Question: On January 1, 2015, Jose Company purchased

> Following is the consolidated statement of stockholders’ equity of Costco Wholesale Corporation for the year ended August 30, 2015: Required: 1. Costco has an item in the statement of stockholders’ equity called Accu

> Refer to all of the facts in Problem 11-1A. Problem 11-1A: Kebler Company was incorporated as a new business on January 1, 2017. The corporate charter approved on that date authorized the issuance of 2,000 shares of $100 par, 7% cumulative, nonparticip

> On January 1, 2017, Svenberg Inc.’s Stockholders’ Equity category appeared as follows: Preferred stock, $80 par value, 8%, 1,000 shares issued and outstanding …… $ 80,000 Common stock, $10 par value, 10,000 shares issued and outstanding ………….. 100,000 A

> Travanti Company has a history of paying cash dividends on its common stock. Although the firm has been profitable this year, the board of directors is planning construction of a second manufacturing plant. To reduce the amount that they must borrow to f

> Rob Lowe would like to invest $100,000 in Franklin Inc., which is offering common stock, preferred stock, and bonds on the open market. The common stock has paid $1 per share in dividends for the past three years, and the company expects to be able to do

> Karen Locke and Gina Keyes agreed to form a partnership to operate a sandwich shop. Karen contributed $35,000 cash and will manage the store. Gina contributed computer equipment worth $11,200 and $128,800 cash. Gina will keep the financial records. Durin

> This case should be completed after responding to the requirements in Decision Case 13-2. Refer to the financial statement information of Chipotle and Panera Bread reprinted at the back of the book. Panera Bread’s financial statements:

> On May 1, Chen Chien Lao deposited $150,000 of her own savings in a separate bank account to start a printing business. She purchased copy machines for $52,500. Expenses for the year, including depreciation on the copy machines, were $105,000. Sales for

> Kebler Company was incorporated as a new business on January 1, 2017. The corporate charter approved on that date authorized the issuance of 2,000 shares of $100 par, 7% cumulative, nonparticipating preferred stock and 20,000 shares of $5 par common stoc

> Clemente Inc. has reported income for book purposes as follows for the past three years: Clemente has identified two items that are treated differently in the financial records and in the tax records. The first one is interest income on municipal bonds

> Thad Corporation has compiled its 2017 financial statements. Included in the Long-Term Liabilities category of the balance sheet are the following amounts: Included in the income statement are the following amounts related to income taxes: Required:

> On January 1, 2017, Kiger Manufacturing Company leased a factory machine for six years. Annual payments of $21,980 are to be made every December 31 beginning December 31, 2017. Interest expense is based on a rate of 9%. The present value of the minimum l

> Elliot Company issued $100,000 face value bonds at a premium of $5,500. The bonds contain a call provision of 101. Elliot decides to redeem the bonds due to a significant decline in interest rates. On that date, Elliot had amortized only $2,000 of the pr

> Assume the same set of facts for Ortega Company as in Problem 10-2A except that the market rate of interest of January 1, 2017, is 4% and the proceeds from the bond issuance equal $52,227. Required: 1. Prepare a five-year table (similar to Exhibit 10-5)

> Ortega Company issued five-year, 5% bonds with a face value of $50,000 on January 1, 2017. Interest is paid annually on December 31. The market rate of interest on this date is 8%, and Ortega Company receives proceeds of $44,011 on the bond issuance. Re

> Rivera Inc. is considering the issuance of $500,000 face value, ten-year term bonds. The bonds will pay 10% interest each December 31. The current market rate is 10%; therefore, the bonds will be issued at face value. Required: 1. For each of the follow

> Beck Company sells a product for $3,200. When the customer buys it, Beck provides a one-year warranty. Beck sold 120 products during 2017. Based on analysis of past warranty records, Beck estimates that repairs will average 4% of total sales. Required:

> Refer to the financial statement information of Chipotle reprinted at the back of the book. Financial statement of Chipotle: Required: 1. Using the format in Example 13-5, prepare common-size comparative income statements for 2015 and 2014. Round all

> The following items are included in the Current Liabilities category on the consolidated balance sheet of Darden Restaurants at May 31, 2015 and May 25, 2014: Required: 1. Darden Restaurants uses the indirect method to prepare its statement of cash flo

> The following items are classified as current liabilities on McDonald’s consolidated statements of financial condition (or balance sheet) at December 31 (in millions): Required: 1. McDonald’s uses the indirect method

> On January 1, 2017, Chen Yu’s Office Supply Store plans to remodel the store and install new display cases. Chen has the following options of payment. Chen’s interest rate is 8%. a. Pay $270,000 on January 1, 2017. b. Pay $294,300 on January 1, 2018. c.

> Early in its first year of business, Key Inc., a locksmith and security consultant, purchased new equipment. The acquisition included the following costs: Purchase price ……………………………………………………………………. $168,000 Tax …………………………………………………………………………………………. 16,500

> The following events took place at Tasty-Toppins Inc., a pizza shop that specializes in home delivery, during 2017: a. January 1, purchased a truck for $16,000 and added a cab and an oven at a cost of $10,900. The truck is expected to last five years and

> The accounting staff of SST Enterprises has completed the financial statements for the 2017 calendar year. The statement of income for the current year and the comparative statements of financial position for 2017 and 2016 follow. SST Enterprises Statem

> Midwest Inc. is a medium-size company that has been in business for 20 years. The industry has become very competitive in the last few years, and Midwest has decided that it must grow if it is going to survive. It has approached the bank for a sizable fi

> Grout Inc. is a wholly owned subsidiary of Slait Co. The philosophy of Slait’s management is to allow the subsidiaries to operate as independent units. Corporate control is exercised through the establishment of minimum objectives for e

> Shepard Company has not yet prepared a formal statement of cash flows for 2017. Comparative balance sheets as of December 31, 2017 and 2016, and a statement of income and retained earnings for the year ended December 31, 2017, appear below and on the fol

> Refer to all of the facts in Problem 12-11A. Problem 12-11A: Bannack Corp. is in the process of preparing its statement of cash flows for the year ended June 30, 2017. An income statement for the year and comparative balance sheets are as follows: For

> Refer to the financial statement information of Chipotle reprinted at the back of the book. Financial statement of Chipotle: Required: 1. Prepare a work sheet with the following headings: 2. Complete the work sheet using each of the account titles o

> Bannack Corp. is in the process of preparing its statement of cash flows for the year ended June 30, 2017. An income statement for the year and comparative balance sheets are as follows: For the Year Ended June 30, 2017 Sales revenue â€&brvba

> The newly hired accountant at Grain field Inc. is considering the following list of accounts as he prepares the balance sheet. All of the accounts have positive balances. The company is authorized to issue 1,000,000 shares of common stock and 10,000 shar

> The following transactions occurred at Hilton Inc. during its first year of operation: a. Issued 10,000 shares of common stock at $10 each; 100,000 shares are authorized at $1 par value. b. Issued 10,000 shares of common stock for a patent, which is expe

> The Stockholders’ Equity section of the December 31, 2017, balance sheet of Carter Company appeared as follows: Preferred stock, $50 par value, 10,000 shares authorized, ? shares issued ……. $ 400,000 Common stock, ? par value, 20,000 shares authorized,

> The following items appear on the consolidated balance sheet of Boeing Inc. at December 31, 2014 (in millions). The information in parentheses was added to aid in your understanding. Accounts payable ………………………………………………………………………………… $10,667 Accrued retir

> Worthington Company issued $1,000,000 face value, six-year, 10% bonds on July 1, 2017, when the market rate of interest was 12%. Interest payments are due every July 1 and January 1. Worthington uses a calendar year-end. Required: 1. Identify and analyz

