Question: Explain the difference between gross earnings and

> The post-closing trial balance submitted to you by the bookkeeper of Tafoya Consulting Company is shown below. Assume that the debit total ($41,048) is correct. a. Analyze the work and prepare a response to what you have reviewed. b. Journalize the closi

> BDO USA, LLP and Grant Thornton, LLP are full-service consulting and forensic accounting firms. These firms offer services ranging from determining contract damages to overseeing fraud examination. Their forensic accountants are experts at finding even t

> Your uncle owns a small sole proprietorship. He does his own bookkeeping, although he didn’t finish the chapter on closing entries before he opened his business. He mentions to you that closing entries look like they take a long time. He wonders why he s

> Jim’s Fitness Center deposits all receipts in the bank each evening and makes all payments by check. On April 30, its ledger balance of cash is $1,515.10. The bank statement balance of cash as of April 30 is $1,920.42. Use the following information to re

> Rather than going directly to college, some students take time off to travel abroad, learn new skills, or volunteer. This period is known as a “gap year.” Real Gap Experience provides hundreds of gap year traveling opportunities in over 45 countries arou

> Roberta Felino, owner of Roberta’s Beauty Salon, makes bank deposits in the night depository at the close of each business day. The following information for the first four days of April is available. Required In general journal form,

> Identify whether the following accounts would be included on a post-closing trial balance. Post-Closing Trial Balance Account Title Yes No 0. Example: Cash X a. Service Revenue b. Prepaid Insurance c. Supplies d. Accounts Payable e. D. Hughes, Drawi

> On March 1 of this year, Stowe Company established a Petty Cash Fund, and the following petty cash transactions took place during the month: Mar. 1 Cashed check no. 314 for $100 to establish a Petty Cash Fund, and put the $100 in a locked drawer in the o

> After all revenue and expenses have been closed at the end of the fiscal period ended December 31, Income Summary has a debit of $45,550 and a credit of $36,520. On the same date, D. Mau, Drawing has a debit balance of $12,000 and D. Mau, Capital had a b

> The Ledger Balance of Cash section of the bank reconciliation for Virtual Net Company for August 31 follows. Journalize the entries required to bring the general ledger up to date as of August of this year.

> Merkle Company deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $3,219.72. The bank statement balance of cash as of November 30, is $3,490.72. You are given the following inform

> The Income Statement columns of the work sheet of Dunn Company for the fiscal year ended June 30 follow. During the year, K. Dunn withdrew $4,000. Journalize the closing entries.

> The Quilt Shop deposits all receipts in the bank each evening and makes all payments by check. On July 31, its ledger balance of cash is $2,830.15. The bank statement balance of cash as of July 31 is $3,215.20. Use the following information to reconcile

> As of December 31, the end of the current year, the ledger of Harris Company contained the following account balances after adjustment. All accounts have normal balances. Journalize the closing entries. Cash $ 8,440 C. Harris, Drawing $1,498 Equipme

> On May 1 of this year, Ellsworth and Company established a Petty Cash Fund. The following petty cash transactions took place during the month: May 1 Cashed check no. 956 for $150 to establish a Petty Cash Fund, and put the $150 in a locked drawer in the

> The ledger accounts after adjusting entries for Cruz Services are presented below. a. Journalize the following closing entries and number as steps 1 through 4. b. What is the new balance of A. Cruz, Capital after closing? Show your calculations. Own

> Arthur’s Men’s Shop deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $2,375.05. The bank statement balance of cash as of November 30 is $2,784.77. Use the following information

> Classify the following accounts as real (permanent) or nominal (temporary) and indicate with an X whether the account is closed. Also indicate the financial statement in which each account will appear. The Building account is given as an example. Cl

> a. Describe the entries that have been posted to the following accounts after the Change Fund was established. b. How will the balance of Cash Short and Over be reported on the income statement? Change Fund Sales Cash 150 Mar. 4 1,472 Mar. 4 1,475

> Prepare a statement of owner’s equity for The Lindal Clinic for the year ended December 31. P. Lindal’s capital amount on January 1 was $124,000, and there was an additional investment of $7,000 on May 12 and withdrawals of $31,500 for the year. Net inco

