[SOLVED] Mining Works Co. acquired a copper mine

> Is a physical inventory necessary under the perpetual system? Why or why not?

> When the adjustment is made to apply overhead to ending work in process, why are no entries made in the job cost ledger?

> What are the three inventories needed in a manufacturing business?

> Why are the balances in the factory overhead account not extended to the Income Statement and Balance Sheet columns of the work sheet?

> What is the relationship between the debit and credit balances in the factory overhead account when the overhead is said to be underapplied? Overapplied?

> To the financial statements in Problem 24-8B. Problem 24-8B: Amounts from the comparative income statement and balance sheet of Johnson Stores, Inc., for the last two years are as follows: REQUIRED Prepare a vertical analysis of the income statement a

> Amounts from the comparative income statement and balance sheet of Johnson Stores, Inc., for the last two years are as follows: REQUIRED Prepare a horizontal analysis of the statements. Add columns to show the amount of increase (decrease) and the percen

> Based on the financial statement data in Exercise 24-1B, Exercise 24-1B: Based on the comparative income statement and balance sheet for Falcon Designers, Inc., given on the next page, compute the following liquidity measures for 20-2 (round all calcu

> Is a physical inventory necessary under the periodic system? Why or why not?

> Based on the financial statement data in Exercise 24-1B, Exercise 24-1B: Based on the comparative income statement and balance sheet for Falcon Designers, Inc., given on the next page, compute the following liquidity measures for 20-2 (round all calcu

> Refer to the financial statements in Problem 24-8B. Problem 24-8B: Amounts from the comparative income statement and balance sheet of Johnson Stores, Inc., for the last two years are as follows: REQUIRED Calculate the following ratios and amounts for

> Based on the comparative income statement and balance sheet for Falcon Designers, Inc., given on the next page, compute the following liquidity measures for 20-2 (round all calculations to two decimal places): (a) Quick or acid-test ratio (b) Current rat

> Kennington Companyâs condensed income statement for the year ended December 31, 20-2, was as follows: Net sales â¦â¦â¦â¦â¦â&brvb

> Mulligan Companyâs income statement for 20-2 reported interest expense of $2,190. The comparative balance sheet as of December 31, 20-2 and 20-1, reported the following: Compute the amount of cash paid for interest in 20-2. 20-2 20-

> Murry’s consulting services issued a two-year, $5,000 note payable to acquire new office furniture. Show how this transaction is reported on the statement of cash flows.

> Hansen Companyâs comparative balance sheets as of December 31, 20-2 and 20-1, showed the following with regard to investing and financing activities: Net income for 20-2 was $80,000, and cash dividends of $20,000 were declared and pai

> The income statement for Leadbetterâs Golf Camp follows. Assume that all revenues and expenses were for cash and that land was sold for $600. There were no other investing or financing activities during the year. The Cash balances at th

> After adjusting net income for changes in current assets and current liabilities, Cha Cha Dance Company’s cash from operating activities is $60,000. However, Cha Cha reports $5,000 in patent amortization expense for the year. Compute cash from operating

> What is the main difference between the periodic system of accounting for inventory and the perpetual system of accounting for inventory?

> Roberts Company reported net income of $50,000 for 20-2. The December 31 balances of the current assets and current liabilities are shown below. Compute cash provided by operating activities. 20-2 20-1 $ 6,000 60,000 36,000 24,000 $10,000 50,000 40,0

> Pike Companyâs balance sheets as of December 31, 20-2 and 20-1, showed the following with regard to cash and cash equivalents: Compute the amount of change in cash and cash equivalents and indicate whether it represented an increase or

> Refer to Problem 23-9B. The following additional information was obtained from Kennington’s financial statements and auxiliary records for the year ended December 31, 20-2. Acquired a new warehouse …………………………………………………………….. $90,000 Bought new warehouse

> The following activities took place in Tomberlin Company during the most recent year. Indicate whether each activity is a cash inflow (+) or cash outflow (–), and whether it is an operating activity (O), investing activity (I), or financing activity (F).

