Question: Identify whether the transactions described should

> Refer to the transactions for Overnight Delivery Inc. in Problem 3-6A. Problem 3-6: Overnight Delivery Inc. is incorporated on February 1 and enters into the following transactions during its first month of operations: Required: 1. Prepare journal en

> Russell Company was incorporated on January 1 with the issuance of capital stock in return for $120,000 of cash contributed by the owners. The only other transaction entered into prior to beginning operations was the issuance of a $50,000 note payable in

> Refer to the transactions for Castle Consulting Agency in Problem 3-11A. Problem 3-11A: Castle Consulting Agency began business in February. The transactions entered into by Castle during its first month of operations are as follows: a. Acquired artic

> Castle Consulting Agency began business in February. The transactions entered into by Castle during its first month of operations are as follows: a. Acquired articles of incorporation from the state and issued 10,000 shares of capital stock in exchange

> Refer to the table for Rapid City Roller Rink in part (1) of Problem 3-9A. Problem 3-9A: Three friends organized Rapid City Roller Rink on October 1. The following transactions occurred during the first month of operations: Required: 1. Prepare a tri

> Three friends organized Rapid City Roller Rink on October 1. The following transactions occurred during the first month of operations: Required: 1. Prepare a table to summarize the preceding transactions as they affect the accounting equation. Ignore d

> Fill in the missing amounts in the following income statement for Carpenters Department Store Inc. Net sales $122,040 Cost of goods sold: Beginning inventory $ 23,400 Net purchases $ (a) Transportation-in 6,550 Cost of goods purchased 81,150 Cost of

> On June 1, Campbell Corporation purchased ten acres of land in exchange for a promissory note in the amount of $50,000. Using the formats shown in Example 3-6, prepare the journal entry to record this transaction in a general journal and post it to the a

> Refer to the income statement for Vail Resorts shown in the chapter opener. Using the account titles reported there, prepare the journal entry for each of the following hypothetical transactions. Assume that all transactions include either a debit or a c

> Following is a list of transactions entered into during the first month of operations of Gardener Corporation, a new landscape service. Prepare in journal form the entry to record each transaction. April 1: Articles of incorporation are filed with t

> The 2015 Form 10-K for Gap Inc. includes the following information in the note that summarizes its accounting policies: Merchandise Inventory We value inventory at the lower of cost or market, with cost determined using the weighted average cost method.

> Prepare the journal entry to record each of the following independent transactions. (Use the number of the transaction in lieu of a date for identification purposes.) 1. Services provided on account of $1,530 2. Purchases of supplies on account for $1,36

> Record each of the following transactions directly in T accounts using the numbers preceding the transactions to identify them in the accounts. Each account needs a separate T account. 1. Received contribution of $6,500 from each of the three principal o

> The following information is available concerning Stillwater Inc.: Stillwater, which uses a perpetual system, sold 1,000 units for $22 each during the year. Sales occurred on the following dates: Units February 12 …â€&br

> Texas Corp.’s statement of cash flows reported an addition of $6,000 for the change in the Inventory account during the year. Cost of goods sold expense on the income statement amounted to $50,000. Required: Determine the amount of purchases during the

> On July 1, Paxson Corporation takes out a 12%, two-month, $50,000 loan at Friendly National Bank. Principal and interest are to be repaid on August 31. Required: 1. Identify and analyze the transactions or adjustments for July 1 to record the borrowing,

> During 2017, Carter Company acquired three assets with the following costs, estimated useful lives, and estimated salvage values: The company uses the straight-line method to depreciate all assets and computes depreciation to the nearest month. For exa

> Hathaway Health Club sold three-year memberships at a reduced rate during its opening promotion. It sold 1,000 three-year nonrefundable memberships for $366 each. The club expects to sell 100 additional three-year memberships for $900 each over each of t

> Awards Etc. carries an inventory of trophies and ribbons for local sports teams and school clubs. The cost of trophies has dropped in the past year, which pleases the company except for the fact that it has on hand considerable inventory that was purchas

> The following information is available concerning the inventory of Carter Inc.: During the year, Carter sold 1,000 units. It uses a periodic inventory system. Required: 1. Calculate ending inventory and cost of goods sold for each of the following thr

> Martin Corp. began the year with 2,000 units of inventory that had been purchased for $6 per unit. During the year, 5,000 units were purchased for $8 each and 8,000 units for $10 each. Martin sold 9,000 units during the year for $15 each. The company use

> Walgreens Boots Alliance, Inc. and Subsidiaries’ (the company created with the combination of Walgreens and Boots Alliance) Form 10-K includes the following in the note that summarizes its accounting policies: Inventory The Company’s Retail Pharmacy USA

> Kramer began operations early in 2017 and made the following purchases: Kramer used the FIFO method to value its inventory and reported cost of goods sold expense for the year of $4,000. Required: Determine the cost of goods sold expense assuming Kram

