The following are the transactions relating to the formation of Gray Mowing Services Inc. and its first month of operations. Prepare an answer sheet with the columns shown. Record each transaction in the appropriate columns of your answer sheet. Show the amounts involved and indicate how each account is affected (+ or −). After all transactions have been recorded, calculate the total assets, liabilities, and stockholders’ equity at the end of the month and calculate the amount of net income for the month. a. The firm was organized and the initial stockholders invested cash of $12,000. b. The company borrowed $18,000 from a relative of one of the initial stockholders; a short-term note was signed. c. Two zero-turn lawn mowers costing $7,600 each and a professional trimmer costing $2,600 were purchased for cash. The original list price of each mower was $10,200, but a discount was received because the seller was having a sale. d. Gasoline, oil, and several packages of trash bags were purchased for cash of $1,800. e. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $3,400, will be paid in 30 days. f. During the first two weeks of operations, 94 lawns were mowed. The total revenue for this work was $14,100; $9,300 was collected in cash, and the balance will be received within 30 days. g. Employees were paid $8,400 for their work during the first two weeks. h. Additional gasoline, oil, and trash bags costing $2,200 were purchased for cash. i. In the last two weeks of the first month, revenues totaled $18,400, of which $7,500 was collected. j. Employee wages for the last two weeks totaled $10,200; these will be paid during the first week of the next month. k. It was determined that at the end of the month the cost of the gasoline, oil, and trash bags still on hand was $600. l. Customers paid a total of $3,000 due from mowing services provided during the first two weeks. The revenue for these services was recognized in transaction f. Prepare an income statement and balance sheet?
> The wall of a liquid-to-gas heat exchanger has a sur- face area on the liquid side of 1.8 m2 (0.6 m * 3.0 m)with a heat transfer coefficient of 255 W/m2 K. On the other side of the heat exchanger wall flows a gas, and the wall has 96 thin rectangular ste
> Heat is transferred from water to air through a brass wall (k = 54 W/m K) . The addition of rectangular brass fins, 0.08 cm thick and 2.5 cm long, spaced 1.25 cm apart, is contemplated. Assuming a water-side heat transfer coefficient of 170 W/m2 K and an
> To determine the thermal conductivity of a long, solid 2.5-cm-diameter rod, one half of the rod was inserted into a furnace while the other half was projecting into air at 27oC. After steady state had been reached, the temperatures at two points 7.6 cm a
> A turbine blade 6.3 cm long, with cross-sectional area A = 4.6 3 10-4 m2 and perimeter P = 0.12 m, is made of stainless steel (k = 18 W/m K) . The temperature of the root, Ts, is 482oC. The blade is exposed to a hot gas at 871oC, and the heat transfer co
> A wall with a thickness L is made of a material with a thermal conductivity that varies with its thickness x according to the equation, k=(ax +b) W/mK, where a and b are constants. If the heat flux applied at the surface of one end (x =0) of the wall is
> A circumferential fin of rectangular cross section, 3.7-cm OD and 0.3 cm thick, surrounds a 2.5-cm- diameter tube as shown below. The fin is constructed of mild steel. Air blowing over the fin produces a heat transfer coefficient of 28.4 W/m2 K. If the t
> Both ends of a 0.6-cm copper U-shaped rod are rigidly affixed to a vertical wall as shown in the accompanying sketch. The temperature of the wall is maintained at 93oC. The developed length of the rod is 0.6 m, and it is exposed to air at 38oC. The combi
> One end of a 0.3-m-long steel rod is connected to a wall at 204oC. The other end is connected to a wall that is maintained at 93oC. Air is blown across the rod so that a heat transfer coefficient of 17 W/m2 K is maintained over the entire surface. If the
> A plane wall 15 cm thick has a thermal conductivity given by the relation where T is in kelvin. If one surface of this wall is maintained at 1508C and the other at 508C, determine the rate of heat transfer per square meter. Sketch the temperature distrib
> The tip of a soldering iron consists of a 0.6-cm- diameter copper rod, 7.6 cm long. If the tip must be 204oC, what are the required minimum temperature of the base and the heat flow, in watts, into the base? Assume that W/m2 K and Tair 5 21°C
> The addition of aluminum fins has been suggested to increase the rate of heat dissipation from one side of an electronic device 1 m wide and 1 m tall. The fins are to be rectangular in cross section, 2.5 cm long and 0.25 cm thick, as shown in the figure.
