For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. a. The payment of cash for the purchase of office equipment of $14,200 was debited to Land for $14,200 and credited to Cash for $14,200. b. The payment of $1,730 on account was debited to Accounts Payable for $1,370 and credited to Cash for $1,730. c. The receipt of cash on account of $2,750 was recorded as a debit to Cash for $7,250 and a credit to Accounts Receivable for $2,750.
> The beginning inventory for Rhodes Co. and data on purchases and sales for a three month period are shown in Problem 7-1B. Instructions: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the
> The beginning inventory for Rhodes Co. and data on purchases and sales for a three month period are shown in Problem 7-1B. Instructions: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the
> The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Instructions: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory rec
> Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 20Y5, are presented in Problem 6-5B. Data from Problem 5: Instructions: 1. Prepare a single-step income statement in the format shown in Exhibit 12. 2. Prepare clos
> Two income statements for Satterfield Company follow: Prepare a horizontal analysis of Satterfield Company’s income statements.
> The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y5: Instructions: 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner’s equity.
> Transactions related to revenue and cash receipts completed by Affiliate Engineering Services during the period June 2–30 are as follows: June 2. Issued Invoice No. 717 to Yee Co., $2,210. 3. Received cash from Auto-Flex Co. for the bal
> For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 20Y9, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basi
> The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 20Y3, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows: Instruction
> Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services’ accounting clerk prepared the following unadjusted trial balance at July 31, 20Y6: The data ne
> The Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 20Y5, the accountant for The Signage Company prepared the trial balances shown at the top of the following page. Instructions: Journalize the seven
> Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations: For preparing the adjusting entries, the following data were assembled: •
> Valley Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 20Y7, follows: The following business transactions were completed by Valley Realty during August 20Y7: Aug. 1. Purchased offic
> On October 1, 20Y6, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be
> On August 1, 20Y5, Rafael Masey established Planet Realty, which completed the following transactions during the month: a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business, $17,500. b. Purchased supplie
> Two income statements for Vaughn Company follow: Prepare a horizontal analysis of Vaughn Company’s income statements.
> The financial statements at the end of Atlas Realty’s first month of operations follow: Instructions: By analyzing the interrelationships among the four financial statements, determine the proper amounts for (a) through (q).
> On June 1, 20Y6, Hannah Ellis established an interior decorating business, Whitworth Designs. During the month, Hannah completed the following transactions related to the business: June 1. Hannah transferred cash from a personal bank account to an accoun
> The amounts of the assets and liabilities of Excalibur Travel Agency at December 31, 20Y5, the end of the year, and its revenue and expenses for the year follow. The capital of James Brewster, owner, was $710,000 on January 1, 20Y5, the beginning of the
> On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: a. Opened a business bank account with a deposit of $55,000 from personal funds. b. Purchased office supp
> On December 31, 20Y6, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions: 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman
> Selected accounts and related amounts for Druid Hills Co. for the fiscal year ended May 31, 20Y8, are presented in Problem 6-5A. Data from Problem 5: Instructions: 1. Prepare a single-step income statement in the format shown in Exhibit 12. 2. Prepare
> The following selected accounts and their current balances appear in the ledger of Druid Hills Co. for the fiscal year ended May 31, 20Y8: Instructions: 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner’s equ
> The following were selected from among the transactions completed by Harrison Company during November of the current year: Nov. 3. Purchased merchandise on account from Moonlight Co., list price $120,000, trade discount 25%, terms FOB destination, 2/10,
> For the past several years, Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business, which was to be known as Arborvite Consulting, on a full-t
> The unadjusted trial balance of Lakota Freight Co. at March 31, 20Y7, the end of the year, follows: The data needed to determine year-end adjustments are as follows: a. Supplies on hand at March 31 are $7,500. b. Insurance premiums expired during the ye
