B. Lougee opened Lougee Roofing Service on April I. 2019. Transactions for April are as follows: Apr. I Lougee contributed$ I 1.500 cash to the business in exchange for common stock. I Paid $2,880 cash for two-year premium toward liability insurance effective immediately. 2 Paid $6. I 00 cash for the purchase of a used truck. 2 Purchased $3.100 of ladders and other equipment: paid $1.000 cash, with the balance due in 30 days. 5 Purchased $1,200 of supplies on account. 5 Received an advance of $1,800 cash from a customer for roof repairs to be done during April and May. 12 Billed customers $5,500 for rooting services performed. Apr 18 Collected $4,900 cash from customers on their accounts. 29 Paid $675 cash for truck fuel used in April. 30 Paid $100 cash for April newspaper advertising. 30 Paid $2,500 cash for assistants' wages. 30 Billed customers $4,000 for roofing services performed. REQUIRED a. Set up a general ledger in T-account form for the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Trucks; Accumulated Depreciation-Trucks; Equipment; Accumulated Depreciation- Equipment; Accounts Payable; Contract Liability; Common Stock; Roofing Fees Revenue; Fuel Expense; Advertising Expense; Wages Expense; Insurance Expense; Supplies Expense; Depreciation Expense-Trucks; and Depreciation Expense-Equipment. b. Record these transactions for April (I) using the financial statement effects template and (2) in journal entry form. (3) Post these entries to their T-accounts (key numbers in T-accounts by date). c. Prepare an unadjusted trial balance as of April 30, 2019. d. Supplies still available on April 30 amount to $400; and depreciation for April was $125 on the truck and $35 on equipment; and one-fourth of the roofing fees received in advance was earned by April 30. Prepare entries to adjust the books for Insurance Expense, Supplies Expense, Depreciation Expense- Trucks, Depreciation Expense- Equipment, and Roofing Fees Revenue (1) using the financial statement effects template and (2) in journal entry form. (3) Post adjusting entries to their T-accounts.
> Aglent Technologies, Inc., the high-tech spin-off from Hewlett-Packard Company, reports the following operating profit for 2018 in its 10-K ($ millions): REQUIRED a. What percentage of its total net revenue is Agilent spending on research and development
> The following information was provided in the 2018 10-K of Hilton Worldwide Holdings, Inc. Note 7: Property and Equipment (S millions) Note 7 also revealed that depreciation expense on property and equipment totaled $54 million in 2018. The cash flow sta
> What four different types of adjustments are frequently necessary at the close of an accounting period? Give examples of each type.
> Refer to Exercise EA-5. How much interest will Robert Smith pay as part of his first monthly payment?
> Take-Two Interactive Software, Inc. (TTWO) is a developer, marketer, publisher, and distributor of video game software and content to be played on a variety of platforms. There is an increasing demand for the ability to play these games in an on line env
> In its income statement for the first quarter of fiscal year 2018, The Gap, Inc., reported net sales of $3,783 million and cost of goods sold and occupancy expenses of $2,356 million, resulting in a gross profit of $1,427 million. In its footnotes, The G
> Mattel, Inc. designs, manufactures, and markets a broad variety of toy products worldwide which are sold to its customers and directly to consumers. The company's brands include American Girl, Fisher-Price, Hot Wheels, and Barbie. The following informati
> Harris Corporation pays senior management an annual bonus from a bonus pool. The size of the bonus pool is determined as follows. REQUIRED a. Assume that senior management expects current earnings to be $21 million and next year's earnings to be $18 mill
> Philbrick Company signed a three-year contract to develop custom sales training materials and provide training to the employees of Elliot Company. The contract price is $1,200 per employee and the number of employees to be trained is 400. Philbrick can s
> The following information comes from recent DowDuPont Inc. income statements. REQUIRED a. Identify the components in its statement that you would consider operating. b. Identify those components that you would consider nonrecurring. c. Compute net operat
> Selected financial statement data for Best Buy Co., Inc., The Kroger Co .. Nordstrom, Inc., Office Depot, Inc., and Walgreens Boots Alliance, Inc. is presented in the following table: REQUIRED a. Compute return on assets (ROA), profit margin (PM), and as
> Selected income statement data for Abbott Laboratories, Bristol-Myers Squibb Company. Johnson & Johnson. GlaxoSmithKline pie. and Pfizer, Inc. is presented in the following table: REQUIRED a. Compute the profit margin (PM) and gross profit margin (GP
> Refer to the financial statements of United Parcel Service in P5-4 l to answer the following requirements. The following assumptions should be useful: UPS's sales forecast for 2018 is $70,000 million. • Operating expenses and operating profits increase i
