Question: Financial information for Buckle is presented in

> Refer to the information in BE7–12. Determine the financial statement effects of depreciation using the activity-based method. Data from BE7-12: Refer to the information in BE7-10. In addition, assume the machine operated for an additional 3,400 hours i

> Refer to the information in BE7–11. Determine the financial statement effects of depreciation for each of the first two years using the straight-line method. Data from BE7-11: Refer to the information in BE7-10. Record depreciation expense for each of t

> Refer to the information in BE7–1. Determine the financial statement effects of the purchase of land. Data from BE7-1: Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following exp

> Refer to the information in BE7-10. In addition, assume the machine operated for an additional 3,400 hours in the second year. Record depreciation expense for the first two years using the activity-based method. Data from BE7-10: On January 1, Hawaiian

> Tony and Suzie graduate from college in May 2024 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they’ll hold their first adventure

> Suppose an auditor has been paid $1,000,000 each year for the past several years by a company to perform the audit of its annual financial statements. This company is the auditor’s largest client. In the current year, the auditor notices that the prelimi

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Facebook for the year ended December 31, 2019. Locate the “Consolidated Statements of Income” and “Consolidated Balance Sheets” and answer the foll

> Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book. Required: 1. Which company reports higher total assets? 2. Which company r

> Financial information for Buckle. Required: 1. Determine the amounts Buckle reports for total assets, total liabilities, and total stockholders’ equity in the balance sheet for the most recent year. Verify that the basic accounting equation balances. 2.

> Refer to the information in BE7-10. Record depreciation expense for each of the first two years using the straight-line method. Data from BE7-10: On January 1, Hawaiian Specialty Foods purchased equipment for $30,000. Residual value at the end of an est

> Financial information for American Eagle is presented in Appendix A at the end of the book. Required: 1. Determine the amounts American Eagle reports for total assets, total liabilities, and total stockholders’ equity in the balance sheet for the most re

> Tony Matheson plans to graduate from college in May 2024 after spending four years earning a degree in sports and recreation management. Since beginning T-ball at age five, he’s been actively involved in sports and enjoys the outdoors. Each summer growin

> After years of steady growth in net income, Performance Drug Company reported a preliminary net loss in 2024. The CEO, Joe Mammoth, notices the following estimates are included in reported performance: 1. Warranty expense and liability for estimated futu

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Dick’s Sporting Goods for the year ended February 1, 2020. Locate the “Consolidated Statements of Income” (income statement) and “Consolidated Bala

> Financial information for American Eagle is presented and financial information for Buckle is presented. Required: 1. Calculate the following risk ratios for both companies for the most recent year. Based on these calculations, which company appears to b

> Income statement and balance sheet data for Great Adventures, Inc., are provided below. As you can tell from the financial statements, 2025 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of

> Bryan Eubank began his accounting career as an auditor for a Big 4 CPA firm. He focused on clients in the high-technology sector, becoming an expert on topics such as inventory write downs, stock options, and business acquisitions. Impressed with his tec

> Why can’t we pay our shareholders a dividend?” shouts your new boss at Polar Opposites. “This income statement you prepared for me says we earned $5 million in our first year!” You r

> Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking to increase the company’s borrowings with the bank from $100,000 to $200,000. Matt has an uneasy feeling as he examines the loan application

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Alphabet Inc. for the year ended December 31, 2019. Locate the “Consolidated Statements of Cash Flows” and the “Consolidated Balance Sheets.” You m

> On January 1, Hawaiian Specialty Foods purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $3,000. The machine operated for 3,100 hours in the first year, and the company expects the machine

> Financial information for American Eagle book, and financial information for Buckle is presented. Required: 1. Calculate American Eagle’s cash return on assets, cash flow to sales, and asset turnover ratio. 2. Calculate Buckle’s cash return on assets, ca

> Financial information for Buckle is presented. Required: 1. What was the amount of increase or decrease in cash and cash equivalents for the most recent year? 2. What was net cash from operating activities for the most recent year? Is net cash from opera

