Question: Kiley Corporation had these transactions during

> On June 1, Marchon Company Ltd. borrows $60,000 from Acme Bank on a 6-month, $60,000, 8% note. The note matures on December 1. Instructions (a) Prepare the entry on June 1. (b) Prepare the adjusting entry on June 30. (c) Prepare the entry at maturity (De

> Suppose the following items were taken from the December 31, 2017, assets section of the Boeing Company balance sheet. (All dollars are in millions.) Instructions Prepare the assets section of a classified balance sheet, listing the current assets in or

> Here is financial information for Glitter Inc. Instructions Prepare a schedule showing a horizontal analysis for 2017, using 2016 as the base year. December 31, 2017 December 31, 2016 $ 90,000 350,000 65,000 90,000 $106,000 Current assets Plant asse

> Sosa Company reported net income of $190,000 for 2017. Sosa also reported depreciation expense of $35,000 and a loss of $5,000 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $15,000 for the year

> Penland Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued

> a. Smiley Corporation issues $300,000 of bonds for $315,000. (a) Prepare the journal entry to record the issuance of the bonds, and (b) show how the bonds would be reported on the balance sheet at the date of issuance. b. Farmland Corporation issued $400

> The condensed financial statements of Murawski Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) Compute the following ratios for 2017 and 2016. (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/15 was $3

> The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions Answer the following questions for each company. (a) What is the balance in cash and cas

> Gary Theater is in the Hoosier Mall. A cashier’s booth is located near the entrance to the theater. Two cashiers are employed. One works from 1:00 to 5:00 P. M., the other from 5:00 to 9:00 P . M. Each cashier is bonded. The cashiers receive cash from cu

> Moskow Corporation issued the following statement of cash flows for 2017. (a) Compute free cash flow for Moskow Corporation. (b) Explain why free cash flow often provides better information than “Net cash provided by operating activiti

> a. Sparks Corporation has 3,000 shares of 8%, $100 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $105,000 cash dividend. Determine the dividend paid to preferred stockholders and common stockhold

> The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using the companies’ complete annual reports, including the notes to the f

> Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions (a) Based on the information contained in these financial statements, compute free cash flow for

> The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions (a) Based on the information in these financial statements, compute the 2014 return on commo

> The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Assume Columbia’s weighted-average number of shares outstanding was 227,514,000, and VF’s was 56,997,

> The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions (a) Based on the information contained in these financial statements, compute the current ra

> The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions for accessing and using the companies’ complete annual reports, including the notes to t

> Classify each item as an operating, investing, or financing activity. Assume all items involve cash unless there is information to the contrary. (a) Purchase of equipment. (b) Sale of building. (c) Redemption of bonds. (d) Cash received from sale of good

> Rayborn Company obtains $20,000 in cash by signing a 9%, 6-month, $20,000 note payable to First Bank on July 1. Rayborn’s fiscal year ends on September 30. What information should be reported for the note payable in the annual financial statements?

> a. On January 1, 2017, Salt Creek Country Club purchased a new riding mower for $15,000. The mower is expected to have a 10-year life with a $1,000 salvage value. What journal entry would Salt Creek make on December 31, 2017, if it uses straight-line dep

> What questions about cash are answered by the statement of cash flows?

> What is revaluation of plant assets? When should revaluation be applied?

> State whether each of the following statements is true or false. _______1. Convertible bonds are also known as callable bonds. _______2. The market rate is the rate investors demand for loaning funds. _______3. Semiannual interest payments on bonds are e

> (a) Your friend G. C. Jones cannot understand how the characteristic of corporate management is both an advantage and a disadvantage. Clarify this problem for G. C. (b) Identify and explain two other disadvantages of a corporation.

