Question: The adjustments columns of the worksheet for

> The following control procedures are used at Torres Company for over-the-counter cash receipts. 1. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stockroom until it is deposited in the bank. 2. All over-

> Eve Herschel is the owner of Herschel’s Pizza. Herschel’s is operated strictly on a carryout basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. While at the counter, the customer can see other employees making

> Hamid’s Hardware reported cost of goods sold as follows. Hamid’s made two errors: (1) 2018 ending inventory was overstated $3,000, and (2) 2019 ending inventory was understated $6,000. Instructions Compute the corre

> (a) Identify the three activities that pertain to a petty cash fund, and indicate an internal control principle that is applicable to each activity. (b) When are journal entries required in the operation of a petty cash fund?

> Inventory data for Kaleta Company are presented in E6-7. Data from E6-7: Instructions (a) Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (Round average cost per unit to nearest cent.) (b) Will the resu

> Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Lisa had 80 units in ending inventory. Instructions (a) Compute the cost of the ending inve

> Kaleta Company reports the following for the month of June. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO. (b) Which costing method gives the higher ending inventory? Why? (c) Which met

> Xiong Co. uses a periodic inventory system. Its records show the following for the month of May, in which 65 units were sold Instructions Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. Prove the amount al

> Linda’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Linda’s purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowb

> On December 1, Marzion Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $100. Another, with serial

> Gato Inc. had the following inventory situations to consider at January 31, its year-end. (a) Goods held on consignment for Steele Corp. since December 12. (b) Goods shipped on consignment to Logan Holdings Inc. on January 5. (c) Goods shipped to a custo

> Rachel Warren, an auditor with Laplante CPAs, is performing a review of Schuda Company’s inventory account. Schuda did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at

> Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing so, management decides that further discussions with Josef’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end bala

> Presented below are selected accounts for B. Midler Company as reported in the worksheet at the end of May 2019. Ending inventory is $75,000. Instructions Complete the worksheet by extending amounts reported in the adjusted trial balance to the appropr

> Fraud experts often say that there are three primary factors that contribute to employee fraud. Identify the three factors and explain what is meant by each.

> The following information is related to Lor Co. 1. On April 5, purchased merchandise on account from Garcia Company for $19,000, terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $800 on merchandise purchased from Garcia. 3. On

> This information relates to Rana Co. 1. On April 5, purchased merchandise on account from Craig Company for $25,000, terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $900 on merchandise purchased from Craig Company. 3. On Apri

> Below is a series of cost of goods sold sections for companies B, F, L, and R. Instruction Fill in the lettered blanks to complete the cost of goods sold sections. B F L R $ 70 $ 150 1,620 $1,000 (g) 290 $ (j) 43,590 (k) 41,090 2,240 (1) 49,530 6,2

> On January 1, 2019, Christel Madan Corporation had inventory of $50,000. At December 31, 2019, Christel Madan had the following account balances. Freight-in……………………………………. $ 4,000 Purchases…………………………………..509,000 Purchase discounts…………………………6,000 Purchas

> The trial balance of D. Savage Company at the end of its fiscal year, August 31, 2019, includes these accounts: Inventory $17,200, Purchases $149,000, Sales Revenue $190,000, Freight-In $5,000, Sales Returns and Allowances $3,000, Freight-Out $1,000, and

> The trial balance columns of the worksheet using a perpetual inventory system for Marquez Company at June 30, 2019, are as follows. Other data: Operating expenses incurred on account, but not yet recorded, total $1,500. Instructions Enter the trial ba

> Presented below are selected accounts for Salazar Company as reported in the worksheet using a perpetual inventory system at the end of May 2019. Instructions Complete the worksheet by extending amounts reported in the adjusted trial balance to the app

> Financial information is presented below for three different companies. Instructions Determine the missing amounts. Allen Bast Corr Cosmetics Grocery Wholesalers Sales revenue $90,000 (a) 86,000 56,000 (b) 15,000 (c) 4,000 (d) $ (e) 5,000 95,000 (f

> Presented below is financial information for two different companies. Instructions (a) Determine the missing amounts. (b) Determine the gross profit rates. (Round to one decimal place.) May Company Reed Company Sales revenue $90,000 (a) 87,000 56,00

> In 2019, Matt Cruz Company had net sales of $900,000 and cost of goods sold of $522,000. Operating expenses were $225,000, and interest expense was $11,000. Cruz prepares a multiple-step income statement. Instructions (a) Compute Cruz’s gross profit. (b

> Explain how these principles apply to cash disbursements: (a) physical controls, and (b) human resource controls.