> Balance sheet information for Lang Services at the end of 2018 and 2017 is: a. Prepare its balance sheet for December 31 of each year. b. Lang Services raised $5,000 cash through issuing additional common stock early in 2018, and it declared and paid a $
> Refer to the financial statements of United Parcel Service in PS-4 1 to answer the following requirements. REQUIRED a. Compute net operating profit after taxes (NOPAT) for 2017 and net operating assets (NOA) for 2017 and 2016. Assume a tax rate of 35%. b
> Refer to the financial information of United Parcel Service in PS-41 to answer the following requirements. REQUIRED a. Compute its current ratio and quick ratio for 2017 and 2016. Comment on any observed trends. b. Compute its times interest earned and i
> Balance sheets and income statements for United Parcel Service, Inc., (UPS) follow. Refer to these financial statements to answer the following requirements. REQUIRED a. Compute ROA and disaggregate it into profit margin (PM) and asset turnover (AT) for
> Refer to the financial statements of Home Depot and Lowe's presented in PS-38. REQUIRED a. Compute each company's net operating profit after taxes (NOPAT) for 2017 and net operating assets (NOA) for 201 7 and 2016. Classify other assets and other liabili
> Refer to the financial statements of Home Depot and Lowe's presented in PS-38. REQUIRED a. Compute each company's current ratio and quick ratio for each year. Comment on any changes that you observe. b. Compute each company's times interest earned ratio
> Balance sheets and income statements for The Home Depot, Inc., and Lowe's Companies, Inc., follow. Refer to these financial statements to answer the requirements. REQUIRED a. Compute return on equity (ROE) return on assets (ROA), and return on financial
> Refer to the financial statements of Nike and Adidas presented in PS-36. REQUIRED a. Compute each company's current ratio and quick ratio for each year. Comment on any changes that you observe. b. Compute each company's times interest earned ratio and de
> Balance sheets and income statements for Nike, Inc., and Adidas Group follow. Refer to these financial statements to answer the requirements. REQUIRED a. Compute return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL) for
> Why is the adjusting step of the accounting cycle necessary?
> The 201 7 cash flow statement for Apple Inc. is presented below (all $ amounts in millions): REQUIRED a. Did Apple's accounts receivable go up or down in 2017? Apple reported net sales of $229,234 in its fiscal 2017 income statement. What amount of cash
> Refer to the data for Rainbow Company in Problem 4-52. REQUIRED a. Compute the change in cash that occurred in 2018. b. Prepare a 201 8 statement of cash flows using the di rect method. Use one cash outflow for "cash paid for wages and other operating ex
> Rainbow Company's income statement and comparative balance sheets follow. During 2018, the following transactions and events occurred: I. Sold long-term investments costing $57,000 for $60,000 cash. 2. Purchased land for cash. 3. Capitalized an expenditu
> For this question, refer to the information in Exhibits 4.1 and 4.7. a. Based on the information presented in its statement of cash flows, what amount of revenues should CVS Health report in its 2017 income statement? b. CVS Health reported retained earn
> Dair Company's income statement and comparative balance sheets follow. During 2018, the company sold for $17,000 cash old equipment that had cost $36,000 and had $19,000 accumulated depreciation. Also in 2018, new equipment worth $60,000 was acquired in
> Refer to the income statement and comparative balance sheets for Arctic Company presented in P4-48. REQUIRED a. Compute Arctic Company's cash flow from operating activities using the direct method. Use the format illustrated in Exhibit 4.5 in the chapter
> Arctic Company's income statement and comparative balance sheets follow. During 2018, Arctic sold land for $70,000 cash that had originally cost $45,000. Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable
> Refer to the income statement and comparative balance sheets for Wolff Company presented in P4-46. REQUIRED a. Compute Wolff Company's cash flow from operating activities using the direct method. Use the format illustrated in Exhibit 4.5 in the chapter.
> Wolff Company's income statement and comparative balance sheets follow. Cash dividends of $29,000 were declared and paid during 2018. Also in 2018, plant assets were purchased for cash, and bonds payable were issued for cash. Bond interest is paid semian
> Petroni Company reports the following selected results for its calendar year 2018. REQUIRED Prepare the operating section only of Petroni Company's statement of cash flows for 2018 under the indirect method of reporting.
> Match each item in the left column with the correct description in the right column.
