Question: Maulder Company provides the following information

> What are the forces for change?

> Using the data in BE3-5, journalize and post the entry on July 1 and the adjusting entry on December 31 for Randle Insurance Co. Randle uses the accounts Unearned Insurance Revenue and Insurance Revenue. Reference Data BE 3-5: On July 1, 2010, Spahn Co.

> On July 1, 2010, Spahn Co. pays $18,000 to Randle Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Spahn Co., journalize and post the entry on July 1 and the adjusting entry on December 31.

> At the end of its first year, the trial balance of Denton Company shows Equipment $30,000 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $5,000. Prepare the adjusting entry f

> Windsor Advertising Company’s trial balance at December 31 shows Advertising Supplies $6,700 and Advertising Supplies Expense $0. On December 31, there are $2,700 of supplies on hand. Prepare the adjusting entry at December 31, and using T accounts, ente

> Conan Industries collected $100,000 from customers in 2010. Of the amount collected, $25,000 was from revenue earned on account in 2009. In addition, Conan earned $40,000 of revenue in 2010, which will not be collected until 2011. Conan Industries also p

> An inexperienced bookkeeper prepared the following trial balance. Prepare a correct trial balance, assuming all account balances are normal. KWUN COMPANY Trial Balance December 31, 2010 Debit Credit Cash $14,800 $3,500 3,000 Prepaid Insurance Account

> At the beginning of the year, Hernandez Company had total assets of $800,000 and total liabilities of $500,000. Answer the following questions. (a) If total assets increased $150,000 during the year and total liabilities decreased $80,000, what is the am

> From the ledger balances given below, prepare a trial balance for the Cleland Company at June 30, 2010. List the accounts in the order shown on page 61 of the text. All account balances are normal. Accounts Payable $9,000, Cash $8,800, Cleland, Capital $

> Given the accounting equation, answer each of the following questions. (a) The liabilities of McGlone Company are $120,000 and the owner’s equity is $232,000. What is the amount of McGlone Company’s total assets? (b) The total assets of Company are $190,

> Presented below is the basic accounting equation. Determine the missing amounts. Liabilities Owner's Equity Assets $50,000 (a) $90,000 (b) ? $70,000 $60,000 ? $40,000 (c) $94,000 +

> Summarized operations for J. R. Ross Co. for the month of July are as follows. Revenues earned: for cash $20,000; on account $70,000. Expenses incurred: for cash $26,000; on account $40,000. Indicate for J. R. Ross Co. (a) the total revenues, (b) the tot

> Garcia Enterprises had a capital balance of $168,000 at the beginning of the period. At the end of the accounting period, the capital balance was $198,000. (a) Assuming no additional investment or withdrawals during the period, what is the net income for

> Journalize the following business transactions. (a) Hector Molina invests $9,000 cash in the business. (b) Insurance of $800 is paid for the year. (c) Supplies of $2,000 are purchased on account. (d) Cash of $7,500 is received for services rendered.

> Reese Co. has sales revenue of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000.What is its gross profit and its gross profit rate?

> Prepare the closing entries for the Sales account, assuming a balance of $200,000 and the Cost of Goods Sold account with a $145,000 balance.

> A credit sale is made on July 10 for $900, terms 2/10, n/30. On July 12, $100 of goods are returned for credit. Give the journal entry on July 19 to record the receipt of the balance due within the discount period.

> Gary Cunningham is uncertain about the control features of a bank account. Explain the control benefits of (a) a check and (b) a bank statement.