> Number in order the following steps in the accounting cycle: a. Prepare a trial balance. b. Post journal entries to the accounts in the ledger. c. Journalize and post the adjusting entries from the data on the work sheet. d. Analyze source documents and

> At the end of the day, the cash register tape lists $881.40 as total income from services. Cash on hand consists of $18.25 in coins, $433.60 in currency, $100.00 in traveler’s checks, and $427.00 in customers’ checks. The amount of the Change Fund is $10

> Indicate with an X whether each of the following would appear on the income statement, statement of owner’s equity, or balance sheet. An item may appear on more than one statement. The first item is provided as an example. Balance

> Place a check mark in the column that indicates the location of each item that would be found on a bank reconciliation. Assume that the checks written by the company are written correctly. Subtract Subtract Add to Ledger from Ledger Balance of Add t

> When would revenue and expenses be recorded if a business used the cash basis of accounting? If a business used the accrual basis of accounting?

> a. What does a debit balance in Cash Short and Over mean? b. Where does a debit balance in Cash Short and Over appear in the financial statements? c. What does a credit balance in Cash Short and Over mean? d. Where does a credit balance in Cash Short and

> Marty is an accountant. Sometimes printouts of financial statements contain errors, making the financial statements unusable. Marty doesn’t like to waste anything, so he takes the unusable financial statements to his son’s day care center to use for draw

> You are an owner/bookkeeper in a country whose economy has been nearly destroyed. Goods are scarce. In fact, you have no goods to sell at the start of each day. You go out early each morning to purchase goods and haul them back to sell. At the end of the

> What two measures are used to determine whether a firm has sufficient capital to operate and whether the firm has the ability to pay its debts?

> What are the rules for recognizing whether an adjusting entry should be reversed?

> What are the basic classifications found on an income statement for a merchandising business as compared to a service business?

> What is the order for listing accounts in the Current Assets section of the balance sheet?

> For the university football program’s Unearned Season Tickets account, list the debits and credits for each amount posted to the account and briefly describe each transaction. ACCOUNT Unearned Season Tickets ACCOUNT NO. 214 Balance

> Write the third closing entry to transfer the net income or net loss to the P. Hernandez, Capital account, assuming the following: a. A net income of $3,842 during the first quarter (Jan.–Mar.) b. A net loss of $1,781 during the second quarter (Apr.–Jun.

> Assume that a college receives $84,000 for one semester’s dormitory rent in advance and an entry is made debiting Cash and crediting Unearned Rent. At the end of the year, $68,000 of the rent has been earned. What adjusting entry would be made?

> A merchandising company shows $8,842 in the Supplies account on the preadjusted trial balance. After taking inventory of the actual supplies, the company still owns $3,638. a. How much was used or expired? b. Write the adjusting entry.

> Why is it necessary to adjust the Merchandise Inventory account under a periodic inventory system?

> On a work sheet, where will the amount of the ending merchandise inventory be recorded?

> Using the perpetual inventory system, what account is debited when a business finds that its physical count of inventory is greater than the recorded amount?

> On the Income Summary line of a work sheet, $126,220 appears in the Income Statement Debit column and $123,300 appears in the Income Statement Credit column. Which figure represents the beginning inventory?

> What is a physical inventory? What does the word periodic mean in the term periodic inventory?

> What is the purpose of Form 940? How often is it prepared, and what is the due date?

> What is the purpose of Form 941? How often is it prepared, and what are the due dates?

> What taxes are employers accounting for that increase the debit to Payroll Tax Expense?

> a. Why would a business use a Petty Cash Fund? b. Describe the entry needed to establish a $50 Petty Cash Fund and an entry to reimburse the fund.

> What information is needed to use the wage-bracket withholding table? Where is the table found?

> Describe how a special payroll bank account is useful in paying the wages and salaries of employees.

> What are interim financial statements? Why would a business want to prepare them?

