Question: The payroll register of Longboat Co. indicates $

> Payroll accounting involves the use of government-supplied forms to account for payroll taxes. Three common forms are the W-2, Form 940, and Form 941. Form a team with three of your classmates and retrieve copies of each of these forms. They may be obtai

> The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,00

> The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 1. Issued Ch

> On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 1,000,000 shares of no-par common stock (with a stated value of $0.25) at $1.20, and on August 3, it issued for cash 10,000 shares of preferred stock, $15 par at $21. a. Journalize

> The following data for Flexco Inc. relate to the payroll for the week ended December 9, 20Y8: Employees Grove and Seaver are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½ times the regul

> Jocame Inc. began business on January 2, 20Y7. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of t

> The current assets and current liabilities for Apple Inc. and HP, Inc., are as follows at the end of a recent fiscal period: a. Determine the quick ratio for both companies. Round to one decimal place. b. Interpret the quick ratio difference between th

> Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years: a. Determine the quick ratio for December 31 of both years. b. Interpret the change in the quick ratio between the two balance sheet dates. Current Yea

> Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $240,000. The company is contesting the fine. In addition, an employee is see

> McMahon Inc. reported the following on the company’s statement of cash flows in Year 2 and Year 1: Seventy percent of the net cash flow used for investing activities was used to replace existing capacity. a. Determine McMahonâ&#

> General Motors Corporation (GM) disclosed estimated product warranty payable for comparative years as follows: Presume that GM’s sales were $135,592 million in Year 2 and that the total paid on warranty claims during Year 2 was $3,000

> Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 2.5% of sales. Assume that sales were $600,000 for January. In February, a customer received warranty repairs requiring $200 of parts and $110 of labor. a. Jou

> In a recent year’s financial statements, Procter & Gamble showed an unfunded pension liability of $5,599 million and a periodic pension cost of $434 million. Explain the meaning of the $5,599 million unfunded pension liability and the $434 million period

> On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 400,000 shares of $10 par common stock at $18, and on November 19, it issued for cash 50,000 shares of preferred stock, $75 par at $80. a. Journalize the entries for October 31 and No

> Lightfoot Inc., a software development firm, has stock outstanding as follows: 40,000 shares of cumulative preferred 1% stock, $125 par, and 100,000 shares of $150 par common. During its first four years of operations, the following amounts were distribu

> Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end o

> According to a summary of the payroll of Guthrie Co., $560,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $60,000 was subject to state and federal unemployment taxes. a. Calculate the employer’s payroll taxes, using the

> Willow Creek Nursery, with an authorization of 75,000 shares of preferred stock and 200,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operations. The trial balance at the close of the day fo

> On the first day of the fiscal year, a company issues $65,000, 6%, five-year installment notes that have annual payments of $15,431. The first note payment consists of $3,900 of interest and $11,531 of principal repayment. a. Journalize the entry to reco

> Financial statement data for the years ended December 31 for Dovetail Corporation follow: a. Determine the earnings per share for 20Y3 and 20Y2. b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?

> The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only),

> Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $220 cash under terms of the war

> The cost of merchandise sold reported on the income statement was $240,000. The accounts payable balance increased $12,000, and the inventory balance increased by $19,200 over the year. Determine the amount of cash paid for merchandise.

> Austin Fisher contributed land, inventory, and $36,000 cash to a partnership. The land had a book value of $120,000 and a market value of $175,000. The inventory had a book value of $50,000 and a market value of $42,000. The partnership also assumed a $3

> A $1,200,000 bond issue on which there is an unamortized premium of $63,956 is redeemed for $1,250,000. Journalize the redemption of the bonds.

> Noric Cruises Inc. reported the following results for the year ended October 31, 20Y9: Retained earnings, November 1, 20Y8 …………….. $12,400,000 Net income ………………………………………………………. 2,350,000 Cash dividends declared ……………………………………….. 175,000 Stock dividends d

> On January 23, 10,000 shares of Tolle Company are acquired at a price of $30 per share plus a $100 brokerage commission. On April 12, a $0.50-per-share dividend was received on the Tolle Company stock. On June 10, 4,000 shares of the Tolle Company stock

> Eclipse Architects earned $1,800,000 during 20Y1 using 12 employees. During 20Y2, the firm reduced revenues to $1,440,000 and reduced the staff to nine employees. a. Determine the revenue per employee for each year. b. Interpret the results.