> LaPine Company has the following account balances as of December 31, 2017: Inventory, January 1 …………………………………………………………………….. $ 4,000 Net sales …………………………………………..…………………………………..………. 78,300 Transportation-in …………………………………………..………………………..……….. 1,000 Invent

> There are three elements to the accounting equation: assets, liabilities, and stockholders’ equity. Although other possibilities exist, five types of transactions are described here. For each of these five types, write descriptions of t

> For each of the following transactions, indicate whether it increases (I), decreases (D), or has no effect (NE) on the total dollar amount of each of the elements of the accounting equation. Transactions Assets = Liabilities + Stockholders' Equity E

> On January 1, Campus Internet Connection opened for business across the street from Upper Eastern University. The company charges students a monthly fee of $20 and $1 for each hour they are online. During January, 500 students signed up for the service,

> For each of the following events, identify whether it is an external event that would be recorded as a transaction (E), an internal event that would be recorded as a transaction (I), or not recorded (NR). 1. A vendor for a company's supplies is paid

> Darlene’s Diner accepts American Express¤ credit cards from its customers. Darlene’s is closed on Sundays and on that day records the weekly sales and remits the credit card receipts to American Express. For the week ending on Sunday, June 12, cash sales

> On December 1, 2017, Roper Corp. accepted a two-month, $24,000 interest-bearing note from a customer in payment of an account receivable. On December 31, 2017, Roper made an adjustment with the following effect on the accounting equation: Required: 1.

> On September 1, 2017, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an account receivable. Dougherty’s year-end is December 31. Rozelle paid the note and interest on the due date. Required: 1.

> It takes Carlson Corp. 30 days on average to collect its accounts receivable. The company began the year with $10,500 in accounts receivable. Sales on credit for the year amounted to $150,000. Required: Assuming 360 days in a year, determine the amount

> Refer to the financial information for Chipotle and Panera Bread reproduced at the end of this book and answer the following questions: Chipotle reproduced: Panera Bread: Required: 1. What is the dollar amount of inventories that each company report

> The financial statements included in the 2015 Form 10-K of Nike reported the following amounts (in millions of dollars): Revenues, for the year ended May 31, 2015 ………………………………….. $30,601 Accounts receivable, net, May 31, 2015 …………………………………………….. 3,358 A

> Carter Company sells on credit with terms of n/30. For the $500,000 of accounts at the end of the year that are not overdue, there is a 90% probability of collection. For the $200,000 of accounts that are less than a month past due, Carter estimates the

> Olson Corp. reported the following in the Current Assets section of its December 31, 2017, balance sheet: During 2017, Olson recorded $80,000 of sales on credit and wrote off $4,000 of uncollectible accounts. Required: 1. Determine the amount of cash

> Kandel Company had the following data available for 2017 (before making any adjustments): Accounts receivable, 12/31/17 ………………………………………………………. $320,100 Allowance for doubtful accounts ……………………………………………………….. 2,600 Net credit sales, 2017 …………………………………………

> Emily Enterprises’ comparative balance sheets included accounts receivable of $224,600 at December 31, 2016, and $205,700 at December 31, 2017. Sales reported on Emily’s 2017 income statement amounted to $2,250,000. What is the amount of cash collections

> Troy Corp.’s statement of cash flows reported an addition of $2,000 for the change in the Accounts Receivable account during the year. Sales on account for the year amounted to $24,500. Required: Determine the cash collected on accounts receivable for t

> On its December 31, 2017, income statement, Durango reported a loss on sale of stock of $4,500. The loss resulted from the sale of 2,000 shares of ABC Corp. stock that Durango purchased during 2017 at $25 per share, excluding $500 in commissions to buy t

> On August 15, 2017, Cubs Corp. purchases 5,000 shares of common stock in Sox Inc. at a market price of $15 per share. In addition, Cubs pays brokerage fees of $1,000. On October 20, 2017, Cubs sells the Sox stock for $10 per share. Required: Identify an

> On October 1, 2017, Chicago Corp. purchases 1,000 shares of the preferred stock of Denver Corp. for $40 per share. Chicago pays another $1,000 in commissions. On October 20, 2017, Denver declares and pays a dividend of $1 per share. Chicago sells the sto

> Starship Enterprises enters into the following transactions during 2017 and 2018: Required: 1. Identify and analyze all transactions on Starship’s records to account for its investment in the Northern Lights bonds. 2. Why was Starship

> The following excerpt is taken from page 66 of the Sears Holdings Corporation (parent company of Kmart and Sears) 10-K for the fiscal year ended January 30, 2016: ‘‘Revenues from the sale of service contracts and the related direct acquisition costs are