> Wang Corporation issued the following bonds at a premium: Date of issue and sale: ……………………………………………………………….. March 1, 20-1 Principal amount: …………………………………………………………………………….. $250,000 Sale price of bonds: ………………………………………………………………………………….. 103 Denomination

> Ramona Arroyo Co. issued the following bonds: Date of issue and sale: ………………………………………………………. April 1, 20-1 Principal amount: ………………………………………………………………… $250,000 Sale price of bonds: ……………………………………………………………………… 100 Denomination of bonds: ……………………………………………

> Miller & Miller sold bonds at a premium for $525,000 (premium of $25,000) eight years ago. (a) The corporation redeems $50,000 of this issue at 95. The unamortized premium is $500. (b) The corporation redeems $75,000 of this issue at 103. The unamortized

> On October 2, 20-1, the board of directors of Carr Company appropriated $400,000 of retained earnings for the purpose of buying a new yacht (used for entertaining clients). On July 15, 20-2, the yacht was purchased and the board of directors decided that

> Okano Medical Lab issued $300,000 in bonds at face value 10 years ago and has paid semiannual interest payments through the years. (a) Assume the bonds are redeemed at face value. (b) Assume that $25,000 of the bonds are redeemed at 103. (c) Assume that

> What financial statements are affected by an error in the ending inventory?

> Beilke’s Supply Stores issued the following bonds at a discount: Date of issue and sale: ……………………………………………………………………… April 1, 20-1 Principal amount: ………………………………………………………………………………… $400,000 Sale price of bonds: ………………………………………………………………………………………… 97 Deno

> Bryant and Nelson Company issued the following bonds at a premium: Date of issue and sale: ………………………………………………………. May 1, 20-1 Principal amount: ………………………………………………………………… $500,000 Sale price of bonds: ……………………………………………………………………… 103 Denomination of bonds

> Ellis & Co. issued the following bonds at a discount: Date of issue and sale: ……………………………………………………………….. April 1, 20-1 Principal amount: ……………………………………………………………………….. $400,000 Sale price of bonds: ……………………………………………………………………………….. 97 Denomination of bond

> Blackwell Company issued the following bonds at a premium: Date of issue and sale: …………………………………………………………………… March 1, 20-1 Principal amount: ………………………………………………………………………………… $500,000 Sale price of bonds: ……………………………………………………………………………………… 103 Denominatio

> Brandon, Inc., issued the following bonds at a discount: Date of issue and sale: ………………………………………………………… April 1, 20-1 Principal amount: ………………………………………………………………….. $600,000 Sale price of bonds: ………………………………………………………………………….. 96 Denomination of bonds: ……

> Underwriters issued the following bonds: Date of issue and sale: ……………………………………………………………. April 1, 20-1 Principal amount: ……………………………………………………………………… $400,000 Sale price of bonds: ………………………………………………………………………….. 100 Denomination of bonds: ………………………………………

> During the year ended December 31, 20--, Baggio Company completed the following transactions: Apr. 15 Declared a semiannual dividend of $0.65 per share on preferred stock and $0.45 per share on common stock to shareholders of record on May 5, payable on

> During the year ended December 31, 20-2, Tatu Company completed the following selected transactions: Apr. 15 estimated that its 20-2 income tax will be $160,000. Based on this estimate, it will make four quarterly payments of $40,000 each on April 15, Ju

> Womack Company had the following balances and results for the current calendar year: Retained earnings, January 1 ……………………...………………. $80,000 Cash dividends declared ……………………………………………. 15,000 Net income for the year …………………………….………………. 40,000 Prepare a

> Rogerson Company has 40,000 shares of $2 par common stock outstanding. On July 1, the board of directors declared a two-for-one stock split. Prepare a memorandum entry in the general journal indicating the new par value and the total number of outstandin

> What steps are followed in posting from the purchases journal to the general ledger?

