Question: Blair, Inc., has the following plant asset

> The comparative balance sheets of Shaw Movie Theater Company at June 30, 2018 and 2017, reported the following: Shaw’s transactions during the year ended June 30, 2018, included the following: Requirements: 1. Prepare Shaw Movie Theat

> Fortune Software Corp. has assembled the following data for the years ending December 31, 2018 and 2017: Requirement: 1. Prepare Fortune’s statement of cash flows using the indirect method to report operating activities. Include a sch

> Use the Vintage Motors data from P11-66B. Requirements: 1. Prepare Vintage’s income statement for the year ended December 31, 2018. Use the singlestep format, with all revenues listed together and all expenses together. 2. Prepare Vintage’s balance shee

> Use the data for Spear Corporation in illustrate Spear’s income tax advantage from using LIFO over FIFO. Sales revenue is $10,080, operating expenses are $800, and the income tax rate is 25%. How much in taxes would Spear Corporation save by using the LI

> Vintage Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018:On January 1, 2018, Vintage issued its common stock for $430,000. Early in January, Vintage made the following cash payments: a. $160,000 for equipment b

> The comparative balance sheets of American-Davis Design Studio, Inc., at June 30, 2018, and 2017, and transaction data for fiscal 2018, are as follows: Transaction data for the year ended June 30, 2018, follows: a. Net income, $60,500 b. Depreciation ex

> To prepare the statement of cash flows, accountants for Ronklin Electric Company have summarized 2018 activity in two accounts: Ronklin Electric’s 2018 income statement and balance sheet data follow: Requirements: 1. Prepare the state

> Rourke Furniture Gallery, Inc., provided the following data from the company’s records for the year ended March 31, 2019: a. Credit sales, $583,800 b. Loan to another company, $10,000 c. Cash payments to purchase plant assets, $89,300 d. Cost of goods so

> Use the Queen Supply Corp. data from P11-61A. Requirements: 1. Prepare the company’s 2018 statement of cash flows using the direct method. 2. How can the concepts used in this problem help you evaluate an investment? Data from p11-61A

> The 2018 and 2017 comparative balance sheets and 2018 income statement of Queen Supply Corp. follow: Queen Supply had no noncash investing and financing transactions during 2018. During the year, there were no sales of land or equipment, no payment of

> The comparative balance sheets of Bedford Movie Theater Company at November 30, 2018, and 2017, reported the following: Bedford’s transactions during the year ended November 30, 2018, included: Requirements: 1. Prepare Bedford Movie T

> Smither Software Corp. has assembled the following data for the years ending December 31, 2018 and 2017. Requirement: 1. Prepare Smither’s statement of cash flows using the indirect method to report operating activities. Include a sc

> Use the Coleman Motors data from P11-57A. Requirements: 1. Prepare Coleman’s income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. 2. Prepare Coleman’s balance she

> Coleman Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018On January 1, 2018, Coleman issued its common stock for $350,000. Early in January, Coleman made the following cash payments: a. $140,000 for equipment b.

> Use the data for Spear Corporation in E6-30B to answer the following. Requirements 1. Compute cost of goods sold and ending inventory using each of the following methods: a. Specific identification, with seven $160 units and four $170 units still on hand

> Patterson Specialties, Inc., reported the following statement of stockholders’ equity for the year ended October 31, 2018: Requirements: Answer these questions about Patterson’s stockholders’ equity

> Medical Goods is embarking on a massive expansion. Assume the plans call for opening 20 new stores during the next two years. Each store is scheduled to be 30% larger than the company’s existing locations, offering more items of inventory and with more e

> The following accounts and related balances of Cardinal Designers, Inc., as of December 31, 2018, are arranged in no particular order: Requirements: 1. Prepare Cardinal’s classified balance sheet in the account format at December 31, 2

> Assume Dotty Cakes, Inc., completed the following transactions during 2018, the company’s 10th year of operations: Requirements: 1. Analyze each transaction in terms of its effect on the accounting equation of Dotty Cakes. 2. What impa

