Question: Fonda Motorcycle Shop sells motorcycles, ATVs, and

> The current assets and current liabilities for Apple Inc. and Dell, Inc., are as follows at the end of a recent fiscal period: *These represent prepaid expense and other non-quick current assets. a. Determine the quick ratio for both companies. (Round

> The series of seven transactions recorded in the following T accounts were related to a sale to a customer on account and the receipt of the amount owed. Briefly describe each transaction. CASH NOTES RECEIVABLE (7) 61,509 (5) 60,000 (6) 60,000 ACCOU

> The following data (in thousands) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and American Greetings Corporation, a manufacturer and distributor of greeting cards and related products:

> Based on the data in Exercise 12-1, what factors other than earnings per share should be considered in evaluating these alternative financing plans? Exercise 12-1: Domanico Co., which produces and sells biking equipment, is financed as follows: Incom

> Paragon Tech Company, a communications equipment manufacturer, recently fell victim to a fraud scheme developed by one of its employees. To understand the scheme, it is necessary to review Paragon Tech’s procedures for the purchase of services. The purch

> The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31, 2016: Apr. 13. Wrote off account of Dean Sheppard, $8,450. May 15. Received $500 as partial payment on the $7,100

> On January 1, the first day of the fiscal year, a company issues a $500,000, 5%, 10-year bond that pays semiannual interest of $12,500 ($500,000 × 5% × ½ year), receiving cash of $500,000. Journalize the entries to record (a) the issuance of the bonds, (

> The payroll registers for Proctor Company for the week ended February 14 indicated the following: In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $270,000 of salaries. a. Journalize the e

> Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustr

> Bon Nebo Co. sold 25,000 annual subscriptions of Bjorn 20XX for $85 during December 2016. These new subscribers will receive monthly issues, beginning in January 2017. In addition, the business had taxable income of $840,000 during the first calendar qua

> Journalize entries for the following related transactions of South Coast Heating & Air Company: a. Purchased $48,000 of merchandise from Atlas Co. on account, terms 1/10, n/30. b. Paid the amount owed on the invoice within the discount period. c. Discove

> Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended June 30, 2016: Based on the preceding spreadsheet, prepare an income statement, retained earnings sta

> Journalize the following transactions in the accounts of Dining Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: Apr. 2. Sold merchandise on account to Peking Palace Co., $41,900.

> The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal year for Best Buy and RadioShack: a. Compute the fixed asset turnover for each company. Round to two decimal places. b. Which company uses its fixed as

> MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $592,937,000 and allowance for doubtful accounts of $101,207,000 Johnso

> Identify each of the following reconciling items as: (a). an addition to the cash balance according to the bank statement, (b). a deduction from the cash balance according to the bank statement, (c). an addition to the cash balance according to the co

> Journalize the entries for the following transactions: a. Sold merchandise for cash, $30,000. The cost of the merchandise sold was $18,000. b. Sold merchandise on account, $258,000. The cost of the merchandise sold was $154,800. c. Sold merchandise to cu

> Prepare a journal entry for the purchase of office equipment on October 27 for $32,750, paying $6,550 cash and the remainder on account.

> Journalize the following transactions in the accounts of Midwest Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables: Feb. 3. Sold merchandise on account to Dr. Jill Hall, $17,340. Th

> Jardine Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Misce

> Verizon Communications is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following information regarding fixed assets: Verizon’s revenue for Year 2 was $115,846 million. As

> The units of an item available for sale during the year were as follows: There are 220 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a). the first-in, first-out meth

> Using Wikipedia (www.wikipedia.com), look up the entry for Sarbanes-Oxley Act. Look over the table of contents and find the section that describes Section 404. What does Section 404 require of management’s internal control report?