> On July 1, 2017, Moton Company needs exactly $206,400 in cash to pay an existing obligation. Moton has decided to borrow from State Bank, which charges 14% interest on loans. The loan will be due in one year. Moton is unsure, however, whether to ask the

> The following situations involve the application of the time value of money concept: 1. Jan Cain deposited $19,500 in the bank on January 1, 2000, at an interest rate of 12% compounded annually. How much has accumulated in the account by January 1, 2017

> Darlene Page’s grandparents want to give her some money when she graduates from high school. They have offered Darlene the following three choices: a. Receive $16,000 immediately. Assume that interest is compounded annually. b. Receive $2,400 at the end

> Quickster Inc. acquired a patent a number of years ago. The patent is being amortized on a straight-line basis over its estimated useful life. The company’s comparative balance sheets as of December 31, 2017 and 2016, included the follo

> Refer to Walgreens Boots Alliance’s statement of cash flows shown in the chapter opener on page 555 and answer the following questions for the most recent year. Walgreens Boots Alliance’s of cash flows: Required: 1.

> On January 1, 2017, Mansfield Inc. purchased a medium-sized delivery truck for $45,000. Using an estimated useful life of five years and a residual value of $5,000, the annual straight-line depreciation of the trucks was calculated to be $8,000. Mansfiel

> During 2012, Maciel Inc.’s research and development department developed a new manufacturing process. Research and development costs were $350,000. The process was patented on October 1, 2012. Legal costs to acquire the patent were $23,800. Maciel decide

> Wagner Company purchased a retail shopping center on January 1, 2016, at a cost of $612,000. Wagner estimated that its life would be 25 years and its residual value would be $12,000. On January 1, 2017, the company made several expenditures related to th

> The following income statement, statement of cash flows, and additional information are available for PEK Company: Additional information: a. Beginning inventory and purchases for the one product the company sells are as follows: b. During the year,

> Presented here are a statement of income and retained earnings and comparative balance sheets for Gallagher, Inc., which operates a national chain of sporting goods stores. Gallagher, Inc. Statement of Income and Retained Earnings For the Year Ended Dec

> Following are the financial statements for Griffin Inc. for the year 2017: Additional information: Griffin Inc. has authorized 500,000 shares of 10%, $10 par value, cumulative preferred stock. There were 100,000 shares issued and outstanding at all ti

> Berol Corporation sold 20-year bonds on January 1, 2017. The face value of the bonds was $100,000, and they carry a 9% stated rate of interest, which is paid on December 31 of every year. Berol received $91,526 in return for the issuance of the bonds whe

> On January 1, 2017, White feather Industries issued 300, $1,000 face value bonds. The bonds have a five-year life and pay interest at the rate of 10%. Interest is paid semiannually on July 1 and January 1. The market rate of interest on January 1 was 10%

> Erin Company incurred the following costs during 2017 and 2018: a. Research and development costing $20,000 was conducted on a new product to sell in future years. A product was successfully developed, and a patent for it was granted during 2017. Erin is

> You are considering making a loan to Kellogg’s (Kellogg Company). The following information is from the statements of cash flows and the notes to the consolidated financial statements included in Form 10-K for fiscal years 2015 and 2014

> The following events occurred at Handsome Hounds Grooming Company during its first year of business: a. To establish the company, the two owners contributed a total of $50,000 in exchange for common stock. b. Grooming service revenue for the first year

> The Operating Activities section of Washburn Company’s statement of cash flows reported an adjustment for a gain on the retirement of bonds of $5,000. The Financing Activities section of the statement reported a cash outflow of $95,000 from the retiremen

> The Operating Activities section of Miller Corp.’s statement of cash flows reported an adjustment for depreciation expense of $25,000, as well as another for a loss on the sale of equipment of $5,000 (the equipment was sold on the last day of the year).