> Financial information for American eagle is presented. Required: 1. What was the amount of increase or decrease in cash and cash equivalents for the most recent year? 2. What was net cash from operating activities for the most recent year? Is net cash fr

> The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. Additional Information for 2025: 1. Land of $500,000 was obtained by issuing a note payable to the seller. 2.â€&

> Renegade Clothing is struggling to meet analysts’ forecasts. It’s early December 2024, and the year-end projections are in. Listed below are the projections for the year ended 2024 and the comparable actual amounts for

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Abercrombie & Fitch Co. for the year ended February 1, 2020. Locate the “Consolidated Statements of Operations and Comprehensive Income” (income st

> Financial information for American Eagle and financial information for Buckle is presented. Required: 1. Calculate the return on equity for American Eagle and Buckle for the most recent year. Which company is more profitable? 2. Determine the amount repo

> Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million,

> Adrenaline Entertainment is struggling financially and its CFO, David Plesko, is starting to feel the heat. Back on January 1, 2020, Adrenaline Entertainment issued $100 million of 6% bonds, due in 15 years, with interest payable semiannually on June 30

> The Tony Hawk Skate Park was built in early 2024. The construction was financed by a $3,000,000, 7% note due in six years, with payments of $51,147 required each month. The first year has not been as profitable as hoped. The discussion at the executive b

> Refer to the information in BE6–14. Record any necessary adjusting entry for the lower of cost and net realizable value. Data from BE6-14: Powder Ski Shop reports inventory using the lower of cost and net realizable value (NRV). Inform

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Six Flags Entertainment Corporation for the year ended December 31, 2019. Locate the “Consolidated Statement of Operations” (income statement) and

> Financial information for American Eagle and financial information for Buckle is presented. Required: 1. Calculate the debt to equity ratio for American Eagle and Buckle for the most recent year. Which company has the riskier ratio? Compare your calculat

> Financial information for Buckle is presented. Required: 1. Calculate the debt to equity ratio for the past two years. Did the ratio increase or decrease in the more recent year? 2. Calculate the return on assets for the most recent year. Does the return

> Financial information for American Eagle is presented. Required: 1. Calculate the debt to equity ratio for the past two years. Did the ratio increase or decrease the more recent year? 2. Calculate the return on assets for the most recent year. Does the r

> Tony’s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and sa

> Quattro Technologies, a hydraulic manufacturer in the aeronautics industry, has reported steadily increasing net income over the past few years. The company reported net income of $120 million in 2022 and $140 million in 2023. The stock is receiving incr

> Western Manufacturing is involved with several potential contingent liabilities. Your assignment is to draft the appropriate accounting treatment for each situation described below. Western’s fiscal year-end is December 31, 2024, and the financial statem

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Target Corporation for the year ended February 1, 2020. Locate the “Consolidated Statements of Financial Position” (balance sheet). You may also fi

> Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book. Required: 1. Calculate the current ratio for both companies for the most r

> Financial information for Buckle is presented. Required: 1. Calculate the current ratio for the past two years. Did the current ratio improve or weaken in the more recent year? 2. Calculate the acid-test (quick) ratio for the past two years. Did the acid

> Refer to the information in BE5–6. Determine the financial statement effects of collecting cash from an account previously written off as uncollectible. Data from BE 5-6: Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer

> Financial information for American Eagle is presented in Appendix A at the end of the book. Required: 1. Calculate the current ratio for the past two years. Did the current ratio improve or weaken in the more recent year? 2. Calculate the acid-test (quic

> At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $30,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • A

> At a recent luncheon, you were seated next to Mr. Fogle, the president of a local company that manufactures food processors. He heard you were in a financial accounting class and asked: “Why is it that I’m forced to record depreciation expense on my prop

> Companies often are under pressure to meet or beat Wall Street earnings projections in order to increase stock prices and also to increase the value of stock options. Such pressure may cause some managers to alter their estimates for depreciation to arti

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Facebook for the year ended December 31, 2019. Locate the “Consolidated Statements of Income” (income statement) and “Consolidated Balance Sheets.”

> Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book. Required: 1. Calculate American Eagle’s return on assets, profit margin, a

> Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2025, for $12,000. They expect to use the Suburban for five years and then sell the vehicle for $4,500

> Horizon Corporation manufactures personal computers. The company began operations in 2012 and reported profits for the years 2015 through 2022. Due primarily to increased competition and price slashing in the industry, 2023’s income statement reported a

> Financial information for American Eagle is presented in Appendix A at the end of the book. Required: 1. For the most recent year, what is the amount of inventory in the balance sheet? What does this amount represent? 2. American Eagle refers to its cost

> Refer to the information in BE5–4. Determine the financial statement effects of the adjusting entry to allow for uncollectible accounts. Data from BE 5-4: At the end of the first year of operations, Mayberry Advertising had accounts receivable of $20,00

> Presented below is a partial amortization schedule for a three-year installment note requiring monthly payments of $1,128.11. 1. What is the principal amount of the note? 2. What is the total number of monthly payments? 3. What is the total cash paid ove

> Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watch

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Avon Products for the year ended December 31, 2019. Locate the “Consolidated Statement of Operations” (income statement) and “Consolidated Balance

> Financial information for American Eagle and financial information for Buckle is presented. Required: Try to estimate each company’s ratio of total current receivables to total current assets. Do you see problems with either company’s management of recei

> Financial information for Buckle is presented. Required: 1. Determine whether the trend in net sales has been increasing or decreasing for the past three years. 2. In which financial statement is the balance of accounts receivable reported? Explain why u

> Financial information for American Eagle is presented. Required: 1. Determine whether the trend in net sales has been increasing or decreasing for the past three years. 2. In which financial statement is the balance of accounts receivable reported? Expla

> Tony and Suzie are ready to expand Great Adventures even further in 2025. Tony believes that many groups in the community (for example, Boys and Girls Clubs, church groups, civic groups, and local businesses) would like to hold one-day outings for their

> Consider the following independent situations: 1. John Smith is the petty-cash custodian. John approves all requests for payment out of the $200 fund, which is replenished at the end of each month. At the end of each month, John submits a list of all acc

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for The Kroger Company for the year ended February 1, 2020. Locate the “Consolidated Balance Sheets” and “Consolidated Statements of Cash Flows.” You m

> Financial information for American Eagle and financial information for Buckle is presented. Required: 1. Which company has a higher ratio of cash to noncash assets? What might this mean about the two companies’ operations? 2. Which company has a higher r

> Financial information for Buckle is presented. Required: 1. What does the Report of Independent Registered Public Accounting Firm indicate about Buckle’s internal controls? 2. In the summary of significant accounting policies, how does Buckle define cash

> Refer to the information in BE5–2. Determine the financial statement effects when the company provides services on account on February 3 and collects cash from the customer on February 9. Data from BE 5-2: On February 3, a company provides services on a

> Financial information for American Eagle is presented. Required: 1. What does the Report of Independent Registered Public Accounting Firm indicate about American Eagle’s internal controls? 2. In the summary of significant accounting policies, how does Am

> An examination of the cash activities during the year shows the following. Suzie has not reconciled the company’s cash balance with that of the bank since the company was started. She asks Summit Bank to provide her with a six-month ban

> You have recently been hired as the assistant controller for Stanton Temperton Corporation, which rents building space in major metropolitan areas. Customers are required to pay six months of rent in advance. At the end of 2024, the company’s president,

> Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for McDonald’s for the year ended December 31, 2019. Locate the “Consolidated Statement of Income” (income statement) and “Consolidated Balance Sheets.