> Polo Ralph Lauren Corporation designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The company’s products include such brands as Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph La

> Journalize the following transactions in the accounts of Safari Games Co., which operates a riverboat casino: Apr. 18. Received a $60,000, 30-day, 7% note dated April 18 from Glenn Cross on account. 30. Received a $42,000, 60-day, 8% note dated April 30

> Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions Co. discovered during October 2016 that one of its sales clerks had stolen an undetermined amount of cash receipts by taking the daily deposits t

> The following selected transactions were completed by Zippy Do Co., a supplier of zippers for clothing: 2015 Dec. 3. Received from Chicago Clothing & Bags Co., on account, a $36,000, 90-day, 6% note dated December 3. 31. Recorded an adjusting entry for a

> Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31, 2016: The company prepared the following aging schedule for its accounts receivable on December 31, 2016: a. Journalize the write-off

> Dream-It LLC is a motivational consulting business. At the end of its accounting period, December 31, 2015, Dream-It has assets of $780,000 and liabilities of $150,000. Using the accounting equation, determine the following amounts: a. Stockholders’ equi

> Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31, 2016: a. Journalize the write-offs for 2016 under the direct write-off method. b. Journalize the write-offs for 2016

> The following income statement data (in millions) for Dell Inc. and Hewlett-Packard Company (HP) were taken from their recent annual reports: a. Prepare a vertical analysis of the income statement for Dell. Round to one decimal place. b. Prepare a vert

> Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treatment of various diseases, including Parkinson’s disease. Amicus Therapeutics reported the following financial data (in thousands) for three recen

> Capstone Turbine Corporation produces and sells turbine generators for such applications as charging electric, hybrid vehicles. Capstone Turbine reported the following financial data for a recent year (in thousands): a. Determine the monthly cash expen

> The Home Depot, Inc., is the world’s largest home improvement retailer and one of the largest retailers in the United States based on sales volume. The Home Depot operates over 2,200 Home Depot® stores that sell a wide assort

> Mattel, Inc., designs, manufactures, and markets toy products worldwide. Mattel’s toys include Barbie™ fashion dolls and accessories, Hot Wheels™, and Fisher-Price brands. For a recent year, Mattel re

> Identify the errors in the following income statement: Curbstone Company Income Statement For the Year Ended August 31, 2016 Sales $8,595,000 Cost of merchandise sold Income from operations 6,110,000 $2,485,000 Expenses: $ 800,000 575,000 425,000 Se

> Identify the errors in the following bank reconciliation: Poway Co. Bank Reconcillation For the Month Ended June 30, 2016 Cash balance according to bank statement... Add outstanding checks: $16,185 No. 1067.. $ 575 1106. 470 1110. 1,050 1113.. 910 3

> An accounting clerk for Chesner Co. prepared the following bank reconciliation: a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the illustrative problem. b. If a balance sheet w

> The following data were accumulated for use in reconciling the bank account of Zek’s Co. for May 2016: 1. Cash balance according to the company’s records at May 31, 2016, $22,110. 2. Cash balance according to the bank

> Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: June 2. Received $1,200 from Melissa Crone and wrote off the remainder owed of $4,000 as uncollectible. Oct. 9. Reinstated the account of Melis

> Which of the reconciling items listed in Exercise 7-16 require an entry in the company’s accounts? Exercise 7-16: Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction

> Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period: Frelght Pald by Seller Cu

> Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustra

> Based on the data in Exercise 4-25, prepare the closing entries for Alert Security Services Co. Exercise 4-25: Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security

> Based on the data in Exercise 4-24, prepare the adjusting entries for Alert Security Services Co. Exercise 4-24: Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepar

> We-Sell Realty, organized August 1, 2016, is owned and operated by Omar Farah. How many errors can you find in the following statements for We-Sell Realty, prepared after its first month of operations? We-Sell Realty Income Statement August 31, 20

> The following data (in millions) are taken from the financial statements of Target Corporation: a. For Target Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the rece

> The following data (in thousands) were taken from recent financial statements of Starbucks Corporation: a. Compute the working capital and the current ratio for Year 2 and Year 1. Round to two decimal places. b. What conclusions concerning the company&

> Kroger, Safeway Inc., and Whole Foods Markets, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchan

> Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a). the cost of merchandise sold on January 25 and (b). the inventory on January

> Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2016, Missouri River Supply incorrectly counted its inventory as $233,400 instead of the correct amo

> The accounts in the ledger of Hickory Furniture Company as of December 31, 2016, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Prepare an unadjusted trial

> List the errors you find in the following balance sheet. Prepare a corrected balance sheet. Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 2016 Assets Liabilities Current assets: Cash.. Current liabilities: Accounts receivable...