> Considering the following events, determine which month the revenue or expenses would be recorded using the accounting method specified. a. Gerber Company uses the cash basis of accounting. Gerber prepays cash in May for insurance that only covers the fo

> List three required deductions and four voluntary deductions from an employee’s total earnings.

> What is the purpose of the Income Summary account? How does it relate to the revenue and expense accounts?

> You are preparing a post-closing trial balance for the company where you work, but it doesn’t balance. You are tired, and besides, you don’t think the company pays you for this much hassle and extra time. You decide to increase the balance of an asset ac

> What is the purpose of the payroll register?

> What information is included in an employee’s individual earnings record?

> What is the purpose of the post-closing trial balance? What is the difference between a trial balance and a post-closing trial balance?

> Why must employers maintain employees’ individual earnings records?

> The financial statements for Cole Company follow. Required Using the statements of Cole Company, prepare a statement of cash flows for the year ended December 31, 2018. Cole Company Income Statement For Year Ended December 31, 2018 Net Sales $540,

> The financial statements for Zhang Company follow. Assume that the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Zhang Company Income Statement For Year Ended December 31, 20

> The financial statements for Romeo and Company follow. Assume that the additional investment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Romeo and Company Income St

> Mahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase of equipment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Mahoney

> What if the freight charges on a new desk for the owner were journalized and posted to the Freight In account? Would this affect the Cost of Goods Sold section? If so, how?

> A music store sells new instruments. The store also sells used instruments for people who are willing to give the store part of the sales price. The sales of used instruments, called commissions, amount to about one-fourth of total sales. On the firm’s c

> Costco is the largest chain of membership warehouse clubs in the world, based on sales volume, and it is the fifth largest general retailer in the United States. Costco focuses on selling products at low prices, often at a very high volume. These goods a

> The following accounts appear in the ledger of Sheldon Company on January 31, the end of this fiscal year. Cash ………………………………………………………………………… $ 16,400 Accounts Receivable …………………………………………………….. 15,100 Merchandise Inventory ……………………………………………….. 55,500 Stor

> The following partial work sheet covers the affairs of Ketcher and Company for the year ended June 30. Required 1. Journalize the six adjusting entries. 2. Journalize the closing entries. 3. Journalize the reversing entry as of July 1, for the salaries

> Record entries in general journal form to record the following: a. Established a Petty Cash Fund, $100. Issued Ck. No. 587. b. Reimbursed the Petty Cash Fund for expenditures of $89: Store Supplies, $39; Office Supplies, $20; Miscellaneous Expense, $30.

> A partial work sheet for McKnight Music Store is presented here. The merchandise inventory at the beginning of the fiscal period was $48,473. W. J. McKnight, the owner, withdrew $40,000 during the year. Required 1. Prepare an income statement. 2. Journ

> The following accounts appear in the ledger of Celso and Company as of June 30, the end of this fiscal year. Cash …………………………………………………………………………. $ 15,349 Accounts Receivable …………………………………………………….. 13,810 Merchandise Inventory ……………………………………………….. 50,280 S

> The following partial work sheet covers the affairs of Masanto and Company for the year ended June 30. Required 1. Journalize the six adjusting entries. 2. Journalize the closing entries. 3. Journalize the reversing entry as of July 1, for the salaries

> A partial work sheet for The Fan Shop is presented here. The merchandise inventory at the beginning of the year was $52,300. P. G. Ochoa, the owner, withdrew $30,500 during the year. Required 1. Prepare an income statement. 2. Journalize the closing en

> From the following information, journalize the last two closing entries and present a statement of owner’s equity for Nishimoto Company. H. Nishimoto, Capital Income Summary Dec. 31 Adj. Dec. 31 Closing 415,000 Dec. 31 Closing 190,

> From the following T accounts, journalize the closing entries dated December 31 for Baylor Company. Purchases Returns Salary Expense H. Baylor, Drawing and Allowances + 65,000 55,000 8,600 Purchases Miscellaneous Expense Rent Expense + 235,600 12,20

> On December 31, 20--, the following selected accounts and amounts appeared on the balance sheet for Duncan Company. Determine the amount of the working capital and the current ratio. (Round to two decimal places.) Building …………………………………………………………………. $18