> Martinez Company currently has 200,000 shares of $1 par common stock outstanding. On March 15, a 5% stock dividend was declared to shareholders of record on April 2, distributable on April 14. Market value of the common stock was estimated at $13 per sha

> Ramirez Company currently has 100,000 shares of $1 par common stock outstanding and 5,000 shares of $50 par preferred stock outstanding. On July 10, the board of directors declared a semiannual dividend of $0.30 per share on common stock to shareholders

> Kennington Company had a net income of $90,000 and paid cash dividends of $18,000 for 20--. Mueller and Hanson Company had a net loss of $20,000 and distributed a 10% stock dividend with a market value of $15,000. 1. Prepare the journal entries for Kenni

> Bakery had the following transactions involving intangible assets: Jan. 1 Purchased a patent for a new pastry for $10,000 and estimated its useful life to be 10 years. Apr. 1 Purchased a copyright for a cookie cutter design for $5,000 with a life left on

> On January 1, 20--, Nguyen Company’s retained earnings accounts had the following balances: Appropriated for land acquisition ………... $ 75,000 Unappropriated retained earnings ………... 825,000 $900,000 During the year ended December 31, 20--, Nguyen comple

> On January 1, 20--, Krausert Company’s retained earnings accounts had the following balances: Appropriated for warehouse ………...………... 70,000 Unappropriated retained earnings ………..... 800,000 $870,000 During the year ended December 31, 20--, Krausert com

> Regis Company estimates that its 20-1 income tax will be $100,000. Based on this estimate, it will make four quarterly payments of $25,000 each on April 15, June 15, September 15, and December 15. 1. Prepare the journal entry for April 15. 2. Assume that

> Rogers & Hart formed a corporation and had the following organization costs and stock transactions during the year: June 30 Incurred the following costs of incorporation: Incorporation fees ………... $ 900 Attorneys’ fees ………... 6,000 Promotion fees ………...

> Athletics West had the following stock transactions during the year: (a) Received subscriptions for 100,000 shares of $1 par common stock for $118,000. (b) Received subscriptions for 5,000 shares of $18 par, 7% preferred stock for $92,000. (c) Received a

> List four items of information about each purchase entered in the purchases journal.

> Dan’s Hobby Stores had the following stock transactions during the year: (a) Issued 5,000 shares of no-par common stock with a stated value of $10 per share for $50,000 cash. (b) Issued 6,000 shares of no-par common stock with a stated value of $10 per s

> Valdez Company had the following stock transactions during the first 5 years of operations: (a) Issued 24,000 shares of $1 par common stock for $26,000 cash. (b) Issued 18,000 shares of $1 par common stock for $18,000 cash. (c) Issued 3,000 shares of $10

> After closing its books on December 31, Mel Brothers’ stockholders’ equity accounts have the following balances: Common stock subscriptions receivable ………...………...………...……….... $ 6,000 Common stock, $6 par, 15,000 shares ………...………...………...………...... 90,00

> Brant & Evans had the following stock transactions during the year: (a) Issued 6,000 shares of common stock with a $5 par value in exchange for real estate (land) with a fair market value of $33,500. (b) Issued 5,500 shares of common stock with a $5 par

> The following independent stock transactions occurred during January 20-- for various corporations: (a) Issued 4,000 shares of $10 par common stock for $40,000 cash. (b) Issued 5,000 shares of $10 par common stock for $53,500 cash. (c) Issued 6,000 share

> Situation 1: Espino Company has the following stock outstanding: The amount available for dividends this year is $50,000. Prepare the dividend allocation between the preferred and common shares. Situation 2: Chiola Corporation has the following stock

> Mayer Delivery Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Jan. 1 Van #11, which had a cost of $8,800 and accumulated depreciation of $8,800, was discarded. 8 Van #7, which had a cost of $9,400 and accumul

> After closing its books on December 31, 20--, Merrill Corporationâs stockholdersâ equity accounts have the following balances: REQUIRED Prepare the stockholdersâ equity section of the balance sheet

