Melissa Estes, a beginning accounting student, believes debit balances are favorable and credit balances are unfavorable. Is Melissa correct? Discuss.
> Amy Sawyer, the bookkeeper for New Hampshire Company, has been trying to determine the correct balance sheet for the company. The company’s balance sheet is shown below. Instructions Explain to Amy Sawyer in a memo why the original ba
> Anya and Nick Ramon, local golf stars, opened the Chip-Shot Driving Range on March 1, 2020, by investing $25,000 of their cash savings in the business. A caddy shack was constructed for cash at a cost of $8,000, and $800 was spent on golf balls and golf
> This exercise will familiarize you with the skills needed (other than accounting skills) to be a successful accountant. Instructions Search the Internet for “start here go places” to access free accounting resources for future CPAs and then answer 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. The complete annual reports of Amazon and Wal-Mart, including the notes to the financial sta
> PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial stat
> Selected journal entries for the Walt Bryce Company are presented in BE2.7. Post the transactions using the standard form of account. Journal Entries from BE 2.7: J1 Date Account Titles and Explanation Ref. Debit Credit May 5 Accounts Receivable 5,
> The financial statements of Apple Inc. for 2015 are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company’s website. Instructions Refer to Appleâ€&#
> Auditors provide a type of certification of corporate financial statements. Certification is used in many other aspects of business as well. For example, it plays a critical role in the sustainability movement. The February 7, 2012, issue of the New York
> Every company needs to plan in order to move forward. Its top management must consider where it wants the company to be in three to five years. Like a company, you need to think about where you want to be three to five years from now, and you need to sta
> Melia’s Maid Company off ers home-cleaning service. Two recurring transactions for the company are billing customers for services performed and paying employee salaries. For example, on March 15, bills totaling $6,000 were sent to customers and $2,000 wa
> Summarized operations for Bayles Co. for the month of July are as follows. Revenues recognized: for cash $20,000; on account $70,000. Expenses incurred: for cash $26,000; on account $40,000. Indicate for Bayles Co. (a) the total revenues, (b) the total e
> Bayler Enterprises had a capital balance of $186,000 at the beginning of the period. At the end of the accounting period, the capital balance was $189,000. a. Assuming no additional investment or withdrawals during the period, what is the net income for
> Selected transactions from the journal of June Feldman, investment broker, are presented below. Instructions a. Post the transactions to T-accounts. b. Prepare a trial balance at August 31, 2020. Date Account Titles and Explanation Ref. Debit Credi
> In February 2020, Ola Gott invested an additional $12,000 in her business, Gott’s Pharmacy, which is organized as a proprietorship. Gott’s accountant, Sal Costa, recorded this receipt as an increase in cash and revenues. Is this treatment appropriate? Wh
> Listed below are some items found in the financial statements of Tony Gruber Co. Indicate in which financial statement(s) the following items would appear. a. Service revenue. b. Equipment. c. Advertising expense. d. Accounts receivable. e. Owner’s capit
> This information is for Paulo Company for the year ended December 31, 2020. Instructions Prepare the 2020 statement of cash fl ows for Paulo Company. Cash received from revenues from customers $600,000 Cash received from investment by owner Cash pa
> Indicate whether each of the following accounts is an asset, a liability, or an owner’s equity account and whether it has a normal debit or credit balance: (a) Accounts Receivable, (b) Accounts Payable, (c) Equipment, (d) Owner’s Drawings, and (e) Suppli
> Presented below is information related to the sole proprietorship of Helen Archer, attorney. Instructions Prepare the 2020 owner’s equity statement for Helen Archer’s legal practice. $330,000 Legal service revenu
> Presented below is financial information related to the 2020 operations of Sea Legs Cruise Company. Instructions Prepare the 2020 income statement for Sea Legs Cruise Company. $ 95,000 Maintenance and repairs expense Utilities expense Salaries and
> Saira Morrow is the sole owner of Buena Vista Park, a public camping ground near the Crater Lake National Recreation Area. Saira has compiled the following financial information as of December 31, 2020. Instructions a. Determine Saira Morrowâ
> Abby Roland is the bookkeeper for Cheng Company. Abby has been trying to determine the correct balance sheet for Cheng Company. Cheng’s balance sheet is shown below. Instructions Prepare a correct balance sheet. Cheng Company Bala
> a. Define the terms assets, liabilities, and owner’s equity. b. What items affect owner’s equity?