> Madrid Jewelry Company reported the following summarized balance sheet at December 31, 2018 During 2019, Madrid Jewelry completed these transactions that affected stockholders’ equity: Requirements: 1. Journalize Madrid Jewelryâ

> Superior Outdoor Furniture Company included the following stockholders’ equity on its year-end balance sheet at February 28, 2019: Requirements: 1. Identify the different issues of stock that Superior Outdoor Furniture Company has out

> Doorman Corp. has the following stockholders’ equity information: Doorman’s charter authorizes the company to issue 9,000 shares of 8% preferred stock with par value of $120 and 700,000 shares of no-par common stock. The company issued 1,800 shares of

> The partners who own Crew Kayaks Co. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Crew Kayaks, Inc. The charter from the state of Nevada authorizes the corporation to issue 125,000 shares o

> Ahuja Specialties, Inc., reported the following statement of stockholders’ equity for the year ended October 31, 2018: Requirements: Answer these questions about Ahuja’s stockholders’ equity transact

> Sullivan Medical Goods is embarking on a massive expansion. Assume plans call for opening 20 new stores during the next two years. Each store is scheduled to be 30% larger than the company’s existing locations, offering more items of inventory and with m

> On September 30, 2018, Rittex, Inc., purchased 5% bonds of McPhee Corporation at 97 as a long-term, held-to-maturity investment. The maturity value of the bonds will be $46,000 on September 30, 2023. The bonds pay interest on March 31 and September 30. R

> Haddock Corp. purchased fifteen $1,000 7% bonds of Galvan Corporation when the market rate of interest was 8%. Interest is paid semiannually, and the bonds will mature in nine years. Using the PV function in Excel®, compute the price Haddock paid (the pr

> The following accounts and related balances of Eagle Designers, Inc., as of December 31, 2018, are arranged in no particular order: Requirements: 1. Prepare Eagle’s classified balance sheet in the account format at December 31, 2018.

> Assume Dessert Corner, Inc., completed the following transactions during 2018, the company’s 10th year of operations: Requirements: 1. Analyze each transaction in terms of its effect on the accounting equation of Dessert Corner. 2. Wha

> Jubilee Jewelry Company reported the following summarized balance sheet at December 31, 2018: During 2019, Jubilee Jewelry completed these transactions that affected stockholders’ equity: Requirements: 1. Journalize Jubilee Jewelry&a

> Seasonal Outdoor Furniture Company included the following stockholders’ equity on its year-end balance sheet at March 31, 2019: Requirements: 1. Identify the different issues of stock that Seasonal Outdoor Furniture Company has outsta

> Lima Corp. has the following stockholders’ equity information: Lima’s charter authorizes the company to issue 4,000 shares of 11% preferred stock with par value of $200 and 700,000 shares of no-par common stock. The company issued 1,000 shares of the pre

> The partners who own Jefferson Rafts Co. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Jefferson Rafts, Inc. The charter from the state of Vermont authorizes the corporation to issue 200,000

> The accounting records of Brigham Foods, Inc., include the following items at December 31, 2018: Requirements: 1. Show how each relevant item would be reported on the Brigham Foods classified balance sheet. Include headings and totals for current liabi

> On December 31, 2018, Herndon Corporation issues 6%, 10-year convertible bonds payable with a face value of $1,000,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 7%. Herndon amortizes bond discounts using the

> The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Thorson amortizes bond discounts using the effective-interest method and pays all interest amounts at December 31. Require

> 1. Journalize the following transactions of Laporte Communications, Inc.: 2. At December 31, 2018, after all year-end adjustments have been made, determine the carrying amount of Laporte’s bonds payable, net. 3. For the six months ende

> Conroy Financial paid $530,000 for a 20% investment in the common stock of Maverick, Inc. For the first year, Maverick reported net income of $270,000, and at year-end declared and paid cash dividends of $115,000. On the balance-sheet date, the fair valu

> On February 28, 2018, Dolphin Corp. issued 10%, 20-year bonds payable with a face value of $2,100,000. The bonds pay interest on February 28 and August 31. The company amortizes bond discount using the straight-line method. Requirements: 1. If the marke

