What are the four steps of the liquidation process?
> From the trial balance in Figure 11.11, complete a worksheet for Jim’s Hardware. Assume the following: a./b. Ending inventory on December 31 is calculated at $340. c. Insurance expired, $110. d. Depreciation on store equipment, $70. e.
> Based on the following accounts, calculate (a) net sales, (b) cost of goods sold, (c) gross profit, and (d) net income. Accounts Payable ……………………………………………… $ 6,300 Operating Expenses ……………………………………………… 1,600 Market Co., Capital …………………………………………….. 19,70
> Morgan Amberson decided to open Morgan’s Nail Spa. Morgan completed the following transactions: a. Invested $16,000 cash from her personal bank account into the business. b. Bought store equipment for cash, $3,700. c. Bought additional store equipment o
> Smith Computer Center currently has a $13,095.00 balance in Accounts Receivable. Here is a current schedule of Accounts Receivable: Smith Computer Center Schedule of Accounts Receivable March 31, 201X Phil’s Photography ……………………………………………….. $ 4,095 Worl
> Go to the consolidated balance sheet in the 2013 annual report for Kellogg’s Company at http://investor.kelloggs.com/investor-relations/annual-reports. What is the amount of retained earnings in 2013? What is the par value of the stock?
> Go to the 2013 annual report for Kellogg’s Company at http://investor.kelloggs .com/investor-relations/annual-reports and, in note 3, find how much impairment has decreased from 2012 to 2013.
> Go to http://investor.kelloggs.com/investor-relations/annual-reports to access the Kellogg’s 2013 Annual Report and find the Consolidated Statement of Income. What was the Interest Expense in 2012 and 2013?
> Go to http://investor.kelloggs.com/investor-relations/annual-reports to access the Kellogg’s 2013 Annual Report and locate the consolidated statement of Income. How much has Selling and General Administrative Expense decreased from 2012 to 2013?
> Go to http://investor.kelloggs.com/investor-relations/annual-reports to access the Kellogg’s 2013 Annual Report, and locate the balance sheet. How much has merchandise inventory increased or decreased from 2012 to 2013?
> Before Adjustment Given: Accrued Salaries, $125. a. Complete a transaction analysis box for this adjustment. b. What will be the balance of these two accounts on the adjusted trial balance? Salaries Expense Salaries Payable 1,000
> Go to http://investor.kelloggs.com/investor-relations/annual-reports to access the Kellogg’s 2013 Annual Report. Look at Notes to Consolidated Financial Statements and use information from Note 17 page 68 to calculate how much Advertising Expense has inc
> Go to http://investor.kelloggs.com/investor-relations/annual-reports/ to access Kellogg’s 2013 Annual Report. Find the statement of earnings. Sales are the revenue for a merchandise company. How much did Kellogg’s sales increase or decrease from 2012 to
> Go to http://investor.kelloggs.com/investor-relations/annual-reports/ to access the Kellogg’s 2013 Annual Report and find the balance sheet of Kellogg’s. Did Kellogg’s Accounts Payable go up or down from 2012 to 2013? What does this change mean? Into wha
> Go to the 2013 annual report for Kellogg’s Company at http://investor.kelloggs .com/investor-relations/annual-reports. What is the cost of finished goods inventory for 2013 as shown in note 17?
> Go to the 2013 annual report for Kellogg’s Company at http://investor.kelloggs.com/ investor-relations/annual-reports. Find the net sales figure for Latin America for 2013 in Project K in note 3.
> Go to the 2013 annual report for Kellogg’s Company at http://investor.kelloggs.com/ investor-relations/annual-reports. Calculate for Kellogg’s the current ratio for 2012 and 2013.
> Go to http://investor.kelloggs.com/investor-relations/annual-reports/ to access the Kellogg’s 2013 Annual Report. Find the balance sheet and calculate the following: How much did cash increase or decrease in 2013 from 2012?