> EarlKeen Co. sold $260,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 4% of the sales price. On August 15, a customer required a $100 part replacement plus $50 of labor under the w

> The cost of merchandise sold reported on the income statement was $770,000. The accounts payable balance decreased $44,000, and the inventory balance decreased by $66,000 over the year. Determine the amount of cash paid for merchandise.

> A $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for $1,455,000. Journalize the redemption of the bonds.

> Rockwell Inc. reported the following results for the year ended June 30, 20Y5: Retained earnings, July 1, 20Y4 ………………….. $3,900,000 Net income …………………………………………………….. 714,000 Cash dividends declared …………………………………. 100,000 Stock dividends declared ……………………

> Niles and Cohen, CPAs earned $12,375,000 during 20Y4 using 75 employees. During 20Y5, the firm grew revenues to $15,400,000 and expanded the staff to 88 employees. a. Determine the revenue per employee for each year. b. Interpret the results.

> Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. a. If the note is issued with a 45-day term, journalize the entries to record: 1. The issuance of the note. 2. The payment of the note at maturity. b. If the note i

> Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $35,000 for the period. The pension formula calculated a pension cost of $201,250. Only $175,000 was contributed to the pension

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

> The following information was taken from Charu Company’s balance sheet: Fixed assets (net) ………………………………. $860,000 Long-term liabilities ……………………………. 200,000 Total liabilities ……………………………………. 600,000 Total stockholders’ equity …………………….. 250,000 Determin

> On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 × 6% × ½ year), receiving cash of $5,000,000. Journalize the entries to record (a) The issuance of the b

> Using the bond from Practice Exercise 14-5B, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. In Practice Exercise 14-5B On the first day of the fiscal year, a company issues an $8,000,

> Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 8. Five hundred thousand shares of common stock are authorized, and 40,000 shares have been reacquired. Common Stock, $120

> Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Bonilla and Perez share income and losses equally. a.

> Fukushima Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $19,500 for the period. The pension plan requires a contribution to the plan administrator equal to 6% of employee s

> The following information was taken from Sigmund Company’s balance sheet: Fixed assets (net) …………………………… $1,050,000 Long-term liabilities …………………………… 750,000 Total liabilities …………………………………… 850,000 Total stockholders’ equity ………………….. 500,000 Determine

> Using the bond from Practice Exercise 14-5A, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. In Practice Exercise 14-5A On the first day of the fiscal year, a company issues a $7,500,0

> Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 8. One hundred thousand shares of common stock are authorized, and 5,000 shares have been reacquired. Common Stock, $2 par

> Prior to liquidating their partnership, Wakefield and Barns had capital accounts of $105,000 and $55,000, respectively. The partnership assets were sold for $40,000. The partnership had no liabilities. Wakefield and Barns share income and losses equally.

> A business issued a 45-day note for $80,000 to a creditor on account. The note was discounted at 5%. Journalize the entries to record (a) The issuance of the note and (b) The payment of the note at maturity.

> Brower Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $2,000,000. Plan 2 $2,500,0

> On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated value of $3) at $12. On July 6, Stoltz Realty Inc. issued at par value 18,000 shares of preferred 1% stock, $50 par for cash. On September 15, Stoltz Realty

> A company reports the following: Cost of goods sold …………………………….. $435,000 Average inventory ………………………………… 72,500 Determine (a) The inventory turnover and (b) The number of days’ sales in inventory. Round to one decimal place.

> IZ Corporation purchased land for $400,000. Later in the year, the company sold a different piece of land with a book value of $200,000 for $240,000. How are the effects of these transactions reported on the statement of cash flows?

> On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, the cost of the available-for-sale securities was $24,260, and the fair value was $26,350. Prepare the adjusting entry to record the unrealized gain

> On the first day of the fiscal year, a company issues an $8,000,000, 11%, five-year bond that pays semiannual interest of $440,000 ($8,000,000 × 11% × ½), receiving cash of $8,308,869. Journalize the bond issuance.