> In cryogenic surgery, a small spherical probe is bought into contact with the diseased tissue which is frozen and thereby destroyed. One such probe can be modeled as a 3-mm diameter sphere whose surface is maintained at 240 K when the surrounding tissue
> The development of contact lenses has transformed the solutions that are available today for vision impairments. However, wearing them also poses several problems that includes the condition of dry eyes due to lack of cooling, oxygenation, and moisturizi
> Liquid oxygen is to be stored on the service module of NASA’s new Orion Spacecraft (NASA, “Orion Quick Facts,” FS-2014-08-004-JSC, Lyndon B. Johnson Space Center, Houston, TX)* in a spherical stainles
> Show that the temperature distribution in a sphere of radius ro, made of a homogeneous material in which energy is released at a uniform rate per unit volume qG , is
> Calculate the heat loss through a 1m*3m glass window 7-mm thick if the inner surface temperature is 20°C and the outer surface temperature is 17°C. Comment on the possible effect of radiation on your answer.
> For the system outlined in Problem 2.31, determine an expression for the critical radius of the insulation in terms of the thermal conductivity of the insulation and the surface coefficient between the exterior surface of the insulation and the surroundi
> The thermal conductivity of a material can be determined in the following manner. Saturated steam at 2.41 * 105 N/m2 is condensed at the rate of 0.68 kg/h inside a hollow iron sphere that is 1.3 cm thick and has an internal diameter of 51 cm. The sphere
> A hollow sphere with inner and outer radii of R1 and R2, respectively, is covered with a layer of insulation having an outer radius of R3. Derive an expression for the rate of heat transfer through the insulated sphere in terms of the radii, the thermal
> An electrical heater capable of generating 10,000 W is to be designed. The heating element is to be a stainless steel wire having an electrical resistivity of 80 * 10-6 ohm-centimeter. The operating temperature of the stainless steel is to be no more tha
> The shield of a nuclear reactor is idealized by a large 25-cm-thick flat plate having a thermal conductivity of 3.5 W/(m K). Radiation from the interior of the reactor penetrates the shield and there produces heat generation that decreases exponentially
> In a cylindrical fuel rod of a nuclear reactor, heat is generated internally according to the equation Calculate the temperature drop from the centerline to the surface for a 2.5-cm-diameter rod having a thermal conductivity of 26 W/(m K) if the rate of
> Heat is generated uniformly in the fuel rod of a nuclear reactor. The rod has a long, hollow cylindrical shape with its inner and outer surfaces at temperatures of Ti and To, respectively. Derive an expression for the temperature distribution.
> Derive an expression for the temperature distribution in an infinitely long rod of uniform cross section within which there is uniform heat generation at the rate of 1 W/m. Assume that the rod is attached to a surface at Ts and is exposed through a conve
> A long, hollow cylinder is constructed from a material whose thermal conductivity is a function of temperature according to = 5 0.15 + 0.0018T, where T is in oC and k is in W/(m K). The inner and outer radii of the cylinder are 12.5 cm and 25 cm, respect
> Show that the rate of heat conduction per unit length through a long, hollow cylinder of inner radius ri and outer radius ro, made of a material whose thermal conductivity varies linearly with temperature, is given by
> A heat flux meter at the outer (cold) wall of a concrete building indicates that the heat loss through a wall of 10-cm thickness is 20 W/m2. If a thermocouple at the inner surface of the wall indicates a temperature of 22°C while another at the outer sur
> On a cold winter day, the outer surface of a 0.2-m-thick concrete wall of a warehouse is exposed to a temperature of 25°C, while the inner surface is kept at 20°C. The thermal conductivity of the concrete is 1.2 W/m K. Determine the
> At the beginning of the current fiscal year, the balance sheet of Hughey Inc. showed stockholders’ equity of $350,000. During the year, liabilities increased by $17,000 to $167,000, paid-in capital increased by $30,000 to $120,000, and
> Assume that you own 900 shares of common stock of a company, that you have been receiving cash dividends of $3.15 per share per year, and that the company has a 3-for-2 stock split. Required: a. How many shares of common stock will you own after the stoc
> Assume that you own 14,000 shares of Briant Inc.’s common stock and that you currently receive cash dividends of $1.68 per share per year. Required: a. If Briant Inc. declared a 5% stock dividend, how many shares of common stock would you receive as a di
> Refer to the 2020 Campbell Soup Company annual report. From the table of Quarterly Data (unaudited) and the Selected Financial Data (sometimes called the Five-Year Review) find the information relating to cash dividends on common stock. Required: a. How
> Anglin Inc. expects to incur a loss for the current year. The chairperson of the board of directors wants to have a cash dividend so that the company’s record of having paid a dividend during every year of its existence will continue. What factors will d
> O’Garro Inc. has paid a regular quarterly cash dividend of $0.60 per share for several years. The common stock is publicly traded. On February 27 of the current year, O’Garro’s board of directors declared the regular first-quarter dividend of $0.60 per s
> Dedrick Inc. did not pay dividends in 2021 or 2022, even though 60,000 shares of its 7.5%, $50 par value cumulative preferred stock were outstanding during those years. The company has 900,000 shares of $2 par value common stock outstanding. Required: a.
