Question: Based upon the data presented in Exercise
Based upon the data presented in Exercise 2-13, (a) prepare an unadjusted trial balance, listing the accounts in their proper order. (b) Based upon the unadjusted trial balance, determine the net income or net loss.
Exercise 2-13:
Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts:
Indicate for each debit and each credit: (a) whether an asset, liability, stockholders’ equity, dividend, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased (–). Present your answers in the following form, with transaction (1) given as an example:
,,,
> Generic Inc. is a distributor of pharmaceutical products. Its ABC system has five activities: Activity Area ………………â€&brvba
> Instant Service (IS) repairs printers and photocopiers for five multisite companies in a tri-city area. IS’s costs consist of the cost of technicians and equipment that are directly traceable to the customer site and a pool of office ov
> SodaKing prepared the budget for 2015 assuming a 10% market share based on total sales in the western region of Canada. The total soft-drinks market was estimated to reach sales of 25 million cases in the region. However, actual total sales volume in the
> SodaKing manufactures and sells three soft drinks: Kola, Limor, and Orlem. Budgeted and actual results for 2015 are as follows: Required: 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (
> The Guangzhou Corporation (GC) sells two brands of wine glasses, Plain and Chic. GC provides the following information for sales in the month of June 2015: Static-budget total contribution margin ……………………………$5,600 Budgeted units to be sold of all glasse
> The Penguins play in the North American Ice Hockey League. The Penguins play in the Downtown Arena (owned and managed by the City of Downtown), which has a capacity of 15,000 seats (5,000 lower-tier seats and 10,000 upper-tier seats). The Downtown Arena
> Lee Shu-yu Inc. produces and sells DVDs to business people and students who are planning extended stays in China. It has been very successful with two DVDs: Beginning Mandarin and Conversational Mandarin. It is introducing a third DVD, Reading Chinese Ch
> What is a linear cost function? Describe three alternative linear cost functions.
> The cities of St. Anne, St. Teresa, and St. Steven are considering the implementation of a new program to handle disposal of hazardous waste to comply with a new, more stringent provincial law. Because of the close proximity of the three cities, a joint
> A number of terms are listed below: Required: Select the terms from the above list to complete the following sentences. To satisfy their customers’ value proposition and benefit from economies of scale, companies often create customi
> Sooke Sawmill Inc. (SSI) purchases logs from independent timber contractors and processes the logs into three types of lumber products: â– Studs for residential buildings (walls, ceilings). â– Decorative pieces (fireplac
> Chemtech Chemicals, a multinational company, has a subsidiary located in a small Eastern European country. The country has only a few environmental protection laws, and even those that exist are not strictly enforced. The subsidiary’s t
> Royston Inc. is a large food processing company. It processes 120,000 kilograms of peanuts in the Peanuts Department at a cost of $160,000 to yield 10,000 kilograms of product A, 60,000 kilograms of product B, and 20,000 kilograms of product C. â&#
> Crisps Inc. is a producer of potato chips. A single production process at Crisps Inc. yields potato chips as the main product and a byproduct that can also be sold as a snack. Both products are fully processed by the splitoff point, and there are no sepa
> The Klein Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a single splitoff point. Products X and Y are ready for s
> Sinclair Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three nonsaleable intermediate products: ICR8, ING4, and XGE3. These intermediate products are further processed separately to produce Crude Oil, Na
> Instant Foods produces two types of microwavable products—beef-flavoured ramen and shrimp-flavoured ramen. The two products share common inputs such as noodles and spices. The production of ramen results in a waste product referred to a
> Convad Company is one of the world’s leading corn refiners. It produces two joint products, corn syrup and corn starch, using a common production process. In July 2015, Convad reported the following production and selling price informat
> What are the factors that affect the breakeven point under (a) variable costing and (b) absorption costing?
> Differences in operating income between variable and absorption costing are due solely to accounting for fixed costs.” Do you agree? Explain.