> On May 27, Hydro Clothing Inc. reacquired 75,000 shares of its common stock at $8 per share. On August 3, Hydro Clothing sold 54,000 of the reacquired shares at $11 per share. On November 14, Hydro Clothing sold the remaining shares at $7 per share. Jour

> Prior to liquidating their partnership, Manning and Adamo had capital accounts of $240,000 and $150,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets

> The payroll register of Ruggerio Co. indicates $10,500 of social security withheld and $2,625 of Medicare tax withheld on total salaries of $175,000 for the period. Earnings of $30,000 are subject to state and federal unemployment compensation taxes at t

> A company reports the following: Cost of goods sold …………………………. $660,000 Average inventory ……………………………. 60,000 Determine (a) The inventory turnover and (b) The number of days’ sales in inventory. Round to one decimal place.

> Simkin Corporation purchased land for $420,000. Later in the year, the company sold a different piece of land with a book value of $155,000 for $110,000. How are the effects of these transactions reported on the statement of cash flows?

> Lia Chen and Martin Monroe formed a partnership, dividing income as follows: 1. Annual salary allowance to Chen of $35,000. 2. Interest of 4% on each partner’s capital balance on January 1. 3. Any remaining net income divided to Chen and Monroe, 2:1. Che

> Zero Calories Company has 16,000 shares of cumulative preferred 1% stock, $40 par, and 80,000 shares of $150 par common stock. The following amounts were distributed as dividends: Year 1 ……………………………… $ 21,600 Year 2 …………………………………. 4,000 Year 3 …………………………

> On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, the cost of the available-for-sale securities was $60,250, and the fair value was $57,500. Prepare the adjusting entry to record the unrealized gain

> On the first day of the fiscal year, a company issues a $7,500,000, 8%, five-year bond that pays semiannual interest of $300,000 ($7,500,000 × 8% × ½), receiving cash of $7,811,873. Journalize the bond issuance.

> On January 31, Wilderness Resorts Inc. reacquired 22,500 shares of its common stock at $31 per share. On April 20, Wilderness Resorts sold 12,800 of the reacquired shares at $40 per share. On October 4, Wilderness Resorts sold the remaining shares at $28

> Prior to liquidating their partnership, Joyce and Xi had capital accounts of $50,000 and $105,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were

> Addai Company has provided the following comparative information: You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for t

> The payroll register of Longboat Co. indicates $5,400 of social security withheld and $1,350 of Medicare tax withheld on total salaries of $90,000 for the period. Retirement savings withheld from employee paychecks were $5,400 for the period. Federal wit

> A company reports the following: Sales …………………………………………………………… $4,000,000 Average accounts receivable (net) ………………………. 200,000 Determine (a) The accounts receivable turnover and (b) The number of days’ sales in receivables. Round to one decimal place.

> Staley Inc. reported the following data: Net income …………………………………………………… $280,000 Depreciation expense ………………………………………… 48,000 Loss on disposal of equipment …………………………….. 19,520 Increase in accounts receivable …………………………… 17,280 Increase in accounts paya

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

> Averill Products Inc. reported the following on the company’s income statement in two recent years: a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place. b. Is the number of

> Using the bond from Practice Exercise 14-3B, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. In Practice Exercise 14-3B On the first day of the fiscal year, a company issues a $3,000,

> Holly Renfro contributed a patent, accounts receivable, and $20,000 cash to a partnership. The patent had a book value of $8,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised

> Antique Buggy Corporation has 820,000 shares of $35 par common stock outstanding. On June 8, Antique Buggy Corporation declared a 5% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $63 per sha

> Hiro has a capital balance of $75,000 after adjusting assets to fair market value. Marone contributes $20,000 to receive a 40% interest in a new partnership with Hiro. Determine the amount and recipient of the partner bonus.

> The payroll register of Ruggerio Co. indicates $10,500 of social security withheld and $2,625 of Medicare tax withheld on total salaries of $175,000 for the period. Federal withholding for the period totaled $34,650. Provide the journal entry for the per

> A company reports the following: Sales ……………………………………………………… $1,500,000 Average accounts receivable (net) ………………… 100,000 Determine (a) The accounts receivable turnover and (b) The number of days’ sales in receivables. Round to one decimal place.