> Rosie Inc. did not pay dividends on its $3.50, $50 par value, cumulative preferred stock during 2021 or 2022, but had met its preferred dividend requirement in all prior years. Since 2017, 38,000 shares of this stock have been outstanding. Rosie Inc. has
> Calculate the cash dividends required to be paid for each of the following preferred stock issues: Required: a. The semiannual dividend on 7% cumulative preferred, $60 par value, 40,000 shares authorized, issued, and outstanding. b. The annual dividend o
> Calculate the annual cash dividends required to be paid for each of the following preferred stock issues: Required: a. $2.25 cumulative preferred, no par value; 600,000 shares authorized, 525,000 shares issued. (The treasury stock caption of the stockhol
> A number of financial statement captions are listed in the following table. Indicate in the spaces to the right of each caption the category of each item and the financial statement(s) on which the item can usually be found. Use the following abbreviatio
> The balance sheet caption for common stock is the following: Required: a. Calculate the average price at which the shares were issued. b. If these shares had been assigned a stated value of $1 each, show how the caption here would be different. c. If a c
> The balance sheet caption for common stock is the following: Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of $0.40 per share. c. What accounts for the difference b
> From the following data, calculate the Retained Earnings balance as of December 31, 2022:
> At September 30, 2022, the end of the first year of operations at Lukancic Inc., the firm’s accountant neglected to accrue payroll taxes of $4,700 that were applicable to payrolls for the year then ended. Required: a. Use the horizontal model (or write t
> On August 1, 2022, Colombo Co.’s treasurer signed a note promising to pay $2,400,000 on December 31, 2022. The proceeds of the note were $2,340,000. Required: a. Calculate the discount rate used by the lender. b. Calculate the effective interest rate (AP
> On May 15, 2022, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $600,000. The interest rate charged by the bank was 7%. The bank made the loan on a discount basis. Required: a.
> Enter the following column headings across the top of a sheet of paper: Enter the transaction or adjustment letter in the first column and show the effect, if any, of each transaction or adjustment on the appropriate balance sheet category or on net inco
> Enter the following column headings across the top of a sheet of paper: Enter the transaction or adjustment letter in the first column and show the effect, if any, of each transaction or adjustment on the appropriate balance sheet category or on net inc
> Enter the following column headings across the top of a sheet of paper: Enter the transaction or adjustment letter in the first column, and show the effect, if any, of each of the transactions or adjustments on the appropriate balance sheet category or o
> Enter the following column headings across the top of a sheet of paper: Enter the transaction or adjustment letter in the first column and show the effect, if any, of each of the transactions or adjustments on the appropriate balance sheet category or on
> A firm issues long-term debt with an effective interest rate of 10%, and the proceeds of this debt issue can be invested to earn an ROI of 12%. What effect will this financial leverage have on the firm’s ROE relative to having the same amount of funds in
> Atom Endeavour Co. issued $190 million face amount of 6.5% bonds when market interest rates were 6.71% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? b. Were the bonds issued at a
> Reynolds Co. issued $75 million face amount of 6% bonds when market interest rates were 5.81% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? b. Were the bonds issued at a premium
> On March 1, 2017, Catherine purchased $450,000 of Tyson Co.’s 10%, 20-year bonds at face value. Tyson Co. has regularly paid the annual interest due on the bonds. On March 1, 2022, market interest rates had risen to 12%, and Catherine is considering sell
> On August 1, 2014, Bonnie purchased $40,000 of Huber Co.’s 10%, 20-year bonds at face value. Huber Co. has paid the semiannual interest due on the bonds regularly. On August 1, 2022, market rates of interest had fallen to 8%, and Bonnie is considering se
> Alexi Co. issued $75 million face amount of 6%, 10-year bonds on June 1, 2022. The bonds pay interest on an annual basis on May 31 each year. Required: a. Assume that the market interest rates were slightly higher than 6% when the bonds were sold. Would
> Jessie Co. issued $3 million face amount of 9%, 20-year bonds on July 1, 2022. The bonds pay interest on an annual basis on June 30 each year. Required: a. Assume that market interest rates were slightly lower than 9% when the bonds were sold. Would the