> On May 31, 2017, Elmer Corp. purchased a 120-day, 9% certificate of deposit for $50,000. The CD was redeemed on September 28, 2017. Identify and analyze the transactions or adjustments on Elmer’s books to account for: a. The purchase of the CD. b. The a

> In its first year of business, Rideaway Bikes has net income of $145,000, exclusive of any adjustment for bad debts expense. The president of the company has asked you to calculate net income under each of two alternatives of accounting for bad debts: th

> The following tasks are performed by three employees, each of whom is capable of performing all of the tasks. Do not be concerned with the time required to perform the tasks, but with the need to provide for segregation of duties. Assign the duties by us

> The university drama club is planning a raffle. The president overheard you talking about internal control to another accounting student, so she asked you to set up some guidelines to ‘‘make sure’’ that all money collected for the raffle is accounted for

> Dexter Company’s bank reconciliation shows an adjusted cash balance of $3,254.33. The following items also appear on the reconciliation: NSF check …………………………………………………………………. $110.50 Deposit in transit …………………………………………………………. 332.10 Interest earned ……………

> On December 23, 2017, Miller Wholesalers ships merchandise to Michael Retailers with terms of FOB destination point. The merchandise arrives at Michael’s warehouse on January 3, 2018. Required: 1. Identify who pays to ship the merchandise. 2. Determine

> Identify and analyze each of the following transactions of Buckeye Corporation. (All purchases on credit are made with terms of 1/10, n/30, and Buckeye uses the periodic system of inventory.) July July 3: Purchased merchandise on credit from Wildcat

> For each of the following independent cases, fill in the missing amounts. Case 1 Case 2 Case 3 Beginning inventory $ (a) $2,350 $1,890 Purchases (net) 5,560 (c) (e) Transportation-in 150 500 420 Cost of goods available for sale 7,110 (d) 8,790 Endin

> From the following list, identify whether the merchandisers described would most likely use a perpetual or a periodic inventory system. How might changes in technology affect the ability of merchandisers to use perpetual inventory systems? Grocery

> The following excerpt is taken from Note 1 on page 41 of Nordstrom’s Form 10-K for the fiscal year ended January 30, 2016: Net Sales We recognize revenue net of estimated returns and excluding sales taxes. Revenue from sales to customers shipped directly

> Refer to the financial information for Chipotle reproduced at the back of the book and identify where each of the following users of accounting information would first look to answer their respective questions about Chipotle. Chipotle reproduced: 1. I

> A retailer is considering the purchase of 1,000 units of a specific item from either of two suppliers. Their offers are as follows: Supplier One: $34.80 a unit, 1/10, n/30, no charge for freight. Supplier Two: $35.00 a unit, 2/10, n/30, plus freight of

> The Stationery Company purchased merchandise on account from a supplier for $14,500, terms 2/10, n/30. The Stationery Company returned merchandise with an invoice amount of $3,500 and received full credit. a. What is the amount of cash required for the p

> What is the normal balance of the following accounts: (a) Cost of Goods Sold, (b) Customer Refunds Payable, (c) Delivery Expense, (d) Estimated Returns Inventory, (e) Inventory, (f) Sales, (g) Sales Tax Payable.

> One item is omitted in each of the following four lists of income statement data. Determine the amounts of the missing items, identifying them by letter. Chase Company Jessup Inc. Osterman Company Snyder Co. Sales $735,000 (b) $8,220,000 (d) Cost of

> Journalize the entries to record the following selected transactions: a. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000. b. Paid $61,750 to the state sales tax department for taxes collected

> Based on the data presented in Exercise 5-16, journalize Balboa Co.’s entries for (a) the purchase, (b) the return of the merchandise for credit, and (c) the payment of the invoice. Exercise 5-16: Showcase Co., a furniture wholesaler, sells merchandise

> Scott Company had sales of $12,350,000 and related cost of goods sold of $7,500,000 for the year ending December 31, 20Y8. Scott provides customers a refund for any returned or damaged merchandise. Scott Company estimates that customers will request refu

> Omega Tire Co.’s perpetual inventory records indicate that $3,145,000 of merchandise should be on hand on August 31, 20Y4. The physical inventory indicates that $3,113,500 of merchandise is actually on hand. Journalize the adjusting entry for the invento

> Sayers Co. sold merchandise on account to a customer for $80,000 terms 2/10, n/30. The cost of the goods sold was $58,000. Journalize Sayers’ entries to record (a) the sale, (b) the receipt of payment within the discount period, and (c) the receipt of pa

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

> At the end of the current year, $17,555 of fees have been earned but have not been billed to clients. Journalize the adjusting entry to record the accrued fees.