> The following errors took place in journalizing and posting transactions: a. The receipt of $10,700 for services rendered was recorded as a debit to Accounts Receivable and a credit to Fees Earned. b. The purchase of supplies of $4,300 on account was rec
> The unadjusted trial balance of Epicenter Laundry at June 30, 20Y3, the end of the fiscal year, follows: The data needed to determine year-end adjustments are as follows: a. Laundry supplies on hand at June 30 are $3,600. b. Insurance premiums expired d
> Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 20Y3, the end of the fiscal year, the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of
> Outreach Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Outreach Signals Company prepared the following end-of-period spreadsheet at December 31, 20Y1, the end of the fiscal year: Instructions:
> Emerson Company is a small editorial services company owned and operated by Suzanne Emerson. On October 31, 20Y6, Emerson Company’s accounting clerk prepared the unadjusted trial balance shown on the next page. The data needed to determ
> Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 20Y5, the end of the current year, the accountant for Good Note prepared the following trial balances: Instructions: Journalize the
> Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: For preparing the adjusting entries, the following data were assembled: • Fees earn
> On December 31, the following data were accumulated for preparing the adjusting entries for Flagship Realty: • The supplies account balance on December 31 is $1,585. The supplies on hand on December 31 are $320. • The unearned rent account balance on Dec
> Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 20Y7, follows: The following business transactions were completed by Elite Realty during April 20Y7: Apr. 1. Paid rent on offi
> On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month: a. Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $53,000. b. Paid rent on off
> Connie Young, an architect, opened an office on October 1, 20Y4. During the month, she completed the following transactions connected with her professional practice: a. Transferred cash from a personal bank account to an account to be used for the busine
> The following errors took place in journalizing and posting transactions: a. Rent expense of $3,220 paid for the current month was recorded as a debit to Miscellaneous Expense and a credit to Rent Expense. b. The payment of $5,080 from a customer on acco
> The following revenue transactions occurred during April: Apr. 6. Issued Invoice No. 78 to BlueBird Co. for services provided on account, $1,710. 11. Issued Invoice No. 79 to Hitchcock Inc. for services provided on account, $3,320. 19. Issued Invoice No.
> The financial statements at the end of Wolverine Realty’s first month of operations are as follows: Instructions: By analyzing the interrelationships among the four financial statements, determine the proper amounts for (a) through (q
> The Colby Group has the following unadjusted trial balance as of August 31, 20Y8: The debit and credit totals are not equal as a result of the following errors: a. The cash entered on the trial balance was understated by $6,000. b. A cash receipt of $5,
> On July 1, 20Y7, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July: a. Opened a business bank account with a deposit of $25,000 from personal funds. b. Purchased office supplies on account, $1,850.
> The total assets and total liabilities (in millions) of Dunkin Brands Group and Starbucks Corporation follow: Determine the stockholders’ equity of each company.
> Bamboo Consulting is a consulting firm owned and operated by Lisa Gooch. The following end-of-period spreadsheet was prepared for the year ended July 31, 20Y5: Based on the preceding spreadsheet, prepare an income statement, statement of ownerâ
> Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Jordan Inc., which had a $1,080 beginning balance. In addition, there were no collections during the period. a. Set up a T acc
> The following accounts appeared in recent financial statements of Delta Air Lines: Identify each account as either a balance sheet account or an income statement account. For each balance sheet account, identify it as an asset, a liability, or owner&aci
> Assume that the business in Exercise 7-3 maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form ill
> Beginning inventory, purchases, and sales data for portable game players are as follows: / The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of the merchandise sold for each sale and t
> Kroger, Sprouts Farmers Market, Inc., and Ingles 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 merchandis
> The following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and Mattel Inc., a manufacturer of toys, including Barbie®, Hot Wheels®, and Disney Cla
> Based on the data in Exercise 7-15 and assuming that cost was determined by the FIFO method and lower of cost or market was determined on an individual item-by-item basis, show how the merchandise inventory would appear on the balance sheet. Data from E
> On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9.
