Question: Susan Lewis, owner of a florist shop,

> The following data have been collected by capital budgeting analysts at Sunrise Beach, Inc., concerning an investment in an expansion of the company’s product line. Analysts estimate that an investment of $400,000 will be required to initiate the project

> J. Carrie established Carrie’s Photo Tours during June of this year. The accountant prepared the following chart of accounts:The following transactions occurred during the month of June:a. Carrie deposited $30,000 cash in a bank account

> The journal entries for May, Kiddy Day Care’s second month of business, have been journalized in the general journal in the Working Papers and in CengageNow. The balances of the accounts as of April 30 have been recorded in the general ledger in the Work

> The journal entries for August, Carley’s Car Care’s second month of business, have been journalized in the general journal in the Working Papers and in CengageNow. The balances of the accounts as of July 31 have been recorded in the general ledger in the

> Following is the chart of accounts of Smith Financial Services:Assets111 Cash113 Accounts Receivable115 Supplies117 Prepaid Insurance124 Office FurnitureLiabilities221 Accounts PayableOwner’s Equity311 A. Smith, Capital312 A. Smith, DrawingRevenue411 Pro

> Following is the chart of accounts of Sanchez Realty Company:Assets111 Cash113 Accounts Receivable115 Supplies117 Prepaid Insurance124 Office FurnitureLiabilities221 Accounts PayableOwner’s Equity311 T. Sanchez, Capital312 T. Sanchez, DrawingRevenue411 P

> The completed work sheet for Valerie Insurance Agency as of December 31 is presented in your Working Papers or in CengageNow, along with the general ledger as of December 31 before adjustments.RequiredIf you are using working papers, complete the followi

> The partial work sheet for Ho Consulting for May follows:RequiredIf you are using working papers, complete the following:1. a. Write the owner’s name on the Capital and Drawing T accounts.b. Record the account balances in the T accounts

> After the accountant posted the adjusting entries for B. Lyon, Designer, the work sheet contained the following account balances on May 31:RequiredIf you are using working papers, complete the following:1. a. Write the owner’s name on t

> The completed work sheet for Oliver Tour Company as of December 31 is presented in your Working Papers or in CengageNow, along with the general ledger as of December 31 before adjustments.RequiredIf you are using Working Papers, complete the following:1.

> The partial work sheet for Emil Consulting for June is as follows:RequiredIf you are using Working Papers, complete the following:1. a. Write the owner’s name on the Capital and Drawing T accounts.b. Record the account balances in the T

> After the accountant posted the adjusting entries for M. Wally, Designer, the work sheet contained the following account balances on May 31:RequiredIf you are using Working Papers, complete the following:1. a. Write the owner’s name on

> You are to record transactions in a two-column general journal. Assume that the fiscal period is one month. You will then be able to complete all of the steps in the accounting cycle.When you are analyzing the transactions, think them through by visualiz

> Following is the chart of accounts of Vance Rehab Clinic:Assets111 Cash113 Accounts Receivable115 Supplies117 Prepaid Insurance124 EquipmentLiabilities221 Accounts PayableOwner’s Equity311 J. Vance, Capital312 J. Vance, DrawingRevenue411 Professional Fee

> You are to record transactions in a two-column general journal. Assume that the fiscal period is one month. You will then be able to complete all of the steps in the accounting cycle.When you are analyzing the transactions, think them through by visualiz

> Tom’s Catering Services prepared the following work sheet for the year ended December 31, 20--.Required1. Complete the work sheet. (Skip this step if using CLGL.)2. Prepare an income statement.3. Prepare a statement of ownerâ&#128

> The account balances of Miss Beverly’s Tutoring Service as of June 30, the end of the current fiscal year, are as follows:Required1. Data for the adjustments are as follows:a. Expired or used up insurance, $470.b. Depreciation expense o

> Williams Mechanic Services prepared the following work sheet for the year ended March 31, 20--.Required1. Complete the work sheet. (Skip this step if using CLGL.)2. Prepare an income statement.3. Prepare a statement of owner’s equity. A

> The account balances of Bryan Company as of June 30, the end of the current fiscal year, are as follows:Required1. Data for the adjustments are as follows:a. Expired or used up insurance, $495b. Depreciation expense on equipment, $670.c. Depreciation exp

> Here are the accounts in the ledger of Misha’s Jewel Box, with the balances as of December 31, the end of its fiscal year.Cash ……………………………………………………………………………………….. $ 13,242Accounts Receivable …………………………………………………………………… 3,984Merchandise Inventory ………………………