> Kirkland Theater sells season tickets for six events at a price of $378. For the 2022 season, 1,200 season tickets were sold. Required: a. Use the horizontal model (or write the journal entry) to show the effect of the sale of the season tickets. b. Use
> NightWoundsTime Brewing Co. distributes its products in an aluminum keg. Customers are charged a deposit of $80 per keg; deposits are recorded in the Keg Deposits account. Required: a. Where on the balance sheet will the Keg Deposits account be found? Ex
> Prist Co. had not provided a warranty on its products, but competitive pressures forced management to add this feature at the beginning of 2022. Based on an analysis of customer complaints made over the past two years, the cost of a warranty program was
> Record transactions and calculate financial statement amounts. The transactions relating to the formation of Blue Co. Stores Inc. and its first month of operations follow. Prepare an answer sheet with the columns shown. Record each transaction in the app
> Kohl Co. provides warranties for many of its products. The January 1, 2022, balance of the Estimated Warranty Liability account was $25,100. Based on an analysis of warranty claims during the past several years, this year’s warranty provision was establi
> Glennelle’s Boutique Inc. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2022 are issued in May 2023 and are payable in July 2023. Required: a. Explain how the amount of tax ex
> Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $310,000. The appraised value of the land is $105,000, and the appraised value of the building is $245,000. Required: a. Assuming that the build
> Prepare an answer sheet with the following column headings. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the accou
> Prepare an answer sheet with the column headings that follow. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the acc
> Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair value. Suppose that Target Co. had operating income of $1,215,000 and net assets with a fair value of $5,400,000. Takeover Co
> Assume that fast-food restaurants generally provide an ROI of 10%, but that such a restaurant near a college campus has an ROI of 16% because its relatively large volume of business generates an above-average turnover (sales/assets). The replacement valu
> Using a present value table, your calculator, or a computer program present value function, calculate the present value of a. A car down payment of $16,000 that will be required in two years, assuming an interest rate of 10%. b. A lottery prize of $28 mi
> Barefoot Industrial acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $117,000 and has an estimated useful life of four years and an estimated salvage value of $18,000. Required: a. Calculate depreciation expense f
> Millco Inc. acquired a machine that cost $1,800,000 early in 2022. The machine is expected to last for eight years, and its estimated salvage value at the end of its life is $180,000. Required: a. Using straight-line depreciation, calculate the depreciat
> Net income for the year was $62,000. During the year, net cash provided by operating activities was $145,000; net cash used for investing activities was $96,000; net increase in cash for the year was $38,000. Required: Calculate net cash provided by (or
> The following data have been collected by capital budgeting analysts at Sunset Beach Inc. concerning an investment in an expansion of the company’s product line. Analysts estimate that an investment of $500,000 will be required to initi
> The Consortium for Advanced Manufacturing—International (CAM-I) is an international consortium of companies, consultancies, and academics that have elected to work cooperatively in a precompetitive environment to solve problems common to the group. Its s
> York Co. uses a standard cost system. When raw materials are purchased, the standard cost of the raw materials purchased is recorded as an increase in the Raw Materials Inventory account. When raw materials are used, the standard cost of the materials al
> During the year ended May 31, 2021, Teller Register Co. reported favorable raw material usage and direct labor and variable overhead efficiency variances that totaled $285,800. Price and rate variances were negligible. Total standard cost of goods manufa
> Williamson Inc. manufactures quality replacement parts for the auto industry. The company uses a standard costing system and isolates variances as soon as possible. The purchasing manager is responsible for controlling the direct material price variances
> Assume that you are the production manager of a small branch plant of a large manufacturing firm. The central accounting control department sends you monthly performance reports showing the flexed budget amount, actual cost and variances for raw material
> If a company uses a standard cost system, should all variances be calculated with the same frequency (e.g., monthly), and should they always be expressed in dollar amounts? Explain your answer and include in it the reason for calculating variances.