> The following information relates to Fleete Co. for the year 2020. Instructions After analyzing the data, prepare an income statement and an owner’s equity statement for the year ending December 31, 2020. $42,000 $ 1,800 Owner's c
> Indicate whether the following items would appear on the income statement (IS), balance sheet (BS), or owner’s equity statement (OE). a. Notes payable b. Advertising expense c. Owner’s capital d. Cash e. Service revenue
> Two items are omitted from each of the following summaries of balance sheet and income statement data for two proprietorships for the year 2020, Greene’s Goods and Solar Enterprises. Instructions Determine the missing amounts. Gre
> Helen Rupp is the owner of a successful printing shop. Recently, her business has been increasing, and Helen has been thinking about changing the organization of her business from a proprietorship to a corporation. Discuss some of the advantages Helen wo
> Hawke Company had the following assets and liabilities on the dates indicated. Hawke began business on January 1, 2019, with an investment of $100,000. Instructions From an analysis of the change in owner’s equity during the year, co
> What is the normal balance for each of the following accounts? (a) Accounts Receivable. (b) Cash. (c) Owner’s Drawings. (d) Accounts Payable. (e) Service Revenue. (f) Salaries and Wages Expense. (g) Owner’s Capital.
> In alphabetical order below are balance sheet items for Smyth Company at December 31, 2020. Kathy Smyth is the owner of Smyth Company. Prepare a balance sheet, following the format of Illustration 1.9. Accounts payable …………………… $90,000 Accounts receivabl
> An analysis of transactions for Peat DeLoitte & Co. was presented in E1.8. Instructions Prepare an income statement and an owner’s equity statement for August and a balance sheet at August 31, 2020. Assume that August is the compan
> An analysis of the transactions made by Peat Deloitte & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $560 for rent, $4,800 for salaries and wages, and $400 for utilities. Instructions a. Describ
> Falske Computer Timeshare Company entered into the following transactions during May 2020. 1. Purchased computers for $20,000 from Digital Equipment on account. 2. Paid $4,000 cash for May rent on storage space. 3. Received $17,000 cash from customers fo
> Benton Travel Agency purchased land for $90,000 cash on December 10, 2020. At December 31, 2020, the land’s value has increased to $92,000. What amount should be reported for land on Benton’s balance sheet at December 31, 2020? Explain.
> Selected transactions for Poway Landscaping 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 us
> Classify each of the following items as owner’s drawings (D), revenue (R), or expense (E). a. Advertising expense b. Service revenue c. Insurance expense d. Salaries and wages expense e. Owner’s drawings f. Rent revenue g. Utilities expense
> Presented below is selected information related to Kirby Company at December 31, 2020. Kirby reports financial information monthly. a. Determine the total assets of Kirby Company at December 31, 2020. b. Determine the net income that Kirby Company repo
> Financial statement information about four different companies is as follows. Instructions a. Determine the missing amounts. b. Prepare the owner’s equity statement for Alpha Company. c. Write a memorandum explaining the sequence for
> Diehl Cleaners has the following balance sheet items. Accounts payable …………………….. Accounts receivable Cash ……………………………………………….. Notes payable Equipment …………………… Salaries and wages payable Supplies ………………………………………….. Owner’s capital Instructions Classify
> State the rules of debit and credit as applied to (a) asset accounts, (b) liability accounts, and (c) the owner’s equity accounts (revenue, expenses, owner’s drawings, and owner’s capital).
> What uses of financial accounting information are made by (a) investors and (b) creditors?
> Maisie Taft started her own consulting fi rm, Maisie Consulting, on May 1, 2020. The following transactions occurred during the month of May. May 1 Maisie invested $7,000 cash in the business. 2 Paid $900 for offi ce rent for the month. 3 Purchased
> The following situations involve accounting principles and assumptions. 1. Sosa Company owns buildings that are worth substantially more than they originally cost. In an effort to provide more relevant information, Sosa reports the buildings at fair valu
> Transactions made by A. Marti and Co., a law firm, for the month of March are shown below. Prepare a tabular analysis which shows the effects of these transactions on the expanded accounting equation, similar to that shown in Illustration 1.8. 1. The
> Use the expanded accounting equation to answer each of the following questions. a. The liabilities of Platt Company are $90,000. Owner’s capital is $150,000; drawings are $40,000; revenues, $450,000; and expenses, $340,000. What is the amount of Platt Co
> At the beginning of the year, Gilles Company had total assets of $800,000 and total liabilities of $300,000. Answer the following questions. a. If total assets increased $150,000 during the year and total liabilities decreased $60,000, what is the amount
> On June 1, Cindy Godfrey started Divine Designs Co., a company that provides craft opportunities, by investing $12,000 cash in the business. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of
> Angela Duff y, president of Duff y Company, has instructed Jana Barth, the head of the accounting department for Duff y Company, to report the company’s land in the company’s accounting reports at its fair value of $170,000 instead of its cost of $100,00
> Classify the following items as investment by owner (I), owner’s drawings (D), revenues (R), or expenses (E). Then indicate whether each item increases or decreases owner’s equity. 1. Drawings. 2. Rent revenue. 3. Advertising expense. 4. Owner puts perso
> Given the accounting equation, answer each of the following questions. a. The liabilities of Berber Company are $120,000 and the owner’s equity is $230,000. What is the amount of Berber Company’s total assets? b. The total assets of Berber Company are $1
> Sonya Jared opened a law offi ce on July 1, 2020. On July 31, the balance sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment $6,000, Accounts Payable $4,200, and Owner’s Capital $8,800. During August, the following tra
> Indicate whether each of the five statements presented below is true or false. 1. Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable. 2. The standards of conduct by which actions are judged as