> The cash register tape for Leprechaun Industries reported sales of $6,891.56. Record the journal entry that would be necessary for each of the following situations: (a) Cash to be accounted for exceeds cash on hand by $50.75. (b) Cash on hand exceeds cas

> Using the data in BE2-5, journalize the transactions. (You may omit explanations.) Reference Data from BE 2-5: T. J. Carlin has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the

> Goods costing $2,000 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18 a $200 credit memo is received from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the dis

> The balance sheet debit column of the worksheet for Diaz Company includes the following accounts: Accounts Receivable $12,500; Prepaid Insurance $3,600; Cash $15,400; Supplies $5,200, and Short-term Investments $6,700. Prepare the current assets section

> At Batavia Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the correcting entries. 1. A collection on account from a customer for $780 was recorded as a debit to Cash $780 and a credit to Serv

> The ledger of Swann Company contains the following balances: D. Swann, Capital $30,000; D. Swann, Drawing $2,000; Service Revenue $50,000; Salaries Expense $27,000; and Supplies Expense $4,000. Prepare the closing entries at December 31.

> Colin Mochrie Company has the following balances in selected accounts on December 31, 2010. Consulting Revenue………………$40,000 Insurance Expense……………………2,100 Supplies Expense……………………. 2,450 All the accounts have normal balances. Colin Mochrie Company debits

> Duncan Company records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expense $2,800, Service Revenue $9,200, and zero balances in related balance sheet accounts. Prepare the adjusting entries at April 30 assu

> Partial adjusted trial balance data for Harmony Company is presented in BE3-9. The balance in S. Harmony, Capital is the balance as of January 1. Prepare an owner’s equity statement for the year assuming net income is $10,600 for the year.

> The income statement of Benning Co. for the month of July shows net income of $1,400 based on Service Revenue $5,500, Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $600. In reviewing the statement, you discover the following. 1. In

> The adjusted trial balance of Harmony Company at December 31, 2010, includes the following accounts: S. Harmony, Capital $15,600; S. Harmony, Drawing $6,000; Service Revenue $35,400; Salaries Expense $16,000; Insurance Expense $2,000; Rent Expense $4,000

> The bookkeeper for Oglesby Company asks you to prepare the following accrued adjusting entries at December 31. 1. Interest on notes payable of $400 is accrued. 2. Services provided but not recorded total $1,500. 3. Salaries earned by employees of $900 ha

> Using the data in BE2-2, journalize the transactions. (You may omit explanations.) Reference Data from BE 2-2: Transactions for the Hank Norris Company for the month of June are presented below. Identify the accounts to be debited and credited for each

> The management of Hoyt Corp. is considering the effects of various inventory-costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will: (a) provide the

> Boarders sells a snowboard, Xpert that is popular with snowboard enthusiasts. Below is information relating to Boarders’s purchases of Xpert snowboards during September. During the same month, 121 Xpert snowboards were sold. Boarders us

> Data for Quirk Company are presented in BE6-3. Compute the cost of the ending inventory under the average-cost method, assuming there are 360 units on hand. Exercise 6-3: In its first month of operations, Quirk Company made three purchases of merchandis

> In its first month of operations, Quirk Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assuming there are 360 units on hand, compute the cost of the ending inve

> On December 1, Bargain Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $100. Another, with serial

> Kale Thompson, an auditor with Sneed CPAs, is performing a review of Strawser Company’s inventory account. Strawser did not have a good year and top management is under pressure to boost reported income. According to its records, the inventory balance at

> The ledger of Gomez Company includes the following items: (a) Freight-in, (b) Purchase Returns and Allowances, (c) Purchases, (d) Sales Discounts, (e) Purchase Discounts. Identify which items are included in goods available for sale.

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

> Premier Bank and Trust is considering giving Lima Company a loan. Before doing so, they decide that further discussions with Lima’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $297

> Karen Sommers Travel Agency purchased land for $90,000 cash on December 10, 2010. At December 31, 2010, the land’s value has increased to $93,000. What amount should be reported for land on Karen Sommers’s balance sheet at December 31, 2010? Explain.