> Rhoades Tax Services began business on December I, 2018. Its December transactions are as follows. Dec. I Rhoades invested $20,000 in the business in exchange for common stock. 2 Paid $1,200 cash for December rent to Bomba Realty. 2 Purchased $1,080 of s
> Fischer Card Shop is a small retail shop. Fischer's balance sheet at year-end 2018 is as follows. The following information details transactions and adjustments that occurred during 2019. 1. Sales total $ 145,850 in 2019; all sales were cash sales. 2. In
> The following selected accounts appear in Zimmerman Company's unadjusted trial balance at December 31 , 2018, the end of its fiscal year (all accounts have normal balances). Additional information is as follows. 1. On September I, 20 18, the company ente
> The following adjusted trial balance is for Mayflower Moving Service at December 31, 2018. REQUIRED a. Prepare closing entries in journal entry form. b. After its closing entries are posted, what is the post-closing balance for the Retained Earnings acco
> Trails, Inc., publishes magazines for skiers and hikers. The company's adjusted trial balance for the year ending December 31, 2018, is: REQUIRED a. Prepare its income statement and statement of stockholders' equity for 2018, and its balance sheet at Dec
> Wheel Place Company began operations on March I, 2019, to provide automotive wheel alignment and balancing services. On March 3 1, 20 I 9, the unadjusted balances of the firm's accounts are as follows. The following information is available. 1. The balan
> The following adjusted trial balance is for Wilson Company at December 31, 2018. REQUIRED a. Prepare closing entries in journal entry form. b. After the firm's closing entries are posted, what is the post-closing balance for the Retained Earnings account
> The following adjusted trial balance is for Trueman Consulting Inc. at December 31, 2018. The company had no stock issuances or repurchases during 2018. REQUIRED a. Prepare its income statement and statement of stockholders' equity for 2018 and its balan
> The following information relates to the December 31 adjustments for Kwik Print Company. The firm's fiscal year ends on December 31. 1. Weekly employee salaries for a five-day week total $ 1,800, payable on Fridays. December 31 of the current year is a T
> Murdock Carpet Cleaners ended its first month of operations on June 30, 2019. Monthly financial statements will be prepared. The unadjusted account balances are as follows. The following information is available. I. The balance in Prepaid Rent was the am
> What is a chart of accounts? Give an example of a coding system for identifying different types of accounts.
> SnapShot Company, a commercial photography studio, has just completed its first full year of operations on December 31, 2018. General ledger account balances before year-end adjustments follow; no adjusting entries have been made to the accounts at any t
> Use the information in Problem 2-69 to complete the following requirements. REQUIRED a. Prepare journal entries for each of the transactions I through 11. b. Set up T-accounts, including beginning balances, for each of the accounts used in part a. Post t
> Kross, Inc., provides appraisals and feasibility studies. On January I, 2019, its beginning account balances are as follows: Cash, $6,700; Accounts Receivable, $ 14,800; Notes Payable, $2,500; Accounts Payable, $600; Retained Earnings, $12,400; and Commo
> Use the information in Problem 2-67 to complete the following requirements. REQUIRED a. Prepare journal entries for each of the transactions l through 10. b. Set up T-accounts, including beginning balances, for each of the accounts used in part a. Post t
> Schrand Aerobics, Inc., rents studio space (including a sound system) and specializes in offering aerobics classes. On January 1, 2019, its beginning account balances are as follows: Cash, $5,000; Accounts Receivable, $5,200; Equipment, $0; Notes Payable
> The records of Geyer, Inc., show the following information after al l transactions are recorded for 2018. Geyer, Inc., raised $1,400 cash through the issuance of additional common stock during this year and it declared and paid a $13,500 cash dividend ne
> Selected income statement information for Siemens AG, a global technology company, for four fiscal years follows: REQUIRED a. Compute the missing amounts for each of the four years shown. b. Compute the gross profit margin (gross profit/sales) for each o
> Selected income statement information for Starbucks Corporation, a coffee-related restaurant chain, for four recent fiscal years follows. REQUIRED a. Compute the missing amounts for each of the four years shown. b. Compute the gross profit margin (gross
> Use the information in Problem 2-62 to complete the following requirements. REQUIRED a. Prepare journal entries for each of the transactions I through 12. b. Set up T-accounts for each of the accounts used in part a and post the journal entries to those
> Financial accounting plays an important role in modern society and business. a. What role does financial accounting play in the allocation of society's financial resources? b. What are three aspects of the accounting environment that can create ethical p
> On June I, 2019, a group of pilots in Melbourne, Australia, formed Outback Flights by issuing common stock for $50,000 cash. The group then leased several amphibious aircraft and docking facilities, equipping them to transport campers and hunters to outp
> Selected income statement information for Nike, Inc., a manufacturer of athletic footwear, for four recent fiscal years ending May 31 follows. REQUIRED a. Compute the missing amounts for each of the four years shown. b. Compute the gross profit margin (g
> Selected balance sheet amounts for Alibaba Group Holding Ltd, a China-based online and mobile commerce company, for three recent fiscal years ending March 31 follow: REQUIRED a. Compute the missing balance sheet amounts for each of the three years shown.