> T&R Track Town has decided to incorporate and has incurred the following costs of organizing: Incorporation fees ………... $ 500 Attorneys’ fees ………... 6,800 Promotion fees ………... 4,700 Prepare the entry for the payment of these organization costs for cash

> After several years of operations, the partnership of Leonard, Mitchell, and Swanson is to be liquidated. After making closing entries on June 30, 20--, the following accounts remain open: The noncash assets are sold for $211,000. Profits and losses are

> What steps are followed in posting from the cash receipts journal to the accounts receivable ledger?

> Cummings and Stickel Construction Company, a partnership, is operating a general contracting business. Ownership of the company is divided among the partners, Katie Cummings, Julie Stickel, Roy Hewson, and Patricia Weber. Profits and losses are shared eq

> The partnership of Rummel and Kang, Stonecutters, reported revenues of $133,000 and expenses of $41,000 on the year-end work sheet. The capital balances as of January 1, 20--, were $41,000 for C. Rummel and $25,000 for V. Kang. No additional investments

> On July 1, 20--, Lisa Bush and Wally Dodge combined their two businesses to form a partnership under the firm name of Bush and Dodge. The balance sheets of the two sole proprietorships are shown below. The balance sheets reflect fair market values except

> On liquidation of the partnership of L. Straw and M. Maury, as of February 9, 20--, assets with a book value of $156,000 are sold for $140,000. Given that the profit-and-loss ratio is 60% for Straw and 40% for Maury, prepare the entries for the sale and

> Maria Rhodes and Craig Blair, who have ending capital balances of $90,000 and $40,000, respectively, agree to admit two new partners to their business on September 1, 20--. Lori Kinder will buy one-third of Rhodes’s capital interest for $40,000 and one-f

> Randy Nolan and Jill Brenton formed a partnership on May 1, 20-1. Nolan contributed $50,000 and Brenton contributed $25,000. During the year, Nolan contributed an additional $10,000. The partnership agreement states that Nolan is to receive $15,000 and B

> John Clark and David Haase decided to form a partnership on July 1, 20-6. Clark invested $60,000 and Haase invested $40,000. For the fiscal year ended June 30, 20-7, a net income of $80,000 was earned. Determine the amount of net income that Clark and Ha

> After several years of operations, the partnership of Delco, Smith, and Walker is to be liquidated. After making closing entries on March 31, 20--, the following accounts remain open. The noncash assets are sold for $165,000. Profits and losses are share

> Sharon Usher and Leann Gomez agreed on September 1 to go into business as partners. According to the agreement, Usher is to contribute $30,000 cash and Gomez is to contribute $50,000 cash. Provide a separate journal entry for the investment of each partn

> Equipment records for Byerly Construction Co. for the year follow. Byerly Construction uses the straight-line method of depreciation. In the case of assets acquired by the fifteenth day of the month, depreciation should be computed for the entire month.

> What steps are followed in posting from the cash receipts journal to the general ledger?

> A machine is purchased January 1 at a cost of $58,000. It is expected to produce 110,000 units and have a salvage value of $3,000 at the end of its useful life. Units produced are as follows: Year 1 ………... 18,000 Year 2 ………... 16,000 Year 3 ………... 20,000

> A machine is purchased January 1 at a cost of $77,000. It is expected to serve for eight years and have a salvage value of $5,000. REQUIRED 1. Prepare a schedule showing depreciation for each year and the book value at the end of each year using the fol

> Prepare the following entries using a general journal: 1. A coal mine was acquired at a cost of $1,750,000 and estimated to contain 2,500,000 tons of ore. During the year, 110,000 tons were mined and sold. Prepare the journal entry for the year’s depleti

> Prepare the entries for the following transactions using a general journal: 1. Discarding an asset. (a) On January 4, shelving units, which had a cost of $7,200 and accumulated depreciation of $6,900, were discarded. (b) On June 15, a hand cart, which ha