> An analysis of the transactions made by S. Moses & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $650 for rent, $4,900 for salaries, and $500 for utilities. Instructions (a) Describe each transact

> In its income statement for the year ended December 31, 2010, Pele Company reported the following condensed data. Operating expenses $ 925,000 Interest revenue $ 28,000 Cost of goods sold 1,289,000 Loss on sale of equipment 10,000 Interest expense

> Assume that Alshare Company uses a periodic inventory system and has these account balances: Purchases $450,000; Purchase Returns and Allowances $11,000; Purchase Discounts $8,000; and Freight-in $16,000. Determine net purchases and cost of goods purchas

> Presented below is information for Obley Company for the month of March 2010. Instructions (a) Prepare a multiple-step income statement. (b) Compute the gross profit rate. $212,000 $ 32,000 Cost of goods sold Freight-out Insurance expense Salary exp

> Assume Baja Company has the following reported amounts: Sales $510,000, Sales returns and allowances $15,000, Cost of goods sold $350,000, Operating expenses $110,000. Compute the following: (a) net sales, (b) gross profit, (c) income from operations,

> Explain where each of the following items would appear on (1) a multiple step income statement, and on (2) a single-step income statement: (a) gain on sale of equipment, (b) interest expense, (c) casualty loss from vandalism, and (d) cost of goods sold

> Presented is information related to Rogers Co. for the month of January 2010. Instructions (a) Prepare the necessary adjusting entry for inventory. (b) Prepare the necessary closing entries. $ 12,000 Ending inventory per perpetual records Ending inv

> Peter Kalle Company had the following account balances at year-end: cost of goods sold $60,000; merchandise inventory $15,000; operating expenses $29,000; sales $108,000; sales discounts $1,200; and sales returns and allowances $1,700. A physical count o

> The adjusted trial balance of Zambrana Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2010: Sales $800,000, Freight-out $16,000, Sales Returns and Allowances $25,000, and Sales Discounts $15,000. Instructi

> Bleeker Company has the following merchandise account balances: Sales $195,000, Sales Discounts $2,000, Cost of Goods Sold $105,000, and Merchandise Inventory $40,000. Prepare the entries to record the closing of these items to Income Summary.

> Brandon Computer Timeshare Company entered into the following transactions during May 2010. 1. Purchased computer terminals for $20,000 from Digital Equipment on account. 2. Paid $4,000 cash for May rent on storage space. 3. Received $15,000 cash from cu

> Presented below are transactions related to Wheeler Company. 1. On December 3, Wheeler Company sold $500,000 of merchandise to Hashmi Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000. 2. On December 8, Hashmi Co. w

> At year-end the perpetual inventory records of Garbo Company showed merchandise inventory of $98,000. The company determined, however, that its actual inventory on hand was $96,500. Record the necessary adjusting entry.

> On June 10, Meredith Company purchased $8,000 of merchandise from Leinert Company, FOB shipping point, terms 2/10, n/30. Meredith pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Leinert for credit on June 12.The scr

> From the information in BE5-3, prepare the journal entries to record these transactions on Churchill Company’s books under a perpetual inventory system. Exercise 5-3: (a) On March 2, Monroe Company sold $900,000 of merchandise to Churchill Company, term

> Prepare the journal entries to record the following transactions on Monroe Company’s books using a perpetual inventory system. (a) On March 2, Monroe Company sold $900,000 of merchandise to Churchill Company, terms 2/10, n/30.The cost of the merchandise

> On September 1, Howe Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Sept. 6 Purchased 80 calculators at $20 each from DeVito C

> Information related to Steffens Co. is presented below. 1. On April 5, purchased merchandise from Bryant Company for $25,000 terms 2/10, net/30, FOB shipping point. 2. On April 6 paid freight costs of $900 on merchandise purchased from Bryant. 3. On Apri

> Hollins Company buys merchandise on account from Gordon Company. The selling price of the goods is $780, and the cost of the goods is $520. Both companies use perpetual inventory systems. Journalize the transaction on the books of both companies.

> Mr. Wellington has prepared the following list of statements about service companies and merchandisers. 1. Measuring net income for a merchandiser is conceptually the same as for a service company. 2. For a merchandiser, sales less operating expenses is

> Presented below are the components in Waegelain Company’s income statement. Determine the missing amounts. Cost of Operating Expenses Gross Net Sales Goods Sold Profit Income (a) $75,000 ? $30,000 ? $10,800 (b) $108,000 $70,000 ? ?