> Identify the errors in the following trial balance. All accounts have normal balances. Mascot Co. Unadjusted Trial Balance For the Month Ending July 31, 2016 Debit Balances Credit Balances Cash 36,000 Accounts Receivable. 112,600 Prepaid Insurance E

> For the fiscal year, sales were $25,565,000 and the cost of merchandise sold was $15,400,000. a. What was the amount of gross profit? b. If total operating expenses were $4,550,000, could you determine net income? c. Is Customer Refunds Payable an asset,

> The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance: When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $77,600 and $62

> Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2016, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Los

> The debits and credits for three related transactions are presented in the following T accounts. Describe each transaction. Cash Sales (5) 39,200 (1) 41,160 Accounts Recelvable Cost of Merchandlse Sold (1) 41,160 (3) 1,960 (2) 25,200 (5) 39,200 Merc

> On January 7, 2016, Captec Company purchased $4,175 of supplies on account. In Captec Company’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. a. Journalize the January 7, 2016, transaction on page 33 of Ca

> The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accounta

> Marcie Davies owns and operates Gemini Advertising Services. On January 1, 2015, Retained Earnings had a balance of $618,500. During the year, Marcie invested an additional $40,000 in exchange for common stock, and $15,000 of dividends were paid. For the

> Identify the errors in the following schedule of the cost of merchandise sold for the year ended May 31, 2016: Cost of merchandise sold: $ 105,000 Merchandise inventory, May 31, 2016 Purchases.... $1,110,000 Plus: Purchases returns and allowances. $

> Based on the following data, determine the cost of merchandise sold for July: Merchandise inventory, July 1 $ 190,850 Merchandise inventory, July 31 160,450 Purchases 1,126,000 .... Purchases returns and allowances . - 46,000 Purchases discounts. 23

> Based on the following data, determine the cost of merchandise sold for November: Merchandise inventory, November 1 $ 28,000 Merchandise inventory, November 30 . 31,500 .... Purchases 475,000 Purchases returns and allowances 15,000 Purchases discoun

> The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2016: Merchandise inventory, May 1, 2015 ………………………………………… $ 380,000 Merchandise inventory, April 30, 2016 …………………………………………. 415,000 Purchases …

> Lowe’s Companies Inc., a major competitor of The Home Depot in the home improvement business, operates over 1,700 stores. Lowe’s recently reported the following balance sheet data (in millions): a. Determine the tota

> The following data (in millions) were taken from the financial statements of Walmart Stores, Inc: Exercise 2-23: The following data (in millions) are taken from the financial statements of Target Corporation: a. For Walmart Stores, Inc., determine t

> A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2016, follows: Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2016. Cash receipts: Cash received from customers $637,500 Cash rec

> Kroger, a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: a. Compute the ratio of sales to assets. Round to two decimal places. b. Tiffany & Co. is a large North American retailer

> The Home Depot reported the following data (in millions) in its recent financial statements: a. Determine the ratio of sales to assets for The Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn from these ra

> Use the data in Exercises 8-27 and 8-28 to analyze the accounts receivable turnover ratios of H.J. Heinz Company and The Limited Brands Inc. Exercises 8-27: H.J. Heinz Company was founded in 1869 at Sharpsburg, Pennsylvania, by Henry J. Heinz. The comp

> Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense: a. Cash received for services not yet rendered b. Insurance paid for the next year c. Rent revenue earned but not received d. Salari

> The Limited Brands Inc. sells women’s clothing and personal health care products through specialty retail stores including Victoria’s Secret and Bath & Body Works stores. The Limited Brands reported the following (

> H.J. Heinz Company was founded in 1869 at Sharpsburg, Pennsylvania, by Henry J. Heinz. The company manufactures and markets food products throughout the world, including ketchup, condiments and sauces, frozen food, pet food, soups, and tuna. For two rece

> The market price for Microsoft Corporation closed at $26.71 and $25.96 on December 31, current year, and previous year, respectively. The dividends per share were $0.80 for current year and $0.64 for previous year. a. Determine the dividend yield for Mic

> The financial statements for Nike, Inc., are provided in Appendix B at the end of the text. a. Determine the free cash flow for the most recent fiscal year. Assume that 90% of the additions to property, plant, and equipment were used to maintain producti

> Shunda Corporation wholesales parts to appliance manufacturers. On January 1, 2016, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually.

