Question: The following transactions apply to Pecan Co.

> Distinguish between elements of financial statements and accounts.

> The following ratios are for four companies in different industries. Some of these ratios have been discussed in the textbook and others have not, but their names explain how the ratio was computed. These data are for the companies’ 201

> Explain how a career in public accounting differs from a career in private accounting.

> Why is it important that every employee periodically take a leave of absence or vacation?

> List several control activities of an effective internal control system.

> What are the effects of the following types of transactions on the accounting equation? Also identify the financial statements that are affected. (Assume that the perpetual inventory system is used.) a. Acquisition of cash from the issue of common stock

> Describe how the perpetual inventory system works. What are some advantages of using the perpetual inventory system? Is it necessary to take a physical inventory when using the perpetual inventory system?

> If PetCo had net sales of $600,000, goods available for sale of $450,000, and cost of goods sold of $375,000, what is its gross margin? What amount of inventory will be shown on its balance sheet?

> What is the difference between goodwill and specifically identifiable intangible assets?

> Name and briefly define the five components of COSO’s internal control framework.

> Explain the relationship between SOX and COSO.

> What is the difference between accounts receivable and notes receivable?

> In 2012 Duke Energy, a large utility company with its headquarters in North Carolina, completed its $32 billion acquisition of Progress Energy. To get an idea of the size of this deal, in 2011 Duke Energy reported revenues of $14.5 billion. In 2012, with

> Explain the term stakeholder. Distinguish between stakeholders with a direct versus an indirect interest in the companies that issue financial reports.

> Why is cost classification important to managers?

> How does a product cost differ from a general, selling, and administrative cost? Give examples of each.

> How do product costs affect the financial statements? How does the classification of product cost (as an asset vs. an expense) affect net income?

> What does the statement “costs can be assets or expenses” mean?

> How does product costing used in financial accounting differ from product costing used in managerial accounting?

> What does the value added principle mean as it applies to managerial accounting information? Give an example of value added information that may be included in managerial accounting reports but is not shown in publicly reported financial statements.

> What do the terms value added activity and non value-added activity mean? Provide an example of each type of activity. (Appendix)

> What does the term activity-based management mean? (Appendix)

> How has the Institute of Management Accountants responded to the need for high standards of ethical conduct in the accounting profession?

> Presented here are selected data from the 10-K reports of four companies for their 2015 fiscal years. The four companies, in alphabetical order, are: Caterpillar, Inc., a company that manufactures heavy machinery. Oracle Corporation, a company that devel

> What are the two dimensions of a total quality management (TQM) program? Why is TQM being used in business practice? (Appendix)

> What is a just-in-time (JIT) inventory system? Name some inventory costs that can be eliminated or reduced by its use.

> What costs should be considered in determining the sales price of a product?

> What are some of the common ethical conflicts that accountants encounter?

> What is cost allocation? Give an example of a cost that needs to be allocated.

> What are some differences between financial and managerial accounting?

> What are some limitations of the earnings per share figure?

> How do accounting principles affect financial statement analysis?

> Financial statements for Allendale Company follow: Required: Prepare a horizontal analysis of the balance sheet and income statement for 2019 and 2018. Round percentages to one decimal point. Balance Sheets As of December 31 2019 2018 Assets Curre

> The following percentages apply to Thornton Company for 2018 and 2019: Required: Assuming that sales were $800,000 in 2018 and $960,000 in 2019, prepare income statements for the two years. 2019 2018 Sales 100.0% 100.0% Cost of goods sold 61.0 64.0

> The following information relates to The Kroger Company for its 2015 and 2014 fiscal years, and Whole Foods Market, Inc. for its 2014 and 2013 fiscal years. Required: a. Compute the following ratios for the companies’ 2014 fiscal yea

> The following events were experienced by Sequoia, Inc.: 1. Issued cumulative preferred stock for cash. 2. Issued common stock for cash. 3. Issued noncumulative preferred stock for cash. 4. Paid cash to purchase treasury stock. 5. Sold treasury stock for

> Choctaw Co. completed the following transactions in 2018, the first year of operation: 1. Issued 20,000 shares of $10 par common stock for $10 per share. 2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 1,000 sha

