30, 201X, the balance sheet was as follows: The partners agree to share all losses and gains in a 2:2:1 ratio. Grace is withdrawing from the partnership. From the following independent situations, journ