> Required:a. Refer to Problem 2-41B. Use an Excel spreadsheet to construct the required financial statements. To complete Requirement b, use formulas where normal arithmetic calculations are made within the financial statements (in particular the statemen
> Refer to Problem 2-39B. Complete the requirements using an Excel spreadsheet. Refer to Chapter 1 problem ATC 1-8 for ideas on how to structure the spreadsheet.Data from Problem 2-39B:The following events pertain to Weaver Cleaning Company: 1. Acquired $1
> The financial statements for Simple Company are reported here using an Excel spreadsheet.Required Re-create the financial statements using your own Excel spreadsheet.a. For each number with an arrow by it, enter a formula in that particular cell address
> Annette’s Accessories had the following stock issued and outstanding at January 1, 2016:On March 5, 2016, Annette’s declared a $100,000 cash dividend to be paid March 31 to shareholders of record on March 21.Required:S
> Required:Complete requirement a of Problem 11-22A using an Excel spreadsheet.Data from Problem 11-22A:Cascade Company was started on January 1, Year 1, when it acquired $60,000 cash from the owners. During Year 2, the company earned cash revenues of $35,
> On January 1, Year 1, Bainbridge Company borrowed $100,000 cash from a bank by issuing a 10-year, 9 percent note. The principal and interest are to be paid by making annual payments in the amount of $15,582. Payments are to be made December 31 of each ye
> At the end of Year 1, the following accounting information is available for Bainbridge and Crist companies:Required:a. Set up the preceding spreadsheet. Complete the balance sheet and income statement. Use Excel formulas for rows that “
> At January 1, Year 2, the accounting records of Ginger’s Boutique had the following balances:During January, Ginger’s Boutique entered into five cash transactions:1. Purchased 120 units of inventory @ $16 each.2. Purch
> Required:Complete ATC 5-5 using an Excel spreadsheet.Data from ATC 5-5:Ruby Tuesday’s, Inc. operated 646 casual dining restaurants across the United States as of May 31, 2016. Signet Jewelers Limited claims to be the worldâ€&
> At the end of Year 1, the following information is available for Short and Wise Companies:Required:a. Set up the spreadsheet shown here. Complete the income statements by using Excel formulas.b. Prepare a common size income statement for each company by
> Set up the following spreadsheet comparing the Vong and Crist companies:Required:For each company, compute gross profit, gross profit percentage, net realizable value, accounts receivable turnover, and average days to collect
> Adams Company started operations on January 1, Year 1. Six months later on June 30, Year 1, the company decided to prepare financial statements. The company’s accountant decided to problem solve for the adjusting journal entries and the
> Tomkung Corporation’s income statements are presented in the following spreadsheet:Required:Construct a spreadsheet to conduct horizontal analysis of the income statements for Year 4 and Year 3.,,,
> Visit the campus bookstore at your university. From what you see happening at the bookstore, try to draw a process map of how the processes at that store serve students, the customers
> Kim Sheridan is a college student. Each Monday through Thursday, she commutes to her classes at York Technical College (YTC). Each semester, Kim pays for on‐campus parking privileges. Before Wednesday of the week prior to each new semester, Kim writes a
> In both Chapters 1 and 2, examples of restaurants and fast food chains were used to describe business processes, as they are deemed to be readily familiar to many students. On the basis of your experiences from using the drive‐through window at a fast f
> On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty:• The supplies account balance on March 31 is $5,620. The supplies on hand on March 31 are $1,290.• The unearned rent account
> Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year:Instructions:1. Prepare an income
> The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:a. The investments were sold for $175,000 cash.b. Equipmen
> Based on the data in Exercise 4-22, prepare an income statement, statement of stockholders’ equity, and balance sheet for Alert Security Services Co. During the year ended October 31, 20Y3, common stock of $10 was issued.Exercise 4-22:A
> Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co.:,,,
> Financial information related to Ebony Interiors for February and March 2013 is as follows:a. Prepare balance sheets for Ebony Interiors as of February 28 and March 31, 2013.b. Determine the amount of net income for March, assuming that no additional com
> On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1.a. Prepare a table for this installment note, similar to the o
> Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services has been prepared on the following end-of-period spreadsheet for the year ended October 31, 20Y3:a. Fees earned, but not yet billed, $
> Imaging Services was organized on March 1, 20Y5. A summary of the revenue and expense transactions for March follows:Fees earned ……………………………………………………………………… $482,000Wages expense …………………………………………………………………… 300,000Rent expense ………………………………………………………………….……
> Determine the due date and the amount of interest due at maturity on the following notes:,,,
> Financial information related to Organic Products Company for the month ended June 30, 2019, is as follows:Net income for June …………………………………………………………….…………. $ 115,000Dividends paid in June …………………………………………………………….…………. 25,000Common stock, June 1, 2019 ……
> Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Corp. for a recent year are as follows:Income statement data:Net income ……………………………………………………………………………………. $49,311Gain on disposal of property …………………………
> Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 2% stock, $60 par and 300,000 shares of $20 par common. During its first four years of operations, the following amounts were di
> On the basis of the following data, determine the value of the inventory at the lower of cost or market applied to (a) each item in the inventory, (b) each class of inventory, and (c) total inventory. Assemble the data in the form illustrated in Exhibit
> According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes.a. Calculate the employer’s payroll taxes,
> On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows:Instructions:1. Does Wyman Company use a periodic or perpetual inventory system? Explain.2. Prepare a multiple-step income statement for Wyman Comp
> On June 30, 20Y9, the balances of the accounts appearing in the ledger of Simkins Company are as follows:Instructions:1. Does Simkins Company use a periodic or perpetual inventory system? Explain.2. Prepare a multiple-step income statement for Simkins Co
> The following selected transactions were completed during July of the current year:1. Billed customers for fees earned, $112,700.2. Purchased supplies on account, $4,500.3. Received cash from customers on account, $88,220.4. Paid creditors on account, $3
> Evers Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 8-8.