> Complete the following table by placing an X in the correct column. Temporary Permanent Will Be Closed Ex. Accounts Receivable 1. Income Summary 2. Jen Rich, Capital 3. Salary Expense 4. Jen Rich, Withdrawals 5. Fees Earned 6. Accounts Payable 7. Ca
> Complete the following table by placing an X in the correct column. Temporary Permanent Will Be Closed Ex. Accounts Receivable 1. Income Summary 2. Jan Ralls, Capital 3. Rent Expense 4. Jan Ralls, Withdrawals 5. Fees Earned 6. Accounts Payable 7. Ca
> Draw a diagram to show the flow of manufacturing costs.
> Before Adjustment Given: At year end, rent expired is $300. a. How much is the adjustment for Prepaid Rent? b. Complete a transaction analysis box for this adjustment. c. What will be the balance of Prepaid Rent on the adjusted trial balance? Prepa
> Explain how to calculate the total cost of goods manufactured.
> Using the Allowance for Doubtful Accounts method, what journal entries would be made to write off an account as well as later record the recovery of the accounts receivable?
> From the following, calculate the cost of raw materials used: Raw materials inventory, January 1 …………………………………… $ 6,700 Raw materials inventory, December 31 ……………………………….. 13,100 Purchases of raw materials ……………………………………………….. 86,000
> Classify each of the following as raw material, direct labor, or overhead: a. Finishing material for an automobile manufacturer b. Labor of a person who paints automobiles for an automobile manufacturer c. Depreciation expense of manufacturing assets d.
> Given the following, calculate net income: Dept. 1 Dept. 2 Net Sales $36,000 $43,000 Cost of Goods Sold 14,000 31,000 Operating Expenses $16,150 Income Tax Expense, 30% rate
> Calculate the assignment of fire insurance of $24,000 to each department based on square footage. Indirect Expense Basis of Assignment Bakery Grocery Fire Insurance 6,100 square feet total 1,900 square feet 4,200 square feet
> The cost of rent of $19,000 for Linville Co. is appropriated to each department based on its sales. Given the following, assign the cost of rent to each department: Rent Toys Sales Clothing Sales $19,000 $26,000 $52,000
> On April 5, Lein Co. prepared voucher no. 15 to record purchases of equipment on account for $1,900. On April 14, Lein Co. decided to pay the $1,900 in two equal installments (voucher nos. 18 and 19). Record the general journal entries.
> On April 15, Kratz Co. prepared a voucher for $800 for merchandise purchased on account from Plum Co. On April 19, Kratz Co. decided to return merchandise valued at $170 due to poor workmanship. Record the general journal entries.
> Record the following transactions into the general journal. The company uses a voucher system along with a petty cash fund. 201X Mar. 11 Voucher no. 18 was prepared to establish petty cash for $125. Voucher no. 42 was prepared to replenish the petty
> Before Adjustment Given: At year end, an inventory of Office Supplies showed $400. a. How much is the adjustment for Office Supplies? b. Complete a transaction analysis box for this adjustment. c. What will the balance of Office Supplies be on the adju
> From the following, foot and balance each account. Cash 110 M. Meade, Capital 311 9/5 4,000 800 7/25 9,000 6/9 9/9 10,000 5,000 9/3 3,000 9/7
> List the advantages of the corporate form of organization.
> Thad’s computer center’s business is picking up, so he has decided to expand his bookkeeping system to a general journal/ledger system. The balances from August have been forwarded to the ledger accounts. Assignment 1
> Who elects the board of directors?
> In stock subscriptions, why does one credit Common Stock Subscribed?
> What is the purpose of the account Organization Costs?
> Explain the account Paid-In Capital in Excess of Par Value as it relates to exchange of stock for noncash assets.
> What is meant by a “side transaction” when a new partner is admitted by an existing partner’s selling the new partner equity?
> The statement of partners’ capital is a required report. Agree or disagree? Defend your position.
> Give an example of a fractional ratio.
> Explain why salary and interest allowances are not expenses for a partnership.
> What is the function of the Purchases account?
> Mutual agency could create unlimited liability. Agree or disagree? Defend your position.
> Explain how a company could operate even when being dissolved.
> The Smith Computer Center created its chart of accounts as follows: You will use this chart of accounts to complete the Continuing Problem. The following problem continues from Chapter 1. Assignment 1. Set up T accounts in a ledger and post the ending
> What is the function of the articles of partnership?
> List five characteristics of a partnership.
> Why would a partner who is withdrawing take more or less than book equity?
