Question: Outdoor Expo provides guided fishing tours. The

> Match (by letter) the following terms with their definitions. Each letter is used only once. Definitions a. The amount invested by stockholders. b. Shares available to sell. c. Shares can be returned to the corporation at a predetermined price. d. The ea

> Selected financial data for Bahama Bay and Caribbean Key are as follows: Required: 1. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. Which company has the higher ratio? 2. Calculate the return on assets for

> Coney Island Entertainment issues $1,300,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Required: Calculate the issue price of a bond and complete the first three rows of an amortization schedul

> On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market interest rate for bonds of similar risk and maturity is 9%, and the bonds issue for $841,464. Interest is paid semiannually on June 30 and December 31. Requ

> On January 1, 2021, Vacation Destinations issues $40 million of bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Required: 1. Were the bonds issued at face amount, a discount, or a

> On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $600,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Required: 1. If the market interest r

> EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, is a giant database of documents the U.S. Securities and Exchange Commission (SEC) requires that companies submit. All publicly traded domestic companies use EDGAR to make the majority

> Thrillville has $41 million in bonds payable. One of the contractual agreements in the bond is that the debt to equity ratio cannot exceed 2.0. Thrillville’s total assets are $81 million, and its liabilities other than the bonds payable are $11 million.

> On January 1, 2021, Strato Corporation borrowed $2 million from a local bank to construct a new building over the next three years. The loan will be paid back in three equal installments of $776,067 on December 31 of each year. The payments include inter

> On January 1, 2021, Gundy Enterprises purchases an office for $360,000, paying $60,000 down and borrowing the remaining $300,000, signing a 7%, 10-year mortgage. Installment payments of $3,483.25 are due at the end of each month, with the first payment d

> Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: Required: 1. Calculate the current ratio for ACME Corporation and Wayne Enterprises. Which company has the better ratio?

> Dinoco Petroleum faces three potential contingency situations, described below. Dinoco’s fiscal year ends December 31, 2021, and it issues its 2021 financial statements on March 15, 2022. Required: Determine the appropriate means of reporting each situat

> The ink-jet printing division of Environmental Printing has grown tremendously in recent years. Assume the following transactions related to the ink-jet division occur during the year ended December 31, 2021. Required: Record any amounts as a result of e

> Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $3,500. The cards are redeemable for meals within one year of the purchase date. Gift cards totalin

> The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 114,000 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects

> Vacation Destinations offers its employees the option of contributing up to 7% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that

> Caribbean Tours’ total payroll for the month of January was $600,000. The following withholdings, fringe benefits, and payroll taxes apply: Assume that none of the withholdings or payroll taxes has been paid by the end of January (recor

> Brooke Remming is the Chief Executive Officer of Dundem Corp. The board of directors has agreed to pay Brooke a salary of $400,000 plus a 15% bonus if the company’s pretax income increases by at least 10% from the prior year. In the prior year, Dundem re

> Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $41 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to M

> Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.

> Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best-tasting sandwich with the highest- quality ingredients. Planet Sub’s busin

> New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $700,000. The ovens originally cost $910,000, had an estimated service life of 10 years, had an estimated residual value of

> Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021: Solich purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 10-year service life using the double-declining-balance me

> The following information relates to the intangible assets of University Testing Services (UTS): a. On January 1, 2021, UTS completed the purchase of Heinrich Corporation for $3,510,000 in cash. The fair value of the net identifiable assets of Heinrich w

> University Car Wash built a deluxe car wash across the street from campus. The new machines cost $270,000 including installation. The company estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will u

> Several years ago, Health Services acquired a helicopter for use in emergency situations. Health Services incurred the following expenditures related to the helicopter delivery operations in the current year: 1. Overhauled the engine at a cost of $7,500.

> Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $12,000,000 in cash. The book values and fair values of Premium Meats’ assets and liabilities were. Required: 1. Calculate the amount Fresh Cut should

> Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold its two-year-old ovens at a discount for $700,000. Great Harvest incurred and paid freight costs of $35,000, and its employees

> Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book. The stock prices as of February 3, 2018, for American Eagle and Buckle wer

> University Hero is considering expanding operations beyond its healthy sandwiches. Jim Axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. Each smoothie would include two free health supplements suc

> The Italian Bread Company purchased land as a factory site for $70,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows: Required: Determine the amounts

> Refer to the transactions of CD City in P6–3A. Required: 1. Assuming that CD City uses a periodic inventory system, record the transactions. 2. Record the month-end adjustment to inventory, assuming that a final count reveals ending inventory with a cost

> Wawa Food Markets is a convenience store chain located primarily in the Northeast. The company sells gas, candy bars, drinks, and other grocery-related items. St. Jude Medical Incorporated sells medical devices related to cardiovascular needs. Suppose a

> Baskin-Robbins is one of the world’s largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso ’n Cream. Assume that a local Baskin-Robbins in Rale

> At the beginning of October, Bowser Co.’s inventory consists of 50 units with a cost per unit of $50. The following transactions occur during the month of October. October 4 Purchase 130 units of inventory on account from Waluigi Co. for $50 per unit, te

> For the current year, Parker Games has the following inventory transactions related to its traditional board games. Required: 1. Using FIFO, calculate ending inventory and cost of goods sold. 2. Using LIFO, calculate ending inventory and cost of goods so

> A local Chevrolet dealership carries the following types of vehicles: Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Required: 1. Compute the total cost of the entire invent

> At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,300, terms 1/10, n/30. July 4 Pay cash for freight charges

> Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Required: 1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification m

> Financial information for Buckle is presented in Appendix B at the end of the book. Required: 1. What is the par value per share for the common stock? 2. How many common shares were issued at the end of the most recent year? 3. Did the company have any t

> Over a four-year period, Jackie Corporation reported the following series of gross profits. In 2021, the company performed a comprehensive review of its inventory accounting procedures. Based on this review, company records reveal that ending inventory w

> Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Required: 1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification meth

> Assume selected financial data for Walmart and Target, two close competitors in the retail industry, are as follows: Required: 1. Calculate the receivables turnover ratio and average collection period for Walmart and Target. Round your answers to one de

> On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the services, the customer signs a three-year, 10% note. The face amount is due at the end of the third year, while annual interest is due each December 1. Re

> Humanity International sells medical and food supplies to those in need in underdeveloped countries. Customers in these countries are often very poor and must purchase items on account. At the end of 2021, total accounts receivable equal $1,300,000. The

> Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company’s accounting manager provides Willie with the following information, before any adjus

> In an effort to boost sales in the current year, Roy’s Gym has implemented a new program where members do not have to pay for their annual membership until the end of the year. The program seems to have substantially increased membershi

> Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2021, Pearl provides services on account of $590,000. Of this amount, $80,000 remains receivable at the end of the year. An aging schedule as of December 31, 2021, is provided

> The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations. June 12, 2021 Provide services to customers on account for $41,000. September 17, 2021 Receive $25,000 from customers on account. December

> Financial information for American Eagle is presented in Appendix A at the end of the book. Using the financial information presented in Appendix A, answer the following. Required: 1. What is the par value per share for the common stock? 2. How many comm

> Scenario 1: During 2021, IBM provides consulting services on its mainframe computer for $11,000 on account. The customer does not pay for those services until 2022. Scenario 2: On January 1, 2021, Gold’s Gym sells a one-year membership for $1,200 cash. N

> Rocky owns and operates Balboa’s Gym located in Philadelphia. The following transactions occur for the month of October: 1. October 2 Receive membership dues for the month of October totaling $8,500. 2. October 5 Issue common stock in exchange for cash,

