Question: Seamus Industries Inc. buys and sells investments

> Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Lamp Light prepared the following end-of-period spreadsheet at December 31, 2018, the end of the fiscal year: Instructions: 1. Prepare an inco

> The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Instructions: 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 3. Prepare a

> Ehrlich Co. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the mon

> Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 2018, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of

> The unadjusted trial balance of Epicenter Laundry at June 30, 2018, the end of the fiscal year, follows: The data needed to determine year-end adjustments are as follows: (A) Laundry supplies on hand at June 30 are $3,600. (B) Insurance premiums expire

> The unadjusted trial balance of Lakota Freight Co. at March 31, 2018, the end of the year, follows: The data needed to determine year-end adjustments are as follows: (A) Supplies on hand at March 31 are $7,500. (B) Insurance premiums expired during yea

> Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: Standard wage per hr……

> The financial statements at the end of Wolverine Realty’s first month of operations are as follows: Instructions: By analyzing the interrelationships among the four financial statements, determine the proper amounts for A through Q

> For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2018, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time ba

> Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2018, follows: The following business transactions were completed by Elite Realty during April 2018: Apr. 1. Paid rent on o&i

> Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2018, the end of the current year, Rowland Company’s accounting clerk prepared the following unadjusted trial balance: The data

> Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2018, the end of the current year, the accountant for Good Note prepared the following trial balances: Instructions: Journalize the

> Reliable Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: For preparing the adjusting entries, the following data were assembled: • Fees ea

> On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month: A. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stoc

> Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2018. During the month, Knaus Architects completed the following transactions: A. Issued common stock to Marjorie Knaus in exchange for $30,000. B. Paid January rent for office and work

> The Lexington Group has the following unadjusted trial balance as of May 31, 2018: The debit and credit totals are not equal as a result of the following errors: A. The cash entered on the trial balance was overstated by $7,000. B. A cash receipt of $8

> On December 31, 2018, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions: 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman

> Mathews Company manufactures only one product. For the year ended December 31, the contribution margin decreased by $126,000 from the planned level of $540,000. The president of Mathews Company has expressed some concern about this decrease and has reque

> On November 1, 2018, Kris Lehman established an interior decorating business, Modern Designs. During the month, Kris completed the following transactions related to the business: Nov. 1. Kris transferred cash from a personal bank account to an account to

> Seth Feye established Reliance Financial Services on July 1, 2018. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow: Instructions: 1. Pre

> The amounts of the assets and liabilities of Journey Travel Agency at December 31, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $1,341,000 on January 1, 2018, the beginning of the year. During th

> Hercules Steel Company produces three grades of steel: high, good, and regular grade. Each of these products (grades) has high demand in the market, and Hercules is able to sell as much as it can produce of all three. The furnace operation is a bottlenec

> Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Crystal Displa

> The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to

> Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar Motors and Greenville Motors. The process consists of a lean product cell for each customer’s instrument assembly. The data that follow concern only the eCar lean cell.

> Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. In the PC board assembly operation, a number of individuals are responsible for assemb

> Soft Glow, Inc. manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest p

> During 20Y8, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Assume that as of December 31, 20Y8, the Hawking Inc. stock had a market value of $50 per share, and the Pavlov Co. stock

> The Radiology Department provides imaging services for Emergency Medical Center. One important activity in the Radiology Department is transcribing digitally recorded analyses of images into a written report. The manager of the Radiology Department deter

> Kalyagin Investments acquired $220,000 of Jerris Corp., 7% bonds at their face amount on October 1, 20Y2. The bonds pay interest on October 1 and April 1. On April 1, 20Y3, Kalyagin sold $80,000 of Jerris bonds at 103. Journalize the entries to record th

> Journalize the entries to record the following selected bond investment transactions for Starks Products: A. Purchased for cash $120,000 of Iceline, Inc. 5% bonds at 100 plus accrued interest of $1,000. B. Received first semiannual interest payment. C. So

> On January 1, 20Y9, Valuation Allowance for Trading Investments had a zero balance. On December 31, 20Y9, the cost of the trading securities portfolio was $41,500, and the fair value was $46,300. Journalize the December 31, 20Y9, adjusting journal entry

> The unadjusted and adjusted trial balances for American Leaf Company on October 31, 2018, follow: Journalize the five entries that adjusted the accounts at October 31, 2018. None of the accounts were affected by more than one adjusting entry. Ameri

> We-Sell Realty, organized as a corporation on August 1, 2018, is owned and operated by Omar Farah, the sole stockholder. How many errors can you find in the following statements for We-Sell Realty, prepared after its first month of operations? We-

> A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2018, follows: Cash receipts: Cash received from customers………………………………….$637,500 Cash received from issuing common stock…………………….62,500 Cash payments: Cash paid for operating

> On September 12, 2,000 shares of Aspen Company were acquired at a price of $50 per share plus a $200 brokerage commission. On October 15, a $0.50-per-share dividend was received on the Aspen stock. On November 10, 1,200 shares of the Aspen stock were sol