> The trial balance of Jillson Company as of December 31, the end of its current fiscal year, is as follows:Here are the data for the adjustments.a–b. Merchandise Inventory at December 31, $54,845.00.c. Store supplies inventory (on hand),

> The balances of the ledger accounts of Beldren Home Center as of December 31, the end of its fiscal year, are as follows:Cash ……………………………………………………………………………………………… $ 10,592Accounts Receivable …………………………………………………………………………. 43,962Merchandise Inventory ……………

> Kay’s Agency has the following payroll information for the week ended December 14. State income tax is computed as 20 percent of federal income tax.Assumed tax rates are as follows:a. FICA: Social Security, (employer) 6.2 percent (0.062

> Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax.Assumed tax rates are as follows:a. FICA: Social Security, (employer) 6.2 percent (0.062) a

> Following is the chart of accounts of the C. Lucern Clinic:Assets111 Cash113 Accounts Receivable115 Supplies117 Prepaid Insurance124 EquipmentRevenue411 Professional FeesExpenses511 Salary Expense512 Rent Expense513 Laboratory Expense514 Utilities Expens

> West Bicycle Shop uses a three-column purchases journal. The company is located in Topeka, Kansas. In addition to a general ledger, the company also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as f

> The following transactions relate to Khan, Inc., a sporting goods wholesaler, during November of this year. Terms of sale are 2/10, n/30. The company is located in Denver, Colorado.Nov. 3 Sold merchandise on account to Spence Tennis Shop, invoice no. 542

> Jacobs Company had the following transactions that occurred during February of this year:Feb. 1 Issued Ck. No. 4311, $637, to Barker Company for invoice no. 3113E, recorded previously for $650, less cash discount of $13.2 Issued Ck. No. 4312 to Bonilla E

> Patterson Appliance uses a three-column purchases journal. The company is located in Fresno, California. In addition to a general ledger, Patterson Appliance also uses an accounts payable ledger. Transactions for January related to the purchase of mercha

> C. R. McIntyre Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year

> The following transactions relate to Hawkins, Inc., an office store wholesaler, during June of this year. Terms of sale are 2/10, n/30. The company is located in Los Angeles, California.June 1 Sold merchandise on account to Hendrix Office Store, invoice

> MacDonald Bookshop had the following transactions that occurred during February of this year:Feb. 3 Issued Ck. No. 4312, $892, to Kent Company for invoice no. 68172, recorded previously for $910.20, less 2 percent cash discount.4 Issued Ck. No. 4313 to K

> Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year:May 1

> The trial balance of Hadden Company as of December 31, the end of its current fiscal year, is as follows:Here are the data for the adjustments.a–b. Merchandise Inventory at December 31, $64,742.80.c. Store supplies inventory (on hand),

> Tom’s Catering Services prepared the following work sheet for the year ended December 31, 20--.Required1. Complete the work sheet. (Skip this step if using CLGL.)2. Prepare an income statement.3. Prepare a statement of ownerâ&#128

> The chart of accounts of Ethan Academy is shown here, followed by the transactions that took place during December of this year.Assets111 Cash113 Accounts Receivable114 Supplies115 Prepaid Insurance124 Equipment127 FurnitureLiabilities221 Accounts Payabl

> The account balances of Miss Beverly’s Tutoring Service as of June 30, the end of the current fiscal year, are as follows:1. Data for the adjustments are as follows:a. Expired or used up insurance, $470.b. Depreciation expense on equipm

> Here is the partial work sheet for Meyer Mountain Shop.Required1. Prepare a statement of owner’s equity (no additional investment).2. Prepare a balance sheet.3. Determine the amount of the working capital.4. Determine the current ratio

> Here is the partial work sheet for Eckland Stereo.Required1. Prepare a statement of owner’s equity (no additional investment).2. Prepare a balance sheet.3. Determine the amount of the working capital.4. Determine the current ratio (carr

> The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal year, are as follows:Cash …………………………………………………………………………………….. $ 12,482Accounts Receivable ………………………………………………………………… 38,962Merchandise Inventory …………………………………

> The accounts and their balances in the ledger of Markey’s Mountain Shop as of December 31, the end of its fiscal year, are as follows:Cash ……………………………………………………………………………………… $ 12,840Accounts Receivable …………………………………………………………………… 3,242Merchandise Inventory

> On May 1, B. Bangle opened Self-Wash Laundry. His accountant listed the following chart of accounts:CashSuppliesPrepaid InsuranceEquipmentFurniture and FixturesAccounts PayableB. Bangle, CapitalB. Bangle, DrawingLaundry RevenueWages ExpenseRent ExpenseUt