> Indicate whether each of the five statements presented below is true or false. 1. The three steps in the accounting process are identification, recording, and examination. 2. The accounting process includes the bookkeeping function. 3. Managerial account
> After numerous campus interviews, Travis Chase, a senior at Great Northern College, received two office interview invitations from the Baltimore offices of two large fi rms. Both firms offered to cover his out-of-pocket expenses (travel, hotel, and meals
> Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. They passed many happy hours mastering every type of cookie imaginable and later creating new recipes that were both healthy and delicious. Now at the star
> On April 1, Julie Spengel established Spengel’s Travel Agency. The following transactions were completed during the month. 1. Invested $15,000 cash to start the agency. 2. Paid $600 cash for April offi ce rent. 3. Purchased equipment for $3,00
> Genesis Company performs the following accounting tasks during the year. ____ Analyzing and interpreting information. ____ Classifying economic events. ____ Explaining uses, meaning, and limitations of data. ____ Keeping a systematic chronological diary
> Ellynn Kole is the assistant chief accountant at Doman Company, a manufacturer of computer chips and cellular phones. The company presently has total sales of $20 million. It is the end of the first quarter. Ellynn is hurriedly trying to prepare a trial
> After researching the different forms of business organization. Natalie Koebel decides to operate “Cookie Creations” as a proprietorship. She then starts the process of getting the business running. In November 2019, the following activities take place.
> Vera Ernst is a licensed dentist. During the fi rst month of the operation of her business, the following events and transactions occurred. April 1 Invested $20,000 cash in her business. 1 Hired a secretary-receptionist at a salary of $700 per week payab
> Pete Harcourt, a fellow student, contends that the double entry system means each transaction must be recorded twice. Is Pete correct? Explain.
> Holz Disc Golf Course was opened on March 1 by Ian Holz. The following selected events and transactions occurred during March. Mar. 1 Invested $20,000 cash in the business. 3 Purchased Rainbow Golf Land for $15,000 cash. The price consists of land $12,0
> The Starr Theater, owned by Meg Vargo, will begin operations in March. The Starr will be unique in that it will show only triple features of sequential theme movies. As of March 1, the ledger of Starr showed No. 101 Cash $3,000, No. 140 Land $24,000, No.
> The following trial balance of Sergei Asbrecht Co. does not balance. Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors. 1. Cash received from a customer in pay
> Maquoketa Services was formed on May 1, 2020. The following transactions took place during the first month. Transactions on May 1: 1. Jay Bradford invested $40,000 cash in the company, as its sole owner. 2. Hired two employees to work in the warehouse. T
> Lennon Industries had the following transactions. 1. Borrowed $5,000 from the bank by signing a note. 2. Paid $3,900 cash for a computer. 3. Purchased $650 of supplies on account. Instructions a. Indicate what accounts are increased and decreased by eac
> Transaction data for Royale Real Estate Agency are presented in E2.4. Instructions Journalize the transactions. Data From E2.4: Oct. 1 James Royale begins business as a real estate agent with a cash investment of $17,000. 2 Hires an administrative a
> The following information relates to Royale Real Estate Agency. Oct. 1 James Royale begins business as a real estate agent with a cash investment of $17,000. 2 Hires an administrative assistant. 3 Purchases office furniture for $1,900, on account. 6 Sell
> Data for M. Acosta, interior decorator, are presented in E2.2. Instructions Journalize the transactions using journal page J1. Data from E2.2: Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. J
> Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $3,000 cash for use in business. 9 Purchased supplies on account for $600. 11 B
> Kim Yi has prepared the following list of statements about accounts. 1. An account is an accounting record of either a specific asset or a specific liability. 2. An account shows only increases, not decreases, in the item it relates to. 3. Some items, su
> Transactions for the Oleg Thorn Company for the month of June are presented below. Identify the accounts to be debited and credited for each transaction. June 1 Oleg Thorn invests $5,000 cash in a small welding business of which he is the sole proprietor
> Beyers Security Company provides security services. Selected transactions for Beyers are presented below. Oct. 1 Invested $66,000 cash in the business. 2 Hired part-time security consultant. Salary will be $2,000 per month. First day of work will be Octo
> The accounts in the ledger of Prompt Delivery Service contain the following balances on July 31, 2020. Instructions Prepare a trial balance with the accounts arranged as illustrated in the chapter and fi ll in the missing amount for Cash. $ 7,640 P
> The bookkeeper for J.L. Kang Equipment Repair made a number of errors in journalizing and posting, as described below. 1. A credit posting of $525 to Accounts Receivable was omitted. 2. A debit posting of $750 for Prepaid Insurance was debited to Insuran
> Selected transactions for Bonnie Donne Company during its fi rst month in business are presented below. Sept. 1 Invested $10,000 cash in the business. 5 Purchased equipment for $14,000 paying $4,000 in cash and the balance on account. 25 Paid $3,000 ca
> Presented below is the ledger for Shumway Co. Instructions a. Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20, and provide explanations for each. b. Determine the October 31 balance for each of the accounts abo
> The T-accounts below summarize the ledger of Negrete Landscaping Company at the end of the first month of operations. Instructions a. Prepare the complete general journal (including explanations) from which the postings to Cash were made. b. Prepare a
> Alma Ortiz has prepared the following list of statements about the general ledger. 1. The general ledger contains all the asset and liability accounts but no owner’s equity accounts. 2. The general ledger is sometimes referred to as simply the ledger. 3.