> Demers Inc. reported the following data: Net income ……………………………………………….. $490,000 Depreciation expense …………………………………….. 52,000 Gain on disposal of equipment ……………………….. 26,500 Decrease in accounts receivable ……………………… 32,400 Decrease in accounts payable

> On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $260,000, and the fair value was $214,000. Prepare the December 31 adjusting journal entry to record the unreal

> Using the bond from Practice Exercise 14-3A, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. In Practice Exercise 14-3A On the first day of the fiscal year, a company issues a $3,000,

> Pro-Builders Corporation has 1,500,000 shares of $5 par common stock outstanding. On September 2, Pro-Builders Corporation declared a 3% stock dividend to be issued November 30 to stockholders of record on October 3. The market price of the stock was $36

> Berry Company reported the following on the company’s income statement in two recent years: a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place. b. Is the number of times in

> Gomez has a capital balance of $240,000 after adjusting assets to fair market value. Banks contributes $380,000 to receive a 60% interest in a new partnership with Gomez. Determine the amount and recipient of the partner bonus.

> The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2, rounding to one decimal place, including percentage

> Journalize the entries to record the following selected bond investment transactions for Hall Trust: a. Purchased for cash $240,000 of Medina City 6% bonds at 100 plus accrued interest of $3,600. b. Received first semiannual interest payment. c. Sold $12

> Marsha Mellow’s weekly gross earnings for the week ended May 23 were $1,250, and her federal income tax withholding was $201.65. Assuming that the social security rate is 6% and Medicare is 1.5% of all earnings, what is Mellow’s net pay?

> The following items are reported on a company’s balance sheet: Cash ……………………………………….. $210,000 Marketable securities ………………… 120,000 Accounts receivable (net) …………… 110,000 Inventory …………………………………. 160,000 Accounts payable ……………………… 200,000 Determine (a

> Huluduey Corporation’s comparative balance sheet for current assets and liabilities was as follows: Adjust net income of $160,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

> On January 2, Yorkshire Company acquired 40% of the outstanding stock of Fain Company for $600,000. For the year ended December 31, Fain Company earned income of $140,000 and paid dividends of $50,000. Prepare the entries for Yorkshire Company for the pu

> On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays semiannual interest of $165,000 ($3,000,000 × 11% × ½), receiving cash of $2,889,599. Journalize the bond issuance.

> The declaration, record, and payment dates in connection with a cash dividend of $480,000 on a corporation’s common stock are February 1, March 18, and May 1. Journalize the entries required on each date.

> Demarco Lee invested $60,000 in the Camden and Sayler partnership for ownership equity of $60,000. Prior to the investment, equipment was revalued to a market value of $39,000 from a book value of $30,000. Kevin Camden and Chloe Sayler share net income i

> An employee earns $25 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 48 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and fe

> Tam Worldly’s weekly gross earnings for the week ended April 22 were $2,000, and her federal income tax withholding was $372.02. Assuming that the social security rate is 6% and Medicare is 1.5% of all earnings, what is Worldly’s net pay?

> The following items are reported on a company’s balance sheet: Cash ………………………………………….. $100,000 Marketable securities ……………………… 50,000 Accounts receivable (net) ……………….. 60,000 Inventory ………………………………………. 70,000 Accounts payable …………………………. 140,000 Deter

> Zwilling Corporation’s comparative balance sheet for current assets and liabilities was as follows: Adjust net income of $320,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

> Frey Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $800,000. Plan 1 Plan 2 Issue

> On January 2, Cohan Company acquired 40% of the outstanding stock of Sanger Company for $500,000. For the year ended December 31, Sanger Company earned income of $80,000 and paid dividends of $30,000. Prepare the entries for Cohan Company for the purchas

> On the first day of the fiscal year, a company issues a $2,500,000, 4%, five-year bond that pays semiannual interest of $50,000 ($2,500,000 × 4% × ½), receiving cash of $2,390,599. Journalize the bond issuance.

> The declaration, record, and payment dates in connection with a cash dividend of $350,000 on a corporation’s common stock are February 28, April 1, and May 15. Journalize the entries required on each date.

> Craig Roberts purchased one-half of Ennis Leighton’s interest in the Vale and Leighton partnership for $34,000. Prior to the investment, land was revalued to a market value of $130,000 from a book value of $80,000. Tony Vale and Ennis Leighton share net