> The board of directors of Canterbury Plus authorized the issue of $9,000,000 of 7%, 15-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on May 31, 2018, at par. Requirements: 1. Journalize the following

> Greco Lake Resort reported the following on its balance sheet at December 31, 2018: On July 1, 2019, the resort expanded operations and purchased additional equipment for cash at a cost of $109,000. The company depreciates buildings using the straight-

> Lancey Supply, Inc., opened an office in Ypsilanti, Michigan. Lancey incurred the following costs in acquiring land, making land improvements, and constructing and furnishing the new sales building: The company depreciates buildings over 50 years, land

> Parker Corporation reported the following related to property and equipment (all in millions): From the balance sheets Requirements: 1. Draw T-accounts for Property and Equipment and Accumulated Depreciation. Enter the information as presented and solve

> One Stop Shop Corporation operates general merchandise and food discount stores in the United States. The company reported the following information for the three years ending December 31, 2017: Requirements: 1. Compute the net profit margin ratio for O

> At the end of 2017, Stretch Energy had total assets of $17.3 billion and total liabilities of $9.7 billion. Included among the assets were property, plant, and equipment with a cost of $4.9 billion and accumulated depreciation of $2.7 billion. Stretch En

> Pacific Energy Company’s balance sheet includes the asset Iron Ore Rights. Pacific Energy paid $3.0 million cash for the right to work a mine that contained an estimated 240,000 tons of ore. The company paid $70,000 to remove unwanted buildings from t

> Savanaugh Stores, Inc., sells electronics and appliances. The excerpts that follow are adapted from Savanaugh’s financial statements for 2018 and 2017. Requirements: 1. How much was Savanaugh’s cost of plant assets at

> On January 3, 2018, Pawnee Company paid $230,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $1,000, sales tax of $6,000, and $28,000 for a special platform on which to place the computer. Pawnee’s mana

> Without making journal entries, record the transactions of E-E-27B directly in the McCloud T-account, Equity-method Investment. Assume that after all the noted transactions took place, McCloud sold its entire investment in Brown for cash of $1,400,000. H

> Forest Lake Resort reported the following on its balance sheet at December 31, 2018: On July 1, 2019, the resort expanded operations and purchased additional equipment for cash at a cost of $109,000. The company depreciates buildings using the straight

> Becker Supply, Inc., opened an office in White Bear Lake, Minnesota. Becker incurred the following costs in acquiring land, making land improvements, and constructing and furnishing the new sales building The company depreciates buildings over 30 years,

> Walker Corporation reported the following related to property and equipment (all in millions) Requirements: 1. Draw T-accounts for Property and Equipment and Accumulated Depreciation. Enter the information as presented and solve for the unknown in each

> Bargain Basement Corporation operates general merchandise and food discount stores in the United States. The company reported the following information for the three years ending December 31, 2017: Requirements: 1. Compute the net profit margin ratio fo

> At the end of 2017, Solar Power had total assets of $17.8 billion and total liabilities of $9.1 billion. Included among the assets were property, plant, and equipment with a cost of $4.5 billion and accumulated depreciation of $3.4 billion. Solar Power c

> Atlantic Energy Company’s balance sheet includes the asset Iron Ore Rights. Atlantic Energy paid $2.9 million cash for the right to work a mine that contained an estimated 225,000 tons of ore. The company paid $68,000 to remove unwanted buildings from th

> Caribbean Sales, Inc., sells electronics and appliances. The excerpts that follow are adapted from Caribbean’s financial statements for 2018 and 2017 Requirements: 1. How much was Caribbean’s cost of plant assets at A

> On January 2, 2018, Jupiter Company paid $270,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $1,800, sales tax of $6,900, and $31,300 for a special platform on which to place the computer. Jupiter’s ma

> Mayfield, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Mayfield completed the following transaction. Requirement: 1. Record the transactions

> McCloud Corporation owns equity-method investments in several companies. McCloud paid $1,800,000 to acquire a 30% investment in Brown Software Company. Brown reported net income of $660,000 for the first year and declared and paid cash dividends of $460,

> The accounting records of Boston Home Store show these data (in millions): The shareholders are very happy with Boston’s steady increase in net income. However, auditors discovered that the ending inventory for 2016 was understated by

