Match each document in a voucher system with its description. Document 1. Purchase requisition 2. Purchase order 3. Invoice 4. Receiving report 5. Invoice approval 6. Voucher Description A. An itemized statement of goods prepared by the vendor listing the customer’s name, items sold sales prices, and terms of sale. B. An internal file used to store documents and information to control cash payments and to ensure that a transaction is properly authorized and recorded. C. A document used to place an order with a vendor that authorizes the vendor to ship ordered merchandise at the stated price and terms. D. A checklist of steps necessary for the approval of an invoice for recording and payment; also known as a check authorization. E. A document used by department managers to inform the purchasing department to place an order with a vendor. F. A document used to notify the appropriate persons that ordered goods have arrived, including a description of the quantities and condition of goods.
> Daley Company prepared the following aging of receivables analysis at December 31. a. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record bad debts expense using the est
> Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the
> Warner Company’s year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600 (credit), and sales of $140,000. Uncollectibles are estimated to be 1% of sales. Prepare the December 31 year-end adjusting e
> Use Apple’s financial statements in Appendix A to answer the following. 1. Compute Apple’s return on total assets for the years ended September 29, 2018, and September 30, 2017. 2. Is the change in Appleâ€&#
> QP Corp. sold 4,000 units of its product at $50 per unit during the year and incurred operating expenses of $5 per unit in selling the units. It began the year with 700 units in inventory and made successive purchases of its product as follows. Required
> Refer to Google’s recent balance sheet in Appendix A. What is the book value of its total net property and equipment assets at December 31, 2018?
> On December 31 of Swift Co.’s first year, $50,000 of accounts receivable was not yet collected. Swift estimated that $2,000 of its accounts receivable was uncollectible and recorded the year-end adjusting entry. 1. Compute the realizable value of account
> Identify the following as intangible assets, natural resources, or some other asset. a. Oil well b. Trademark c. Leasehold d. Gold mine e. Building f. Copyright g. Franchise h. Coal mine i. Salt mine
> Navajo Company’s year-end financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending inventory is understated by $56,000 and Year
> A physical inventory of Liverpool Company taken at December 31 reveals the following. Required 1. Compute the lower of cost or market for the inventory applied separately to each item. 2. If the market amount is less than the recorded cost of the invento
> Refer to the information in Problem 5-3A and assume the perpetual inventory system is used. Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute th
> Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 20
> Use the following information to prepare a statement of cash flows for Studio One for the month ended December 31. The cash balance at the start of December 1 was $1,000.
> Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company’s fiscal year). May 1 prepared a company check for $300 to establish the petty cash
> Refer to the information in Problem 5-1A and assume the perpetual inventory system is used. Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute th
> Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 p
> On January 1, JKR Shop had $225,000 of beginning inventory at cost. In the first quarter of the year, it purchased $795,000 of merchandise, returned $11,550, and paid freight charges of $18,800 on purchased merchandise, terms FOB shipping point. The comp
> Helix reported the following information in its financial statements. Write-offs of accounts receivable were $200 in the current year. Helix did not recover any write-offs. Determine bad debts expense for the current year.
> Refer to the information in QS 5-5 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs and inventory amounts to cents.)
> Dakota Company had net sales (at retail) of $260,000. The following additional information is available from its records. Use the retail inventory method to estimate Dakota’s year-end inventory at cost.
> Comparative figures for Samsung, Apple, and Google follow. Required 1. Compute total asset turnover for the most recent two years for Samsung using the data shown. 2. Is the change in Samsung’s asset turnover favorable or unfavorable? 3
> Use the following information for Palmer Co. to compute inventory turnover for Year 3 and Year 2, and its days’ sales in inventory at December 31, Year 3 and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover a
> Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes. 1. Compute its current ratio, inventory turnover, and days’ s
> Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $250,000 physical inventory from the beginning to the end of that three-year period. I
> Martinez Company’s ending inventory includes the following items. Compute the lower of cost or market for ending inventory applied separately to each product.
