[SOLVED] Rodriguez Company pays $395,380 for real

> 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 FIFO method. (Round per unit costs and inventory amounts to cents.)

> Identify the fraud triangle risk factor (opportunity, pressure, or rationalization) in each situation. 1. Employees are told to report increased income or be fired. 2. Several salesclerks share the same cash drawer. 3. A worker did not receive a bonus th

> Del Gato Clinic’s Cash account shows an $11,589 debit balance and its bank statement shows $10,555 on deposit at the close of business on June 30. Prepare its bank reconciliation using the following information. a. Outstanding checks as of June 30 total

> Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous expenses, $43. Palmo

> EcoMart establishes a $1,050 petty cash fund on May 2. On May 30, the fund shows $326 in cash along with receipts for the following expenditures: transportation-in, $120; postage expenses, $369; and miscellaneous expenses, $240. The petty cashier could n

> COSO lists five components of internal control: control environment, risk assessment, control activities, information and communication, and monitoring. Indicate the COSO component that matches with each of the following internal control activities. a. I

> York Instruments completed the following transactions and events involving its machinery. Year 1 Jan. 1 Paid $107,800 cash plus $6,470 in sales tax for a new machine. The machine is estimated to have a six-year life and a $9,720 salvage value. Dec. 31 Re

> Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty

> Determine whether each cash payment procedure is an internal control strength or weakness. 1. A voucher system is used for all payments of liabilities. 2. The owner of a small business has authority to write and sign checks. 3. When the owner is out of t

> Determine whether each cash receipts procedure is an internal control strength or weakness. 1. If a salesclerk makes an error in recording a cash sale, she can access the register’s electronic record to correct the transaction. 2. All sales transactions,

> Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discussing the audit fee, Allnet’s management suggests a fee r

> Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $3,000 cash deposit in checking account. $200, 3-year loan t

> Determine whether each policy below is good or bad cash management; then identify the cash management strategy violated or followed for each policy. 1. Bills are paid as soon as they are received. 2. Cash receipts and cash payments are regularly planned

> Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control principle violated or followed for each procedure. 1. The same employee requests, records, and makes payment for purchases of

> Whole Fruits Market took the following actions to improve internal controls. For each of the following actions, identify the internal control principle the company followed. a. The record-keeper is prohibited from having control over cash. b. An insuranc

> Identify the internal control principle that was violated in each of the following separate situations. a. The record-keeper left town after the owner discovered a large sum of money had disappeared. An audit found that the record-keeper had written and

> Using the information in QS 6-12, prepare the adjusting journal entries that Organic Food Co. must record as a result of preparing the bank reconciliation.

> Mercury Delivery Service completed the following transactions involving equipment. Year 1 Jan. 1 Paid $25,860 cash plus $1,810 in sales tax for a new delivery van that was estimated to have a five-year life and a $3,670 salvage value. Van costs are recor

> Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life

> A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Companyâs factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its li

> Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $900,000. The estimated market values of the purchased assets are building, $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $

> On January 2, Bering Co. disposes of a machine costing $44,000 with accumulated depreciation of $24,625. Prepare the entries to record the disposal under each separate situation. 1. The machine is sold for $18,250 cash. 2. The machine is traded in for a

> Gilly Construction trades in an old tractor for a new tractor, receiving a $29,000 trade-in allowance and paying the remaining $83,000 in cash. The old tractor had cost $96,000 and had accumulated depreciation of $52,500. Answer the following questions a

> Troyâs long-term available-for-sale portfolio at the start of this year consists of the following. Troy enters into the following transactions involving its available-for-sale debt securities this year. Jan. 13 Sold one-fourth of the C

> Lok Co. reports net sales of $5,856,480 for Year 2 and $8,679,690 for Year 3. End-of-year balances for total assets are Year 1, $1,686,000; Year 2, $1,800,000; and Year 3, $1,982,000. (a) Compute Lok’s total asset turnover for Year 2 and Year 3. (b) Lok’

> Selected accounts from Gregor Co.âs adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet.

> Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of the net assets purchased equals $1,800,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at

> Milano Gallery purchases the copyright on a painting for $418,000 on January 1. The copyright is good for 10 more years, after which the copyright will expire and anyone can make prints. The company plans to sell prints for 11 years. Prepare entries to r

> Equipment has a book value of $16,000 and a fair value of $14,750. The decline in value meets the impairment test. Prepare the entry to record this $1,250 impairment.

> A company pays $760,000 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $60,000 cash to access the mine, which is estimated to hold 100,000 tons of iron. The estimated value of the land after the iron is remove

> Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs machinery in the mine costing $213,500. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells

> Rayya Co. purchases a machine for $105,000 on January 1, 2020. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July 1, 2024, during its fifth year of service. Prepare en

> Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare the entry to record the disposal of the machine on January 1 in each separate situation. 1. The machine needed extensive repairs and was not worth repair

> Analyze each of the following transactions by showing its effects on the accounting equation— specifically, identify the accounts and amounts (including + or −) for each transaction. Jan. 1 Purchased equipment for $25,000 cash. Estimated useful life is s

> Paris Inc. began operations in Year 1. Following is a series of transactions and events involving its long- term debt investments in available-for-sale securities. Year 1 Mar. 10 Purchased Apple bonds for $30,600. Apr.7 Purchased Ford notes for $56,250.