> Eddie’s Convenience Stores’ income statement for A1 the year ended December 31, 2017, and its balance sheet as of December 31, 2017, are as follows: The business is organized as a proprietorship, so it pays no corporat

> Ross Company, a camera store, lost some inventory in a fire on December 15. To file an insurance claim, the company must estimate its December 15 inventory using the gross profit method. For the past two years, Ross Company’s gross pr

> Sprinkle Top, Inc., and Coffee Shop Corporation are both specialty food chains. The two companies reported these figures, in million Requirements: 1. Compute the gross margin percentage and the rate of inventory turnover for Sprinkle Top and Coffee Sho

> Freshwater Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Freshwater’s suppliers to lower the prices that Freshwater will pay when

> The records of Eaton Aviation include the following accounts for inventory of aviation parts at July 31 of the current year: Requirements: 1. Prepare a partial income statement through gross profit under the average-cost, FIFO, and LIFO methods. Round

> SWAT Surplus began March 2018 with 100 tents that cost $10 each. During the month, the company made the following purchases at cost:18 26 The company sold 318 tents, and at March 31, the ending inventory consisted of 52 tents. The sales price of each te

> A Swoosh Sports outlet store began December 2018 with 47 pairs of running shoes that cost the store $34 each. The sales price of these shoes was $63. During December, the store completed these inventory transactions: Requirements: 1. The preceding data

> Western Trading Company purchases inventory in crates of merchandise; each crate of inventory is a unit. The fiscal year of Western Trading ends each January 31. Assume you are dealing with a single Western Trading store in Nashville, Tennessee. The Nash

> The accounting records of Timberlake Home Store show these data (in millions) The shareholders are very happy with Timberlake’s steady increase in net income. However, auditors discovered that the ending inventory for 2016 was underst

> During the most recent year, Smither Travelers Co. bought 3,400 shares of German Corporation common stock at $37, 630 shares of British Corporation stock at $47.00, and 1,400 shares of Milan Corporation stock at $76. At December 31, Hoover’s Online repor

> Ricky’s Convenience Stores’ income statement for the year ended December 31, 2017, and its balance sheet as of December 31, 2017, are as follows: The business is organized as a proprietorship, so it pays no corporate

> Cleveland Company, a camera store, lost some inventory in a fire on October 15. To file an insurance claim, the company must estimate its October 15 inventory using the gross profit method. For the past two years, Cleveland Company’s gr

> Crispy Donut, Inc., and Calhoun Coffee Corporation are both specialty food chains. The two companies reported these figures, in millions: Requirements: 1. Compute the gross margin percentage and the rate of inventory turnover for Crispy Donut and Calh

> Anderson Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Anderson’s suppliers to lower the prices that Anderson will pay when it rep

> The records of Atlanta Aviation include the following accounts for inventory of aviation parts at July 31 of the current year: Requirements: 1. Prepare a partial income statement through gross profit under the average-cost, FIFO, and LIFO methods. Roun

> Navy Surplus began July 2018 with 80 stoves that cost $10 each. During the month, the company made the following purchases at cost: The company sold 250 stoves, and at July 31, the ending inventory consisted of 50 stoves. The sales price of each stove w

> A Gold Medal Sports outlet store began August 2018 with 42 pairs of running shoes that cost the store $31 each. The sales price of these shoes was $63. During August, the store completed these inventory transactions: Requirements: 1. The preceding dat

> Eastern Trading Company purchases inventory in crates of merchandise; each crate of inventory is a unit. The fiscal year of Eastern Trading ends each January 31. Assume you are dealing with a single Eastern Trading store in San Diego, California. The

> The notes to the Alliance Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Alliance amortizes bond discounts using the effective-interest method and pays all interest amounts at December 31. Require

> 1. Journalize the following transactions of Lyons Communications, Inc.: 2. At December 31, 2018, after all year-end adjustments have been made, determine the carrying amount of Lyons’ bonds payable, net. 3. For the six months ended Ju

