Question: On January 1, 2014, Imelda Corporation issued $

> Ling Company reports the following information for the year ended December 31, 2014: sales revenue $1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on non-trading securities of $75,000. Prepare a statement of c

> Ortiz Company is a manufacturer of toys. Its controller resigned in August 2014. An inexperienced assistant accountant has prepared the following income statement for the month of August 2014. Prior to August 2014, the company had been profitable every

> The following data were taken from the records of Moxie Company for the year ended December 31, 2014. Instructions: (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) (b) Prepare an income statemen

> Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions: (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods manufactured schedule for Case A. (c) Prepare an inc

> Elliott Company, a manufacturer of tennis rackets, started production in November 2013. For the preceding 5 years, Elliott had been a retailer of sports equipment. After a thorough survey of tennis racket markets, Elliott decided to turn its retail store

> Agler Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 1,000 motorcycle helmets per month. Agler’s monthly manufacturing cost and other expense data are shown below

> Suppose selected financial data of Edgewater Company and The Ritter Company for 2014 are presented here (in millions). Instructions: (a) For each company, compute the following ratios. (1) Current ratio. (8) Return on assets. (2) Accounts receivabl

> Horizontal analysis (trend analysis) percentages for Roswell Company’s sales revenue, cost of goods sold, and expenses are listed here. Explain whether Roswell’s net income increased, decreased, or remained unchanged

> Financial information for Bradford Company is presented here. Additional information: 1. Inventory at the beginning of 2013 was $330,000. 2. Accounts receivable at the beginning of 2013 were $80,000. 3. Total assets at the beginning of 2013 were $1,175

> The condensed balance sheet and income statement data for Symbiosis Corporation are presented below. Additional information: 1. The market price of Symbiosis common stock was $5.00, $3.50, and $2.80 for 2012,2013, and 2014, respectively. 2. You must co

> The comparative statements of Simpson Company are shown below. All sales were on account. Net cash provided by operating activities was $108,000. Capital expenditures were $47,000, and cash dividends were $30,900. Instructions: Compute the following r

> Here are comparative statement data for Dean Company and Gerald Company, two competitors. All balance sheet data are as of December 31, 2014, and December 31, 2013 Instructions: (a) Prepare a vertical analysis of the 2014 income statement data for Dean

> Condensed financial data of Turner Inc. follow. Additional information: 1. New plant assets costing $90,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $30,000 were sold for $2,000 cash. 3. Bonds matured and

> Data for Filmore Company are presented in P12-7B. Further analysis reveals the following. 1. Accounts payable pertains to merchandise creditors. 2. All operating expenses except for depreciation are paid in cash. 3. All depreciation expense is in the sel

> Shown below are the financial statements of Filmore Company. Additional data: 1. Depreciation expense was $6,000. 2. Dividends of $28,000 were declared and paid. 3. During the year, equipment was sold for $10,000 cash. This equipment cost $13,000 origi

> Data for Mosley Company are presented in P12-5B. Data given in P12-5B: Mosley Company’s income statement contained the condensed information below. Mosley’s balance sheet contained the comparative data at December 3

> Mosley Company’s income statement contained the condensed information below. Mosley’s balance sheet contained the comparative data at December 31, below. Accounts payable pertain to operating expenses. Instruction

> Data for Hubble Company are presented in P12-3B. Data given in P12-3B: The income statement of Hubble Company is presented below. Additional information: 1. Accounts receivable decreased $290,000 during the year, and inventory increased $140,000. 2. Pre

> Vertical analysis (common-size) percentages for Capuano Company’s sales revenue, cost of goods sold, and expenses are listed here. Did Capuano’s net income as a percent of sales increase, decrease, or remain unchange

> The income statement of Hubble Company is presented below. Additional information: 1. Accounts receivable decreased $290,000 during the year, and inventory increased $140,000. 2. Prepaid expenses increased $175,000 during the year. 3. Accounts payable to

> The following selected account balances relate to the plant asset accounts of Lazari Inc. at year-end. Additional information: 1. Lazari purchased $85,000 of equipment and $50,000 of land for cash in 2014. 2. Lazari also sold equipment in 2014. 3. Depr

> You are provided with the following transactions that took place during the year. Instructions: For each transaction listed above, indicate whether it will increase (I), decrease (D), or have no effect (NE) on the ratios. Current Cash Debt Coverage

> The comparative balance sheets for Berkler Company as of December 31 are presented below. Additional information: 1. Operating expenses include depreciation expense of $48,000. 2. Land was sold for cash at book value. 3. Cash dividends of $12,000 were

> Data for Turner Inc. are presented in P12-9B. Further analysis reveals that accounts payable pertain to merchandise creditors. Data given in P12-9B: Condensed financial data of Turner Inc. follow. Additional information: 1. New plant assets costing $9