> Martinez Company owns a building that appears on its prior year-end balance sheet at its original $572,000 cost less $429,000 accumulated depreciation. The building is depreciated on a straight-line basis assuming a 20-year life and no salvage value. Dur

> Oki Company pays $264,000 for equipment expected to last four years and have a $29,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $22,000 cash for a new component that increased the equipment’s

> Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated four- year life and a $2,400 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful l

> On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the d

> On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the s

> On October 1, Organic Farming purchases wind turbines for $140,000. The wind turbines are expected to last six years, have a salvage value of $20,000, and be depreciated using the straight-line method. 1. Compute depreciation expense for the last three m

> Tory Enterprises pays $238,400 for equipment that will last five years and have a $43,600 salvage value. By using the equipment in its operations for five years, the company expects to earn $88,500 annually, after deducting all expenses except depreciati

> NewTech purchases computer equipment for $154,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $25,000. Prepare a table showing depreciation and book value for each of the four years assuming doubl

> NewTech purchases computer equipment for $154,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $25,000. Prepare a table showing depreciation and book value for each of the four years assuming strai

> Ancore Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. July. 28 Purchased Target bonds for $30,000. Aug. 17 Purchased Kroger bonds for $105,000. 26Purchased Ford

> Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine’s useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its secon

> Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The company pays $33,500 to tear down an old building on the lot and $47,000 to fill and level the lot. It also pays construction costs of $1,452,200 for the new bu

> Rizio Co. purchases a machine for $12,500, terms 2∕10, n∕60, FOB shipping point. Rizio paid within the discount period and took the $250 discount. Transportation costs of $360 were paid by Rizio. The machine required mounting and power connections costin

> A building is acquired on January 1 at a cost of $830,000 with an estimated useful life of eight years and salvage value of $75,000. Compute depreciation expense for the first three years using the double- declining-balance method.

> Park Company reports interest expense of $145,000 and income before interest expense and income taxes of $1,885,000. (1) Compute its times interest earned. (2) Park’s competitor’s times interest earned is 4.0. Is Park in a better or worse position than i

> Selected accounts from Russel Co.âs adjusted trial balance for the year ended December 31 follow. Prepare the liabilities section of its classified balance sheet.

> Huprey Co. is the defendant in the following legal claims. For each of the following separate claims, indicate whether Huprey should (a) record a liability, (b) disclose in notes, or (c) have no disclosure. 1. Huprey can reasonably estimate that a pendin

> Refer to the transactions in Problem C-5A. Assume that although Selk owns 20% of Kildaire’s outstanding stock, circumstances indicate that it does not have a significant influence over the investee. Required Prepare journal entries to record the precedin

> Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $5,500 for medical insurance and contribute an additional $9,000 to a retirement program. Record the entry for these accrued (but unpai

> Check the Social Security Administration website (SSA.gov) to locate the Social Security office near you. Visit the office to request personal earnings and estimate form. Fill out the form and mail according to the instructions. You will receive a statem

> Review the chapterâs opening feature about Beto Perez and Zumba. Assume the company is considering expanding to Europe and that the current abbreviated income statement appears as follows. Assume also that the company currently has no i

> Assume that your team is in business and you must borrow $6,000 cash for short-term needs. You have been shopping banks for a loan, and you have the following two options. A. Sign a $6,000, 90-day, 10% interest-bearing note dated June 1. B. Sign a $6,000

> Access the February 22, 2019, filing of the December 31, 2018, annual 10-K report of McDonald’s Corporation (ticker: MCD), which is available from SEC.gov. Required 1. Identify the current liabilities on McDonald’s balance sheet as of December 31, 2018.

> Dusty Johnson is the accounting and finance manager for a manufacturer. At year-end, he must determine how to account for the company’s contingencies. His manager, Tom Pretti, objects to Johnson’s proposal to recognize an expense and a liability for warr

> Cameron Bly is a sales manager for an automobile dealership. He earns a bonus each year based on revenue from the number of autos sold in the year less related warranty expenses. Actual warranty expenses have varied over the prior 10 years from a low of

> Refer to Samsung’s balance sheet in Appendix A. List Samsung’s current liabilities as of December 31, 2018.

> Refer to Apple’s balance sheet in Appendix A. What is the amount of Apple’s accounts payable as of September 29, 2018?

> What is the combined amount (in percent) of the employee and employer Social Security tax rate? (Assume wages do not exceed $132,900 per year.)