> Enter the following transactions for Larry’s Lawn Service in a general journal: 1. Added a second mower deck to Tractor A for $550 cash to decrease mowing time. 2. Replaced the engine in Mower D for $200 cash. The replacement is expected to extend the li

> The truck purchased in Exercise 18-2B is expected to be used for 100,000 miles over its five-year useful life. Exercise 18-2: A light truck is purchased on January 1 at a cost of $19,000. It is expected to serve for five years and have a salvage value

> A light truck is purchased on January 1 at a cost of $19,000. It is expected to serve for five years and have a salvage value of $1,000. Calculate the depreciation expense for the first and third years of the truck’s life using the following methods: 1.

> On January 1, 20-1, Dan’s Demolition purchased two jackhammers for $2,500 each with a salvage value of $100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for $800

> Lam Company purchased the following long-term assets. Determine the purchase cost of each asset.

> At the end of the year, the following interest is payable, but not yet paid. Record the adjusting entry in the general journal. Interest on $8,000, 90-day, 8% note (for 18 days) $32.00 Interest on $4,500, 60-day, 7% note (for 7 days) 6.13 $38.

> List three items of information about each cash receipt entered in the cash receipts journal.

> What are the distinctive features of ToyJoy’s income statement? Its statement of retained earnings? Its balance sheet?

> Prepare general journal entries for the following transactions: Sept. 15 Borrowed $7,000 cash from the bank, giving a 60-day non-interest-bearing note. The note is discounted 8% by the bank. Nov. 14 Paid the $7,000 note, recognizing the discount as inter

> Prepare general journal entries for the following transactions: June 15 Purchased $6,000 worth of equipment from a supplier on account. July 15 Issued a $6,000, 30-day, 7% note in payment of the account payable. Aug. 14 Paid $600 cash plus interest to th

> At the end of the year, the following interest is earned, but not yet received. Record the adjusting entry in a general journal. Interest on $6,000, 60-day, 5.5% note (for 24 days) $22.00 Interest on $9,000, 90-day, 6% note (for 12 days) 18.00 $40.0

> Prepare general journal entries for the following transactions: Aug. 4 Received a 120-day, 7% note in payment for accounts receivable balance of $4,000. 14 Discounted the note at a rate of 8%. Sept. 5 Received a 30-day, 6% note in payment for accounts re

> Prepare general journal entries for the following transactions: May 22 Received a 30-day, 6% note in payment for merchandise sale of $22,000. June 21 Received $110.00 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. Ju

> Determine the due date for the following notes. (Assume there are 28 days in February.) Date of Note Term of Note Due Date 45 days July 11 December 23 90 April 18 120 October 3 77 January 1 August 13 180 65

> Using 360 days as the denominator, calculate interest for the following notes using the formula I = P Ã R Ã T. Principal Rate Time e Interest $4,000 7.00% 60 days 3,000 6.50 30 7,500 8.00 150 850 7.90 99 2,250 7.55 122 1,900

> Mary’s Travel Agency had the following notes payable transactions: Apr. 1 Borrowed $4,000 from Finance Bank, signing a 90-day, 8% note. 5 Gave a $3,000, 60-day, 7% note to Krenshaw Airline for purchase of merchandise. 10 Paid $400 cash and issued a $1,60

> The following is a list of outstanding notes receivable as of December 31, 20--: REQUIRED 1. Compute the accrued interest at the end of the year. 2. Prepare the adjusting entry in the general journal. Maker Date of Note Term No. of Days Principal $

> Madison Graphics had the following notes receivable transactions: May 1 Sold merchandise on account to L. Carney, $5,600. 20 L. Carney gave a $5,600, 90-day, and 6% note to extend time for payment. 30 L. Carney’s note is discounted at Commercial Bank at

> What steps are followed in posting from the sales journal to the accounts receivable ledger?

Question: Mining Works Co. acquired a copper mine