> During 2016, its first year of operations, Galileo Company purchased two available-for sale investments as follows: Assume that as of December 31, 2016, the Hawking Inc. stock had a market value of $50 per share, and the Pavlov Co. stock had a market v

> List the errors you find in the following partial balance sheet: Burnt Red Company Balance Sheet December 31, 2016 Assets Total current assets. $350,000 Replacement Accumulated Cost Book Value Depreciation Property, plant, and equipment: $ 250,000 $

> Hurricane Inc. purchased a portfolio of available-for-sale securities in 2016, its first year of operations. The cost and fair value of this portfolio on December 31, 2016, was as follows: On June 12, 2017, Hurricane purchased 1,450 shares of Rogue Wav

> The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common stock purchased on September 12, 2016, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As

> The following items were selected from among the transactions completed by Pioneer Co. during the current year: Mar. 1. Purchased merchandise on account from Galston Co., $360,000, terms n/30. 31. Issued a 30-day, 5% note for $360,000 to Galston Co., on

> On August 26, Mountain Realty Inc. issued for cash 120,000 shares of no-par common stock (with a stated value of $5) at $8. On October 1, Mountain Realty Inc. issued at par value 40,000 shares of preferred 1% stock, $10 par for cash. On November 30, Moun

> The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are

> On December 1 of the current year, the following accounts and their balances appear in the ledger of Latte Corp., a coffee processor: At the annual stockholders’ meeting on March 31, the board of directors presented a plan for moderni

> On April 1 of the current year, Andrea Byrd established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit of $45,000 in exchange for common stock. b. Purchased of

> Ken Jones, an architect, organized Jones Architects on April 1, 2016. During the month, Jones Architects completed the following transactions: a. Transferred cash from a personal bank account to an account to be used for the business in exchange for comm

> 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 of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending

> The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only),

> The following transactions, adjusting entries, and closing entries were completed by Robinson Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. 2014 Ja

> The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2016, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows: Instructio

> Two income statements for Cornea Company follow: a. Prepare a vertical analysis of Cornea Company’s income statements. b. Does the vertical analysis indicate a favorable or an unfavorable trend? Cornea Company Income Statements Fo

> Two income statements for Hemlock Company follow: a. Prepare a vertical analysis of Hemlock Company’s income statements. b. Does the vertical analysis indicate a favorable or an unfavorable trend? Hemlock Company Income Statements

> Lily Flower’s weekly gross earnings for the present week were $2,500. Flower has two exemptions. Using the wage bracket withholding table in Exhibit 3 with a $75 standard withholding allowance for each exemption, what is Flowerâ&#

> Tech Support Services has the following unadjusted trial balance as of January 31, 2016: The debit and credit totals are not equal as a result of the following errors: a. The cash entered on the trial balance was overstated by $8,000. b. A cash receipt

> Averill Products Inc. reported the following on the company’s income statement in 2016 and 2015: a. Determine the number of times interest charges are earned for 2016 and 2015. Round to one decimal place. b. Is the number of times int

> Berry Company reported the following on the company’s income statement in 2016 and 2015: a. Determine the number of times interest charges are earned for 2016 and 2015. Round to one decimal place. b. Is the number of times interest ch

> The Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 2016, the accountant for The Signage Company prepared the following trial balances: Instructions: Journalize the seven entries that adjusted the a

> Financial statement data for the years ended December 31 for Black Bull Inc. follows: a. Determine the earnings per share for 2016 and 2015. b. Does the change in the earnings per share from 2015 to 2016 indicate a favorable or an unfavorable trend?

> Financial statement data for years ending December 31 for Tango Company follows: a. Determine the inventory turnover for 2016 and 2015. b. Determine the number of days’ sales in inventory for 2016 and 2015. Use 365 days and round to o