> a. Sold merchandise for cash, $116,300. The cost of the merchandise sold was $72,000. b. Sold merchandise on account, $755,000. The cost of the merchandise sold was $400,000. c. Sold merchandise to customers who used MasterCard and VISA, $1,950,000. The
> Journalize entries for the following related transactions of Greenville Heating & Air Company: a. Purchased $57,000 of merchandise from Foster Co. on account, terms 2/10, n/30. b. Paid the amount owed on the invoice within the discount period. c. Discove
> Poff’s Co., a women’s clothing store, purchased $53,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Poff’s returned $7,000 of the merchandise, receiving a credit memo, and then paid the amount due within the discount per
> Identify the errors in the following schedule of the cost of merchandise sold for the year ended May 31, 20Y4:
> Based on the following data, determine the cost of merchandise sold for July: Merchandise inventory, July 1 ………………… $ 190,850 Merchandise inventory, July 31 …………………. 195,350 Purchases …………………………………………….. 1,126,000 Purchases returns and allowances ………………
> Based on the following data, determine the cost of merchandise sold for November: Merchandise inventory, November 1 ………….. $ 28,000 Merchandise inventory, November 30 ………….. 46,000 Purchases …………………………………………………. 475,000 Purchases returns and allowances …
> The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y7: Merchandise inventory, May 1, 20Y6 ………………………….. $ 380,000 Merchandise inventory, April 30, 20Y7 …………………………. 426,600 Purchases ………………………………
> For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is highe
> Sinclair Company had sales of $12,000,000 and related cost of merchandise sold of $7,200,000 for its first year of operations ending December 31, 20Y1. Sinclair Company provides customers a refund for any returned or damaged merchandise. At the end of 20
> Swartz Company had sales of $7,800,000 and related cost of goods sold of $4,500,000 for its first year of operations ending December 31, 20Y3. Swartz Company provides customers a refund for any returned or damaged merchandise. At the end of 20Y3, Swartz
> Simons Company had sales of $24,000,000 and related cost of goods sold of $13,300,000 for its first year of operations ending December 31, 20Y6. Simons Company provides customers a refund for any returned or damaged merchandise. At the end of 20Y6, Simon
> Oppenheimer Company purchased merchandise on account from a supplier for $84,000, terms 1/10, n/30. Oppenheimer Company returned $16,000 of the merchandise and received full credit. a. What is the amount of cash required for the payment within the discou
> On April 23, Stilwell Inc. sold $15,000 of merchandise to Bosch Inc. with terms 2/10, n/30. The cost of the merchandise sold was $9,000. On May 2, Bosch Inc. paid Stilwell for the April 23 purchase less the discount. On May 11, Bosch Inc. returned mercha
> On February 18, Silverman Enterprises sold $24,000 of merchandise to Brewster Co. with terms 2/10, n/30. The cost of the merchandise sold was $12,200. On February 23, Silverman Enterprises issued Brewster Co. a credit memo for returned merchandise. The i
> Kroger Co., a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: Total revenue …………………………. $121,162 Total assets at end of year …………… 38,118 Total assets at beginning of year ….. 37,197 a.
> The Home Depot reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover for The Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn concerning the trend in
> On July 31, 20Y7, the balances of the accounts appearing in the ledger of Yang Interiors Company, a furniture wholesaler, are as follows: Prepare the July 31, 20Y7, closing entries for Yang Interiors Company.
> Identify the errors in the following income statement:
> On August 1, the supplies account balance was $1,240. During August, supplies of $3,760 were purchased, and $1,600 of supplies were on hand as of August 31. Determine supplies expense for August.
> On March 31, 20Y4, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the year ended March 31, 20Y4. b. Compare the major advantages
> Zell Company had sales of $1,800,000 and related cost of merchandise sold of $1,150,000 for its first year of operations ending December 31, 20Y3. Zell Company provides customers refunds and allowances for any damaged merchandise. At the end of the year,
> Assume the following data for Oshkosh Company before its year-end adjustments: Sales …………………………………………………………………………………….. $51,600,000 Estimated percent of refunds and allowances for current year sales ……….. 1.2% Journalize the adjusting entry for customer
> For a recent year, Best Buy reported sales of $42,879 million. Its gross profit was $9,961 million. What was the amount of Best Buy’s cost of merchandise sold?
