Question: How would e-commerce improve the revenue/

> New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance s

> Assume that you recently accepted a position with Five Star National Bank & Trust as an assistant loan officer. As one of your first duties, you have been assigned the responsibility of evaluating a loan request for $300,000 from West Gate Auto Co.,

> Most computerized accounting systems use electronic forms to record transaction information, such as the invoice form illustrated at the top of Exhibit 7 in this chapter. a. Identify the key input fields (spaces) in an electronic invoice form. b. What ac

> Netbooks Inc. provides accounting applications for business customers on the Internet for a monthly subscription. Netbooks customers run their accounting system on the Internet; thus, the business data and accounting software reside on the servers of Net

> The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2019, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows: Instructio

> For the past few years, your client, Omni Care, has operated a small medical practice. Omni Care’s current annual revenues are $945,000. Because the accountant has been spending more time each month recording all transactions in a two-column journal and

> Internet-based accounting software is a recent trend in business computing. Major software firms such as Oracle, SAP, and NetSuite are running their core products on the Internet using cloud computing. NetSuite is one of the most popular small-business I

> 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. P

> For each of the following companies, determine what they primarily sell and whether their e-commerce strategy is primarily business-to-consumer (B2C), business-to-business (B2B), or both. Use the Internet to investigate each company’s site in conducting

> Last Chance Company offers legal consulting advice to prison inmates. Last Chance Company prepared the end-of-period spreadsheet shown below at June 30, 2019, the end of the fiscal year. Instructions 1. Prepare an income statement for the year ended Jun

> For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2019, 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 following revenue transactions occurred during August: Aug. 4. Issued Invoice No. 162 to Carson Enterprises Co. for services provided on account, $255. 15. Issued Invoice No. 163 to City Electric Inc. for services provided on account, $340. 25. Issue

> AquaFresh Water Testing Service was established on April 16. AquaFresh uses field equipment and field supplies (chemicals and other supplies) to analyze water for unsafe contaminants in streams, lakes, and ponds. Transactions related to purchases and cas

> Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Land

> The following income statement data for AT&T Inc. and Verizon Communications Inc. were taken from their recent annual reports (in millions): a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal place. b. Prepare

> The debits and credits from three related transactions are presented in the following creditor’s account taken from the accounts payable ledger: Describe each transaction and identify the source of each posting. NAME ADDRESS Apex

> Apex Systems Co. offers its services to residents in the Seattle area. Selected accounts from the ledger of Apex Systems Co. for the fiscal year ended December 31, 2019, are as follows: Prepare a statement of owner’s equity for the ye

> The following cash receipts journal headings have been suggested for a small service firm. List the errors you find in the headings. CASH RECEIPTS JOURNAL Page 12 Account Credited Post. Ref. Fees Earned Cr. Accts. Rec. Cr. Cash Cr. Other Accounts Dr

> Using the following cash payments journal, identify each of the posting references, indicated by a letter, as representing (1) A posting to a general ledger account, (2) A posting to a subsidiary ledger account, or (3) That no posting is required. C

> Using the following purchases journal, identify each of the posting references, indicated by a letter, as representing (1) A posting to a general ledger account, (2) A posting to a subsidiary ledger account, or (3) That no posting is required: PURCH

> Lasting Summer Inc. has $2,510 in the October 1 balance of the accounts receivable account consisting of $1,060 from Champion Co. and $1,450 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the m

> 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, 2019: Based on the preceding spreadsheet, prepare an income statement, statement of owner&ac

> How are revenues and expenses reported on the income statement under (a) The cash basis of accounting and (b) The accrual basis of accounting?

> Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows: Mar. 2. Issued Invoice No. 512 to Santorini Co., $905. 4. Received cash from CMI Inc., on account, for $205. 8. Issued Invoice No.

> At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney: Net income for August ………â€&br

> The revenue and cash receipts journals for Polaris Productions Inc. follow. The accounts receivable control account has a January 1, 20Y4, balance of $3,790 consisting of an amount due from Clear Pointe Studios Inc. Prepare a listing of the accounts re

> The following is an excerpt from a telephone conversation between Ben Simpson, president of Main Street Co., and Tami Lundgren, owner of Reliable Employment Co.: Ben: Tami, you’re going to have to do a better job of finding me a new computer programmer.

