Question: Refer to the information in Exercise 4­

> a. Byrde Co. purchased a truck. The seller asked for $11,000, but Byrde paid only $10,000 after negotiation. The owner of Byrde Co. believes he got a great deal and the truck is really worth $15,000. What amount does Byrde record on its financial stateme

> Analyze each transaction in QS 4­9 by indicating its effects on the components of the income statement— specifically, identify the accounts and amounts (including + or −) for each transaction.

> Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. Oct. 1 Sold merchandise for $1,500, with credit terms n∕30, invoice dated October 1. The

> Arrange an interview (in person or by phone) with the manager of a retail shop in a mall or in the downtown area of your community. Explain to the manager that you are a student studying merchandising activities and the accounting for sales returns and s

> Refer to the opening feature about Kendra Scott. Assume the business reports current annual sales at approximately $1 million and prepares the following income statement. Assume the business sells to individuals and retailers, ranging from small shops t

> Official Brands’s general ledger and supplementary records at the end of its current period reveal the following. Required 1. Each member of the team is to assume responsibility for computing one of the following items. You are not to

> Use Apple’s financial statements in Appendix A to answer the following. 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 29, 2018, and (b) September 30, 2017. 2. Compute cash and cash equivalents as a percent

> Access the SEC’s EDGAR database (SEC.gov) and obtain the March 21, 2017, filing of its fiscal 2017 10­K report (for year ended January 28, 2017) for J. Crew Group, Inc. (ticker: JCG). Required Prepare a table that reports the gross margin ratios for J. C

> Team up with one or more classmates for this activity. Identify companies in your community or area that must account for at least one of the following assets: natural resource, patent, lease, leasehold improvement, copyright, trademark, or goodwill. You

> Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Apr. 1 Sold merchandise for $3,000, with credit terms n∕30; invoice dated April 1.

> You are the financial officer for Music Plus, a retailer that sells goods for home entertainment needs. The business owner, Vic Velakturi, recently reviewed the annual financial statements you prepared and sent you an e­mail stating that he thinks you ov

> Amy Martin is a student who plans to attend approximately four professional events a year at her college. Each event necessitates a financial outlay of $100 to $200 for a new suit and accessories. After incurring a major hit to her savings for the first

> Identify the accounting principle or assumption that best reflects each situation. 1. A company reports details behind financial statements that would impact users’ decisions. 2. Financial statements reflect the assumption that the business continues ope

> Refer to Apple’s balance sheet and income statement in Appendix A. What does the company title its inventory account? Does the company present a detailed calculation of its cost of goods sold?

> Key comparative figures for Samsung, Apple, and Google follow. Required 1. Compute the gross margin ratio for each of the three companies. 2. Is Samsung’s gross margin ratio better or worse than that for (a) Apple? (b) Google? 3. Is the

> Key comparative figures for Apple and Google follow. Required 1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. 2. Which company earns more in gross margin for each dollar of net sales

> Refer to Apple’s financial statements in Appendix A to answer the following. Required 1. Assume that the amounts reported for inventories and cost of sales reflects items purchased in a form ready for resale. Compute the net cost of goods purchased for t

> Santana Rey receives the March bank statement for Business Solutions on April 11, 2021. The March 31 bank statement shows an ending cash balance of $67,566. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,057 as of

> Santana Rey created Business Solutions on October 1, 2020. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following cha

> The following unadjusted trial balance is prepared at fiscal year­end for Foster Products Company. Foster Products Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense&acirc

> Review the chapter’s opening feature involving Elon Musk and SpaceX. Assume that the company currently has net sales of $8,000,000 and that it is planning an expansion that will increase net sales by $4,000,000. To accomplish this expansion, the company

> Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 Jan. 1 Paid $20,515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 salvage value. Delivery truck c

> Use the data for Barkley Company in Problem 4-3B to complete the following requirement. Required Prepare closing entries as of March 31 (the perpetual inventory system is used).

> Barkley Company’s adjusted account balances from its general ledger on March 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: Sales Salaries Expense, Rent Expense— Selling Sp

> Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system. Sep. 15 purchased merchandise with an invoice price of $35,000 and credit terms of 2∕5, n∕15. 2

> Prepare journal entries to record the following merchandising transactions of Menards, which applies the perpetual inventory system and gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on July 3 i

> Determine whether each description best refers to a sole proprietorship, partnership, corporation, or limited liability company. a. Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancy do not have personal responsibil

> Prepare journal entries to record the following merchandising transactions of IKEA, which uses the perpetual inventory system and gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on May 2 in Accou

> Shamara Systems most recently reconciled its bank balance on April 30 and reported two checks outstanding at that time, No. 1771 for $781 and No. 1780 for $1,425.90. Check No. 1780 was still outstanding as of May 31. The following information is availabl

> Using the information in Exercise 6-12, prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation.

> The following unadjusted trial balance is prepared at fiscal year­end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense—Store

> Use the data for Valley Company in Problem 4­3A to complete the following requirement. Required Prepare closing entries as of August 31 (the perpetual inventory system is used).