> S. Myers, a speech therapist, opened a clinic in the name of Myers Clinic. Her accountant prepared the following chart of accounts:The following transactions occurred during June of this year:a. Myers deposited $40,000 in a bank account in the name of th

> B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts:The following transactions occurred during the month:a. Kelso deposited $45,000 in a bank account in the name of the business.b. P

> On July 1, K. Resser opened Resser’s Business Services. Resser’s accountant listed the following chart of accounts:CashSuppliesPrepaid InsuranceEquipmentFurniture and FixturesAccounts PayableK. Resser, CapitalK. Resser, DrawingBusiness Services RevenueWa

> D. Johnston, a physical therapist, opened Johnston’s Clinic. His accountant provided the following chart of accounts:The following transactions occurred during July of this year:a. Johnston deposited $35,000 in a bank account in the nam

> The chart of accounts of the Barnes School is shown here, followed by the transactions that took place during October of this year.Assets111 Cash113 Accounts Receivable115 Prepaid Insurance124 Equipment127 FurnitureLiabilities221 Accounts PayableOwner’s

> Jordan Company provided the following information:Current assets:Cash ………………………………………………………………….. $12,450,000Accounts receivable ………………………………………………. 8,740,000Inventories ……………………………………………………………. 8,150,000Total current assets …………………………………………… $29,340,000

> The following information pertains to Chacon Inc. for last year:Beginning inventory in units ……………………………………………. 5,000Units produced ……………………………………………………………… 20,000Units sold ……………………………………………………………………… 23,700Costs per unit:Direct materials ……………………………………

> The controller for Beckham Company believes that the number of direct labor hours is associated with overhead cost. He collected the following data on the number of direct labor hours and associated factory overhead cost for the months of January through

> Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed but found th

> Bender Automotive Works Inc. manufactures a variety of front-end assemblies for automobiles. A front-end assembly is the unified front of an automobile that includes the headlamps, fender, and surrounding metal/plastic. Bender has two producing departmen

> At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, $2,750; direct labor cost, $5,355. The average

> Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move’s other customers, and

> The Lubbock plant of Morril’s Small Motor Division produces a major subassembly for a 6.0 horsepower motor for lawn mowers. The plant uses a standard costing system for production costing and control. The standard cost sheet for the subassembly follows:D

> Willow Company produces lawn mowers. One of its plants produces two versions of mowers: a basic model and a deluxe model. The deluxe model has a sturdier frame, a higher horsepower engine, a wider blade, and mulching capability. At the beginning of the y

> Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A’s production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers.

> Suppose that Kicker had the following sales and cost experience (in thousands of dollars) for May of the current year and for May of the prior year:In May of the prior year, Kicker started an intensive quality program designed to enable it to build origi

> Millie Company produces a product that passes through an assembly process and a finishing process. All manufacturing costs are added uniformly for both processes. The following information was obtained for the assembly department for June:a. WIP, June 1,

> Willison Company produces stuffed toy animals; one of these is Betty Rabbit. Each rabbit takes 0.2 yards of fabric and six ounces of poly fiberfill. Fabric costs $3.50 per yard, and poly fiberfill is $0.05 per ounce. Willison has budgeted production of s

> Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows:Currently, overhead is applied on the basi

> The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information:a. Of all sales, 40% are cash sales.b. Of credit sales, 45% are collected within the month of sale. Ha

> Alfombra Inc. manufactures throw rugs. The throw-rug department weaves cloth and yarn into throw rugs of various sizes. Alfombra uses the weighted average method. Materials are added uniformly throughout the weaving process. In August, Alfombra switched

> Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controller’s department, has convinced management that overhead costs can be better estimated an

> Cuneo Company’s income statements for the last 3 years are as follows:Required:1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest t

> Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource d

> Orchard Fresh Inc. purchases fruit from numerous growers and packs fruit boxes and fruit baskets for sale. Orchard Fresh has developed the following flexible budget for overhead for the coming year. Activity level is measured in direct labor hours.Requir

> Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May:Direct labor cost ……………………………………………………………………………..…… $10,500Purchases of raw materials …………………………………………………………………… 15,000Supplies

> Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming five months follow:January â&#128

> Botella Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The following standards for producing one case of bottles have been established:Direct materials (4 lbs. @ $0.95) ……………………………. $ 3.80Direct labor (1.25 hours

> Phono Company manufactures a plastic toy cell phone. The following standards have been established for the toy’s materials and labor inputs:During the first week of July, the company had the following results:Units produced â&#128

> Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been given the company’s financial statement

> Grammatico Company has just completed its third year of operations. The income statement is as follows:Sales …………………………………………………………………………… $ 2,460,000Less: Cost of goods sold ………………………………………………… (1,410,000)Gross profit margin ……………………………………………………… $ 1,05

> Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controller’s department, has convinced management that overhead costs can be better estimated an

> Foster Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines (to replace an existing manual system). The outlay required is $3,500,000. The NC equipment will la

> Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.a. Cobre Company is considering the purchase of new equipment that will speed up the process for extracting copper. The equipment will cost $3,600,000 and

> The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations:Beginning balances:Inventory ……………………………………………… $200,000Accounts receivable ………………………………… 300,000Ending balances:Inventory ……

> Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom

> Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. Basic Diet is a standard mixture for healthy dogs. Special Diet is a reduced protein formu

> The maternity wing of the city hospital has two types of patients: normal and cesarean. The standard quantities of labor and materials per delivery for 2013 are:\[/\]/The standard price paid per pound of direct materials is $10. The standard rate for lab

> Basu Company produces two types of sleds for playing in the snow: basic sled and aerosled. The projected income for the coming year, segmented by product line, follows:The selling prices are $30 for the basic sled and $60 for the aerosled.Required:1. Com

> Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non JIT distributors. The JIT distributor places small, frequent orders, and the non JIT distributor tends to place larger, less frequent orders. Both types of distribu

> Jasper Company provided the following information for last year:Sales in units ………………………………………………. 280,000Selling price ………………………………………………………. $ 12Direct materials …………………………………………… 180,000Direct labor …………………………………………………. 505,000Manufacturing overhead …

> Zanda Drug Corporation buys three chemicals that are processed to produce two types of analgesics used as ingredients for popular over-the-counter drugs. The purchased chemicals are blended for two to three hours and then heated for 15 minutes. The resul

> Booth Manufacturing has provided the following financial statements.\[/\]/Booth ManufacturingIncome StatementFor the Year Ended December 31, 2014Revenues …………â€&br

> Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients:Required:1. Determine the total nursing costs assigned to each patient category.2. Output is measured in patient days. Assuming that

> The following information pertains to Chacon Inc. for last year:Beginning inventory in units ………………………………………. 5,000Units produced ………………………………………………………… 20,000Units sold …………………………………………………………………. 23,700Costs per unit:Direct materials …………………………………………………

> Dr. Whitley Avard, a plastic surgeon, had just returned from a conference in which she learned of a new surgical procedure for removing wrinkles around eyes, reducing the time to perform the normal procedure by 50%. Given her patient-load pressures, Dr.

> Booth Manufacturing has provided the following financial statements.Booth ManufacturingIncome StatementFor the Year Ended December 31, 2014Revenues ……………&

> Golding Company, a job-order costing firm, worked on three jobs in July. Data are as follows:Overhead is applied to jobs at the rate of $16 per machine hour. By July 31, Jobs 106 and 108 were completed. Jobs 102 and 106 were sold. Job 107 remained in pro

> Ondi Airlines is interested in acquiring a new aircraft to service a new route. The route will be from Tulsa to Denver. The aircraft will fly one round-trip daily except for scheduled maintenance days. There are 15 maintenance days scheduled each year. T

> The following financial statements were provided by Roberts Company:\]/At the end of 2014, Roberts purchased some additional equipment for $20,000.Required:Calculate operating cash flows using the direct method

> Mino Inc. manufactures chocolate syrup in three departments: Cooking, Mixing, and Bottling. Mino uses the weighted average method. The following are cost and production data for the cooking department for April (Note: Assume that units are measured in ga

> Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.08 per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings fo

> Juroe Company provided the following income statement for last year:Sales …………………………………………………………..……… $11,300,000Cost of goods sold ………………………………………………… 3,000,000Gross margin …………………………………………….……… $ 8,300,000Operating expenses ……………………………………………… 3,800,

> In March, Chilton Company purchased materials costing $25,000 and incurred direct labor cost of $10,000. Overhead totaled $42,000 for the month. Information on inventories was as follows:\[/\]/Required:1. What was the cost of direct materials used in Mar

> Knitpix Products is a division of Parker Textiles Inc. During the coming year, it expects to earn income of $310,000 based on sales of $3.45 million. Without any new investments, the division will have average operating assets of $3 million. The division

> Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move’s other customers, and

> The following information was obtained for the grinding department of Harlan Company for May:a. BWIP had 91,500 units, 30% complete with respect to manufacturing costs.b. EWIP had 25,200 units, 25% complete with respect to manufacturing costs.c. Started

> Alard Company produces blenders and coffee makers. During the past year, the company produced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for Alard totaled $340,000, of which $184,000 can be avoided if the blenders are not produced and