> An inexperienced accountant for Huang Company made the following errors in recording merchandising transactions. 1. A $195 refund to a customer for faulty merchandise was debited to Sales Revenue $195 and credited to Cash $195. 2. A $180 credit purchase

> In its income statement for the year ended December 31, 2019, Lemere Company reported the following condensed data. Operating expenses $ 725,000 Interest revenue $ 28,000 Cost of goods sold 1,289,000 Loss on disposal of plant assets 17,000

> Presented below is information for Furlow Company for the month of March 2019. Cost of goods sold $212,000 Rent expense $ 32,000 Freight-out 7,000 Sales discounts 8,000 Insurance expense 6,000 Sales returns and 13,000 Allowances Salar

> Presented below is information related to Garland Co. for the month of January 2019. Ending inventory per Insurance expense $ 12,000 perpetual records $ 21,600 Rent expense 20,000 Ending inventory actually Salaries and wages expense 55,000 on

> Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $60,000, Inventory $15,000, Operating Expenses $29,000, Sales Revenue $115,000, Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of i

> The adjusted trial balance of Tsai Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2019: Sales Revenue $820,000, Freight-Out $16,000, Sales Returns and Allowances $25,000, and Sales Discounts $13,000. Instr

> Presented below are transactions related to Bogner Company. 1. On December 3, Bogner Company sold $570,000 of merchandise on account to Maris Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000. 2. On December 8, Mari

> On June 10, Tuzun Company purchased $8,000 of merchandise on account from Epps Company, FOB shipping point, terms 2/10, n/30. Tuzun pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Epps for credit on June 12. The fai

> On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Sept. 6 Purchased with cash 80 calculators at $20 each f

> Information related to Harwick Co. is presented below. 1. On April 5, purchased merchandise on account from Botham Company for $23,000, terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $900 on merchandise purchased from Botham

> Assume that Kohl’s installed new electronic cash registers in its department stores. How do cash registers improve internal control over cash receipts?

> Mr. Etemadi has prepared the following list of statements about service companies and merchandisers. 1. Measuring net income for a merchandiser is conceptually the same as for a service company. 2. For a merchandiser, sales less operating expenses is cal

> The following are the major balance sheet classifications. Current assets (CA) Current liabilities (CL) Long-term investments (LTI) Long-term liabilities (LTL) Property, plant, and equipment (PPE) Stockholders’ equity (SE) Intangible assets (IA) In

> The adjusted trial balance for Martell Bowling Alley at December 31, 2019, contains the following accounts. Instructions (a) Prepare a classified balance sheet; assume that $22,000 of the note payable will be paid in 2020. (b) Comment on the liquidity o

> Keenan Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. 1. A payment on account of $840 to a creditor was debited to Acco

> Andrew Clark Company discovered the following errors made in January 2019. 1. A payment of Salaries and Wages Expense of $700 was debited to Equipment and credited to Cash, both for $700. 2. A collection of $1,000 from a client on account was debited to

> Selected accounts for Heather’s Salon are presented below. All June 30 postings are from closing entries. Instructions (a) Prepare the closing entries that were made. (b) Post the closing entries to Income Summary. Salaries and Wag

> Janis Engle has prepared the following list of statements about the accounting cycle. 1. “Journalize the transactions” is the first step in the accounting cycle. 2. Reversing entries are a required step in the accounting cycle. 3. Correcting entries do n

> The adjusted trial balance for Plevin Company is presented in E4-8. Reference Data E4-8: Instructions (a) Prepare an income statement and a retained earnings statement for the year. (b) Prepare a classified balance sheet at July 31. PLEVIN COMPANY

> Plevin Company ended its fiscal year on July 31, 2019. The company’s adjusted trial, balance as of the end of its fiscal year is shown below. Instructions (a) Prepare the closing entries using page J15. (b) Post to the Retained Earnings

> Kay Magill Company had the following adjusted trial balance. Instructions (a) Prepare closing entries at June 30, 2019. (b) Prepare a post-closing trial balance. KAY MAGILL COMPANY Adjusted Trial Balance For the Month Ended June 30, 2019 Adjusted T

> As the company accountant, the management of Nickle Company asks you to explain (a) the concept of reasonable assurance in internal control and (b) the importance of the human factor in internal control.

> Selected worksheet data for Elsayed Company are presented below. Instructions (a) Fill in the missing amounts. (b) Prepare the adjusting entries that were made. Adjusted Account Titles Trial Balance Trial Balance Dr. Cr. Dr. Cr. Accounts Receivable

> Worksheet data for DeSousa Company are presented in E4-2. Instructions (a) Journalize the closing entries at April 30. (b) Post the closing entries to Income Summary and Retained Earnings. (Use T-accounts.) (c) Prepare a post-closing trial balance at Ap

> Worksheet data for DeSousa Company are presented in E4-2. Instructions Prepare an income statement, a retained earnings statement, and a classified balance sheet.