> Valley Company’s adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: Sales Salaries Expense, Rent Expense— Selling Sp

> Prepare journal entries to record the following merchandising transactions of Lowe’s, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1

> Refer to the transactions in Problem C-5B. Assume that although Brinkley owns 25% of Bloch’s outstanding stock, circumstances indicate that it does not have a significant influence over the investee. Required Prepare journal entries to record these trans

> Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and pay­ able; for example, record the purchase on July

> Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October. Prepare entries to record these transactions assuming that Piere Imports records invoices (a) at gross amounts

> Refer to Exercise 4­10 and prepare journal entries to record each of the merchandising transactions assuming that the perpetual inventory system and the net method are used by both the buyer and the seller.

> Lopez Company reports unadjusted first year merchandise sales of $100,000 and cost of merchandise sales of $30,000. a. Compute gross profit (using the unadjusted numbers above). b. The company expects future returns and allowances equal to 5% of sales an

> Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system. Aug. 1 purchased merchandise with an invoice price of $60,000 and credit terms of 3∕10, n∕30. 1

> The following information is available to reconcile Severino Co.’s book balance of cash with its bank statement cash balance as of December 31. a. The December 31 cash balance according to the accounting records is $32,878.30, and the bank statement cash

> Match each of the descriptions with the term or phrase it best reflects. A. Ethics B. Fraud triangle C. Prevention D. Internal controls E. Audit 1. Examines whether financial statements are prepared using GAAP; it does not ensure

> Chico Company allows its customers to return merchandise within 30 days of purchase. At December 31, the end of its first year of operations, Chico estimates future­period merchandise returns of $60,000 (cost of $22,500) related to its current­year sales

> Med Labs has the following December 31 year­end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $5,000. Of the $5,000 of receivables, $1,000 are within a 2% discount period, meaning that it expects buyers to take $20 in f

> Refer to Exercise 4­10 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system and the gross method are used by both the buyer and the seller.

> Refer to Exercise 4­9 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system and the gross method are used by both the buyer and the seller.

> Refer to the information in QS C-4. (1) After the fair value adjustment is made, prepare the assets section of Kitty Company’s December 31 classified balance sheet. (2) In which income statement section is the unrealized gain (or loss) on the portfolio o

> Refer to Exercise 4­3 and prepare journal entries to record each of the merchandising transactions assuming that the buyer uses the periodic inventory system and the gross method.

> Compute the acid test ratio for each of the following separate cases. (b) Which company is in the best position to meet short-term obligations?

> Adams Co. reports the following balance sheet accounts as of December 31. Prepare a classified balance sheet.

> On February 19 of the current year, Quartzite Co. pays $5,400,000 for land estimated to contain 4 million tons of recoverable ore. It installs and pays for machinery costing $400,000 on March 21. The company removes and sells 254,000 tons of ore during i

> Fit­for­Life Foods reports the following income statement accounts for the year ended December 31. Pre­ pare a multiple step income statement that includes separate categories for net sales; cost of goods sold; selling ex

> Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 600 units of product at a cost of $10 per unit. Terms of the sale are 2∕

> Match each of the descriptions with the term or phrase it best reflects. A. Audit B. GAAP C. Ethics D. FASB E. SEC F. Public accountants G. Net income H. IASB 1. An assessment of whether financial statements follow GAAP. 2. Amount a business earns in e

> A company reports the following sales related information. Compute and prepare the net sales portion only of this company’s multiple step income statement.

> A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $3,000 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise

> The following list includes temporary accounts from the December 31 adjusted trial balance of Emiko Co. Use these normal account balances to journalize closing entries.

> Each team member is to become an expert on one depreciation method to facilitate teammates’ understanding of that method. Follow these procedures: a. Each team member is to select an area of expertise from one of the following depreciation methods: strai

> At the beginning of the year, SnapIt had $10,000 of inventory. During the year, SnapIt purchased $35,000 of merchandise and sold $30,000 of merchandise. A physical count of inventory at year­end shows $14,000 of inventory exists. Prepare the entry to rec

> Prepare journal entries for the following merchandising transactions of Dollar Store assuming it uses a perpetual inventory system and the gross method. Nov. 1 Dollar Store purchases merchandise for $1,500 on terms of 2∕5, n∕30, FOB shipping point, and

> The following summarizes Tesla’s merchandising activities for the year. Set up T-accounts for Merchandise Inventory and for Cost of Goods Sold. Enter each line item into one or both of the two T-accounts and compute the T-account balanc

> Blues Music Center had the following petty cash transactions in March of the current year. Blues uses the perpetual system to account for merchandise inventory. Mar.5 Wrote a $250 check to establish a petty cash fund. 6 Paid $12.50 shipping charges (tran

> Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. Both Sydney and Troy use a perpetual inventory system and the gross method. May 11 Sydney accepts delivery of $40,000 of merchandise it purchases for resale fro

> Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 3∕10, n∕60 and an invoice price of $24,000. The merchandise had cost Mesa $16,000. Assume that both buyer and seller use a perpetual inventory s

> Refer to Exercise 4-6 and prepare journal entries for Macy Co. to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system; it purchases these units for resale.