> Selected balance sheet amounts for Apple Inc .a retail company for four recent fiscal years follow: REQUIRED a. Compute the missing balance sheet amounts for each of the four years shown. b. What asset category would you expect to constitute the majority
> Use the information in Problem 2-57 to complete the following requirements. REQUIRED a. Prepare journal entries for each of the transactions I through 11. b. Set up T-accounts for each of the accounts used in pan a and post the journal entries to those T
> On December I, 2018, R. Lambert formed Lambert Services, which provides career and vocational counseling services to graduating college students. The following transactions took place during December, and company accounts include the following: Cash, Acc
> Selected balance sheet amounts for Sears Holdings Corp., a retail company, for four recent fiscal years follow: REQUIRED a. Compute the missing balance sheet amounts for each of the four years shown. b. What asset category do you expect to constitute th
> Selected balance sheet amounts for Kimberly-Clark Corp, a consumer products company, for four recent years follow: REQUIRED a. Compute the missing balance sheet amounts for each of the four years shown. b. What types of accounts would you expect to be in
> Abercrombie & Fitch Co. and Nordstrom, Inc., are major retailers that concentrate in the higher-end clothing lines. Following are selected data from their 2017 fiscal-year ended February 3, 2018, financial statements: REQUIRED a. What is the total am
> At the beginning of 2018, Barth Company reported the following balance sheet. REQUIRED a. At the end of 2018, Barth Company reported the following assets and liabilities: Cash, $8,800; Accounts Receivable, $18,400; Equipment, $9,000; Land, $50,000; and A
> What is an adjusting journal entry?
> Review the following selected income statement and balance sheet data from the fiscal years ending in 20 17 and 2018. REQUIRED a. Compare and discuss how these companies finance their operations. b. Which company has the greatest net working capital? Whi
> Review the following selected income statement and balance sheet data for Verizon Communications Inc. as of December 3 1, 20 17. REQUIRED a. Using the data for Comcast Corporation in P2-49, compare and discuss how Verizon and Comcast finance their operat
> Selected data from Hewlett-Packard Company at October 31, 2017, follow. REQUIRED a. Using the data for Apple Inc. in P2-49, compare and discuss the two companies on the basis of how they finance their operations. b. Which company reports the higher ratio
> Review the following selected income statement and balance sheet data for fiscal years ending in 2017. REQUIRED a. Compare and discuss how these companies finance their operations. b. Which companies report the highest ratio of income to assets (net inco
> Deliver All, a mailing service, has just completed its first full year of operations on December 31, 2018. Its general ledger account balances before year-end adjustments follow; no adjusting entries have been made to the accounts at any time during the
> Market-Probe, a market research firm, had the following transactions in June 2019, its first month of operations. June I B. May invested $24,000 cash in the ti.m1 in exchange for common stock. 1 The firm purchased the following: office equipment $11.040;
> The following selected accounts appear in Shaw Company's unadjusted trial balance at December 31. 2018, the end of its fiscal year (all accounts have normal balances). REQUIRED a. Prepare its adjusting entries at December 31. 2018. (1) using the financia
> Facebook, Inc. reported the following amounts in its 2017 and 2016 financial statements. a. Prepare income statements for Facebook for 2017 and 2016. Use the format illustrated in Exhibit 1.8. b. Compute Facebook's return on equity ratio for 2017 and 201
> Best Buy Co., Inc., reported the following amounts in its February 3, 2018, and January 28, 2017, financial statements. REQUIRED a. Prepare an income statement for Best Buy for the year ended February 3, 2018, using the format illustrated in Exhibit 1.8.
> Nokia Corp. manufactures, markets, and sells phones and other electronics. Stockholders' equity for Nokia are €16,218 million in 20 17 and €20,975 million in 2016. In 2017, Nokia reported a loss of€( 1,458) million on sales of €23, 147 million. REQUIRED
> At the end of 2017. Daimler AG, reported stockholders· equity of €64,023 million and total assets of €255.605 million. Its stockholders' equity at the end of 2016 was €57,950 million. Net income in 2017 was €10,525 million. c1. Calculate Daimler's return
> DP Systems, Inc., reports the following selected information at December 31, 2019 ($ millions): REQUIRED Use this information to prepare its statement of stockholders' equity for 2019.