> Hogan Inc. reported 2016 earnings per share of $3.26 and had no discontinued operations. In 2017, earnings per share on income from continuing operations was $2.99, and earnings per share on net income was $3.49. Do you consider this trend to be favorabl

> At December 31, 2017, Arnold Corporation reported the following plant assets. During 2018, the following selected cash transactions occurred. Apr.1 Purchased land for $2,200,000. May 1 Sold equipment that cost $600,000 when purchased on January 1, 2011.

> What are some common types of receivables other than accounts receivable or notes receivable?

> The comparative statements of Wahlberg Company are presented here. All sales were on account. Net cash provided by operating activities for 2017 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000. Instructions Compute the

> The following account balances relate to the stockholders’ equity accounts of Molder Corp. at year-end. A small stock dividend was declared and issued in 2017. The market price of the shares was $8,800. Cash dividends were $20,000 in b

> The stockholders’ equity accounts of Cyrus Corporation on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) $ 300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in C

> At December 31, 2016, Suisse Imports reported this information on its balance sheet. Instructions (a) Prepare the journal entries to record each of these fi ve transactions. Assume that no cash discounts were taken on the collections of accounts receiva

> Ehler Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Ehler had the following transactions related to notes payable. Sept.1 Issued a $12,000 note to Pippen to

> On May 15, Wild Quest Clothiers borrowed some money on a 4-month note to provide cash during the slow season of the year. The interest rate on the note was 8%. At the time the note was due, the amount of interest owed was $480. Instructions (a) Determine

> Trayer Corporation has income from continuing operations of $290,000 for the year ended December 31, 2017. It also has the following items (before considering income taxes). 1. An unrealized loss of $80,000 on available-for-sale securities. 2. A gain of

> An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. (a) Payment of inter

> Sagan Co. had these transactions during the current period. June 12 Issued 80,000 shares of $1 par value common stock for cash of $300,000. July 11 Issued 3,000 shares of $100 par value preferred stock for cash at $106 per share. Nov. 28 Purchased 2,000

> a. Beauty Island Corporation began operations on April 1 by issuing 55,000 shares of $5 par value common stock for cash at $13 per share. In addition, Beauty Island issued 1,000 shares of $1 par value preferred stock for $6 per share. Journalize the issu

> a. PK Photography reported net income of $100,000 for 2017. Included in the income statement were depreciation expense of $6,300, patent amortization expense of $4,000, and a gain on disposal of plant assets of $3,600. PK’s comparative

> What term is commonly used under IFRS in reference to the balance sheet?

> Peete Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking. (a) 900 units of inventory shipped on consignment by Peete to another comp

> The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Based on the information in the financial statements, determine each of the followin

> a. Mantle Company has been in business several years. At the end of the current year, the unadjusted trial balance shows: Accounts Receivable $ 310,000 Dr. Sales Revenue 2,200,000 Cr. Allowance for Doubtful Accounts 5,700 Cr. Bad de

> Columbia Sportswear Company’s financial statements are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Based on the information contained in these financial statements, compute free cash flow

> The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Based on the information in these financial statements, compute the 2014 return on c

> The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Based on the information contained in these financial statements, compute the curren

> Busch Company has these obligations at December 31: (a) a note payable for $100,000 due in 2 years, (b) a 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments and (c) interest payable of $15,000 on the mortgage, and (d) accounts pa

> Each of these items must be considered in preparing a statement of cash flows for Irvin Co. for the year ended December 31, 2017. For each item, state how it should be shown in the statement of cash flows for 2017. (a) Issued bonds for $200,000 cash. (b)

> Jenny Perez believes a current liability is a debt that can be expected to be paid in one year. Is Jenny correct? Explain.

> What is component depreciation, and when must it be used?

> Indicate whether each of the following statements is true or false. ______ 1. The corporation is an entity separate and distinct from its owners. ______ 2. The liability of stockholders is normally limited to their investment in the corporation. ______ 3

> Define current assets. What basis is used for ordering individual items within the current assets section?

