[SOLVED] What details about a particular asset are

> A firm is preparing to make adjusting entries at the end of the accounting period. The balance of the merchandise inventory account is $200,000. If the firm is using the periodic inventory system, what does this balance represent?

> In general, an employee is entitled to withholding allowances for what purposes?

> Identify the four factors that determine the amount of federal income tax that is withheld from an employee’s pay each pay period.

> Name three major categories of deductions from an employee’s gross pay.

> What is a transposition error?

> Identify the five major column headings on a work sheet.

> Explain the purpose of the work sheet.

> Explain why payroll processing centers and electronic systems are commonly used in payroll accounting.

> Why is it important for payroll accounting purposes to distinguish between an employee and an independent contractor?

> What is an asset’s depreciable cost?

> What is the purpose of depreciation?

> When lower-of-cost-or-market is assigned to the items that comprise the ending merchandise inventory, what does “cost” mean? What does “market” mean?

> What is a permanent account? On which financial statement are permanent accounts reported?

> Describe a plant asset.

> If additional investments were made during the year, what information in addition to the work sheet would be needed to prepare the statement of owner’s equity?

> Explain the matching principle.

> Describe two approaches to listing the expenses in the income statement.

> What is the book value of an asset?

> Identify the source of the information needed to prepare the income statement.

> What is the useful life of an asset?

> What is a contra-asset?

> Explain the historical cost principle.

> Which inventory method always follows the actual physical flow of merchandise?

> Explain the expense recognition principle.

> Explain the revenue recognition principle.

> What are the main functions of an accounting clerk?

> Explain the primary advantage of a general ledger account.

> In what order are the accounts customarily placed in the ledger

> Describe the four steps required to journalize a business transaction in a general journal.

> Where the first formal accounting record of a business transaction is usually made?

> Name the five types of financial statement classifications for which it is ordinarily desirable to keep separate accounts.

> Explain the purpose of a chart of accounts.

> Identify four user groups normally interested in financial information about a business.

> What two factors are taken into account by the weighted-average method of merchandise cost allocation?

> Give three reasons why a corporation may distribute a stock dividend.

> What is a slide error?

> Explain why the ledger can still contain errors even though the trial balance is in balance. Give examples of two such types of errors.

> What information is entered in the Posting Reference column of the journal as an amount is posted to the proper account in the ledger?

> What is the purpose of accounting?

> Identify three types of businesses according to activities.

> What is impairment?

> What is the most important value reported on the statement of cash flows when evaluating the financial health of a company?

> List the two supplemental disclosures required under the indirect method.

> Provide an example of a noncash investing and financing activity.

> Under the indirect method of preparing a statement of cash flows, what adjustment is made for gains and losses on the sale of equipment?

> In a period of rising prices, which inventory method will result in: (a) The highest cost of goods sold? (b) The lowest cost of goods sold? (c) The highest ending inventory? (d) The lowest ending inventory? (e) The highest gross profit? (f) The lowest gr

> Under the indirect method of preparing a statement of cash flows, what adjustment is made for depreciation expense?

> What are cash equivalents?

> Briefly describe the difference between a job order cost system and a process cost system.

> What costs are entered on the job cost sheet?

> Explain how to calculate a predetermined overhead rate.

> What information is provided by the daily time sheet?

> What two purposes are served by a materials requisition form?

> Which adjusting entries are reversed by ToyJoy?

> Describe the procedures for closing the factory overhead account.

> Is a physical inventory necessary under the perpetual system? Why or why not?

> When the adjustment is made to apply overhead to ending work in process, why are no entries made in the job cost ledger?

> What are the three inventories needed in a manufacturing business?

> Why are the balances in the factory overhead account not extended to the Income Statement and Balance Sheet columns of the work sheet?

> What is the relationship between the debit and credit balances in the factory overhead account when the overhead is said to be underapplied? Overapplied?

> To the financial statements in Problem 24-8B. Problem 24-8B: Amounts from the comparative income statement and balance sheet of Johnson Stores, Inc., for the last two years are as follows: REQUIRED Prepare a vertical analysis of the income statement a

> Amounts from the comparative income statement and balance sheet of Johnson Stores, Inc., for the last two years are as follows: REQUIRED Prepare a horizontal analysis of the statements. Add columns to show the amount of increase (decrease) and the percen

> Based on the financial statement data in Exercise 24-1B, Exercise 24-1B: Based on the comparative income statement and balance sheet for Falcon Designers, Inc., given on the next page, compute the following liquidity measures for 20-2 (round all calcu

> Is a physical inventory necessary under the periodic system? Why or why not?

> Based on the financial statement data in Exercise 24-1B, Exercise 24-1B: Based on the comparative income statement and balance sheet for Falcon Designers, Inc., given on the next page, compute the following liquidity measures for 20-2 (round all calcu

> Refer to the financial statements in Problem 24-8B. Problem 24-8B: Amounts from the comparative income statement and balance sheet of Johnson Stores, Inc., for the last two years are as follows: REQUIRED Calculate the following ratios and amounts for

> Based on the comparative income statement and balance sheet for Falcon Designers, Inc., given on the next page, compute the following liquidity measures for 20-2 (round all calculations to two decimal places): (a) Quick or acid-test ratio (b) Current rat

> Kennington Companyâs condensed income statement for the year ended December 31, 20-2, was as follows: Net sales â¦â¦â¦â¦â¦â&brvb

> Mulligan Companyâs income statement for 20-2 reported interest expense of $2,190. The comparative balance sheet as of December 31, 20-2 and 20-1, reported the following: Compute the amount of cash paid for interest in 20-2. 20-2 20-

> Murry’s consulting services issued a two-year, $5,000 note payable to acquire new office furniture. Show how this transaction is reported on the statement of cash flows.