> The following account balances are taken from the records of Martin Corp. for the past two years. Other information available for 2017 is as follows: a. Net income for the year was $200,000. b. Depreciation expense on plant and equipment was $50,000. c

> Jane Bauer has won the lottery and has the following four options for receiving her winnings: 1. Receive $100,000 at the beginning of the current year 2. Receive $108,000 at the end of the year 3. Receive $20,000 at the end of each year for eight years 4

> Comparative balance sheets for Farinet Company for the past two years are as follows: Required: 1. Using the format in Example 13-4, prepare common-size comparative balance sheets for the two years for Farinet Company. Example 13-4: 2. What observa

> Income statements for Mariners Corp. for the past two years are as follows: Required: 1. Using the format in Example 13-5, prepare common-size comparative income statements for the two years for Mariners Corp. Example 13-5: 2. What observations can

> Assume the same set of facts for Berol Corporation as in Exercise 10-16 except that it received $109,862 in return for the issuance of the bonds when the market rate was 8%. Required: 1. Identify and analyze the effect of the sale of the bonds on Januar

> Assume that Bloomer Company purchased a new machine on January 1, 2017, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1,

> Koffman’s Warehouse purchased a forklift on January 1, 2017, for $6,000. The forklift is expected to last for five years and have a residual value of $600. Koffman’s uses the double declining balance method for depreci

> Refer to the statement of cash flows for both Chipotle and Panera Bread for the most recent year and any other pertinent information reprinted at the back of this book. Cash flows for Chipotle: Cash flows for Panera Bread: Required: 1. Which method,

> Assume that Sample Company purchased factory equipment on January 1, 2017, for $60,000. The equipment has an estimated life of five years and an estimated residual value of $6,000. Sample’s accountant is considering whether to use the straight-line or th

> To add to his growing chain of grocery stores, on January 1, 2017, Danny Marks bought a grocery store of a small competitor for $520,000. An appraiser, hired to assess the acquired assets’ values, determined that the land, building, and equipment had mar

> On January 1, 2017, Ruby Company purchased a piece of equipment with a list price of $60,000. The following amounts were related to the equipment purchase: • Terms of the purchase were 2/10, net 30. Ruby paid for the purchase on January 8. • Freight cost

> From the following list, identify each item as operating (O), investing (I), financing (F), or not separately reported on the statement of cash flows (N). _______ Payment of cash dividend on common stock _______ Payment of cash dividend on preferred stoc

> From the following list, identify each item as operating (O), investing (I), financing (F), or not separately reported on the statement of cash flows (N). _______ Repurchase of common stock as treasury stock _______ Reissuance of common stock (held as tr

> From the following list, identify each item as operating (O), investing (I), financing (F), or not separately reported on the statement of cash flows (N). _______ Issuance of common stock for cash _______ Issuance of preferred stock for cash _______ Issu

> Divac Company has developed a statement of stockholders’ equity for the year 2017 as follows: Divac’s preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 p

> Assume that you are the accountant for Ellis Corporation, which has issued its 2017 annual report. You have received an inquiry from a stockholder who has questions about several items in the annual report, including why Ellis has not shown certain trans

> Whitacre Company’s Stockholders’ Equity section of the balance sheet on December 31, 2016, was as follows: Common stock, $10 par value, 60,000 shares issued and outstanding …… $ 600,000 Additional paid-in capital ……………………………………………………………………….. 480,000 Re

> Campbell Company wants to increase the number of shares of its common stock outstanding and is considering a stock dividend versus a stock split. The Stockholders’ Equity section of the firm’s most recent balance sheet appeared as follows: Common stock,

> Refer to Panera Bread’s statement of cash flows for the year ending December 31, 2015. Cash flows for Panera Bread: Required: 1. What are the largest sources and uses of cash revealed in the Financing Activities category of the state

> The Stockholders’ Equity category of Worthy Company’s balance sheet as of January 1, 2017, appeared as follows: Common stock, $10 par, 40,000 shares issued and outstanding ………… $400,000 Additional paid-in capital ……………………………………………………………………. 100,000 Reta