> Financial information for American Eagle and financial information for Buckle is presented. Required: 1. Determine which company maintains a higher ratio of current assets to total assets. How might this be an advantage for the company? 2. Determine whic

> Financial information for Buckle. Required: 1. For the most recent year, what amount does Buckle report for current assets? What is the ratio of current assets to total assets? 2. For the most recent year, what amount does Buckle report for current liabi

> Financial information for American Eagle. Required: 1. For the most recent year, what amount does American Eagle report for current assets? What is the ratio of current assets to total assets? 2. For the most recent year, what amount does American Eagle

> You may refer to the opening story of Tony and Suzie and their decision to start Great Adventures. July 1 Sell $10,000 of common stock to Suzie. 1 Sell $10,000 of common stock to Tony. 1 Purchase a one-year insurance policy for $4,800 ($400 per month) to

> What difficulties do differences in accounting standards create for investors?

> Which factor explaining why accounting practices differ across countries do you think is most important? Explain why.

> Refer to the information in BE5–17. Record (a) lending of $40,000 cash to an employee on October 1, 2024, (b) the adjusting entry for interest on December 31, 2024, and (c) collection of cash for the note and interest on October 1, 2025. Data from BE 5-

> Describe at least five reasons accounting practices differ across countries.

> What is meant by convergence of U.S. GAAP?

> We compared Live Nation Entertainment and AMC Networks at the end of this chapter. What reasons were given for the differences of amounts held in their Cash accounts?

> What is the definition of a liability?

> Disney has several types of long-term assets. What are the primary ones shown in its balance sheet?

> What is the purpose of the adjusted trial balance? How do the adjusted trial balance and the (unadjusted) trial balance differ?

> For each of the following accounts, indicate whether we use a debit or a credit to decrease the balance of the account. a. Cash. b. Salaries Payable. c. Utilities Expense. d. Service Revenue.

> Explain what it means to say that an accounting class is not the same as a math class.

> How is preferred stock reported differently under U.S. GAAP and IFRS? Do you think preferred stock is a liability or an equity item? Why?

> Would a company be more likely to report a contingent liability under U.S. GAAP or IFRS? Which is more conservative in the reporting of contingent liabilities, U.S. GAAP or IFRS?

> On October 1, 2024, Ogneva Corporation loans one of its employees $40,000 and accepts a 12 month, 9% note receivable. Calculate the amount of interest revenue Ogneva will recognize in 2024 and 2025.

> How do IFRS rules differ in the reporting of research and development costs? Which is more conservative in the reporting of research and development costs, U.S. GAAP or IFRS?

> What does it mean to revalue a long-term asset? How do U.S. GAAP and IFRS differ regarding revaluation of long-term assets?

> What effect does writing down inventory have on total assets and net income in that reporting period? The reversal of an inventory write-down in a future period, which is recorded under IFRS but not allowed under U.S. GAAP, has what effect on total asset

> Which inventory cost flow assumption is allowed under U.S. GAAP but not under IFRS? Explain why some U.S. companies will lobby strongly to keep this method as an allowable alternative.

> Explain how an income statement might be organized along the same categories currently used in the statement of cash flows—operating, investing, and financing activities.

> What is meant by a conceptual framework in accounting? Why is it important that the FASB and the IASB develop a common conceptual framework?

> Provide at least one argument against the trend toward convergence between U.S. GAAP and IFRS.

> Describe the Norwalk Agreement. What is the significance of this agreement?

> Explain the difference between principles-based accounting standards and rules-based accounting standards.

> What is the main objective of the International Accounting Standards Board (IASB)?

> Refer to the information in BE5–18. Determine the financial statement effects of (a) lending $40,000 cash to an employee, (b) interest on the note as of December 31, 2024, and (c) collecting cash for the note and interest on October 1, 2025. Data from B

> What difficulties do differences in accounting standards create for multinational corporations in preparing their financial statements?

> Tar Heel Corporation provides the following information at the end of 2024. Required: Prepare the income statement, statement of stockholders’ equity, and balance sheet for Tar Heel Corporation on December 31, 2024.