> Below is a summary of all transactions of Pixar Toy Manufacturing for the month of August 2021. Required: Prepare a statement of cash flows for the month of August 2021, properly classifying each of the transactions into operating, investing, and financi

> The cash records and bank statement for the month of May for Diaz Entertainment are shown below. Additional information: a. The difference in the beginning balances in the company’s records and the bank statement relates to checks #469

> Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet each day but makes bank deposits only once per week. The following provides information from the company’s

> The Carmike 8 Cinema is a modern theatre located close to a college campus. The cashier, located in a box office at the entrance to the theatre, receives cash from customers and operates a machine that ejects serially numbered tickets for each film. Cust

> The general ledger of Zips Storage at January 1, 2021, includes the following account balances: The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, $134,100, and on account, $52,200. 2. February

> The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $60,000, of which $21,000 is on account. 2. May

> Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company’s fiscal year-end. In addition, the company had th

> The year-end financial statements of Rattlers Tax Services are provided below. Required: 1. Record year-end closing entries. 2. Prepare a post-closing trial balance. (Hint: The balance of Retained Earnings will be the amount shown in the balance sheet.)

> Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million,

> You may refer to the opening story of Tony and Suzie and their decision to start Great Adventures in AP 1–1. More of their story and the first set of transactions for the company in July are presented in AP 2–1 and repeated here. July 1 Sell $10,000 of c

> Boilermaker Unlimited specializes in building new homes and remodeling existing homes. Remodeling projects include adding game rooms, changing kitchen cabinets and countertops, and updating bathrooms. Below is the year-end adjusted trial balance of Boile

> Buzzard Bicycle specializes in custom painting and design of bicycles. December 31 is the company’s fiscal year-end. Information necessary to prepare the year-end adjusting entries appears below. 1. A three-year fire insurance policy was purchased on Jul

> The information necessary for preparing the 2021 year-end adjusting entries for Gamecock Advertising Agency appears below. Gamecock’s fiscal year-end is December 31. 1. On July 1, 2021, Gamecock receives $6,000 from a customer for advertising services to

> Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides to borrow $100,000 from a local bank, and the bank requires Minutemen to provide annual financial statements prepared using accrual-basis accounting as p

> Consider the following transactions. Required: For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual-basis accounting and under cash-basis accounting in the current period.

> RiverHawk Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in 2021, RiverHawk has the following account balances. The following transactions occur during December 2021: December 1 Pay rent for mountai

> Pirates Incorporated had the following balances at the beginning of September. The following transactions occur in September. September 1 Provide services to customers for cash, $4,700. September 2 Purchase land with a long-term note for $6,400 from Crim

> Below are the transactions for Ute Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $3,000. March 3 Purchase sewing equipment by signing a note with the local bank, $2,700. March 5 Pay rent of $600

> Below are the account balances of Bruins Company at the end of November. Required: Prepare a trial balance by placing amounts in the appropriate debit or credit column and determining the balance of the Equipment account.

> Refer to the transactions described in P2–4A. Keep in mind that Jake may not need to record all transactions. Required: 1. Record each transaction for Luke’s Repair Shop. Keep in mind that Luke may not need to record a

> Adrenaline Entertainment is struggling financially and its CFO, David Plesko, is starting to feel the heat. Back on January 1, 2017, Adrenaline Entertainment issued $100 million of 6% bonds, due in 15 years, with interest payable semiannually on June 30

> Jake owns a lawn maintenance company, and Luke owns a machine repair shop. For the month of July, the following transactions occurred. July 3 Jake provides lawn services to Luke’s repair shop on account, $500. July 6 One of Jake’s mowers malfunctions. Lu

> Below is a list of typical accounts. Required: For each account, indicate (1) the type of account and (2) whether the normal account balance is a debit or credit. For the type of account, choose from asset, liability, stockholders’ equi

> Below is a list of activities for Purple Cow Incorporated. Required: For each activity, indicate the impact on the accounting equation. After doing so for all transactions, ensure that the accounting equation remains in balance.