> The Stockholders’ Equity category of Jackson Company’s balance sheet as of January 1, 2017, appeared as follows: Preferred stock, $100 par, 8%, 2,000 shares issued and outstanding ……… $200,000 Common stock, $10 par, 5,000 shares issued and outstanding …

> MJ Company has identified the following items. Indicate whether each item is included in an account in the Stockholders’ Equity category of the balance sheet and identify the account title. Also, indicate whether the item would increase or decrease stock

> Koffman and Sons signed a four-year lease for a forklift on January 1, 2017. Annual lease payments of $1,510, based on an interest rate of 8%, are to be made every December 31, beginning with December 31, 2017. Required: 1. Assume that the lease is trea

> Benjamin’s Warehouse signed a six-year capital lease or finance lease on January 1, 2017, with payments due every December 31. Interest is calculated annually at 10%, and the present value of the minimum lease payments is $13,065. Required: 1. Calculate

> Hopper Corporation signed a ten-year capital lease or finance lease on January 1, 2017. The lease requires annual payments of $8,000 every December 31. Required: 1. Assuming an interest rate of 10%, calculate the present value of the minimum lease payme

> On March 31, 2017, Sammonds Inc. issued $250,000 face value bonds at a discount of $7,000. The bonds were retired at their maturity date, March 31, 2027. Required: Assuming that the last interest payment and the amortization of the discount have already

> Reynolds Corporation issued $75,000 face value bonds at a discount of $2,500. The bonds contain a call price of 103. Reynolds decides to redeem the bonds early when the unamortized discount is $1,750. Required: 1. Calculate Reynolds Corporation’s gain o

> Yung Chong Company wants to issue 100 bonds, $1,000 face value, in January. The bonds will have a ten-year life and pay interest annually. The market rate of interest on January 1 will be 9%. Yung Chong is considering two alternative bond issues: (a) bon

> The following terms relate to independent bond issues: a. 500 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments b. 500 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments c. 800 bonds; $1,000 face val

> Refer to the Stockholders’ Equity section of the balance sheets of Panera Bread and Chipotle as of December 31, 2015. Balance sheets of Panera Bread: Balance sheets of Chipotle: Required: 1. For each company, what are the numbers o

> Refer to the financial statements and notes for Panera Bread Company included at the back of the book. Financial statements and notes for Panera Bread Company: Required: 1. What items does the company list in the Property and Equipment category? 2. Wh

> Talking is something we do every day, so we can be confident that these everyday skills are ready for use in the workplace. Discuss.

> What can you do to improve your listening?

> What might these nonverbal communication behaviors communicate? Think of at least two possibilities for each.

> The people attending a meeting—not the leader—should determine the agenda. Discuss.

> Identify which conflict resolution strategy would work best in the following situations. a. Your team members disagree about whether to conduct a survey or hold focus groups. It’s one of your first big group decisions, so it is important that everyone fe

> What strategies should you use to deliver feedback? Receive feedback? (LO6) When giving feedback, follow these practices: When receiving feedback, follow these practices:

> Explain the principal differences between oral and written reports. What do these differences mean in terms of how you’d need to adapt a written report for presentation to an audience?

> Describe a situation in which you would use short-report format rather than email format for an internal report. Why would you choose the short-report format?

> Explain why some routine report problems require little or no introduction.

> Why does the executive summary include key facts and figures in addition to the analyses and conclusions drawn from them?

> How might people’s definition of “professional behavior” depend on which industry or type of company they’re in?

> Explain how to write the executive summary of a report.

> Describe the role and content of a transmittal message.

> Which of the prefatory pages of reports appear to be related primarily to the length of the report? Which to the need for formality?

> Give examples of report problems that would require, respectively, (a) an ending summary, (b) a conclusion or conclusions section, and (c) a recommendation or recommendations section

> Give examples of long-report problems whose introduction could require historical background or a discussion of the report’s limitations.