> These items are taken from the financial statements of Martin Corporation for 2017. Retained earnings (beginning of year)……………………………$31,000 Utilities expense………………………………………………………………..2,000 Equipment………………………………………………………………………66,000 Accounts payable………………

> Moss Corporation had the following transactions. 1. Issued $160,000 of bonds payable. 2. Paid utilities expense. 3. Issued 500 shares of preferred stock for $45,000. 4. Sold land and a building for $250,000. 5. Loaned $30,000 to Dead End Corporation, rec

> Joe, a student, asks your help in understanding some characteristics of a corporation. Explain each of these to Joe. (a) Separate legal existence. (b) Limited liability of stockholders. (c) Transferable ownership rights.

> Explain sustainable income. What relationship does this concept have to the treatment of discontinued operations on the income statement?

> (a) What is a statement of cash flows? (b) Pat Marx maintains that the statement of cash flows is an optional financial statement. Do you agree? Explain.

> On January 1, 2017, the ledger of Romada Company contained these liability accounts. Accounts Payable $42,500 Sales Taxes Payable 6,600 Unearned Service Revenue 19,000 During January, the following selected transactions occurred. Jan.

> Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016. Instructions (a) Prepare a vertical analysis of the 2017 income statement data for Duke Co

> You are provided with the following information regarding events that occurred at Moore Corporation during 2017 or changes in account balances as of December 31, 2017. Instructions Moore prepares its statement of cash flows using the indirect approach.

> Tidal Corporation was organized on January 1, 2017. It is authorized to issue 20,000 shares of 6%, $50 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were complete

> Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for liabilities.

> Discuss the differences that exist in the treatment of bank overdrafts under GAAP and IFRS.

> The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Based on the information contained in these fi nancial statements, compute the follo

> How is the cost for a plant asset measured in a cash transaction? In a noncash transaction?

> Kelly Jones and Tami Crawford borrowed $15,000 on a 7-month, 8% note from Gem State Bank to open their business, JC’s Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018. Instructions (a) Prepare the entry to record

> For its fiscal year ending October 31, 2017, Haas Corporation reports the following partial data shown below. Income before income taxes $540,000 Income tax expense (20% × $420,000) 84,000 Income from continuing operations 456,000 L

> During its first year of operations, Mona Corporation had these transactions pertaining to its common stock. Jan. 10 Issued 30,000 shares for cash at $5 per share. July 1 Issued 60,000 shares for cash at $7 per share. Instructions (a) Journalize the tran

> a. You and several classmates are studying for the next accounting examination. They ask you to answer the following questions: 1. If cash is borrowed on a $60,000, 9-month, 10% note on August 1, how much interest expense would be incurred by December 31

> In its proposed 2017 income statement, Hrabik Corporation reports income before income taxes $500,000, income taxes $100,000 (not including unusual items), loss on operation of discontinued music division $60,000, gain on disposal of discontinued music d

> The financial statements of Apple Inc. are presented in Appendix A. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A. Instructions Answer the follo

> Your parents are considering investing in Apple Inc. common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Financial statements of Apple are presented in Appendix A. Instructions for accessing and using the com

> The financial statements of Apple Inc. are presented in Appendix A. Instructions Answer the following questions. (a) What was the amount of net cash provided by operating activities for the year ended September 27, 2014? For the year ended September 28,

> The stockholders’ equity section of Apple Inc.’s balance sheet is shown in the Consolidated Statement of Financial Position in Appendix A. Instructions for accessing and using the company’s complete annual report, including the notes to its financial sta

> Fraud experts often say that there are three primary factors that contribute to employee fraud. Identify the three factors and explain what is meant by each.

> Refer to the financial statements of Apple Inc. in Appendix A. Instructions Answer the following questions. (a) What were Apple’s total current liabilities at September 27, 2014? What was the increase/decrease in Apple’s total current liabilities from th

> Adama Company incurred the following costs. Instructions Indicate to which account Adama would debit each of the costs. 1. Sales tax on factory machinery purchased 2. Painting of and lettering on truck immediately upon purchase 3. Installation and t

> (a) Identify the three activities that pertain to a petty cash fund, and indicate an internal control principle that is applicable to each activity. (b) When are journal entries required in the operation of a petty cash fund?