> Journalize the following long-term, equity investment transactions of Johnson Department Stores: a. Purchased 420 shares of Gates Fine Foods common stock at $35 per share (less than 10% of Gates’ outstanding stock), with the intent of holding the stock

> On February 28, 2018, Shark Corp. issued 10%, 10-year bonds payable with a face value of $1,500,000. The bonds pay interest on February 28 and August 31. The company amortizes bond discount using the straight-line method. Requirements: 1. If the market

> The board of directors of Mailroom Plus authorized the issue of $8,000,000 of 6%, 10-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on May 31, 2018, at par. Requirements: 1. Journalize the following tr

> The accounting records of Burgess Foods, Inc., include the following items at December 31, 2018: Requirements: 1. Show how each relevant item would be reported on the Burgess Foods classified balance sheet. Include headings and totals for current liabil

> On December 31, 2018, Mainland Corporation issues 6%, 10-year convertible bonds payable with a face value of $4,000,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 8%. Mainland amortizes bond discounts using th

> At December 31, 2018, Filbert Corporation’s adjusted trial balance shows the following balances: Filbert Corporation provides multi-year warranties with its products. Half of the Accrued Warranty Liability relates to warranty liabiliti

> The following transactions of Smooth Sounds Music Company occurred during 2018 and 2019: Requirement: 1. Record the transactions in Smooth Sounds’ journal. Explanations are not required.

> Bennett Go-Karts sells motorized go-karts. Bennett Go-Karts are motorized and are typically purchased by amusement parks and other recreation facilities, but are also occasionally purchased by individuals for their own personal use. The company uses a pe

> December 31, 2018, Jackson Corporation’s adjusted trial balance shows the following balances: Jackson Corporation provides multi-year warranties with its products. Half of the Accrued Warranty Liability relates to warranty liabilities

> The following transactions of Melody Music Company occurred during 2018 and 2019: Requirement: 1. Record the transactions in Melody Music Company’s journal. Explanations are not required.

> Marine experienced these events during the current year. a. December revenue totaled $110,000; and, in addition, Big Wave collected sales tax of 7%. The tax amount will be sent to the state of Delaware early in January. b. On August 31, Big Wave signed a

> Amherst Corporation, an investment banking company, often has extra cash to invest. Suppose Amherst buys 900 shares of Hurricane Corporation stock at $57 per share, representing less than 5% of Hurricane’s outstanding stock. Amherst expects to hold the H

> Randall Go-Karts sells motorized go-karts. Randall Go-Karts are motorized and are typically purchased by amusement parks and other recreation facilities, but are also occasionally purchased by individuals for their own personal use. The company uses a pe

> Insurance companies and pension plans hold large quantities of bond investments. Rainy Day Corp. purchased $1,500,000 of 8% bonds of Quantrill, Inc., for 95 on January 1, 2018. These bonds pay interest on January 1 and July 1 each year. They mature on Ja

> The beginning balance sheet of Lansing Corporation included the following long-term asset: Lansing completed the following investment transactions during the year: At year-end, the fair values of Lansing’s investments were as follows:

> Illinois Exchange Company completed the following long-term investment transactions during 2018: At year-end, the fair value of the Amsterdam stock is $30,900. The fair value of the Exeter stock is $652,000. Requirements: 1. For which investment is fa

> During the fourth quarter of 2018, Harvestology, Inc. generated excess cash, which the company invested in equity securities as follows: Requirements: 1. Open T-accounts for Cash (including its beginning balance of $21,000), Investment in Equity Securit

> Insurance companies and pension plans hold large quantities of bond investments. Sea Insurance Corp. purchased $2,000,000 of 9% bonds of Sheehan, Inc., for 96 on January 1, 2018. These bonds pay interest on January 1 and July 1 each year. They mature on

> EnviroFriend Structures, Inc., builds environmentally sensitive structures. The company’s 2018 revenues totaled $2,780 million. At December 31, 2018, and 2017, the company had, respectively, $656 million and $591 million in current asse

> Western Electronics completed these selected transactions during March 2018: a. Sales of $2,400,000 are subject to an accrued warranty cost of 9%. The accrued warranty payable at the beginning of the year was $37,000, and warranty payments for the year