> You are provided with the following transactions that took place during a recent fiscal year. Instructions: Complete the table indicating whether each item (1) affects operating (O) activities, investing (I) activities, financing (F) activities, or is

> On January 1, 2014, Lamar Corporation had these stockholders’ equity accounts. Common Stock ($20 par value, 80,000 shares issued and outstanding) ………. $1,600,000 Paid-in Capital in Excess of Par Value ………………………………………………………………240,000 Retained Earnings …

> Hercules Company manufactures raingear. During 2014, Hercules Company decided to issue bonds at 8% interest and then used the cash to purchase a significant amount of treasury stock. The following information is available for Hercules Company. Instruct

> On January 1, 2014, Ferris Inc. had these stockholders’ equity balances. Common Stock, $5 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) ……………………………………………$3,000,000 Paid-in Capital in Excess of Par Value…………………………………….. 1,80

> Hartwell Corporation has been authorized to issue 25,000 shares of $100 par value, 8%, noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $4 stated value to the common stock. At December 31, 2014, the le

> The following data were taken from the income statements of Imhoff Company. Compute for each year (a) the inventory turnover and (b) days in inventory. What conclusions concerning the management of the inventory can be drawn from these data? 2014

> The post-closing trial balance of Dondec Corporation at December 31, 2014, contains these stockholders’ equity accounts. Preferred Stock (6,000 shares issued) ……………………………………. $ 300,000 Common Stock (350,000 shares issued) ………………………………....3,500,000 Paid-

> On December 31, 2013, Peabody Company had 820,000 shares of $10 par common stock issued and outstanding. At December 31, 2013, stockholders’ equity had the amounts listed here. Common Stock ……………………………………………$8,200,000 Additional Paid-in Capital ……………………

> The stockholders’ equity accounts of Warden Corporation on January 1, 2014, were as follows. Preferred Stock (9%, $50 par cumulative, 10,000 shares authorized) …………$ 200,000 Common Stock ($1 stated value, 2,000,000 shares authorized) …………………. 1,000,000

> Bennis Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were comple

> Wentworth Co. sold $3,000,000, 7%, 8-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straightline amortization on bond premiums and discounts. Financial statements are prepared annually

> Holmes Corporation sold $2,200,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Holmes Corporation uses the straight-line method to amortize bond premium or discount. Instructions: (a) Prepar

> The following section is taken from Zenith Oil Company’s balance sheet at December 31, 2013. Interest is payable annually on January 1. The bonds are callable on any annual interest date. Zenith uses straight-line amortization for any

> Suppose you have been presented with the following selected information taken from the financial statements of Kellogg Company. Instructions: (a) Calculate each of the following ratios for 2014 and 2013. (1) Current ratio. (2) Free cash flow. (3) Debt

> Union Electric sold $5,000,000, 5%, 10-year bonds on January 1, 2014. The bonds were dated January 1 and pay interest on January 1. The bonds were sold at 103. Instructions: (a) Prepare the journal entry to record the issuance of the bonds on January 1,

> On April 1, 2013, CMV Corp. issued $600,000, 5%, 5-year bonds at face value. The bonds were dated April 1, 2013, and pay interest annually on April 1. Financial statements are prepared annually on December 31. Instructions: (a) Prepare the journal entr

> Leihsing Inc. issues a $600,000, 10%, 10-year mortgage note on December 31, 2013, to obtain financing for a new building. The terms provide for semiannual installment payments of $48,145. Prepare the entry to record the mortgage loan on December 31, 2013

> Skate City Corporation sells skateboard products and also operates an indoor skating facility. During the last part of 2014, Skate City had the following transactions related to notes payable. Aug. 1 Issued a $6,000 note to Wheeler to purchase inventor

> Ronald Allerton has just approached a venture capitalist for financing for a new business venture, the development of a local ski hill. On July 1, 2013, Ronald was loaned $140,000 at an annual interest rate of 8%. The loan is repayable over 5 years in an

> Lyman purchased a new piece of equipment to be used in its new facility. The $380,000 piece of equipment was purchased with a $40,000 down payment and with cash received through the issuance of a $340,000, 8%, 5-year mortgage note payable issued on Octob

> On January 1, 2014, Murphy Company issued $1,600,000 face value, 7%, 10-year bonds at $1,717,761. This price resulted in a 6% effective-interest rate on the bonds. Murphy uses the effective-interest method to amortize bond premium or discount. The bonds

> On January 1, 2014, Imelda Corporation issued $2,000,000 face value, 6%, 10-year bonds at $2,154,434. This price resulted in an effective-interest rate of 5% on the bonds. Imelda uses the effective-interest method to amortize bond premium or discount. Th

> Ronald Allerton has just approached a venture capitalist for financing for a new business venture, the development of a local ski hill. On July 1, 2013, Ronald was loaned $140,000 at an annual interest rate of 8%. The loan is repayable over 5 years in an