> Identify each of the following items relating to sections of a balance sheet as Current Assets (CA), Property and Equipment (PE), Current Liabilities (CL), Long-Term Liabilities (LTL), or Owner’s Equity (OE). a. Accounts Payable b. Equipment c. Accounts

> The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. From the information given, prepare an income statement for the company. To save time and space, the expenses have been grouped together into two categ

> Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Adverti

> The Income Statement columns of the work sheet of Redfax Company for the fiscal year ended December 31 follow. During the year, D. Redfax withdrew $12,000. Journalize the closing entries. A H INCOME STATEMENT 6 ACCOUNT NAME DEBIT CREDIT 7 Income fro

> Fill in the missing amounts for the following bank reconciliation: Bank Reconciliation March 31, 20- Bank Statement Balance $3,764.00 Add: Deposit in transit (a) $4,031.00 Deduct: Outstanding checks $212.00 No. 211 (b) No. 225 No. 228 318.00 850.00

> A venture recorded revenues of $1 million last year and net profit of $100,000. Total assets were $800,000 at the end of last year. A. Calculate the venture’s net profit margin. B. Calculate the venture’s asset turnover. C. Calculate the venture’s ret

> Jen Liu and Larry Mestas are seeking venture investors to help fund the expected growth in their Frozen Yogurt venture described in Problems 3 and 4. Use the VOS Indicator guidelines presented in Figures 2.8 and 2.9 to score Jen and Larry’s frozen yogur

> What are the components of a sound business model?

> An analogy used relating to venture opportunity screening makes reference to “caterpillars” and “butterflies.” Briefly describe the use of this analogy.

> Describe the meaning of venture opportunity screening.

> How do public and private financial markets differ?

> What is meant by a viable venture opportunity?

> Briefly describe the process involved in moving from an idea to a business model/plan.

> What is meant by disruptive innovation? What is the “sharing economy” societal trend?

> How do we know whether an idea has the potential to become a viable business opportunity?

> 3. Following are some pairs of famous entrepreneurs. Using the Web if needed, associate the entrepreneurs with the companies they founded: 1.Steve Jobs and Steven Wozniak A. Google  2.Bill Gates and Paul Allen B. Ben & Jerry’s  3.Larry Page and Se

> What are five megatrend sources or categories for finding entrepreneurial opportunities?

> Explain the statement: “The time value of money is not the only cost involved in renting someone’s financial capital.”

> 2. The following ventures have supplied information on how they are being financed. Link the type and sources of financing to where each venture is likely to be in its life cycle. A. Voice River provides media-on-demand services via the Internet. Voice R

> What is entrepreneurship? What are some basic characteristics of entrepreneurs?

> What is the entrepreneurial process?

> In 2016, Jennifer (Jen) Liu and Larry Mestas founded Jen and Larry’s Frozen Yogurt Company, which was based on the idea of applying the microbrew or microbatch strategy to the production and sale of frozen yogurt. [The involved reader may recall that we

> Salza Technology Corporation increased its sales from $375,000 in 2015 to $450,000 in year 2016 as is shown in the firm’s income statements presented below. LeAnn Sands, chief executive officer (CEO) and founder of the firm expressed concern that the ca

> The Castillo Products Company described in Problem 6 had a very difficult operating year in 2015 resulting in a net loss of $65,000 on sales of $900,000. In 2016, sales jumped to $1,500,000 and a net profit after taxes was earned. The firm’s income sta

> Cindy and Robert (Rob) Castillo founded the Castillo Products Company in 2015. The company manufactures components for personal decision assistant (PDA) products and for other hand-held electronic products. Year 2015 proved to be a test of the Castillo P

> During its first year of operations, the SubRay Corporation produced the following income statement results: Net Sales……………………………..$300,000 Cost of Goods Sold………………-180,000 Gross Profit………………………120,000 General & Administrative………60,000 Marketing expense

> This problem is a continuation of Problem 3. Assume you ramp up production to 1,000 units per month in April, May, and June. Sales are expected to be 800 units in April and 1,100 units in each of May and June. Repeat the calculations requested in Problem