> Following are five separate cases involving internal control issues. a. Chi Han receives all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts. b. At Tico Company, Julia and Trevor alternate lun
> Flora’s Gifts reported the following current-month data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 60 units—50 units from the January 6 purchase and 10 unit
> Use the information in QS 1-15 to prepare a December 31 balance sheet for Hawkin. Hint: Retained Earnings, December 31, equals $8,800.
> In its first year of operations, Cloudbox has credit sales of $200,000. Its year-end balance in Accounts Receivable is $10,000, and the company estimates that $1,500 of its accounts receivable is uncollectible. a. Prepare the year-end adjusting entry to
> Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 150 units—50 from each of the last three purchases. Determine the cost assig
> Refer to sales and purchases data from Exercise 5-11 and record journal entries for Tree Seedlings’s sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and LIFO. All sales and purchases are mad
> Refer to the information in Exercise 5-11 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross profit for each method.
> Tree Seedlings has the following current-year purchases and sales for its only product. Required The company uses a periodic inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Com
> Comparative figures for Apple and Google follow. Required 1. Compute total asset turnover for the most recent two years for Apple and Google using the data shown. 2. In the current year, which company is more efficient in generating net sales given total
> Refer to the information in QS 5-5 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. (Round per unit costs and inventory amounts to cents.)
> Refer to the information in Exercise 5-8 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross profit for each method.
> Refer to the information in Exercise 5-8. Ending inventory consists of 45 units from the March 14 purchase, 75 units from the July 30 purchase, and all 100 units from the October 26 purchase. Using the specific identification method, compute (a) the cost
> On January 1, Walker purchased a used machine for $150,000. On January 4, Walker paid $3,510 to wire electricity to the machine. Walker paid an additional $4,600 on January 5 to secure the machine for operation. The machine will be used for seven years a
> Hemming Co. reported the following current-year purchases and sales for its only product. Required Hemming uses a periodic inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Comp
> On January 1, Wei Company begins the accounting period with a $30,000 credit balance in Allowance for Doubtful Accounts. a. On February 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Co. and $5
> Use the data and results from Exercise 5-5 to compute gross profit for the month of January for the company similar to that in Exhibit 5.8 for the four inventory methods. Required 1. Which method yields the highest gross profit? 2. Does gross profit usin
> Refer to sales and purchases data from Exercise 5-3 and record journal entries for Laker Company’s sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and FIFO. All sales and purchases are made
> Use the information in QS 1-15 to prepare a statement of retained earnings for Hawkin for the month ended December 31. Hint: Net income is $5,800.
> Refer to the information in Exercise 5-3 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. (Round
> Use the data in Exercise 5-3 to compute gross profit for the month of January for Laker Company similar to that in Exhibit 5.8 for the four inventory methods. 1. Which method yields the highest gross profit? 2. Does gross profit using weighted average fa
> Laker Company reported the following January purchases and sales data for its only product. Required The company uses a periodic inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification
> Brinkley Company, which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 Jan. 5 Brinkley purchased 20,000 shares (25% of total) of Bloch’s common stock for $200,500. Aug.1 Bloch declared and paid
> Walberg Associates, antique dealers, purchased goods for $75,000. Terms of the purchase were FOB ship- ping point, and the cost of transporting the goods to Walberg Associates’ warehouse was $2,400. Walberg Associates insured the shipment at a cost of $3
> 1. At year-end, Barr Co. had shipped $12,500 of merchandise FOB destination to Lee Co. Which company should include the $12,500 of merchandise in transit as part of its year-end inventory? 2. Parris Company has shipped $20,000 of goods to Harlow Co., and
> Dexter Company uses the direct write-off method. Prepare journal entries to record the following transactions. Mar. 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays its account in
> A solar panel dealer acquires a used panel for $9,000, with terms FOB shipping point. Compute total inventory costs assigned to the used panel if additional costs include $1,500 for sales staff salaries. $135 for shipping insurance. $280 for transportat
> In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventory by $10,000. Determine how this error affects each of the following. a. Year 1 cost of goods sold c. Year 2 cost of goods sol
> Spade Co. is considering either FIFO or LIFO. Determine which method results in the lowest income tax expense in the current year when (a) inventory costs are rising and (b) inventory costs are falling. The income tax rate is 20% and is calculated as a p
> Complete the following table by indicating whether FIFO or LIFO results in the lower reported amount for each of the three accounting measures.