> Parilo Company acquired $170,000 of Makofske Co., 5% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $50,000 of the bonds for 96. Journalize the entries to record the fol

> Identify the errors in the following trial balance. All accounts have normal balances. Ensemble Co. Unadjusted Trial Balance For the Year Ending December 31, 2018 Debit Balances Credit Balances Cash 42,900 Accounts Receivable. 123,500 Prepaid Insura

> Imaging Services was organized on March 1, 2018. A summary of the revenue and expense transactions for March follows: Fees earned………………………………..$482,000 Wages expense……………………………..300,000 Rent expense…………………………………..41,500 Supplies expense………………………………3,600

> Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal

> Based on the data presented in Exercise 1-16, identify those items that would appear on the income statement. Data from Exercise 1-16: From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, i

> The accounts in the ledger of Atlantic Furniture Company as of July 2018 are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Prepare an unadjusted trial balance

> Based upon the data presented in Exercise 2-13, (A) prepare an unadjusted trial balance, listing the accounts in their proper order. (B) Based upon the unadjusted trial balance, determine the net income or net loss. Data from Exercise 2-13: Napa Tours

> Based upon the T accounts in Exercise 2-13, prepare the nine journal entries from which the postings were made. Journal entry explanations may be omitted. Data from Exercise 2-13: Napa Tours Co. is a travel agency. The nine transactions recorded by Nap

> Napa Tours Co. is a travel agency. The nine transactions recorded by Napa Tours during April 2018, its first month of operations, are indicated in the following T accounts: Indicate for each debit and each credit: (A) whether an asset, liability, stock

> The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common stock purchased on September 12, 20Y7, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As o

> At the end of July, the first month of the business year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (A) th

> The following table summarizes the rules of debit and credit. For each of the items A through L, indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset A B Debit Liability Stockholde

> On January 4, 20Y6, Spandella Company purchased 175,000 shares of Filington Company directly from one of the founders for a price of $30 per share. Filington has 500,000 shares outstanding, including the Spandella shares. On July 2, 20Y6, Filington paid

> As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.:

> Innerscape Interiors is owned and operated by Jackie Vargo, an interior decorator. In the ledger of Innerscape Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—stockholders’ equity, 4

> A. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity? B. Assume that the seller owes $80,000 on a loan for the lan

> The investments of Charger Inc. include a single investment: 14,500 shares of Raiders Inc. common stock purchased on February 24, 20Y1, for $38 per share including brokerage commission. These shares were classified as trading securities. As of the Decembe

> Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders’ equity: A. accounts payable B. cash C. fees earned D. land E. supplies F. wages expense

> Identify the errors in the following schedule of the cost of goods sold for the year ended May 31, 2018: Cost of goods sold: Inventory, May 31, 2018 .. Cost of merchandise purchased: $ 105,000 ...... Purchases $1,110,000 Purchases returns and allowa

> Based on the following data, determine the cost of goods sold for July: Estimated returns of July sales…………………$ 34,900 Inventory, July 1…………………………………………190,850 Inventory, July 31………………………………………..160,450 Purchases…………………………………………………1,126,000 Purchases re

> Based on the following data, determine the cost of goods sold for November: Estimated returns of November sales……………$ 14,500 Inventory, November……………………………………1 28,000 Inventory, November…………………………………..30 31,500 Purchases………………………………………………………475,000 Purc

> The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2018: Estimated returns of current year sales……………………………….$ 11,600 Inventory, May 1, 2017………………………………………………………..380,000 Inventory, April 30, 20

> For (A) through (E), identify the items designated by X and Y. A. Purchases – (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale – X = Cost

> Financial information related to Healthy Products Company for the month ended November 30, 2018, is as follows: Net income for November…………………………………….$ 93,500 Cash dividends paid during November……………………….7,000 Retained earnings, November 1, 2018………………….

> The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on accou

> The following categories represent typical process manufacturing industries: ▪ Beverages ▪ Chemicals ▪ Food ▪ Forest and paper products ▪ Metals ▪ Petroleum refining ▪ Pharmaceuticals ▪ Soap and cosmetics In groups of two or three, identify one company f

> Complete the following table by indicating for A through G whether the proper answer is debit or credit: Normal Account Increase Decrease Balance Purchases debit A B Purchases Discounts credit credit Purchases Returns and Allowances D. F Freight In

> On July 31, the close of the fiscal year, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows: Prepare the July 31 closing entries for Serbian Interiors Company. $ 115,000 Accumu

> Based on the data presented in Exercise 5-24, journalize the closing entries. Data from Exercise 5-24: On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows: A. Pr

> From the following list, identify the accounts that should be closed to Income Summary at the end of the fiscal year under a perpetual inventory system: (A) Accounts Payable, (B) Advertising Expense, (C) Cost of Goods Sold, (D) Dividends, (E) Inventory,

> On the basis of the following data, (A) journalize the adjusting entries at June 30, the end of the current fiscal year, and (B) journalize the reversing entries on July 1, the first day of the following year: 1. Wages are uniformly $66,000 for a five-day

> Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January. Use the average cost method with the following data: Work in process, January 1, 3,400 units, 75% completed…………………………………$ 23,000 Materials added during

> The increases to Work in Process—Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows: Work in process, May 1, 1,150 pounds, 40% completed……..…$ 1,700 Coffee beans added during May, 10,900 p

> The following information concerns production in the Forging Department for June. The Forging Department uses the average cost method. A. Determine the cost per equivalent unit. B. Determine cost of units transferred to Finished Goods. C. Determine the

> The charges to Work in Process—Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the average cost method, and all direct materials are placed in process during product

> The following information concerns production in the Finishing Department for May. The Finishing Department uses the average cost method. A. Determine the number of units in work in process inventory at the end of the month. B. Determine the number of

> During the first month of operations ended July 31, Head Gear Inc. manufactured 6,400 hats, of which 5,200 were sold. Operating data for the month are summarized as follows: During August, Head Gear Inc. manufactured 4,000 hats and sold 5,200 hats. Ope

> Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. A. Determine the variable costs and the variable cost amount per unit for the production and sa

> Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. A. Determine the total costs and the total cost amount per unit for the production and sale of 10,

> The procurement process for Omni Wholesale Company includes a series of activities that transforms a materials requisition into a vendor check. The process begins with a request for materials. The requesting department prepares and sends a materials requ

> Statewide Insurance Company has a process for making payments on insurance claims as follows: An activity analysis revealed that the cost of these activities was as follows: Receiving claim……â€&brvbar

> The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mixing: water, sugar, and beverage concentrate are mixed. 2. Filling: mixed beverage is filled into 12-oz. cans. 3. Packaging: p

> A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are $3,000,000. C. Prepare a value-a

> Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: Activities……………………………………………………………………..Activity Cost Billing error correction…………………………………………………

> A. Using the information in Exercise 15, identify the cost of quality classification for each activity. B. Prepare of cost of quality report. Assume sales for the period were $4,000,000. C. Interpret the cost of quality report. Data from Exercise 15: M

> Meagher Solutions Inc. manufactures memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips: Activities……………………………….……………..Activity Cost Corr

> Vintage Audio Inc. manufactures audio speakers. Each speaker requires $48 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor………………………

> The demand for aloe vera hand lotion, one of numerous products manufactured by Smooth Skin Care Products Inc., has dropped sharply because of recent competition from a similar product. The company’s chemists are currently completing tests of various new

> Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $16. The budgeted conversion cost for the year is $308,000 for 2,200 production hours. A unit of Style Omega requires 18 m

> Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $600,000 for 2,000 production hours. Ea

> Pinnacle Technologies has recently implemented a lean manufacturing approach. A production manager has approached the controller with the following comments: I am very upset with our accounting system now that we have implemented our new lean manufacturi

> The management of Grill Rite Burger fast-food franchise wants to provide hamburgers quickly to customers. It has been using a process by which precooked hamburgers are prepared and placed under hot lamps. These hamburgers are then sold to customers. In t

> Quickie Designs Inc. uses teams in the manufacture of lightweight wheelchairs. Two features of its team approach are team hiring and peer reviews. Under team hiring, the team recruits, interviews, and hires new team members from within the organization.

> The following is an excerpt from an article discussing supplier relationships with the Big Three North American automakers. “The Big Three select suppliers on the basis of lowest price and annual price reductions,” said Neil De Koker, president of the Or

> Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows: Process Step 1……………………………5

> Flint Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 30 parts. A part requires 5 m

> Hammond Inc. has analyzed the setup time on its computer-controlled lathe. The setup requires changing the type of fixture that holds a part. The average setup time has been 135 minutes, consisting of the following steps: Turn off machine and remove fix

> Palm Pals Inc. manufactures toy stuffed animals. The direct labor time required to cut, sew, and stuff a toy is 12 minutes per unit. The company makes two types of stuffed toys—a lion and a bear. The lion is assembled in lot sizes of 40 units per batch,

> During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Instructions: 1. Prepare an income statement based on the absorp

> Active Apparel Company manufactures various styles of men’s casual wear. Shirts are cut and assembled by a workforce that is paid by piece rate. This means that they are paid according to the amount of work completed during a period of time. To illustrat

> Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $125,500. The freight and installation costs for the equipment are $1,600. If purchased, annual repairs and maintenance are estimated to be $2,50

> The financial statements for Nike, Inc. , are presented in Appendix E at the end of the text. The following additional information is available (in thousands): Accounts receivable at May 31, 2013……………………….$ 3,117 Inventories at May 31, 2013…………………………………

> The chief executive officer (CEO) of Platnum Inc. has just returned from a management seminar describing the benefits of the lean philosophy. The CEO issued the following statement after returning from the conference: This company will become a lean manu

> The actual variable cost of goods sold for a product was $140 per unit, while the planned variable cost of goods sold was $136 per unit. The volume increased by 2,400 units to 14,000 actual total units. Determine (A) the variable cost quantity factor and