> Halladay Enterprises had the following selected transactions. 1. Bo Halladay invested $4,000 cash in the business. 2. Paid office rent of $840. 3. Performed consulting services and billed a client $5,200. 4. Bo Halladay withdrew $750 cash for personal us
> Ron Tost engaged in the following activities in establishing his photography studio, Shutter Bug: 1. Opened a bank account in the name of Shutter Bug and deposited $6,500 of his own money into this account as his initial investment. 2. Purchased photogra
> Victor Grimm is confused about how accounting information flows through the accounting system. He believes the flow of information is as follows. a. Debits and credits posted to the ledger. b. Business transaction occurs. c. Information entered in the jo
> Tom Rast has just rented space in a strip mall. In this space, he will open a photography studio, to be called “Picture This!” A friend has advised Tom to set up a double-entry set of accounting records in which to record all of his business transactions
> The following accounts are taken from the ledger of Macon Company at December 31, 2020. Prepare a trial balance in good form. $ 6,000 200 Notes Payable 301 Owner's Capital 157 Equipment 306 Owner's Drawings 726 Salaries and Wages Expense 101 Cash $
> Tom Rast recorded the following transactions during the month of April. Post these entries to the Cash T-account of the general ledger to determine the ending balance in cash. The beginning balance in cash on April 1 was $1,600. April 3 Cash 3,400
> Journalize the following business transactions. a. Wes Lee invests $7,000 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 $8,500 is received for services performed.
> M. Gonzales has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis illustrated in the textbook. Aug. 1 Opens an office as a financial advisor, investing $9,0
> Writing Shea Jonas, a fellow student, is unclear about the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur.
> Using the data in BE2.2, journalize the transactions. (You may omit explanations.) Data from BE 2.2: June 1 Oleg Thorn invests $5,000 cash in a small welding business of which he is the sole proprietor. 2 Purchases equipment on account for $3,600. 3
> Selected transactions for the Walt Bryce Company are presented in journal form below. Post the transactions to T-accounts. Make one T-account for each item and determine each account’s ending balance. J1 Date Account Titles and Exp
> Using the data in BE2.5, journalize the transactions. (You may omit explanations.) Data from BE 2.5: Aug. 1 Opens an office as a financial advisor, investing $9,000 in cash. 4 Pays insurance in advance for 6 months, $2,100 cash. 16 Receives $3,600 fr
> An inexperienced bookkeeper prepared the following trial balance. Prepare a correct trial balance, assuming all account balances are normal. Shaushank Company Trial Balance December 31, 2020 Debit Credit Cash $10,600 Prepaid Insurance Accounts Payab
> From the ledger balances given below, prepare a trial balance for the Amaro Company at June 30, 2020. List the accounts in the order shown in the textbook. All account balances are normal. Accounts Payable $8,100, Cash $5,800, Owner’s Capital $15,000, Ow
> The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available at the company’s website. Instructions Visit Louis Vuittonâ€&#
> What is the problem in this case?
> What happened at Mercedes-Benz in East London? What is the relationship between changes in the plant, and broader institutional transformation?
> Did the fact that the plant was owned by a large multinational have any effect on outcomes? If so, what were these?
> What are the limitations of cultural approaches to comparative HRM for understanding what happened at Mercedes-Benz?
> What challenges may a heavy reliance on FDI have on a host government in terms of balancing the needs of powerful firms and employees in the host economy?
> Consider the reasons why differences remain between foreign MNCs and indigenous firms in the Irish context.
> What are the key features of HRM in Mozambique?