> The adjusted trial balance columns of the worksheet for DeSousa Company are as follows. Instructions Complete the worksheet. DESOUSA COMPANY Worksheet (partial) For the Month Ended April 30, 2019 Adjusted Trial Income Balance Statement Balance Sheet

> The trial balance columns of the worksheet for Nanduri Company at June 30, 2019, are as follows. Other data: 1. A physical count reveals $500 of supplies on hand. 2. $100 of the unearned revenue is still unearned at month-end. 3. Accrued salaries are $21

> The following data are taken from the comparative balance sheets of Cascade Billiards Club, which prepares its financial statements using the accrual basis of accounting. Members are billed based upon their use of the club’s facilitie

> The adjusted trial balance for Frinzi Company is given in E3-17. Data from E3-17: Instructions Prepare the income and retained earnings statements for the year and the balance sheet at August 31. FRINZI COMPANY Trial Balance August 31, 2019 Before A

> The trial balances before and after adjustment for Frinzi Company at the end of its fiscal year is presented below. Instructions Prepare the adjusting entries that were made. FRINZI COMPANY Trial Balance August 31, 2019 Before After Adjustment Adjus

> Greenock Limited has the following information available for accruals for the year ended December 31, 2019. The company adjusts its accounts annually. 1. The December utility bill for $425 was unrecorded on December 31. Greenock paid the bill on January

> (a) Explain the control principle of independent internal verification. (b) What practices are important in applying this principle?

> Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2019. 1. Purchased a 1-year insurance policy on June 1 for $1,800 cash. 2. Paid $6,500 on August 31 for 5 months’ rent in advanc

> On December 31, 2019, Waters Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $150,000, total liabilities $70,000, and stockholders’ e

> The ledger of Armour Lake Lumber Supply on July 31, 2019, includes the selected accounts below before adjusting entries have been prepared. An analysis of the company’s accounts shows the following. 1. The notes payable pays interest a

> Selected accounts of Koffman Company are as follows. Instructions After analyzing the accounts, journalize (a) the July transactions and (b) the adjusting entries that were made on July 31. (Hint: July transactions were for cash.) Supplies Expens

> A partial adjusted trial balance of Gehring Company at January 31, 2019, shows the following. Instructions Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry and $1,

> The trial balance for Pioneer Advertising Inc. is shown in Illustration 3-3 (page 101). Instead of the adjusting entries shown in the text at October 31, assume the following adjustment data. 1. Supplies on hand at October 31 total $500. 2. Expired insur

> Robin Shalit, D.D.S., opened a dental practice on January 1, 2019. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $875 of such services were perf

> The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. An analysis of the accounts shows the following. 1. The equipment depreciates $400 per

> Lei Company accumulates the following adjustment data at December 31. 1. Services performed but unbilled total $1,000. 2. Supplies of $300 have been used. 3. Utility expenses of $225 are unpaid. 4. Services performed of $260 collected in advance. 5. Sala

> Verne Cova Company has the following balances in selected accounts on December 31, 2019. Accounts Receivable……………………………………$ –0– Accumulated Depreciation—Equipment………….–0– Equipment…………………………………………………. 7,000 Interest Payable…………………………………………….–0– Notes Pay

> (a) Rochelle Company ships merchandise to Jay Company on December 30. The merchandise reaches the buyer on January 6. Indicate the terms of sale that will result in the goods being included in (1) Rochelle’s December 31 inventory, and (2) Jay’s December

> (a) Who are internal users of accounting data? (b) How does accounting provide relevant data to these users?

> Hart Corporation encounters the following situations: 1. Hart collects $1,300 from a customer in 2019 for services to be performed in 2020. 2. Hart incurs utility expense which is not yet paid in cash or recorded. 3. Hart’s employees worked 3 days in 201

> On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue. If this basis were used, it would mean that billions in unrecorded liabilities would have to be booked, and the feder

> Ian Muse has prepared the following list of statements about the time period assumption. 1. Adjusting entries would not be necessary if a company’s life were not divided into artificial time periods. 2. The IRS requires companies to fi le annual tax retu

> Beyers Corporation provides security services. Selected transactions for Beyers are presented below. Oct. 1 Issued common stock in exchange for $66,000 cash from investors. 2 Hired part-time security consultant. Salary will be $2,000 per month. First day

> The accounts in the ledger of Time Is Money Delivery Service contain the following balances on July 31, 2019. Accounts Receivable $10,642 Prepaid Insurance $ 1,968 Accounts Payable 8,396 Maintenance and Repairs Expense 961 Cash ? Service Reve

> The bookkeeper for Brooks Equipment Repair made a number of errors in journalizing and posting, as described below. 1. A credit posting of $450 to Accounts Receivable was omitted. 2. A debit posting of $750 for Prepaid Insurance was debited to Insurance