> Below is a list of activities for Jayhawk Corporation. Required: For each activity, indicate whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders’ equity.

> Listed below are nine terms and definitions associated with the FASB’s conceptual framework. Required: Pair each term with its related definition.

> The four underlying assumptions of generally accepted accounting principles are economic entity, monetary unit, periodicity, and going concern. Consider the four independent situations below. 1. Jumbo’s is a local restaurant. Due to a bad shipment of pot

> Cornhusker Company provides the following information at the end of 2021. Required: Prepare the income statement, statement of stockholders’ equity, and balance sheet for Corn- husker Company on December 31, 2021. No common stock is iss

> Below are incomplete financial statements for Bulldog, Inc. Required: Calculate the missing amounts.

> Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year on December 31, 2021, the company reports the following amounts: In addition, the company had common stock of $40,000 at the beginning of the year an

> Account classifications include assets, liabilities, stockholders’ equity, dividends, revenues, and expenses. Required: For each transaction, indicate whether the related account would be classified in the balance sheet as (a) an asset,

> Western Entertainment is considering issuing bonds to finance its business expansion. The company contacts you, a business consultant charging $200 an hour, to answer the following questions. 1. What are the advantages of issuing bonds over borrowing fun

> Below are typical transactions for Hewlett-Packard. Required: Indicate whether each transaction is classified as a financing, investing, or operating activity.

> On January 1, Twister Enterprises issues $600,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 7%. National Hydraulics, a supplier of mechanical parts

> As a long-term investment at the beginning of the year, Willie Winn Track Shoes purchased 25% of Betty Will Company’s 34 million shares outstanding for $178 million. During the year, Betty Will earned net income of $130 million and distributed cash divid

> Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers the two ovens for $3,500 with payment due today. The second store offers the two ovens for $3,700 due in one year. Required: Assuming an annual discount rate

> The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Required: Assuming an annual discount rate of 9%, which of the fou

> You want to save for retirement. Assuming you are now 25 years old and you want to retire at age 55, you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 13% per year over the past 80 years and

> The four people below have the following investments. Required: Determine which of the four people will have the greatest investment accumulation in six years.

> The following condensed information is reported by Sporting Collectibles. Required: 1. Calculate the following profitability ratios for 2021: a. Gross profit ratio. b. Return on assets. c. Profit margin. d. Asset turnover. e. Return on equity. 2.Determin

> Refer to the information provided for Plasma Screens Corporation in E12–7. Required: 1. Calculate the following profitability ratios for 2021: a. Gross profit ratio. b. Return on assets. c. Profit margin. d. Asset turnover. e. Return on equity. 2. When w

> The balance sheets for Plasma Screens Corporation and additional information are provided below. Required: 1. Calculate the following risk ratios for 2021: a. Receivables turnover ratio. b. Inventory turnover ratio. c. Current ratio. d. Acid-test ratio.

> Standard & Poor’s is a global leader in credit ratings and credit risk analysis. Go to its website at standardandpoors.com. Required: 1. Click on “ABOUT US” then “Key Statistics” under “S&P Rating Services.” About how much debt is covered by Standard & P

> Refer to the information for Adrian Express in E12–5. Industry averages for the following profitability ratios are as follows: Required: 1. Calculate the five profitability ratios listed above for Adrian Express. 2. Do you think the com

> The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table. Industry averages for the following four risk ratios

> The balance sheets for Federer Sports Apparel for 2022 and 2021 are presented below. Required: 1. Prepare a vertical analysis of the balance sheet data for 2022 and 2021. Express each amount as a percentage of total assets. 2. Prepare a horizontal analys

> Refer to the information provided in E12–2. Required: Prepare a horizontal analysis for 2022 using 2021 as the base year.

> The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. Required: Prepare a vertical analysis of the data for 2022 and 2021.