> Compute the missing amounts in the separate income statements A, B, and C.
> On December 31, Hawkin’s records show the following accounts. Use this information to prepare a December income statement for Hawkin.
> Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the following separate statements. Assume a period of increasing costs. 1. Results in the highest cost of goods sold. 2. Yields the highest net income. 3. Has the low
> Refer to the information in QS 5-11 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on specific identification. Of the units sold, eight are from the December 7 purchase an
> Refer to Apple’s financial statements in Appendix A to answer the following. 1. What percent of the original cost of Apple’s Property, Plant and Equipment account remains to be depreciated as of (a) September 29, 2018, and (b) September 30, 2017? Assume
> Refer to the information in QS 5-11 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs and inventory amounts to cents.)
> Grande Co. had credit sales of $20,000 in the current period. Accounts Receivable had a beginning balance of $4,000 and an ending balance of $5,000. Compute its cash collections from its credit sales for the current period.
> Indicate whether each statement best describes the allowance method or the direct write-off method. 1. Does not predict bad debts expense. 2. Accounts receivable on the balance sheet is reported at net realizable value. 3. The write-off of a specific acc
> As of December 31 of the current year, Audi Company’s records show the following. Required Prepare the income statement for Audi Company for the current year ended December 31.
> The following financial statement information is from five separate companies. Required 1. Answer the following questions about Company V. a. What is the amount of equity at the beginning of the year? b. What is the amount of equity at the end of the yea
> The asset accounts from Ridley Co.’s adjusted trial balance for its December 31 year-end follow. Prepare the assets section of its classified balance sheet.
> Identify how each of the following separate transactions 1 through 10 affects financial statements. For increases, place a “+” and the dollar amount in the column or columns. For decreases, place a “&
> Key figures for Samsung follow. Required 1. Compute cash and cash equivalents as a percent (rounded to one decimal) of total current assets, total assets, total current liabilities, and total shareholders’ equity for both years. 2. Comp
> Coca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financial figures for these businesses for a recent year follow. Required 1. Compute return on assets for (a) Coca-Cola and (b) PepsiCo. 2. Which company is more suc
> Following is selected financial information of Kia Company for the current year ended December 31. Required Prepare the statement of cash flows for KIA Company for the current year ended December 31.
> As of December 31 of the current year, Armani Company’s records show the following. Required Prepare the income statement for Armani Company for the current year ended December 31.
> Identify each of the following as an accounting Principle, Assumption, or Constraint. 1. Full disclosure 2. Time period 3. Going-concern 4. Revenue recognition
> The following financial statement information is from five separate companies. Required 1. Answer the following questions about Company A. a. What is the amount of equity at the beginning of the year? b. What is the amount of equity at the end of the yea
> Identify how each of the following separate transactions 1 through 10 affects financial statements. For increases, place a “+” and the dollar amount in the column or columns. For decreases, place a “&
> Mahomes Co. reported the following data at the end of its first year of operations on December 31. (a) Prepare its year-end statement of retained earnings. (b) Prepare its year-end balance sheet using retained earnings calculated in part a.
> Classify each of the following items as revenues, expenses, or dividends. 1. Utilities expense 2. Service revenue 3. Wages expense 4. Cash dividends 5. Rent expense 6. Rental revenue 7. Insurance expense 8. Consulting revenue
> Terrell Co. reported the following data at the end of its first year of operations on December 31. (a) Pre- pare its year-end income statement. (b) Prepare its year-end statement of retained earnings using net income calculated in part a.
> Selected accounts from Westeros Co.’s adjusted trial balance for the year ended December 31 follow. Prepare its income statement.