> The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, 2016, is as follows. Note: The market value per share of the common stock is $42, and the market value per share of the preferred stock is $2

> Burk Corp. completed the following transactions in 2018, the first year of operation: 1. Issued 30,000 shares of $10 par common stock for $15 per share. 2. Issued 6,000 shares of $100 par, 5 percent, preferred stock at $101 per share. 3. Paid the annual

> Sun Corporation received a charter that authorized the issuance of 100,000 shares of $10 par common stock and 50,000 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years

> The following information pertains to Ming Corp. at January 1, 2018: Common stock, $10 par, 50,000 shares authorized, 3,000 shares issued and outstanding………………………………………..$30,000 Paid­in capital in excess of par, common stock……………………………

> No well Inc. had the following stock issued and outstanding at January 1, 2018: 1. 150,000 shares of no-par common stock. 2. 30,000 shares of $50 par, 4 percent, cumulative preferred stock. (Dividends are in arrears for one year, 2017.) On March 8, 2018,

> Cascade Company was started on January 1, 2018, when it acquired $60,000 cash from the owners. During 2018, the company earned cash revenues of $35,000 and incurred cash expenses of $18,100. The company also paid cash distributions of $4,000. Required:

> Sea Coast Plumbing Company (SCPC) is a national company that provides residential plumbing services. SCPC is considering making a substantial investment in Rake land Distributors, Inc. (RDI). RDI sells plumbing supplies throughout the United States. Re

> Cal Cagle was working to establish a business enterprise with four of his wealthy friends. Each of the five individuals would receive a 20 percent ownership interest in the company. A primary goal of establishing the enterprise was to minimize the amount

> Louise Stinson, the chief financial officer of Bostonian Corporation, was on her way to the president’s office. She was carrying the latest round of bad news. There would be no executive bonuses this year. Corporate profits were down. Indeed, if the late

> Show the effect of each of the following independent accounting events on the financial statements using a horizontal statements model like the following one. Use + for increase, − for decrease, and NA for not affected. The first event

> Mott Company has a line of credit with Bay Bank. Mott can borrow up to $400,000 at any time over the course of the 2018 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid d

> Elite Boat Sales uses a line of credit to help finance its inventory purchases. Elite Boat Sales sells boats and equipment and uses the line of credit to build inventory for its peak sales months, which tend to be clustered in the summer months. Account

> On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,192 that include both interest an

> The following selected transactions were taken from the books of Ripley Company for 2018: 1. On February 1, 2018, borrowed $70,000 cash from the local bank. The note had a 6 percent interest rate and was due on June 1, 2018. 2. Cash sales for the year am

> a. Give an example of a contingent liability that is probable and reasonably estimable. How would this type of liability be shown in the accounting records? b. Give an example of a contingent liability that is reasonably possible or probable but not reas

> The following transactions apply to Walnut Enterprises for 2018, its first year of operations: 1. Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one year maturity. The note was made on April 1, 2018. 2. Rec

> On January 1, 2018, Reese Incorporated issued bonds with a face value of $120,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 7 per

> Required: Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Company for 2018. $ 72,000 Beginning retained earnings Warranties payable (short term) Gain on sale of equipment Opera

> Jim Baku and Scott Hanson are thinking about opening a new restaurant. Baku has extensive marketing experience but does not know that much about food preparation. However, Hanson is an excellent chef. Both will work in the business, but Baku will provide

> During 2018 and 2019, Kale Co. completed the following transactions relating to its bond issue. The company’s fiscal year ends on December 31. 2018 Mar. 1 Issued $200,000 of 8 year, 6 percent bonds for $194,000. The semiannual cash payment for interest i

> Pine Land Co. was formed when it acquired cash from the issue of common stock. The company then issued bonds at a premium on January 1, 2018. Interest is payable annually on December 31 of each year, beginning December 31, 2018. On January 2, 2018, Pine

> Malco Enterprises issued $10,000 of common stock when the company was started. In addition, Malco borrowed $36,000 from a local bank on July 1, 2018. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recogni