> Analyze each transaction in Exercise 4-6 by indicating its effects on the income statement—specifically, identify the accounts and amounts (including + or −) for each transaction.

> Identify the following users as either External users or internal users.

> Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period.

> Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. May

> Baine Company purchased Vera Company at a price of $500,000. The fair value of the net assets purchased equals $420,000. Compute the amount of goodwill that Baine records at the purchase date.

> For each transaction of Sealy Co., (a) determine whether or not Sealy owns the goods during transit. (b) If Sealy is responsible for transportation costs, record the entry for shipping costs assuming they are paid in cash and the perpetual inventory syst

> Prepare journal entries to record the following transactions of Recycled Fashion retail store. Recycled Fashion uses a perpetual inventory system and the gross method. Mar. 3 Purchased $1,150 of merchandise from GreenWorld Company with credit terms of 2∕

> Review financial news sources such as Yahoo! Finance (finance.yahoo.com) and Google Finance (google.com/finance). Identify a company that has recently purchased 50% or more of another company’s outstanding shares and will report consolidated financial st

> Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. 2 purchased $4,600 of merchandise from Lyon Company with credit terms of 2∕15, n∕60, invoice dated A

> Refer to the information in QS 5-11 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs and inventory amounts to cents.)

> The operating cycle of a merchandiser with credit sales includes the following five activities. Starting with merchandise acquisition, identify the chronological order of these five activities. a. Prepare merchandise for sale. b. Collect cash from custom

> Refer to the information in QS 5-11 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method.

> Fill in the blanks in the following separate income statements a through e.

> Try to find at least one store that does not use bar coding. If a store does not use bar coding, ask the store’s manager or clerk whether he or she knows which type of inventory method the store employs. Create a table that shows columns for the name of

> Determine whether each of the following accounting duties mainly involves financial accounting, managerial accounting, or tax accounting. 1. Internal auditing. 2. External auditing. 3. Cost accounting. 4. Budgeting. 5. Enforcing tax laws. 6. Planning tra

> Journ Co. purchased short-term investments in available-for-sale debt securities at a cost of $50,000 cash on November 25. At December 31, these securities had a fair value of $47,000. This is the first and only time the company has purchased such securi

> Access the Yahoo! (renamed as Altaba, ticker: AABA) 10-K report for the year ended December 31, 2016, filed on March 1, 2017, at SEC.gov. Required 1. What amount of goodwill is reported on Yahoo!’s balance sheet? What percentage of total assets does its

> Refer to QS 4­8 and prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system.

> Moya Co. establishes a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in January (the last month of the company’s fiscal year). Jan. 3 A company check for $150 is written and made payable

> Review the chapter’s opening feature highlighting Jeff Bezos and Whole Foods. Assume that the business consistently maintains an inventory level of $30,000, meaning that its average and ending inventory levels are the same. Also assume its annual cost of

> Refer to QS 4­5 and prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system.

> Each team member has the responsibility to become an expert on an inventory method. This expertise will be used to facilitate teammates’ understanding of the concepts relevant to that method. 1. Each learning team member should select a

> ProBuilder reports merchandise sales of $50,000 and cost of merchandise sales of $20,000 in its first year of operations ending June 30. It makes fiscal­year­end adjusting entries for estimated future returns and allowances equal to 2% of sales, or $1,00

> Access the September 29, 2018, 10-K report for Apple, Inc. (ticker: AAPL), filed on November 5, 2018, from the EDGAR filings at SEC.gov. Required 1. What products are manufactured by Apple? 2. What inventory method does Apple use? Hint: See Note 1 to its

> ProBuilder has the following June 30 fiscal­year­end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $10,000. Of the $10,000 of receivables, $2,000 are within a 3% discount period, meaning that it expects buyers to take $

> You are a financial adviser with a client in the wholesale produce business that just completed its first year of operations. Due to weather conditions, the cost of acquiring produce to resell has escalated during the latter part of this period. Your cli

> Use the following information (in random order) from a merchandising company and from a service company. Hint: Not all information may be necessary for the solutions. a. For the merchandiser only, compute (1) goods available for sale, (2) cost of goods s

> Refer to the information in QS 5-5 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs and inventory amounts to cents.)

> Teams are to select an industry, and each team member is to select a different company in that industry. Each team member is to acquire the financial statements (Form 10-K) of the company selected— see the company’s website or the SEC’s EDGAR database (S

> Following are five separate cases involving internal control issues. a. Tywin Company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company. b. Marker Theater has a computer

> Classify the following activities as part of the Identifying, Recording, or Communicating aspects of accounting. 1. Analyzing and interpreting reports. 2. Presenting financial information. 3. Keeping a log of service costs. 4. Measuring the costs of a pr

> Refer to QS 4­8 and prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the gross method and a periodic inventory system.

> Golf Challenge Corp. is a retail sports store carrying golf apparel and equipment. The store is at the end of its second year of operation and is struggling. A major problem is that its cost of inventory has continually increased in the past two years. I

> Refer to QS 4­5 and prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the gross method and a periodic inventory system.

> Refer to Samsung’s financial statements in Appendix A. What percent of its current assets is inventory as of December 31, 2018 and 2017?