> Selk Steel Co., which began operations in Year 1, had the following transactions and events in its long- term investments. Year 1 Jan.5 Selk purchased 60,000 shares (20% of total) of Kildaire’s common stock for $1,560,000. Oct. 23 Kildaire declared and

> Chavez Co.’s salaried employees earn four weeks’ vacation per year. Chavez estimated and must expense $8,000 of accrued vacation benefits for the year. (a) Prepare the December 31 year-end adjusting entry for accrued vacation benefits. (b) Prepare the en

> Comparative figures for Samsung, Apple, and Google follow. Required 1. Compute the times interest earned ratio for the most recent two years for Samsung using the data shown. 2. Is the change in Samsungâs timeâs intere

> Key figures for Apple and Google follow. Required 1. Compute times interest earned for the three yearsâ data shown for each company. 2. In the current year, and using times interest earned, which company appears better able to pay inter

> Use the table below and Appleâs financial statements in Appendix A to answer the following. 1. Compute times interest earned for each of the three years shown. 2. Is Apple in a good or bad position to pay interest obligations? Assume an

> Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table contains the companyâs unadjusted trial balance as of December 31, 2020. The followin

> Review the February 26 and March 25 transactions for Business Solutions (SP 4) from Chapter 4. Feb. 26 The Company paid cash to Lyn Addie for eight days’ work at $125 per day. Mar. 25 The Company sold merchandise with a $2,002 cost for $2,800 on credit t

> MLS Company has five employees, each of whom earns $1,600 per month and is paid on the last day of each month. All five have been employed continuously at this amount since January 1. On June 1, the following accounts and balances exist in its general le

> Shown here are condensed income statements for two different companies (assume no income taxes). Required 1. Compute times interest earned for Ellis Company and for Seidel Company. 2. What happens to each companyâs net income if sales i

> On November 10, Lee Co. began operations by purchasing coffee grinders for resale. The grinders have a 60-day warranty. When a grinder is returned, the company discards it and mails a new one from merchandise inventory to the customer. The company’s cost

> Fishing Guides Co. has four employees. FICA Social Security taxes are 6.2% of the first $132,900 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the companyâs FUTA

> Use the information in Problem 1-3A to prepare the current year-end balance sheet for Armani Company.

> Tavella Company’s first weekly pay period of the year ends on January 8. On that date, Tavella’s sales employees earned $34,745, office employees earned $21,225, and delivery employees earned $1,030 in salaries. The employees are to have withheld from th

> Merger Co. has 10 employees, each of whom earns $2,000 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $132,900 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% a

> Warner Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 22 Purchased $5,000 of merchandise on credit from Fox-Pro, terms n∕30. May 23 Replaced the April 22 account payable to Fox-Pro with a 60-day, 15%, $4,600 not

> Francisco Company has 10 employees, each of whom earns $2,800 per month and is paid on the last day of each month. All 10 have been employed continuously at this amount since January 1. On March 1, the following accounts and balances exist in its general

> Shown here are condensed income statements for two different companies (assume no income taxes). Required 1. Compute times interest earned for Miller Company and for Weaver Company. 2. What happens to each companyâs net income if sales

> On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from merchandise inventory to the customer. The company’s cost per new razo

> Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $132,900 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the companyâs FUTA taxes a

> On January 8, the end of the first weekly pay period of the year, Regis Company’s employees earned $22,760 of office salaries and $65,840 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.2%,

> Tyrell Co. entered into the following transactions involving short-term liabilities. Required 1. Determine the maturity date for each of the three notes described. 2. Determine the interest due at maturity for each of the three notes. Assume a 360-day ye

> Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 30% of the current monthâs net income. The income taxes are paid in the first month

> Use the information in Problem 1-3A to prepare the statement of retained earnings for Armani Company for the current year ended December 31.

> Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40-hour workweek and $15 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last

> Lenny Florita, an unmarried employee, works 48 hours in the week ended January 12. His pay rate is $14 per hour, and his wages have deductions for FICA Social Security, FICA Medicare, and federal income taxes. He claims two withholding allowances. Comput

> At the end of the first pay period of the year, Sofia earned $4,000 of salary. Withholdings from Sofia’s salary include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $500 of federal income taxes, $160 of medica

> Use the following information from separate companies a through d to compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?

> Selected accounts from Lue Co.âs adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet.

> For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in notes, or (c) have no disclosure. 1. Cruz Company guarantees the $100,000 debt of a supplier. It is not probable that the supplier will default on t

> Vander Co. provides medical care and insurance benefits to its retirees. In the current year, Vander agrees to pay $9,500 for medical insurance and contribute an additional 5% of the employees’ $200,000 gross salaries to a retirement program. (1) Record

> Prepare adjusting entries at December 31 for Maxum Company’s year-end financial statements for each of the following separate transactions. 1. Employees earn vacation pay at a rate of one day per month. Maxum estimated and must expense $13,000 of accrued

> For the year ended December 31, Lopez Company implements an employee bonus program based on company net income, which the employees share equally. Lopez’s bonus expense is computed as $14,563. 1. Prepare the journal entry at December 31 to record the bon

> Analyze each of the following transactions from Exercise 9-12: (a) the copier’s sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 5 of Year 2. Show each transaction’s effect on

> Mead Inc. began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan.20 Purchased Johnson & Johnson bonds for $20,500. Feb.9 Purchased Sony notes for

Question: Rodriguez Company pays $395,380 for real