> One of the significant costs for a nonpublic college or university is student aid in the form of gifts and grants awarded to students because of academic potential or performance, and/or financial need. Gifts and grants are only a part of a financial aid
> Campbell Soup Company provides access to its annual reports online at campbellsoup.com. The annual reports are found in the “Investor Center/Financial Information/Annual Reports” area of its website. Locate the following information in the annual reports
> Custom Granite Inc. uses an absorption cost system for accumulating product cost. The following data are available for the past year: - Raw materials purchases totaled $240,000. - Direct labor costs incurred for the year totaled $480,000. - Variable manu
> Jim Sandrolini is an accountant for a local manufacturing company. Jim’s good friend, Dan Carruthers, has been operating a retail sporting goods store for about a year. The store has been moderately successful, and Dan needs a bank loan to help finance t
> Determine each of the following missing amounts:
> You have recently been engaged by Dominic’s Italian Cafe to evaluate the financial impact of adding gourmet pizza items to the menu. A survey of the clientele indicates that demand for the product exists at an average selling price of $18 per pizza. Fixe
> Tommy Appleton is in charge of arranging the “social hour” period and dinner for the monthly meetings of the local chapter of the Management Accountants Association. Tommy is negotiating with a new restaurant that would like to have the group’s business,
> Assume you are a sales representative for Sweet Tooth Candy Company. One of your customers is interested in buying some candy that will be given to the members of a high school Student Government Association. The association members will be marching in a
> Following are comparative statements of cash flows, as reported by The Coca-Cola Company in its 2020 annual report: Required: a. Briefly review the consolidated statements of cash flows, and then provide an overall evaluation of the “bi
> Your conversation with Mr. Gerrard, which took place in February 2023 (see Case 6.37), continued as follows: Mr. Gerrard: I’ve been talking with my accountant about our capital expansion needs, which will be considerable during the next couple of years.
> Assume that the current ratio for Arch Company is 2.0, its acid-test ratio is 1.5, and its working capital is $900,000. Answer each of the following questions independently, always referring to the original information. a. How much does the firm have in
> Solve the requirements of Problem 11.13 for the year ended August 2, 2020. Data from Problem 11.13: Refer to the consolidated balance sheets of the Campbell Soup Company annual report in the appendix. Required: Prepare a common size balance sheet at Jul
> Refer to the consolidated balance sheets of the Campbell Soup Company annual report in the appendix. Required: Prepare a common size balance sheet at July 28, 2019, using the following captions: Total current assets Plant assets, net of depreciation Good
> This problem is based on the 2020 annual report of Campbell Soup Company. Required: Find in the Selected Financial Data (also known as the Five-Year Review), or calculate, the following data: a. Dividends per share declared in 2020. b. Capital expenditur
> This problem is based on the 2020 annual report of Campbell Soup Company. Required: Find in the Selected Financial Data (also known as the Five-Year Review), or calculate, the following data: a. Net sales in 2017. b. Operating income (earnings before int
> Tablerock Corp. is interested in reviewing its method of evaluating capital expenditure proposals using the accounting rate of return method. A recent proposal involved a $100,000 investment in a machine that had an estimated useful life of five years an
> TopCap Co. is evaluating the purchase of another sewing machine that will be used to manufacture sport caps. The invoice price of the machine is $98,000. In addition, delivery and installation costs will total $5,000. The machine has the capacity to prod
> The transactions affecting the stockholders’ equity accounts of DeZurik Corp. for the year ended June 30, 2023, are summarized here: 1. 160,000 shares of common stock were issued at $21.25 per share. 2. 40,000 shares of treasury (common) stock were sold
> Cowboy Recording Studio is considering the investment of $140,000 in a new recording equipment. It is estimated that the new equipment will generate additional cash flow of $21,000 per year for each year of its 12-year life and will have a salvage value
> The segmented income statement for XYZ Company for the year ended December 31, 2022, follows: The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue
> Petro Motors Inc. (PMI) produces small gasoline-powered motors for use in lawn mowers. The company has been growing steadily over the past five years and is operating at full capacity. PMI recently completed the addition of new plant and equipment at a c
> Presented here are the original overhead budget and the actual costs incurred during April for Piccolo Inc. Piccolo’s managers relate overhead to direct labor hours for planning, control, and product costing purposes. The original budge