> Paragon Tire Co.’s perpetual inventory records indicate that $2,780,000 of merchandise should be on hand on March 31, 20Y9. The physical inventory indicates that $2,734,800 of merchandise is actually on hand. Journalize the adjusting entry for the invent
> 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:
> The debits and credits for four related entries for a sale of $15,000, terms 1/10, n/30, are presented in the following T accounts. Describe each transaction.
> During the current year, merchandise is sold for $45,870,000. The cost of the merchandise sold is $33,026,400. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). c. Will the income statement
> Transactions related to revenue and cash receipts completed by Augusta Inc. during the month of March 20Y8 are as follows: Mar. 2. Issued Invoice No. 512 to Santorini Co., $2,135. 4. Received cash from CMI Inc., on account, for $475. 8. Issued Invoice No
> The revenue and cash receipts journals for Birmingham Productions Inc. follow. The accounts receivable control account has a January 1, 20Y4, balance of $4,720 consisting of an amount due from Clear Pointe Studios Inc. Prepare a listing of the accounts
> The following data were taken from McClean Company’s balance sheet: a. Compute the ratio of liabilities to owner’s equity. b. Has the creditor’s risk increased or decreased from December 31, 20Y5, to
> Shannon Consulting Company had the following transactions during the month of October: Oct. 2. Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $1,625. 3. Issued Invoice No. 322 to Armor Inc. for services rendered on account, $850.
> Assuming the use of a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal as illustrated in this chapter, indicate the journal in which each of the following transactions should be recorded: a. Payment of six months
> The comparative segment revenues for Yum! Brands, a global quick-serve restaurant company, are as follows: a. Provide a horizontal analysis of the segment revenues using the prior year as the base year. Round whole percents to one decimal place. b. Prov
> Twenty-First Century Fox, Inc. is one of the world’s largest entertainment companies that includes Twentieth Century Fox films, Fox Broadcasting, Fox News, the FX, and various satellite properties. The company provided revenue disclosur
> Starbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year: a. Prepare a horizontal analysis of the segment data using the prior year as the base year. Round whole percents to one decimal place. b. Pr
> Fernandez Services Inc. had the following transactions during the month of April: Apr. 4. Purchased office supplies from Officemate Inc. on account, $825. 9. Purchased office equipment on account from Tek Village Inc., $4,890. 16. Purchased office suppli
> Using the following revenue journal for Westside Cleaners Inc., identify each of the posting references, indicated by a letter, as representing (1) Posting to general ledger accounts or (2) Posting to subsidiary ledger accounts:
> Selected accounts from the ledger of Masterpiece Arts for the fiscal year ended April 30, 20Y2, are as follows: Prepare a statement of owner’s equity for the year.
> Serenity Systems Co. offers its services to residents in the Minneapolis area. Selected accounts from the ledger of Serenity Systems Co. for the fiscal year ended December 31, 20Y1, are as follows: Prepare a statement of owner’s equity
> FedEx Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31: Prepare an income statement.
> The following data were taken from Nakajima Company’s balance sheet: a. Compute the ratio of liabilities to owner’s equity. b. Has the creditor’s risk increased or decreased from December 31, 20Y5, t
> The following revenue and expense account balances were taken from the ledger of Guardian Health Services Co. after the accounts had been adjusted on February 28, 20Y0, the end of the fiscal year: Prepare an income statement.
> The following account balances were taken from the adjusted trial balance for Capstone Messenger Service, a delivery service firm, for the fiscal year ended April 30, 20Y7: Prepare an income statement.
> 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, 20Y6: Based on the preceding spreadsheet, prepare an income statement, statement of owner&aci
> Based on the data in Exercise 4-25, prepare the two closing entries for Alert Security Services Co. Data in Exercise 25:
> Based on the data in Exercise 4-24, prepare the adjusting entries for Alert Security Services Co. Data in Exercise 24:
> Based on the data in Exercise 4-25, prepare an income statement, statement of owner’s equity, and balance sheet for Alert Security Services Co. Data in Exercise 25:
> Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co.:
