Identify two asset categories on the classified balance sheet, and give examples of each category.
> Journalize the following transactions for Soul Art Gift Shop. Explanations are not required. Feb. 3 Purchased $3,300 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point. 7 Returned $900 of defective merchandise purchas
> Journalize the following sales transactions for Antique Mall. Explanations are not required. The company estimates sales returns at the end of each month. Jan. 4 Sold $16,000 of antiques on account, credit terms are n/30. Cost of goods is $8,000. 8
> Howie Jewelers had the following purchase transactions. Journalize all necessary transactions. Explanations are not required. Jun. 20 Purchased inventory of $5,100 on account from Sanders Diamonds, a jewelry importer. Terms were 2/15, n/45, FOB ship
> Clink Electric uses the periodic inventory system. Clink reported the following selected amounts at May 31, 2018: Compute the following for Clink: a. Cost of goods sold. b. Gross profit. Merchandise Inventory, June 1, 2017 $ 16,000 Freight In $ 6,0
> Crazy Cookies earned net sales revenue of $66,000,000 in 2018. Cost of goods sold was $39,600,000, and net income reached $7,000,000, the company’s highest ever. Compute the company’s gross profit percentage for 2018.
> Emerson St. Book Shop’s unadjusted Merchandise Inventory at June 30, 2018 was $5,200. The cost associated with the physical count of inventory on hand on June 30, 2018, was $4,900. In addition, Emerson St. Book Shop estimated approximately $1,000
> Kingston Tires received the following invoice from a supplier (Fields Distribution, Inc.): Requirements: 1. Journalize the transaction required by Kingston Tires on September 23, 2018. Do not round numbers to the nearest whole dollar. Assume tires are
> Match the accounting terms with the corresponding definitions. 1. Credit Terms a. The cost of the merchandise inventory that the business has sold to customers. 2. FOB Destination b. An amount granted to the purchaser as an incentive to keep goods t
> Dobbs Wholesale Antiques makes all sales under terms of FOB shipping point. The company usually ships inventory to customers approximately one week after receiving the order. For orders received late in December, Kathy Dobbs, the owner, decides when to s
> Ashley Stamper opened a medical practice. During July, the first month of operation, the business, titled Ashley Stamper, MD, experienced the following events: Analyze the effects of these events on the accounting equation of the medical practiceof Ash
> Party-Time T-Shirts sells T-shirts for parties at the local college. The company completed the first year of operations, and the shareholders are generally pleased with operating results as shown by the following income statement: Bill Hildebrand, the
> This problem continues the Canyon Canoe Company situation and focuses on no merchandising transactions, adjusting and closing entries, and preparing financial statements. Canyon Canoe Company does not typically prepare adjusting and closing entries each
> This problem continues the Canyon Canoe Company situation from Chapter 4. At the beginning of the new year, Canyon Canoe Company decided to carry and sell T-shirts with its logo printed on them. Canyon Canoe Company uses the perpetual inventory system to
> Hyatt Hotels Corporation is headquartered in Chicago and is a leading global hospitality company. The company develops, owns, and operates hotels, resorts, and vacation ownership properties in 52 different countries. For the year ended December 31, 2015,
> Kathy Wintz formed a lawn service business as a summer job. To start the corporation on May 1, 2018, she deposited $1,000 in a new bank account in the name of the business. The $1,000 consisted of a $600 loan from Bank One to her company, Wintz Lawn Serv
> End of the Line Montana Refrigeration has these account balances at December 31, 2018: Requirements: 1. Calculate End of the Line Montana Refrigeration’s current ratio. 2. How much in current assets does End of the Line Montana Refrig
> Review the steps in the accounting cycle, and answer the following questions: 1. What is the first step? 2. Are any steps optional? 3. Which steps are completed throughout the period? 4. Which steps are completed only at the end of the period? 5. What i
> The following balances appear on the books of Sarah Simmons Enterprises: Retained Earnings, $29,600; Dividends, $10,500; Income Summary, $0; Service Revenue, $24,500; Salaries Expense, $6,200; Rent Expense, $3,500; and Advertising Expense, $2,000. All ac
> Brett Teddy Enterprises had the following accounts and normal balances listed on its December 31st adjusted trial balance: Service Revenue, $21,900; Salaries Expense, $6,000; Rent Expense, $4,400; Advertising Expense, $3,100; and Dividends, $6,900. Journ
> Refer to the data in Short Exercise S4-1. Prepare Dalton’s classified balance sheet at December 31, 2018. Assume the Notes Payable is due on December 1, 2025. Use the report form. Short Exercise 4-1: Dalton Hair Stylistsâ€&#
> The analysis of the first eight transactions of Advanced Accounting Service follows. Describe each transaction. ASSETS LIABILITIES ++ EQUITY Contributed Capital Retained Earnings Cash + Accounts +Equipment Accounts + Common Dividends + Service - Sal
> Ocean Breeze Associates accrued $8,500 of Service Revenue at December 31. Ocean Breeze Associates received $14,500 on January 15, including the accrued revenue recorded on December 31. Requirements: 1. Record the adjusting entry to accrue Service Revenu
> For each account listed, identify whether the account would be included on a post- closing trial balance. Signify either Yes (Y) or No (N). a. Office Supplies b. Interest Expense c. Retained Earnings d. Dividends e. Service Revenue f. Accumulated Deprec
> For each account listed, identify whether the account is a temporary account (T) or a permanent account (P). a. Rent Expense b. Prepaid Rent c. Equipment d. Common Stock e. Salaries Payable f. Dividends g. Service Revenue h. Supplies Expense i. Office S
> A partial worksheet for Aaron Adjusters is presented below. Solve for the missing information. A L M Income Statement Balance Sheet 5 Debit Credit Debit Credit 32 Total 33 Net (c) $ 22,400 (a) (b) $ 61,400 5,300 (d) 34 Total (e) (f) (g) $ 61,400 35
> A partial worksheet for Ramey Law Firm is presented below. Solve for the missing information. A м Income Statement Balance Sheet 6 Debit Credit Debit Credit 32 Total 33 Net (b) (a) $ 24,850 $ 211,325 $ 202,950 8,375 (c) 34 Total (d) $ 24,850 (e) (f)
> Answer the following questions: Requirements: 1. What type of normal balance does the Retained Earnings account have—debit or credit? 2. Which type of income statement account has the same type of balance as the Retained Earnings account? 3. Which type
> For each account listed, identify the category in which it would appear on a classified balance sheet. a. Office Supplies b. Interest Payable c. Retained Earnings d. Copyrights e. Land f. Accumulated Depreciation—Furniture g. Land (held for long-term in
> Refer to the data in Short Exercise S4-1. Prepare Dalton’s statement of retained earnings for the year ended December 31, 2018. Short Exercise 4-1: Dalton Hair Stylists’s adjusted trial balance follows. Prepare Dalton’s income sta
> Dalton Hair Stylists’s adjusted trial balance follows. Prepare Dalton’s income statement for the year ended December 31, 2018.
> Indicate the effects of the following business transactions on the accounting equation for Sam’s Snack Foods, a supplier of snack foods. Transaction (a) is answered as a guide. a. Sam’s Snack Foods received cash from issuance of common stock to stockhold
> List the steps of the accounting cycle.
> What are the steps in the closing process?
> How is the Income Summary account used? Is it a temporary or permanent account?
> What is the closing process?
> Why are financial statements prepared in a specific order? What is that order?
> What are reversing entries? Are they required by GAAP?
> What is the current ratio, and how is it calculated?
> What types of accounts are listed on the post-closing trial balance?
> If a business had a net loss for the year, what would be the closing entry to close Income Summary and transfer the net loss to the Retained Earnings account?
> What are permanent accounts? Are permanent accounts closed in the closing process?
> Indicate the effects of the following business transactions on the accounting equation of Vivian’s Online Video store. Transaction (a) is answered as a guide. a. Received cash of $10,000 from issuance of common stock. b. Earned video rental revenue on ac
> What are temporary accounts? Are temporary accounts closed in the closing process?
> If a business had a net loss for the year, where would the net loss be reported on the worksheet?
> How could a worksheet help in preparing financial statements?
> What does liquidity mean?
> Identify two liability categories on the classified balance sheet, and give examples of each category.
> What is a classified balance sheet?
> What does the balance sheet report?
> What does the statement of retained earnings show?
> What does the income statement report?
> As the manager of a Papa Sean’s restaurant, you must deal with a variety of business transactions. Give an example of a transaction that has each of the following effects on the accounting equation: a. Increase one asset and decrease another asset. b. De
> What document are financial statements prepared from?
> The unadjusted trial balance and adjustment data of Myla’s Motors at December 31, 2018, follow: Adjustment data at December 31, 2018: a. Depreciation on equipment, $1,700. b. Accrued Wages Expense, $1,300. c. Office Supplies on hand,
> On December 1, Curt Wilson began an auto repair shop, Wilson’s Quality Automotive. The following transactions occurred during December: The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insu
> The unadjusted trial balance of Watson Anvils at December 31, 2018, and the data for the adjustments follow: Adjustment data: a. Unearned Revenue still unearned at December 31, $3,600. b. Prepaid Rent still in force at December 31, $2,000. c. Office Su
> The unadjusted trial balance of Fleming Investment Advisers at December 31, 2018, follows: Adjustment data at December 31, 2018: a. Unearned Revenue earned during the year, $700. b. Office Supplies on hand, $3,000. c. Depreciation for the year, $3,000.
> The adjusted trial balance of Bradley Irrigation System at December 31, 2018, follows: Requirements: 1. Prepare the company’s income statement for the year ended December 31, 2018. 2. Prepare the company’s statement
> Adjusted trial balance of Rocket Real Estate Appraisal at June 30, 2018, follows: Requirements: 1. Prepare the company’s income statement for the year ended June 30, 2018. 2. Prepare the company’s statement of retain
> The unadjusted trial balance and adjustment data of Martha’s Motors at December 31, 2018, follow: Adjustment data at December 31, 2018: a. Depreciation on equipment, $2,100. b. Accrued Wages Expense, $1,100. c. Office Supplies on hand
> On December 1, Bob Waldo began an auto repair shop, Waldo’s Quality Automotive. The following transactions occurred during December: The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insuran
> The unadjusted trial balance of Walton Anvils at December 31, 2018, and the data for the adjustments follow: Adjustment data: a. Unearned Revenue still unearned at December 31, $1,800. b. Prepaid Rent still in force at December 31, $2,100. c. Office Su
> The records of Felix Company show the following at December 31, 2018: Requirements: 1. Compute the missing amount for Felix Company. You will need to determine Retained Earnings, December 31, 2018, and total stockholders’ equity, Dece
> The unadjusted trial balance of Farish Investment Advisers at December 31, 2018, follows: Adjustment data at December 31, 2018: a. Unearned Revenue earned during the year, $800. b. Office Supplies on hand, $4,500. c. Depreciation for the year, $4,500.
> The adjusted trial balance of Boston Irrigation System at December 31, 2018, follows: Requirements: 1. Prepare the company’s income statement for the year ended December 31, 2018. 2. Prepare the company’s statement o
> The adjusted trial balance of Erickson Real Estate Appraisal at June 30, 2018, follows: Requirements: 1. Prepare the company’s income statement for the year ended June 30, 2018. 2. Prepare the company’s statement of
> Refer to the Practice Set data provided in Chapters 2 and 3 for Crystal Clear Cleaning. Chapter 2 Consider the following transactional data for the first month of operations for Crystal Clear Cleaning. Chapter 3 This problem continues the Crystal Clea
> This case, based on the balance sheet of Target Corporation, will familiarize you with some of the assets and liabilities of that company. Visit http://www.pearsonhighered.com/Horngren to view a link to Target Corporation’s Fiscal 2015 Annual Report. Use
> Houston Veterinary Hospital completed the following worksheet as of December 31, 2018. Requirements: 1. Complete the worksheet for Houston Veterinary Hospital. 2. Prepare the closing entries. 3. Prepare a post-closing trial balance. H. HOUSTON VETE
> Mark’s Bowling Alley’s adjusted trial balance as of December 31, 2018, is presented below: Requirements: 1. Prepare the closing entries for Mark’s Bowling Alley. 2. Prepare a post-closing trial bala
> Cynthia Elmer, CPA, had the following partial worksheet: Requirements: 1. Complete the worksheet. 2. Prepare the closing entries for Cynthia Elmer, CPA. CYNTHIA ELMER, CPA Worksheet 3. December 31, 2018 Adjustments Credit Unadjusted Trial Balance A
> Selected accounts for Kebby Photography at December 31, 2018, follow: Requirements: 1. Journalize Kebby Photography’s closing entries at December 31, 2018. 2. Determine Kebby Photography’s ending Retained Earnings ba
> The adjusted trial balance of Stone Sign Company follows: Requirements: 1. Assume Stone Sign Company has a January 31 year-end. Journalize Stone’s closing entries at January 31. 2. How much net income or net loss did Stone Sign Compan
> During 2018, Flowing Rivers Spa reported revenue of $30,000. Total expenses for the year were $15,000. Flowing Rivers Spa ended the year with total assets of $43,000, and it owed debts totaling $14,000. At year-end 2017, the business reported total asset
> The unadjusted trial balance of Data Solution at November 30, 2018, follows: Additional information at November 30, 2018: a. Accrued Service Revenue, $800. b. Depreciation, $350. c. Accrued Salaries Expense, $650. d. Prepaid Rent expired, $700. e. Offi
> The unadjusted trial balance of Data Solution at November 30, 2018, follows: Additional information at November 30, 2018: a. Accrued Service Revenue, $800. b. Depreciation, $350. c. Accrued Salaries Expense, $650. d. Prepaid Rent expired, $700. e. Offi
> The adjusted trial balance of Melanie O’Mallie Dance Studio Company follows: Requirements: 1. Prepare the classified balance sheet of Melanie O’Mallie Dance Studio Company at August 31, 2018. Use the report form. You
> For each account listed, identify the category that it would appear on a classified balance sheet. Use the following categories: Current Assets; Long-term Investments; Property, Plant, and Equipment; Intangible Assets; Current Liabilities; Long-term Liab
> The adjusted trial balance for Green Advertising Services is presented below: Requirements: 1. Prepare the income statement for the year ending December 31, 2018. 2. Prepare the statement of retained earnings for the year ending December 31, 2018. 3. P
> Mountain View Services had the following unadjusted balances at December 31, 2018: Salaries Payable, $0; and Salaries Expense, $1,900. The following transactions have taken place at the end of 2018 and beginning of 2019: Requirements: 1. Open T-account
> Lucas Architects recorded the following adjusting entries as of December 31: a. Service Revenue accrued, $2,600. b. Unearned Revenue that has been earned, $1,300. c. Office Supplies on hand, $530. The balance of the Office Supplies account was $880. d.
> McGregor Insurance Agency started the year with a beginning Retained Earnings balance of $27,500. During the year, McGregor Insurance Agency earned $34,000 of Service Revenue and incurred $23,500 of various expenses. Dividends of $12,000 from the busin
> Grant Film Productions wishes to expand and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50. Business has been good but not great. Expansion costs have brought the
> This problem continues the Canyon Canoe Company situation from Chapter 3. From Chapter 3: This problem continues the Canyon Canoe Company situation from Chapter 2. You will need to use the unadjusted trial balance and posted T-accounts that you prepare
> Mountain Drycleaners started 2018 with total assets of $19,000 and total liabilities of $14,000. At the end of 2018, Mountain’s total assets stood at $12,000 and total liabilities were $9,000. Requirements: 1. Did the stockholders’ equity of Mountain Dr
> This comprehensive problem is a continuation of Comprehensive Problem 1. Murphy Delivery Service has completed closing entries and the accounting cycle for 2018. The business is now ready to record January 2019 transactions. Requirements: 1. Record eac
> Murphy Delivery Service completed the following transactions during December 2018: 1. Record each transaction in the journal using the following chart of accounts. Explanations are not required. Cash ……â&
> iHeartMedia, Inc. in their annual report for the year ending December 31, 2015, state that the plant assets reported on its balance sheet includes the following: Plant Asset …………………………………………………………………………………………Useful Life Buildings and improvements ………………
> On October 1, 2018, Kitchen Design paid $15,000 for store rent covering the six- month period ending March 31, 2019. Requirements: 1. Journalize the entry on October 1 by using the alternative treatment of deferred expenses. 2. Record the December 31, 2
> Just Right Hair Stylists has begun the preparation of its worksheet as follows: Year-end data include the following: a. Office supplies on hand, $300. b. Depreciation, $700. c. Accrued interest expense, $800. Complete Just Right’s wo
> Seth’s Tax Services had the following accounts and account balances after adjusting entries. Assume all accounts have normal balances. Prepare the adjusted trial balance for Seth’s Tax Services as of December 31, 201
> Birch Park Senior Center has a weekly payroll of $12,500. December 31 falls on Wednesday, and Birch Park Senior Center will pay its employees the following Monday (January 5) for the previous full week. Assume Birch Park Senior Center has a five-day work
> Eastside Magazine collects cash from subscribers in advance and then mails the Magazines to subscribers over a one-year period. Requirements: 1. Record the journal entry to record the original receipt of $180,000 cash. 2. Record the adjusting entry that
> On October 1, Orlando Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero. Requirements: 1. Calculate the amount of depreciatio
> On November 1, Carlisle Equipment had a beginning balance in the Office Supplies account of $600. During the month, Carlisle purchased $2,300 of office supplies. At November 30, Carlisle Equipment had $500 of office supplies on hand. Requirements: 1. Op
> Wizco Advertising’s balance sheet data at May 31, 2018, and June 30, 2018, follow: For each of the following situations that occurred in June, 2018 with regard to common stock and dividends of a corporation, compute the amount of net
> On September 1, Big Fan of Toledo prepaid six months of rent, $3,300. Requirements: 1. Record the journal entry for the September 1 payment. 2. Record the adjusting entry required at September 30. 3. Using T-accounts, post the journal entry and adjustin
> Seacoast Magazine sells subscriptions for $36 for 18 issues. The company collects cash in advance and then mails out the magazines to subscribers each month. Apply the revenue recognition principle to determine a. when Seacoast Magazine should record re
> The Pink Peonies Law Firm prepays for advertising in the local newspaper. On January1, the law firm paid $3,000 for 10 months of advertising. How much advertising expense should Pink Peonies Law Firm record for the two months ending February 28 under the
> On September 1, 2018, Salem Landscaping collected $24,000 in advance from Customers for landscaping services. The service revenue will be earned monthly over the 12-month period ending August 31, 2019. Requirements: 1. Journalize the entry on September