> Selected transactions for Evergreen Lawn Care Company are listed below. 1. Made cash investment to start business. 2. Paid monthly rent. 3. Purchased equipment on account. 4. Billed customers for services performed. 5. Withdrew cash for owner’s personal

> (a) How do the components of revenues and expenses differ between merchandising and service companies? (b) Explain the income measurement process in a merchandising company.

> Josh Borke has prepared the following list of statements about the accounting cycle. 1. “Journalize the transactions” is the first step in the accounting cycle. 2. Reversing entries are a required step in the accounting cycle. 3. Correcting entries do no

> The adjusted trial balance for Apachi Company is presented in E4-8. Instructions (a) Prepare an income statement and an owner’s equity statement for the year. Apachi did not make any capital investments during the year. (b) Prepare a c

> The steps in the accounting cycle are listed in random order below. List the steps in proper sequence, assuming no worksheet is prepared, by placing numbers 1–9 in the blank spaces. (a) _____ Prepare a trial balance. (b) _____ Journalize the transactions

> Apachi Company ended its fiscal year on July 31, 2010. The company’s adjusted trial balance as of the end of its fiscal year is as shown at the top of page 182. Instructions (a) Prepare the closing entries using page J15. (b) Post to B.

> Emil Skoda Company had the following adjusted trial balance. Instructions (a) Prepare closing entries at June 30, 2010. (b) Prepare a post-closing trial balance. EMIL SKODA COMPANY Adjusted Trial Balance for the Month Ended June 30, 2010 Adjusted Tri

> Using the data in BE4-3, identify the accounts that would be included in a post-closing trial balance. Reference Data from BE 4-3: The following selected accounts appear in the adjusted trial balance columns of the worksheet for Batan Company: Accumulat

> The income statement for Crestwood Golf Club for the month ending July 31 shows Green Fee Revenue $13,600, Salaries Expense $8,200, Maintenance Expense $2,500, and Net Income $2,900. Prepare the entries to close the revenue and expense accounts. Post the

> Selected worksheet data for Nicholson Company are presented below. Instructions (a) Fill in the missing amounts. (b) Prepare the adjusting entries that were made. Adjusted Trial Balance Account Titles Trial Balance Dr. Cr. Dr. Cr. Accounts Receivab

> Using the data in BE4-4, enter the balances in T accounts, post the closing entries, and rule and balance the accounts. Reference from Data BE 4-4: The ledger of Swann Company contains the following balances: D. Swann, Capital $30,000; D. Swann, Drawing

> Meredith Cleaners has the following balance sheet items. Accounts payable……………….Accounts receivable Cash………………………………………….Notes payable Cleaning equipment…………………Salaries payable Cleaning supplies…………Karin Meredith, Capital Instructions Classify each item

> The adjustments columns of the worksheet for Mears Company are shown below. Instructions (a) Prepare the adjusting entries. (b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each

> Worksheet data for Goode Company are presented in E4-2. Data for E 4-2: Instructions (a) Journalize the closing entries at April 30. (b) Post the closing entries to Income Summary and T. Goode, Capital. Use T accounts. (c) Prepare a post-closing trial

> Worksheet data for Goode Company are presented in E4-2.The owner did not make any additional investments in the business in April. Instructions Prepare an income statement, an owner’s equity statement, and a classified balance sheet.

> The following selected accounts appear in the adjusted trial balance columns of the worksheet for Batan Company: Accumulated Depreciation; Depreciation Expense; N. Batan, Capital; N. Batan, Drawing; Service Revenue; Supplies; and Accounts Payable. Indica

> The adjusted trial balance columns of the worksheet for Goode Company are as follows. Instructions Complete the worksheet. GOODE COMPANY Worksheet (partial) for the Month Ended April 30, 2010 Adjusted Trial Balance Income Statement Balance Sheet Acco

> The steps in using a worksheet are presented in random order below. List the steps in the proper order by placing numbers 1–5 in the blank spaces. (a) _____ Prepare a trial balance on the worksheet. (b) _____ Enter adjusted balances. (c) _____ Extend adj

> The trial balance columns of the worksheet for Briscoe Company at June 30, 2010, are as follows. Other data: 1. A physical count reveals $300 of supplies on hand. 2. $100 of the unearned revenue is still unearned at month-end. 3. Accrued salaries are $28

> Why do accrual-basis financial statements provide more useful information than cash-basis statements?