> 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. Prepaid Advertising 6. Pre

> Rearrange the following steps in the accounting cycle in proper sequence: a. A post-closing trial balance is prepared. b. Adjustment data are asssembled and analyzed. c. Adjusting entries are journalized and posted to the ledger. d. An adjusted trial bal

> From the list that follows, identify the accounts that should be closed at the end of the fiscal year: a. Accounts Payable b. Accumulated Depreciation—Equipment c. Depreciation Expense—Equipment d. Equipment e. Common Stock f. Dividends g. Fees Earned h.

> Which of the following accounts will usually appear in the post-closing trial balance? a. Accounts Payable b. Accumulated Depreciation c. Cash d. Common Stock e. Dividends f. Depreciation Expense g. Fees Earned h. Office Equipment i. Salaries Expense j.

> From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, identify those that would appear on the balance sheet: 1. Accounts Payable 2. Cash 3. Common Stock 4. Fees Earned 5. Land 6. Rent Expense

> Automation Services Co. offers its services to companies desiring to use technology to improve their operations. After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances were taken from the ledger of Automa

> The income statement for the month of February indicates a net income of $17,500. During the same period, $25,500 in cash dividends were paid. Would it be correct to say that the business incurred a net loss of $8,000 during the month? Discuss.

> For a recent year, Best Buy (BBY) reported sales of $39,528 million. Its gross profit was $9,191 million. What was the amount of Best Buy’s cost of goods sold?

> The following selected transactions were completed by Cota Delivery Service during July: 1. Received cash in exchange for common stock, $35,000. 2. Purchased supplies for cash, $1,100. 3. Paid rent for October, $4,500. 4. Paid advertising expense, $900.

> During the current year, merchandise is sold for $8,100,000. The cost of the goods sold is $4,698,000. 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 always

> The prepaid insurance account had a beginning balance of $11,500 and was debited for $18,000 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future pe

> Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise. (a) Journalize the

> 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 stockholders’ equity, or balance sheet. 1. Accounts

> Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: a. Decrease in inventory b. Increase in accounts receivable c. Increase in accounts payabl

> Identify the type of cash flow activity for each of the following events (operating, investing, or financing): a. Net income b. Paid cash dividends c. Issued common stock d. Issued bonds e. Redeemed bonds f. Sold long-term investments g. Purchased treasu

> State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $500,000 of bonds, on which there was $4,000 of unamortized discount, for $510,000. b. Sold 20,000 shares

> On the basis of the following stockholders’ equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year.

> The board of directors declared cash dividends totaling $1,200,000 during the current year. The comparative balance sheet indicates dividends payable of $250,000 at the beginning of the year and $100,000 at the end of the year. What was the amount of cas

> The declaration, record, and payment dates in connection with a cash dividend of $1,425,000 on a corporation’s common stock are July 9, August 31, and October 1. Journalize the entries required on each date.

> On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 14,200 shares of $25 par common stock with a current market price of $34. Journalize the entry to record the transaction.

> Willey’s Grill & Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Willey’s Grill & Restaurant, which had 325,000 shares of common stock outstanding, declared a 3-for-1 stock split. a. What will be the number of

> Current assets and current liabilities for Brimstone Company follow: a. Determine the working capital and current ratio for 20Y4 and 20Y3. b. Does the change in the current ratio from 20Y3 to 20Y4 indicate a favorable or an unfavorable change? 20Υ4

> Assume that you are going to receive $50,000 in 10 years. The current market rate of interest is 4%. a. Using the present value of $1 table in Exhibit 5, determine the present value of this amount compounded annually. Exhibit 5: b. Why is the present

> Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $22,000,000 of 20-year, 4% callable bonds on May 1, 20Y5, at their face amount, with interest payable on May 1 and November 1. The fiscal year of t

> Hoover Corp., a wholesaler of music equipment, issued $20,000,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the

> Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $800,000 of 10-year, 6% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company

> On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current

> PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: a. How much of the long-term debt was disclosed as a current liabilit

> A business issued a 60-day note for $60,000 to a bank. The note was discounted at 8%. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity.

> A company reports the following income statement and balance sheet information for the current year: Net income …………………………………………………………………………… $ 424,000 Interest expense ………………………………………………………………………… 80,000 Average total assets ………………………………………………………………..

> A company reports the following: Sales ……………………………………………………………………………………………….. $6,750,000 Average total assets (excluding long-term investments) ……………………… 2,500,000 Determine the asset turnover ratio. Round to one decimal place.

> A company reports the following: Income before income tax expense ……………………………………………… $9,100,000 Interest expense ……………………………………………………………………………… 650,000 Determine the times interest earned. Round to one decimal place.

> Prepare a journal entry on June 30 for dividends of $11,500.

> The following information was taken from Charu Company’s balance sheet: Fixed assets (net) …………………………………………………………………… $910,000 Long-term liabilities ………………………………………………..………………… 260,000 Total liabilities …………………………………………………………………………… 800,000 Total stockh