> The following transactions pertain to Accounting Solutions Inc. Assume the transactions for the purchase of the computer and any capital improvements occur on January 1 each year. 2018 1. Acquired $80,000 cash from the issue of common stock. 2. Purchased

> Delta Machine Company purchased a computerized assembly machine for $135,000 on January 1, 2018. Delta Machine Company estimated that the machine would have a life of four years and a $25,000 salvage value. Delta Machine Company uses the straight-line me

> Banger Co. purchased delivery equipment for $56,000 on January 1, 2018. Banger estimated that the delivery equipment would have a life of five years and a $6,000 salvage value. Banger uses the straight-line method to compute the depreciation expense. At

> Sabel Co. purchased assembly equipment for $500,000 on January 1, 2018. Sabel’s financial condition immediately prior to the purchase is shown in the following horizontal statements model. The equipment is expected to have a useful li

> Becker Office Service purchased a new computer system on January 1, 2018, for $40,000. It is expected to have a five-year useful life and a $5,000 salvage value. Becker Office Service expects to use the computer system more extensively in the early years

> Bensen Company began operations when it acquired $60,000 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $50,000 that had a $10,000 salvage value and an expected useful life of four

> Three different companies each purchased trucks on January 1, 2018, for $50,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 42,000 miles in 201

> Using either Skechers USA, Inc.’s most current Form 10-K or the company’s annual report, answer the following questions. To obtain the Form 10-K use either the EDGAR system following the instructions in Appendix A or the company’s website. The company’s

> Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018: Purchase price……………………………………$ 70,000 Delivery cost……………………………………….$ 3,000 Installation charge………………………………$ 1,000 Estimated life…………………

> Companies in the coal mining business use a lot of property, plant, and equipment. Not only is there the significant investment they must make in the equipment used to extract and process the coal, but they must also purchase the rights to the coal reser

> Mitre Company acquired Midwest Transportation Co. for $1,400,000. The fair market values of the assets acquired were as follows. No liabilities were assumed.  Equipment……………………………………………$510,000 Land………………………………………………………150,000 Building………………………………………………

> Flannery Company engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities: Jan. 1, 2018 Purchased for $1,500,000 a silver mine estimated to contain 100,000

> Tower Company owned a service truck that was purchases at the beginning of 2018 for $31,000. It had an estimated life of three years and an estimated salvage value of $4,000. Tower company uses straight-line depreciation. Its financial condition as of Ja

> Morris Inc. recorded the following transactions over the life of a piece of equipment purchased in 2018: Jan. 1, 2018 Purchased equipment for $90,000 cash. The equipment was estimated to have a five year life and $5,000 salvage value and was

> Trinkle Company made several purchases of long-term assets in 2018. The details of each purchase are presented here. New Office Equipment 1. List price: $60,000; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $1,500. 3. Install

> Identify each of the following independent transactions as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event affects assets, liabilities, stockholders’ equity, net income, and c

> Northwest Sales had the following transactions in 2018: 1. Acquired $200,000 cash from the issue of common stock. 2. Purchased $900,000 of merchandise for cash in 2018. 3. Sold merchandise that cost $710,000 for $1,200,000 during the year under the follo

> The following information comes from the accounts of James Company: Required: a. There were $190,000 of sales on account during the accounting period. Write-offs of uncollectible accounts were $1,450. What was the amount of cash collected from accounts

> Use the Target Corporation’s Form 10-K to answer the following questions related to Target’s 2015 fiscal year (year ended January 30, 2016). Target’s Form 10-K is available on the company’s website or through the SEC’s EDGAR database. Appendix A provides

> Use the following information to prepare a multistep income statement and a classified balance sheet for Chun Equipment Co. for 2018. Salaries expense $ 41,200 $ 2,100 Interest receivable (short term) Beginning retained earnings Operating expenses C

> The following transactions apply to Hooper Co. for 2018, its first year of operations: 1. Issued $60,000 of common stock for cash. 2. Provided $90,000 of services on account. 3. Collected $78,000 cash from accounts receivable. 4. Loaned $20,000 to Mosby