> Lyman purchased a new piece of equipment to be used in its new facility. The $380,000 piece of equipment was purchased with a $40,000 down payment and with cash received through the issuance of a $340,000, 8%, 5-year mortgage note payable issued on Octob

> On January 1, 2014, Murphy Company issued $1,600,000 face value, 7%, 10-year bonds at $1,717,761. This price resulted in a 6% effective-interest rate on the bonds. Murphy uses the effective-interest method to amortize bond premium or discount. The bonds

> Wentworth Co. sold $3,000,000, 7%, 8-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straightline amortization on bond premiums and discounts. Financial statements are prepared annually

> Presented below is the partial bond discount amortization schedule for Pape Corp., which uses the effective-interest method of amortization. Instructions: (a) Prepare the journal entry to record the payment of interest and the discount amortization at

> Holmes Corporation sold $2,200,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Holmes Corporation uses the straight-line method to amortize bond premium or discount. Instructions: (a) Prepar

> The following section is taken from Zenith Oil Company’s balance sheet at December 31, 2013. Interest is payable annually on January 1. The bonds are callable on any annual interest date. Zenith uses straight-line amortization for any

> Suppose you have been presented with the following selected information taken from the financial statements of Kellogg Company. Instructions: (a) Calculate each of the following ratios for 2014 and 2013. (1) Current ratio. (2) Free cash flow. (3) Debt

> Union Electric sold $5,000,000, 5%, 10-year bonds on January 1, 2014. The bonds were dated January 1 and pay interest on January 1. The bonds were sold at 103. Instructions: (a) Prepare the journal entry to record the issuance of the bonds on January 1,

> On April 1, 2013, CMV Corp. issued $600,000, 5%, 5-year bonds at face value. The bonds were dated April 1, 2013, and pay interest annually on April 1. Financial statements are prepared annually on December 31. Instructions: (a) Prepare the journal entr

> On January 1, 2014, the ledger of Flaming Company contained the following liability accounts. Accounts Payable ………………………………………………..$52,000 Sales Taxes Payable ……………………………………………….8,200 Unearned Service Revenue ………………………………….11,000 During January, the fo

> Skate City Corporation sells skateboard products and also operates an indoor skating facility. During the last part of 2014, Skate City had the following transactions related to notes payable. Aug. 1 Issued a $6,000 note to Wheeler to purchase inventor

> On January 1, 2014, the ledger of Flaming Company contained the following liability accounts. Accounts Payable ………………………………………………..$52,000 Sales Taxes Payable ……………………………………………….8,200 Unearned Service Revenue ………………………………….11,000 During January, the fo

> Phillips Company is a manufacturer of computers. Its controller resigned in October 2014. An inexperienced assistant accountant has prepared the following income statement for the month of October 2014. Prior to October 2014, the company had been profi

> The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2014. Instructions: (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) (b) Prepare an income st

> Leihsing Inc. issues a $600,000, 10%, 10-year mortgage note on December 31, 2013, to obtain financing for a new building. The terms provide for semiannual installment payments of $48,145. Prepare the entry to record the mortgage loan on December 31, 2013

> Explain how IFRS defines a provision and give an example.

> Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions: (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods manufactured schedule for Case 1. (c) Prepare an inc

> Bell Company, a manufacturer of audio systems, started its production in October 2014. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an au

> Lott Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Lottâ&#128

> Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions). Instructions: (a) For each company, compute the following ratios. (1) Current ratio. (8) Return on assets. (2) Accounts receivable turnover. (9) Ret

> The following financial information is for Frizell Company. Additional information: 1. Inventory at the beginning of 2013 was $115,000. 2. Accounts receivable (net) at the beginning of 2013 were $86,000. 3. Total assets at the beginning of 2013 were $6

> Condensed balance sheet and income statement data for Jernigan Corporation are presented here. Additional information: 1. The market price of Jernigan’s common stock was $7.00, $7.50, and $8.50 for 2012, 2013, and 2014, respectively.

> The comparative statements of Osborne Company are presented here. All sales were on account. Net cash provided by operating activities for 2014 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000. Instructions: Compute th

> Here are comparative statement data for Prince Company and King Company, two competitors. All balance sheet data are as of December 31, 2014, and December 31, 2013. Instructions: (a) Prepare a vertical analysis of the 2014 income statement data for Pri

> Condensed financial data of Odgers Inc. follow. Additional information: 1. New plant assets costing $100,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were so

> Data for Kurtzel Company are presented in P12-7A. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the sel

> Presented below is the partial bond discount amortization schedule for Pape Corp., which uses the effective-interest method of amortization. Instructions: (a) Prepare the journal entry to record the payment of interest and the discount amortization at