> Key comparative figures for Apple and Google follow. Required 1. Compute days’ sales uncollected (rounded to one decimal) for the current year and the prior year for (a) Apple and (b) Google. 2. Which company had more success collecting
> Jarvis began operations on January 1, Year 1. In its first two years of operations, it reported the following at its December 31 year-end. Prepare the statement of retained earnings for (a) Year 1 and (b) Year 2.
> Use the information in Exercise 1-18 to prepare a December statement of cash flows for Ernst Consulting. Assume the following additional information. a. The owner’s initial investment consists of $38,000 cash and $46,000 in land in exchange for its commo
> Use the information in Exercise 1-18 to prepare a December 31 balance sheet for Ernst Consulting. Hint: The solution to Exercise 1-19 can help.
> Use the information in Exercise 1-18 to prepare a December statement of retained earnings for Ernst Consulting.
> On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and a
> For each transaction, (a) determine whether the transaction appears on the statement of cash flows under cash flows from operating activities, cash flows from investing activities, or cash flows from financing activities and (b) Indicate whether the tr
> Identify the fraud triangle risk factor (Opportunity, Pressure, or Rationalization) in each situation. 1. The business has no cameras or security devices at its warehouse. 2. Managers are expected to grow business or be fired. 3. A worker sees other empl
> Shep Company’s records show the following information for the current year. Determine net income (loss) for each of the following separate situations. a. Additional common stock of $3,000 was issued and dividends of $7,000 were paid dur
> For each transaction a through f, identify its impact on the accounting equation (select from 1 through 5 below). 1. Decreases an asset and decreases equity. 2. Increases an asset and increases a liability. 3. Decreases an asset and decreases a liability
> During the current year, Reed Consulting acquired long-term available-for-sale debt securities on July 1 at a $70,000 cost. At its December 31 year-end, these securities had a fair value of $58,000. This is the first and only time the company purchased s
> Anna’s Cookies combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported for cash and cash equivalents. $100 in coins held in store registers $600 in accounts payable to suppliers $1,000 cash
> A&J Co. incurred the following expenses related to patented drugs. 1. Indicate costs that are reported as research and development expenses on the income statement. 2. Indicate costs that are capitalized and reported in the Patent account on the bala
> The following table shows the effects of transactions 1 through 5 on the assets, liabilities, and equity of Mulan’s Boutique. Identify the explanation from a through j that best describes each transaction 1 through 5. a. The company pu
> Zen began a new consulting firm on January 5. Following is a financial summary, including balances, for each of the company’s first five transactions (using the accounting equation form). Identify the explanation from a through j that
> a. On January 1, Lumia Company’s liabilities are $60,000 and its equity is $40,000. On January 3, Lumia purchases and installs solar panel assets costing $10,000. For the panels, Lumia pays $4,000 cash and promises to pay the remaining $6,000 in six mont
> a. Byrde Co. purchased a truck. The seller asked for $11,000, but Byrde paid only $10,000 after negotiation. The owner of Byrde Co. believes he got a great deal and the truck is really worth $15,000. What amount does Byrde record on its financial stateme
> Analyze each transaction in QS 49 by indicating its effects on the components of the income statement— specifically, identify the accounts and amounts (including + or −) for each transaction.
> Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. Oct. 1 Sold merchandise for $1,500, with credit terms n∕30, invoice dated October 1. The
> Arrange an interview (in person or by phone) with the manager of a retail shop in a mall or in the downtown area of your community. Explain to the manager that you are a student studying merchandising activities and the accounting for sales returns and s
> Refer to the opening feature about Kendra Scott. Assume the business reports current annual sales at approximately $1 million and prepares the following income statement. Assume the business sells to individuals and retailers, ranging from small shops t
> Official Brands’s general ledger and supplementary records at the end of its current period reveal the following. Required 1. Each member of the team is to assume responsibility for computing one of the following items. You are not to
> Use Apple’s financial statements in Appendix A to answer the following. 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 29, 2018, and (b) September 30, 2017. 2. Compute cash and cash equivalents as a percent