> At Natasha Company, prepayments are debited to expense when paid, and unearned revenues are credited to revenue when received. During January of the current year, the following transactions occurred. Jan. 2 Paid $1,800 for fire insurance protection for t

> The following data are taken from the comparative balance sheets of Girard Billiards Club, which prepares its financial statements using the accrual basis of accounting. Fees are billed to members based upon their use of the club’s fa

> The following situations involve accounting principles and assumptions. 1. Grossman Company owns buildings that are worth substantially more than they originally cost. In an effort to provide more relevant information, Grossman reports the buildings at m

> The adjusted trial balance for Garcia Company is given in E3-13. Instructions Prepare the income and owner’s equity statements for the year and the balance sheet at August 31. GARCIA COMPANY Trial Balance August 31, 2010 Before Aft

> The trial balances before and after adjustment for Garcia Company at the end of its fiscal year is presented below. Instructions Prepare the adjusting entries that were made. GARCIA COMPANY Trial Balance August 31, 2010 Before After Adjustment Adjus

> Selected accounts of Tabor Company are shown below. Instructions After analyzing the accounts, journalize (a) the July transactions and (b) the adjusting entries that were made on July 31. (Hint: July transactions were for cash.) Supplies Expense

> A partial adjusted trial balance of Sila Company at January 31, 2010, shows the following. Instructions Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $500

> The trial balance for Pioneer Advertising Agency is shown in Illustration 3-3, p. 100. In lieu of the adjusting entries shown in the text at October 31, assume the following adjustment data. 1. Advertising supplies on hand at October 31 total $500. 2. Ex

> Andy Wright, D.D.S., opened a dental practice on January 1, 2010. During the first month of operations the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $875 of such services was earned

> The trial balance of Bair Company includes the following balance sheet accounts. Identify the accounts that may require adjustment. For each account that requires adjustment, indicate (a) the type of adjusting entry (prepaid expenses, unearned revenues,

> The ledger of Piper Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. An analysis of the accounts shows the following. 1. The equipment depreciates $400 per month. 2. One-t

> Affleck Company accumulates the following adjustment data at December 31. 1. Services provided but not recorded total $750. 2. Store supplies of $300 have been used. 3. Utility expenses of $225 are unpaid. 4. Unearned revenue of $260 has been earned. 5.

> Drew Carey Company has the following balances in selected accounts on December 31, 2010. Accounts Receivable ………………………………….…………………. $ -0- Accumulated Depreciation—Equipment ….…….……………………-0- Equipment …………………………………………………………………. 7,000 Interest Payable …………

> Larry Smith, president of Smith Company, has instructed Ron Rivera, the head of the accounting department for Smith Company, to report the company’s land in the company’s accounting reports at its market value of $170,000 instead of its cost of $100,000.

> Emeril Corporation encounters the following situations: 1. Emeril collects $1,000 from a customer in 2010 for services to be performed in 2011. 2. Emeril incurs utility expense which is not yet paid in cash or recorded. 3. Emeril’s employees worked 3 day

> On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue. If this basis were used, it would mean that billions in unrecorded liabilities would have to be booked, and the feder

> Nunez Company accumulates the following adjustment data at December 31. Indicate (a) the type of adjustment (prepaid expense, accrued revenues and so on), and (b) the status of accounts before adjustment (overstated or understated). 1. Supplies of $100

> Jo Seacat has prepared the following list of statements about the time period assumption. 1. Adjusting entries would not be necessary if a company’s life were not divided into artificial time periods. 2. The IRS requires companies to file annual tax retu