> The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account has a July 1, 20Y2, balance of $625 consisting of an amount due from Aladdin Co. There were no collections during July. a. Prepare a T account for the

> The following data are taken from recent financial statement of Nike, Inc. (in millions): a. Determine the amount of change (in millions) and percent of change in net income from Year 1 to Year 2. Round to one decimal place. b. Determine the percentage

> Horizon 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, $595. 3. Issued Invoice No. 322 to Armor Inc. for services rendered on account, $310. 1

> The debits and credits from three related transactions are presented in the following customer’s account taken from the accounts receivable subsidiary ledger: Describe each transaction and identify the source of each posting. Miss

> 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

> FedEx Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31: Prepare an income statement. $2,611 Purchased Transportation 3,720 Rentals and Landing Fees $ 8,483 Depreciation Expense Fuel Ex

> Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal as illustrated in this chapter, indicate the journal in which each of the following transactions should be recorded: a. Receipt of cash refund

> The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows: The data needed to determine year-end adjustments are as follows: a. Supplies on hand at January 31 are $2,850. b. Insurance premiums expired during

> Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Tillman Inc., which had a $590 beginning balance. In addition, there were no collections during the period. a. Set up a T acco

> 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. Pro

> 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 disclosures by its major pr

> Your friend, Daniel Nat, recently began work as the lead accountant for the Asheville Company. Dan prepared the following balance sheet for December 31, 2018: Asheville Company Balance Sheet For the Year Ended December 31, 2018 Assets Land. . . . . . . .

> The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co. after the accounts had been adjusted on February 28, 2019, the end of the fiscal year: Prepare an income statement. $ 7,500 Service Reven

> After Bunker Hill Assay Services Inc. had completed all postings for March in the current year (20Y4), the sum of the balances in the following accounts payable ledger did not agree with the $36,600 balance of the controlling account in the general ledge

> Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following

> Happy Tails Inc. has a September 1, 20Y4, accounts payable balance of $620, which consists of $320 due Labradore Inc. and $300 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of Septem

> Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows: May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $345. 3. Purchased cleaning supplie

> 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, 2019: The data n

> The cash payments and purchases journals for Outdoor Artisan Landscaping follow. The accounts payable control account has a June 1, 20Y1, balance of $2,230, consisting of an amount owed to Augusta Sod Co. Prepare a schedule of the accounts payable cred

> The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable account has a March 1, 20Y2, balance of $580 for an amount owed to Nicely Co. No payments were made on creditor invoices during March. a. Prepare a T account for the

> The two leading software application providers for supply chain management (SCM) and customer relationship management (CRM) software are JDA and Salesforce.com, respectively. In groups of two or three, go to the website of each company (www.jda.com and w

> Guardian Services Inc. had the following transactions during the month of April: Apr. 4. Purchased office supplies from Officemate Inc. on account, $415. 9. Purchased office equipment on account from Tek Village Inc., $2,460. 16. Purchased office supplie

> The unadjusted trial balance of La Mesa Laundry at August 31, 2019, the end of the fiscal year, follows: The data needed to determine year-end adjustments are as follows: a. Wages accrued but not paid at August 31 are $2,200. b. Depreciation of equipme

> What is an electronic form, and how is it used in a computerized accounting system?

> The unadjusted trial balance of PS Music as of July 31, 2019, along with the adjustment data for the two months ended July 31, 2019, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared: Instructions

> Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-of-period spreadsheet at December 31, 2019, the end of the fiscal year: Instructions 1.

> For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time ba

> 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, 2019: Based on the preceding spreadsheet, prepare an income statement, statement of ownerâ&#

> Balances for each of the following accounts appear in an adjusted trial balance. Identify each as (a) Asset, (b) Liability, (c) Revenue, or (d) Expense. 1. Accounts Receivable 2. Equipment 3. Fees Earned 4. Insurance Expense 5. Land 6. Prepaid Rent 7. Re

> The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement of owner’s equity, or balance sheet. 1. Accounts Payabl

> Portions of the salaries expense account of a business follow: a. Indicate the nature of the entry (payment, adjusting, closing, reversing) from which each numbered posting was made. b. Journalize the complete entry from which each numbered posting was

> Portions of the wages expense account of a business follow: a. Indicate the nature of the entry (payment, adjusting, closing, reversing) from which each numbered posting was made. b. Journalize the complete entry from which each numbered posting was ma

> The unadjusted trial balance of Lakota Freight Co. at March 31, 2019, 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 y

> On the basis of the following data, (a) Journalize the adjusting entries at June 30, the end of the current fiscal year, and (b) Journalize the reversing entries on July 1, the first day of the following year: 1. Wages are $13,200 per day for a five-day

> Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon’s income statements through income from operations for two recent years are as follows (in millions): a. Prepare a vertical analysis of the two operating i

> On the basis of the following data, (a) Journalize the adjusting entries at December 31, the end of the current fiscal year, and (b) Journalize the reversing entries on January 1, the first day of the following year: 1. Sales salaries are $2,350 per day

> The following adjusting entry for accrued wages was recorded on December 31: a. Journalize the reversing entry that would be made on January 1 of the next period. b. Assume that the first paid period of the following year ends on January 6 and that wag