> Explain how transactions related to plant assets and intangibles are reported in the statement of cash flows under the indirect method.

> (a) Describe cash equivalents and explain how they are reported. (b) How should restricted cash funds be reported on the balance sheet?

> You are comparing two companies in the same industry. You have determined that Gore Corp. depreciates its plant assets over a 40-year life, whereas Ross Corp. depreciates its plant assets over a 20-year life. Discuss the implications this has for compari

> Trisha Massey asks for your help concerning an NSF check. Explain to Trisha (a) what an NSF check is, (b) how it is treated in a bank reconciliation, and (c) whether it will require an adjusting entry on the company’s books.

> Mesa Corporation uses straightline depreciation for financial reporting purposes but an accelerated method for tax purposes. Is it acceptable to use different methods for the two purposes? What is Mesa Corporation’s motivation for doing this?

> Peyton Corporation and Rogers Corporation operate in the same industry. Peyton uses the straightline method to account for depreciation, whereas Rogers uses an accelerated method. Explain what complications might arise in trying to compare the results of

> Cassy Dominic, a marketing executive for Fresh Views Inc., has proposed expanding its product line of framed graphic art by producing a line of lower-quality products. These would require less processing by the company and would provide a lower profit ma

> The financial statements of Louis Vuitton are presented in Appendix F. Instructions for accessing and using the company’s complete annual report, including the notes to its financial statements, are also provided in Appendix F. Instructions Using the not

> Since hiring a new sales director, Tilton Inc. has enjoyed a 50% increase in sales. The CEO has also noticed, however, that the company’s average collection period has increased from 17 days to 38 days. What might be the cause of this increase? What are

> How do these principles apply to cash disbursements? (a) Physical controls. (b) Human resource controls.

> The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Identify two accounts on Columbia’s balance sheet that provide evidence that Columbi

> Often research and development costs provide companies with benefits that last a number of years. (For example, these costs can lead to the development of a patent that will increase the company’s income for many years.) However, generally accepted accou

> Basic information relating to a new machine purchased by Gotham Company is presented in E9-5. Instructions Using the facts presented in E9-5, compute depreciation using the following methods in the year indicated. (a) Declining-balance using double the s

> The president of Ericson Inc. proudly announces her company’s improved liquidity since its current ratio has increased substantially from one year to the next. Does an increase in the current ratio always indicate improved liquidity? What other ratio or

> Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $100,000. Over its 4-year useful life, the bus is expected to be driven 160,000 miles. Salvage value is expected to be $

> Under what conditions is goodwill recorded? What is the proper accounting treatment for amortizing goodwill?

> Mendez Corporation reported net income of $58,000. Depreciation expense for the year was $132,000. The company calculates depreciation expense using the straight-line method, with a useful life of 10 years. Top management would like to switch to a 15-yea

> Bailey Corp. significantly reduced its requirements for credit sales. As a result, sales during the current year increased dramatically. It had receivables at the beginning of the year of $38,000 and ending receivables of $191,000. Credit sales were $380

> Ricci’s Pizza operates strictly on a carryout basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. While at the counter, the customer can see other employees making the pizzas and the large ovens in which the piz

> Linley Company reports the following information (in millions) during a recent year: net sales, $11,408.5; net earnings, $264.8; total assets, ending, $4,312.6; and total assets, beginning, $4,254.3. Instructions (a) Calculate the (1) return on assets, (

> Kael Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. Aug. 1 Established the petty cash fund by writing a check payable to the petty cash custodian for $200. 15 Replenished the petty cash

> Warwick Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct? Explain.

> The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Based on the information contained in these financial statements, determine the foll