> When a partner withdraws, why would a partnership revalue its assets?
> What is meant by a “bonus” when a partner is admitted?
> How is the equity of a partnership different from that of a sole proprietorship?
> What purpose could a typical invoice approval form serve?
> A loss on an exchange of plant assets occurs when the book value of the old machine is more than the trade-in allowance. True or false?
> When a plant asset is sold, a loss results if the cash received is greater than book value. Agree or disagree? Please explain.
> Which method of depreciation does not deduct residual value in its calculation?
> The following problem continues from one chapter to the next, carrying the balances of each month forward. Each chapter focuses on the learning experience of the chapter, adds information as the business grows, and shows how critical the knowledge of acc
> A betterment is a revenue expenditure. True or false? Please explain.
> What is the purpose of the Modified Accelerated Cost Recovery System?
> What are three methods of calculating depreciation? Briefly explain the key points of each.
> What is the difference between revenue and capital expenditures?
> What is the purpose of the Land Improvements account?
> List and describe three intangible assets.
> What is the relationship between a purchase requisition and a purchase order?
> What is the purpose of the Accumulated Depletion account?
> Explain how the income tax method differs from the Accounting Principles Board ruling with regard to the recording of exchanges of plant assets that result in a loss.
> What types of costs are considered “reasonable and necessary” when determining the cost of an asset?
> Which inventory method provides the most current valuation of inventory on the balance sheet? Please explain.
> This comprehensive review problem requires you to complete the accounting cycle for Sousa Realty twice. This practice set allows you to review Chapters 1–5 while reinforcing the relationships between all parts of the accounting cycle. B
> During inflation, which inventory method will provide the lowest income on the income statement?
> What are the four methods of inventory valuation? Explain each.
> Must the flow of cost in inventory match the physical movement of merchandise? Please explain.
> Explain the relationship between the Merchandise Inventory account and the subsidiary inventory ledger.
> Why are there two entries required to record each sale in the perpetual inventory system?
> Why could the balance of the controlling account, Accounts Payable, equal the sum of the accounts payable subsidiary ledger during the month?
> In the perpetual system, what account is debited to record the cost of merchandise purchased?
> What are the two key accounts in the perpetual inventory system?
> Lyon Co. has used a perpetual inventory system for 6 months. The president of the company issued a memo stating that the new computer system failed to deliver acceptable standards in servicing the customers and that too many goods are out of stock. Fran,
> Why would a company use the retail method to determine the value of the ending inventory? Why would it use the gross profit method?
> When ending inventory is understated, what effect will it have on cost of goods sold and net income?
> Kevin Hoffaman works as a teller in Victory Bank. Yesterday, he looked up confidential information about promissory notes concerning several friends. Kevin told his girlfriend all about the confidential information. Do you think Kevin acted appropriately
> Explain why goods in transit (F.O.B. shipping point) to buyer and goods issued on consignment are added to inventory valuations.
> Why would a manager prefer the perpetual inventory system over the periodic system of inventory?
> What is meant by a contingent liability?
> List the four steps to arrive at proceeds in the process of discounting a note.
> What is the normal balance of each creditor in the accounts payable subsidiary ledger?
> Explain what will happen if a maker defaults on a note. (Assume that the note has not been discounted.)
> Only matured notes are listed in the Notes Receivable account. Agree or disagree? Please discuss.
> Why is a subsidiary ledger not needed for notes?
> Notes Receivable is a current liability on the balance sheet. Accept or reject. Why?
> What is the difference between finding a maturity date by (a) days or (b) months?
> Explain the parts of a promissory note.
> Spring Co. bought merchandise from All Co. with terms 2/10, n/30. Joanne Ring, the bookkeeper, forgot to pay the bill within the first 10 days. She went to Mel Ryan, the head accountant, who told her to backdate the check so that it looked like the bill
> How could Discount on Notes Payable be adjusted?
> How is the effective interest rate calculated?
> What is the normal balance of the Discount on Notes Payable account?
> F.O.B. destination means that title to the goods will switch to the buyer when goods are shipped. Do you agree or disagree? Why?
> When could interest be deducted in advance by a lender?
> List three reasons why a company may use Notes Payable instead of Accounts Payable and whether the company is the maker or payee.