> Sage Inc. experienced the following transactions for 2018, its first year of operations: 1. Issued common stock for $50,000 cash. 2. Purchased $140,000 of merchandise on account. 3. Sold merchandise that cost $110,000 for $250,000 on account. 4. Collecte

> During the first year of operation, 2018, McGinnis Appliance recognized $275,000 of service revenue on account. At the end of 2018, the accounts receivable balance was $55,300. Even though this is his first year in business, the owner believes he will co

> The following information is available for Quality Book Sales's sales on account and accounts receivable: Accounts Receivable Balance, January 1, 2018………………………………$ 78,500 Allowance for Doubtful Accounts, January 1, 2018……………………………….4,710 Sales on Accoun

> The Brick Company had cash sales of $280,000 for 2018, its first year of operation. On April 2, the company purchased 210 units of inventory at $390 per unit. On September 1, an additional 160 units were purchased for $425 per unit. The company had 110 u

> The accounting records of Wall’s China Shop reflected the following balances as of January 1, 2018: Cash……………………………………………………………….$80,100 Beginning inventory……………33,000 (220 units @ $150) Common stock…………………………………………………50,000 Retained earnings……………………………

> The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: Account Title Cash………………………………………………………………….$110,000 Accounts Receivable…………………………………………….125,000

> The following transactions apply to Jova Company for 2018, the first year of operation: 1. Issued $10,000 of common stock for cash. 2. Recognized $210,000 of service revenue earned on account. 3. Collected $162,000 from accounts receivable. 4. Paid opera

> You have probably heard it is unwise to bite the hand that feeds you. Independent auditors are chosen by, paid by, and can be fired by the companies they audit. What keeps the auditor independent? In other words, what stops an auditor from blindly follow

> David Sheridan was a well-respected CPA in his mid-fifties. After spending 10 years at a national accounting firm, he was hired by Global, Inc., a multinational corporation headquartered in the United States. He patiently worked his way up to the top of

> Sam Sharp is an accountant with a shady past. Suffice it to say that he owes some very unsavory characters a lot of money. Despite his past, Sam works hard at keeping up a strong professional image. He is a manager at Flowers and Associates, a fast-growi

> The following information is available for Pyle Garage for March 2018: The following is a list of checks and deposits recorded on the books of Pyle Garage for March 2018: Other Information 1. Check no. 1462 was outstanding from February. 2. A credit

> Determine whether the following items included in Wong Company’s January 2018 bank reconciliation will require adjustments on Wong’s books and indicate the amount of any necessary adjustment. a. Service charges of $50 for the month of January were listed

> The following data apply to Pro Beauty Supply Inc. for May 2018: 1. Balance per the bank on May 31, $9,150. 2. Deposits in transit not recorded by the bank, $1,510. 3. Bank error; check written by Best Beauty Supply was charged to Pro Beauty Supply’s acc

> Rick Hall owns a card shop, Hall’s Cards. The following cash information is available for the month of August 2018: As of August 31, the bank statement shows a balance of $16,140. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $

> Following is a bank reconciliation for Zocar Enterprises for June 30, 2018. When reviewing the bank reconciliation, Zocar’s auditor was unable to locate any reference to the NSF check on the bank statement. Furthermore, the clerk who

> Connie Stevens is a partner of a regional accounting firm. Stevens was hired by a client to audit the company’s books. After extensive work, Stevens determined that she was unable to perform the appropriate audit procedures. Required: a. Name the type o

> For each of the following fraudulent acts, describe one or more internal control procedures that could have prevented (or helped prevent) the problems. a. Everyone in the office has noticed what a dedicated employee Carley Trap is. She never misses work,

> The following trial balance pertains to Benji’s Grocery as of January 1, 2018: Account Title Beginning………………â

> The following income statements were drawn from the annual reports of Toner Sales Company: *All dollar amounts are reported in thousands. The president’s message in the company’s annual report stated that the company

> Putting “yum” on people’s faces around the world is the mission of Yum! Brands, Inc. Yum! was spun off from PepsiCo in 1997. A spin-off occurs when a company separates its operations into two or more distinct companies. The company was originally compo