> Hansen Companyâs comparative balance sheets as of December 31, 20-2 and 20-1, showed the following with regard to investing and financing activities: Net income for 20-2 was $80,000, and cash dividends of $20,000 were declared and pai

> The income statement for Leadbetterâs Golf Camp follows. Assume that all revenues and expenses were for cash and that land was sold for $600. There were no other investing or financing activities during the year. The Cash balances at th

> After adjusting net income for changes in current assets and current liabilities, Cha Cha Dance Company’s cash from operating activities is $60,000. However, Cha Cha reports $5,000 in patent amortization expense for the year. Compute cash from operating

> What is the main difference between the periodic system of accounting for inventory and the perpetual system of accounting for inventory?

> Roberts Company reported net income of $50,000 for 20-2. The December 31 balances of the current assets and current liabilities are shown below. Compute cash provided by operating activities. 20-2 20-1 $ 6,000 60,000 36,000 24,000 $10,000 50,000 40,0

> Pike Companyâs balance sheets as of December 31, 20-2 and 20-1, showed the following with regard to cash and cash equivalents: Compute the amount of change in cash and cash equivalents and indicate whether it represented an increase or

> Refer to Problem 23-9B. The following additional information was obtained from Kennington’s financial statements and auxiliary records for the year ended December 31, 20-2. Acquired a new warehouse …………………………………………………………….. $90,000 Bought new warehouse

> The following activities took place in Tomberlin Company during the most recent year. Indicate whether each activity is a cash inflow (+) or cash outflow (–), and whether it is an operating activity (O), investing activity (I), or financing activity (F).

> Wang Corporation issued the following bonds at a premium: Date of issue and sale: ……………………………………………………………….. March 1, 20-1 Principal amount: …………………………………………………………………………….. $250,000 Sale price of bonds: ………………………………………………………………………………….. 103 Denomination

> Ramona Arroyo Co. issued the following bonds: Date of issue and sale: ………………………………………………………. April 1, 20-1 Principal amount: ………………………………………………………………… $250,000 Sale price of bonds: ……………………………………………………………………… 100 Denomination of bonds: ……………………………………………

> Miller & Miller sold bonds at a premium for $525,000 (premium of $25,000) eight years ago. (a) The corporation redeems $50,000 of this issue at 95. The unamortized premium is $500. (b) The corporation redeems $75,000 of this issue at 103. The unamortized

> On October 2, 20-1, the board of directors of Carr Company appropriated $400,000 of retained earnings for the purpose of buying a new yacht (used for entertaining clients). On July 15, 20-2, the yacht was purchased and the board of directors decided that

> Okano Medical Lab issued $300,000 in bonds at face value 10 years ago and has paid semiannual interest payments through the years. (a) Assume the bonds are redeemed at face value. (b) Assume that $25,000 of the bonds are redeemed at 103. (c) Assume that

> What financial statements are affected by an error in the ending inventory?

> Beilke’s Supply Stores issued the following bonds at a discount: Date of issue and sale: ……………………………………………………………………… April 1, 20-1 Principal amount: ………………………………………………………………………………… $400,000 Sale price of bonds: ………………………………………………………………………………………… 97 Deno

> Bryant and Nelson Company issued the following bonds at a premium: Date of issue and sale: ………………………………………………………. May 1, 20-1 Principal amount: ………………………………………………………………… $500,000 Sale price of bonds: ……………………………………………………………………… 103 Denomination of bonds

> Ellis & Co. issued the following bonds at a discount: Date of issue and sale: ……………………………………………………………….. April 1, 20-1 Principal amount: ……………………………………………………………………….. $400,000 Sale price of bonds: ……………………………………………………………………………….. 97 Denomination of bond

> Blackwell Company issued the following bonds at a premium: Date of issue and sale: …………………………………………………………………… March 1, 20-1 Principal amount: ………………………………………………………………………………… $500,000 Sale price of bonds: ……………………………………………………………………………………… 103 Denominatio

> Brandon, Inc., issued the following bonds at a discount: Date of issue and sale: ………………………………………………………… April 1, 20-1 Principal amount: ………………………………………………………………….. $600,000 Sale price of bonds: ………………………………………………………………………….. 96 Denomination of bonds: ……

> Underwriters issued the following bonds: Date of issue and sale: ……………………………………………………………. April 1, 20-1 Principal amount: ……………………………………………………………………… $400,000 Sale price of bonds: ………………………………………………………………………….. 100 Denomination of bonds: ………………………………………

> During the year ended December 31, 20--, Baggio Company completed the following transactions: Apr. 15 Declared a semiannual dividend of $0.65 per share on preferred stock and $0.45 per share on common stock to shareholders of record on May 5, payable on

> During the year ended December 31, 20-2, Tatu Company completed the following selected transactions: Apr. 15 estimated that its 20-2 income tax will be $160,000. Based on this estimate, it will make four quarterly payments of $40,000 each on April 15, Ju

> Womack Company had the following balances and results for the current calendar year: Retained earnings, January 1 ……………………...………………. $80,000 Cash dividends declared ……………………………………………. 15,000 Net income for the year …………………………….………………. 40,000 Prepare a

> Rogerson Company has 40,000 shares of $2 par common stock outstanding. On July 1, the board of directors declared a two-for-one stock split. Prepare a memorandum entry in the general journal indicating the new par value and the total number of outstandin

> What steps are followed in posting from the purchases journal to the general ledger?

Question: What details about a particular asset are