> Presented below are the financial statements of Kurtzel Company. Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. 3. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 origi

> Data for Thornton Company are presented in P12-5A. Data given in P12-5A: Thornton Company’s income statement contained the condensed information below. Instructions: Prepare the operating activities section of the statement of cash

> Thornton Company’s income statement contained the condensed information below. Instructions: Prepare the operating activities section of the statement of cash flows using the indirect\ method. THORNTON COMPANY Income Statement For

> Data for Paxson Company are presented in P12-3A. Data given oin P12-3A: The income statement of Paxson Company is presented here. Additional information: 1. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000. 2. P

> The income statement of Paxson Company is presented here. Additional information: 1. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable t

> The following account balances relate to the stockholders’ equity accounts of Smoltz Corp. at year-end. A small stock dividend was declared and issued in 2014. The market price of the shares was $8,800. Cash dividends were $20,000 in

> The comparative balance sheets for Yanik Company as of December 31 are presented below. Additional information: 1. Operating expenses include depreciation expense of $42,000. 2. Land was sold for cash at book value. 3. Cash dividends of $12,000 were pa

> Data for Odgers Inc. are presented in P12-9A. Further analysis reveals that accounts payable pertain to merchandise creditors. Data given in P12-9A: Condensed financial data of Odgers Inc. follow. Instructions: Prepare a statement of cash flows for Od

> You are provided with the following transactions that took place during a recent fiscal year. Instructions: Complete the table, indicating whether each item (1) affects operating (O) activities, investing (I) activities, financing (F) activities, or is

> On January 1, 2014, Everett Corporation had these stockholders’ equity accounts. Common Stock ($10 par value, 70,000 shares issued and outstanding) ………..$700,000 Paid-in Capital in Excess of Par Value ……………………………………………………………500,000 Retained Earnings ……

> Suppose the 2014 Adidas financial statements contain the following selected data (in millions). Compute the following values and provide a brief interpretation of each. (a) Working capital. (b) Current ratio. (c) Debt to assets ratio. (d) Times inte

> Cepeda Company manufactures backpacks. During 2014, Cepeda issued bonds at 10% interest and used the cash proceeds to purchase treasury stock. The following financial information is available for Cepeda Company for the years 2014 and 2013. Instructions

> On January 1, 2014, Kessler Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) ……………………………………… $ 600,000 Paid-in Capital in Excess of Par Value …………………………………………. 1,500,

> Pringle Corporation has been authorized to issue 20,000 shares of $100 par value, 7%, noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2014, the led

> The ledger of Wade Corporation at December 31, 2014, after the books have been closed, contains the following stockholders’ equity accounts. Preferred Stock (10,000 shares issued) ………………………………………. $1,000,000 Common Stock (300,000 shares issued) ……………………

> On December 31, 2013, Paxson Company had 1,300,000 shares of $5 par common stock issued and outstanding. At December 31, 2013, stockholders’ equity had the amounts listed here. Common Stock …………………………………………. $6,500,000 Additional Paid-in Capital …………………

> The stockholders’ equity accounts of Miley Corporation on January 1, 2014, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) …………………$ 300,000 Common Stock ($4 stated value, 300,000 shares authorized) ………………………….…1,00

> Tidwell Corporation was organized on January 1, 2014. It is authorized to issue 20,000 shares of 6%, $50 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were comple

> Wempe Co. sold $3,000,000, 8%, 10-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.

> Yung Corporation sold $2,000,000, 7%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Yung Corporation uses the straight-line method to amortize bond premium or discount. Instructions: (a) Prepare al

> The following information is taken from Oler Corp.’s balance sheet at December31, 2013. Interest is payable annually on January 1. The bonds are callable on any annual interest date. Oler uses straight-line amortization for any bond p

> Presented here are liability items for Desmond Inc. at December 31, 2014. Prepare the liabilities section of Desmond’s balance sheet. $ 7,800 Accounts payable Notes payable (due May 1, 2015) Bonds payable (due 2018) Unearned FICA t

> Suppose you have been presented with selected information taken from the financial statements of Southwest Airlines Co., shown below. Instructions: (a) Calculate each of the following ratios for 2014 and 2013. (1) Current ratio. (2) Free cash flow. (3)

> Slocombe Company sold $6,000,000, 7%, 15-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on December 31. The bonds were sold at 98. Instructions: (a) Prepare the journal entry to record the issuance of the bonds on

> On October 1, 2013, Koppa Corp. issued $700,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2013, and pay interest annually on October 1. Financial statements are prepared annually on December 31. Instructions: (a) Prepare the jour

> The following section is taken from Mareska’s balance sheet at December 31, 2013. Current liabilities Interest payable ……………………………………………………..$ 40,000 Long-term liabilities Bonds payable (8%, due January 1, 2017) ………………..500,000 Interest is payable annual