> Based on the data in Exercise 4-25, prepare the two closing entries for Alert Security Services Co. In Exercise 4-25 Alert Security Services Co. End-of-Period Spreadsheet For the Year Ended October 31, 2019 Adjusted Trial Balance Income Statement Ba

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

> The following conversation took place between Durable Construction Co.’s bookkeeper, Kyle Byers, and the accounting supervisor, Sarah Nelson: Sarah: Kyle, I’m thinking about bringing in a new computerized accounting system to replace our manual system. I

> 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. In Exercise 4-25 Alert Security Services Co. End-of-Period Spreadsheet For the Year End

> Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co.: Alert Security Services Co. End-of-Period Spreadsheet For the Year Ended October 31, 2019 Adj

> Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the following end-of-period spreadsheet for the year ended October 31, 2019: The data for year-end adjustme

> List (a) through (j) in the order they would be performed in preparing and completing an end-of-period spreadsheet. a. Add the Debit and Credit columns of the Unadjusted Trial Balance columns of the spreadsheet to verify that the totals are equal. b. Add

> The unadjusted trial balance of Epicenter Laundry at June 30, 2019, 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

> 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

> 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&

> The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.: a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Round to two decimal places. b. What conclusions concerning

> Rearrange the following steps in the accounting cycle in proper sequence: a. Transactions are analyzed and recorded in the journal. b. An unadjusted trial balance is prepared. c. Transactions are posted to the ledger. d. Adjustment data are assembled and

> An accountant prepared the following post-closing trial balance: Prepare a corrected post-closing trial balance. Assume that all accounts have normal balances and that the amounts shown are correct. La Casa Services Co. Post-Closing Trial Balance M

> Which of the following accounts will usually appear in the post-closing trial balance? a. Accounts Receivable b. Cash c. Depreciation Expense d. Fees Earned e. Doug Woods, Capital f. Doug Woods, Drawing g. Equipment h. Land i. Salaries Payable j. Unearne

> Stylist Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances were taken from the ledger of Stylist Services Co.:

> Transactions related to revenue and cash receipts completed by Sterling Engineering Services during the period June 2–30 are as follows: June 2. Issued Invoice No. 717 to Yee Co., $1,430. 3. Received cash from Auto-Flex Co. for the bala

> Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of

> What is the difference between a current liability and a long-term liability?

> Describe the nature of the assets that compose the following sections of a balance sheet: (a) Current assets and (b) Property, plant, and equipment.

> The unadjusted and adjusted trial balances for American Leaf Company on October 31, 2019, follow: Journalize the five entries that adjusted the accounts at October 31, 2019. None of the accounts were affected by more than one adjusting entry. Ameri

> Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2019, the end of the fiscal year, the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of

> Recent fiscal years for several well-known companies are as follows: Company ______________Fiscal Year Ending JCPenney ……………………………………………. January 27 Limited Brands, Inc. …………………………….. January 27 Sears …………………………………………………… January 27 Target Corp. ……………………

> (a) What is the most important output of the accounting cycle? (b) Do all companies have an accounting cycle? Explain.

> Daryl Kirby opened Squid Realty Co. on January 1, 2018. At the end of the first year, the business needed additional capital. On behalf of Squid Realty Co., Daryl applied to Ocean National Bank for a loan of $375,000. Based on Squid Realty Co.’s financia

> Chris P. Bacon is the chief accountant for CV Industries, a large manufacturing company. In addition to its normal business activities, the company has excess warehouse space that it rents out to local businesses. Because the typical renter is a small bu

> Several years ago, your brother opened Magna Appliance Repairs. He made a small initial investment and added money from his personal bank account as needed. He withdrew money for living expenses at irregular intervals. As the business grew, he hired an a

> On December 31, the following data were accumulated for preparing the adjusting entries for Bellingham Realty: • The supplies account balance on December 31 is $1,375. The supplies on hand on December 31 are $280. • The unearned rent account balance on D

> Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company’s accounting clerk prepared the following unadjusted trial balance: The data needed

> Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2019, the end of the current year, the accountant for Good Note prepared the following trial balances: Instructions Journalize the

> 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

> (a) Explain the purpose of the two accounts: Depreciation Expense and Accumulated Depreciation. (b) What is the normal balance of each account? (c) Is it customary for the balances of the two accounts to be equal in amount? (d) In what financial statemen

> On November 1 of the current year, a business paid the November rent on the building that it occupies. (a) Do the rights acquired at November 1 represent an asset or an expense? (b) What is the justification for debiting Rent Expense at the time of payme

> When preparing the financial statements for the year ended October 31, accrued salaries owed to employees for October 30 and 31 were omitted. The accrued salaries were included in the first salary payment in November. Indicate which items will be erroneo

> 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 ear

> Delta Air Lines is a major passenger airline headquartered in the United States. Most Delta passengers purchase their tickets several weeks prior to taking their trip and use a credit card such as VISA or American Express to pay for their tickets. The cr