> Selected transactions for Alvarado Company during its fi rst month in business are presented below. Sept. 1 Stockholders invested $10,000 cash in the business in exchange for common stock. 5 Purchased equipment for $12,000 paying $4,000 in cash and the b

> Presented below is the ledger for Higgs Co. Instructions (a) Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20, and provide explanations for each. (b) Determine the October 31 balance for each of the accounts abo

> The T-accounts below summarize the ledger of Santana Landscaping Company at the end of its first month of operations. Instructions (a) Prepare the complete general journal (including explanations) from which the postings to Cash were made. (b) Prepare

> Selected transactions from the journal of Kati Tillman, investment broker, are presented below. Instructions (a) Post the transactions to T-accounts. (b) Prepare a trial balance at August 31, 2019. Date Account Titles and Explanation Ref. Debit Cre

> Both the gross profit method and the retail inventory method are based on averages. For each method, indicate the average used, how it is determined, and how it is applied.

> Meghan Selzer has prepared the following list of statements about the general ledger. 1. The general ledger contains all the asset and liability accounts, but no stockholders’ equity accounts. 2. The general ledger is sometimes referred to as simply the

> On April 1, Adventures Travel Agency, Inc. began operations. The following transactions were completed during the month. 1. Stockholders invested $24,000 in the business in exchange for common stock. 2. Obtained a bank loan for $7,000 by issuing a note p

> Selected transactions for Sophie’s Dog Care are as follows during the month of March. March 1 Paid monthly rent of $1,200. 3 Performed services for $140 on account. 5 Performed services for cash of $75. 8 Purchased equipment for $600. The company paid c

> Leppard Enterprises had the following selected transactions. 1. Kim Leppard invested $5,000 cash in the business in exchange for common stock. 2. Paid office rent of $950. 3. Performed consulting services and billed a client $4,700. 4. Declared and paid

> Fredo Industries had the following transactions. 1. Borrowed $5,000 from the bank by signing a note. 2. Paid $2,500 cash for a computer. 3. Purchased $450 of supplies on account. Instructions (a) Indicate what accounts are increased and decreased by eac

> Transaction data for Lexington Real Estate Agency are presented in E2-4. Reference Data E2-4: Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $20,000 in exchange for common stock. 2 Hires an administrative as

> Presented below is information related to Lexington Real Estate Agency. Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $20,000 in exchange for common stock. 2 Hires an administrative assistant. 3 Purchases of

> Data for L. Takemoto, interior decorating, are presented in E2-2. Reference Data E2-2: Jan. 2 Stockholders invested $15,000 cash in the business in exchange for common stock. 3 Purchased used car for $8,200 cash for use in the business. 9 Purchased s

> Selected transactions for L. Takemoto, an interior decorating firm, in its first month of business, are shown below. Jan. 2 Stockholders invested $15,000 cash in the business in exchange for common stock. 3 Purchased used car for $8,200 cash for use in

> Faith Dillon has prepared the following list of statements about accounts. 1. An account is an accounting record of either a specific asset or a specific liability. 2. An account shows only increases, not decreases, in the item it relates to. 3. Some ite

> What is the economic entity assumption? Give an example of its violation.

> The statement of cash flows classifies each transaction as an operating activity, an investing activity, or a financing activity. Operating activities are the types of activities the company performs to generate profits. Investing activities include the

> This information is for Paulo Company for the year ended December 31, 2019. Cash received from revenues from customers………$600,000 Cash received for issuance of common stock…………..280,000 Cash paid for new equipment…………………………………..115,000 Cash dividends pa

> Wyco Park, a public camping ground near the Four Corners National Recreation Area, has compiled the following financial information as of December 31, 2019. Revenues during 2019—camping fees $140,000 Notes payable $ 60,000 Revenues during 2019—ge

> The following information relates to La Greca Co. for the year 2019. Retained earnings, January 1, 2019 $48,000 Advertising expense $ 1,800 Dividends during 2019 5,000 Rent expense 10,400 Service revenue 62,500 Utilities exp

> Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2019, Plunkett Co. and Herring Enterprises. Instructions Determine the missing amounts. Plunkett Herring Enterpr

> Toth Company had the following assets and liabilities on the dates indicated. Toth began business on January 1, 2018, with an investment of $100,000 from stockholders. Instructions From an analysis of the change in stockholders’ equi

> An analysis of transactions for Foley & Co. was presented in E1–8. Assume that August is the company’s first month of business. Reference Figure E1-8: Instructions Prepare an income statement and a retained earn

> An analysis of the transactions made by Foley & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholders’ equity is explained. Instructions (a) Describe each trans