> Crocker Corporation began calendar-year 2019 with stockholders' equity of $ I 00,000, consisting of contributed capital of $70,000 and retained earnings of $30,000. During 20 I 9, it issued additional stock for total cash proceeds of $30,000. It also rep
> Following is selected financial information for Tesla, Inc. REQUIRED Prepare balance sheets, income statements and cash flow statements for the years ended December 31, 20 I 7 and 20 I 6.
> Following is selected financial information for Tilly 's, Inc. REQUIRED Prepare balance sheets, income statements and cash flow statements for the years ended February 3, 2018 and January 28, 2017.
> Following is selected financial information from Abercrombie & Fitch for its fiscal year ended February 3, 2018 ($ millions): REQUIRED a. Prepare an income statement. balance sheet. and statement of cash flows for Abercrombic & Fitch. b. Determin
> Following is selected financial information from General Mills, Inc., for its fiscal year ended May 27, 2018 ($ millions): REQUIRED a. Prepare an income statement, balance sheet and statement of cash flows for General Mills. Inc. b. What portion of the f
> The following table contains financial statement information for The Procter & Gamble Company ($ millions) for the fiscal years ended in June of each year: REQUIRED a. Compute the missing amounts for assets. liabilities. and equity for each year. b.
> The following table presents sales revenue, cost of goods sold, and inventory amounts for three computer/electronics companies, Samsung Electronics Co., Hewlett-Packard Company, and Apple Inc. REQUIRED a. Compute the gross profit margin (GPM ) for each o
> On January 1 of the current year, Halen Company purchased all of the common shares of Jolson Company for $575,000 cash. On this date, the stockholders' equity of Halen Company consisted of $600,000 in common stock and $310,000 in retained earnings. Jolso
> Refer to the data for Hartgraves Company in Mini Exercise 12-20. Assume that when the shares were purchased, management did not intend to sell the stock in the near future. Record the transactions and adjustments for Hartgraves Company as an available-fo
> Explain the process of posting.
> Blouin Company had the following transactions and adjustment related to a stock investment that is a trading security. 2018 Nov. 15 Purchased I 0,000 shares of Lane, Inc. 's common stock at $ 17 per share plus a brokerage commission of $1,200. Blouin exp
> Hartgraves Company had the following transactions and adjustments related to a bond investment that is a trading security. 2018 Oct 1 Purchased $500,000 face value of Skyline, Inc.'s 7% bonds at 97 plus a brokerage commission of $1,000. The bonds pay int
> DeFond Company wishes to secure a reliable supply of a key component for its production processes, and its management is considering two alternative investments. Verduzco Company produces exactly the supply that DeFond needs, so DeFond could use cash to
> Benartzi Company purchased a 90% interest in Liang Company on January I of the current year. Benartzi Company had $600,000 net income for the current year before recognizing its share of Liang Company's net income. If Liang Company had net income of $150
> Philipich Company purchases 80% of Hirst Company's common stock for $600,000 cash when Hirst Company has $300,000 of common stock and $450,000 of retained earnings, and the fair values of Hirst's assets and liabilities equal their book values. If a conso
> Kross Company purchases an equity investment in Penno Company at a purchase price of $5 million, representing 40% of the outstanding stock and book value of Penno. During the current year, Pen no reports net income of $600,000 and pays cash dividends of
> Stober Company purchases an investment in Lang Company at a purchase price of $ I million cash, representing 30% of the outstanding stock and book value of Lang. During the year, Lang reports net income of $ I 00,000 and pays cash dividends of $40,000. A
> Assume that Wasley Company purchases 6,000 common shares of Pincus Company for $ 12 cash per share. Shares of Pincus Company are actively traded. During the year, Wasley receives a cash dividend of $ 1.10 per common share from Pincus, and the year-end ma
> JetBlue Airways Corporation reports the following data in its 2016 10-K. The data relate to the corporation's computation of its earnings per share calculations. (Dollar and share data are in millions.) REQUIRED a. What is the objective behind the calcul
> At the end of 2017. Alphabet, Inc .. reported stockholders· equity of $152.502 million and total assets of $ 197.295 million. Its balance in stockholders' equity at the end of 2016 was $139,036 million. Net income in 2017 was $12,662 million. a. Calculat
> Bonner Company began business this year and immediately sold 600,000 common shares for $18.000.000 cash and paid $1,000,000 in common dividends. At midyear, the firm bought back some of its own shares. The company reports the following additional informa
> Year I: Noreen Company issues I 0,000 shares of its no-par common stock for $30/share in cash. Year 2: Noreen Company buys 1,000 shares of its no-par common stock for $28/share in cash. Year 3: Noreen Company declares but has not yet paid a dividend on i