> The accounts receivable clerk for Evers Industries prepared the following partially completed aging of receivables schedule as of the end of business on July 31:The following accounts were unintentionally omitted from the aging schedule and not included
> Assume that the business in Exercise 6-5 maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustra
> Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 20Y7, are presented in Problem 5-5B.Problem 5-5B:The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year end
> For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 20Y6, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basi
> Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 20Y2, are presented in Problem 5-5A.Problem 5-5A:The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal y
> Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:Exhibit 4:b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?
> Dev’s Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, an
> Sunshine Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of July 31, 20Y0, have been taken from various documents and records and are reproduc
> The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7:Instructions:1. Prepare a multiple-step income statement.2. Prepare a statement of stockholders’ equit
> D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and
> Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current year, Sears Editing Company’s accounting clerk prepared the following unadjusted trial balance:
> The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows:Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:a. The investments were sold for $175,000 cash.b. Equipment and
> Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30, 20Y2, have been taken from various documents and records and are re
> The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:Instructions:1. Prepare a multiple-step income statement.2. Prepare a statement of stockholders’ eq
> The unadjusted trial balance of Recessive Interiors at January 31, 20Y2, the end of the year, follows:The data needed to determine year-end adjustments are as follows:(a) Supplies on hand at January 31 are $2,850.(b) Insurance premiums expired during the
> For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time ba
> Income statement data for Winthrop Company for two recent years ended December 31 are as follows:b. What conclusions can be drawn from the horizontal analysis?
> Assume that the business in Exercise 6-3 maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrat
> The unadjusted trial balance of Lakota Freight Co. at March 31, 20Y4, the end of the year, follows:The data needed to determine year-end adjustments are as follows:(a) Supplies on hand at March 31 are $7,500.(b) Insurance premiums expired during year are
> Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises’ stockholders’ equity accounts, with balances on January 1, 20Y6, are as follows:Common Stock, $20 stated value (500,000 shares authorized, 375
> The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 on October 31, 20Y9. Compa
> Seth Feye established Reliance Financial Services on July 1, 20Y2. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow:1. Prepare an income st
> Jose Loder established Bronco Consulting on August 1, 20Y1. The effect of each transaction and the balances after each transaction for August follow:Instructions:1. Prepare an income statement for the month ended August 31, 20Y1.2. Prepare a statement of
> The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:Instructions:1. Journalize the entries to record the foregoing transactions.2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2.3. Dete
> On October 1, 20Y4, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business:Enter the following transactions on Page 2 of the two-column journal:21. Paid c
> The unadjusted trial balance of La Mesa Laundry at August 31, 20Y5, the end of the fiscal year, follows:The data needed to determine year-end adjustments are as follows:(a) Wages accrued but not paid at August 31 are $2,200.(b) Depreciation of equipment
> The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:Instructions:1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar.2. Indicate the amount of the interest expense
> Ehrlich Co. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the mon
> The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records rev
> The unadjusted trial balance of Epicenter Laundry at June 30, 20Y6, the end of the fiscal year, follows:The data needed to determine year-end adjustments are as follows:(a) Laundry supplies on hand at June 30 are $8,600.(b) Insurance premiums expired dur
> On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business: Enter the following transactions on Page 2 of the two-column journal:29.
> The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Texas, and
> The assets and liabilities of Wilderness Travel Service on April 30, 20Y7, and its revenue and expenses for the year are as follows:Common stock was $25,000 and retained earnings was $155,000 as of May 1, 20Y6. During the year, additional common stock of
> Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of busi
> The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 6-1B.Problem 6-1B:The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as foll
> The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to other businesses and occasionally to retail customers:Instructions:Journalize the entries to record the transactions of Green Lawn
> Last Chance Company offers legal consulting advice to prison inmates. Last Chance prepared the end-of-period spreadsheet that follows at June 30, 20Y3, the end of the fiscal year.Instructions:1. Prepare an income statement for the year ended June 30, 20Y
> On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $
> The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and expenses for the year are as follows:Common stock was $525,000 and retained earnings was $1,250,000 as of January 1, 20Y5. During the year, additional common sto
> The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:a. Net income, $250
> Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Trophy Fish prepared the following partially completed aging of receivables schedule as of
> Wyoming Restoration Company completed the following selected transactions during July 20Y1:Instructions:Journalize the transactions
> The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period are shown in Problem 6-1A.Problem 6-1A:The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending Marc
> On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month:a. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock
> Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following
