Question: What is the normal balance for each

> Refer to the data for problem 5. a. What does the null hypothesis of independence claim, in practical terms, for this situation? b. How many managers responding “Worse” would you expect to find in this sample if respon

> Your firm is considering expansion to a nearby city. A survey of employees in that city, asked to respond to the question “Will business conditions in this area get better, stay the same, or get worse?” produced the da

> Out of 267 roller skates randomly selected for close examination, 5 were found to have a loose rivet, and 12 were not cleaned according to specifications. a. Use the formula for computing an expected count. How many roller skates would you expect to have

> Last year at this time, your firm’s incoming telephone calls followed the percentages shown in Table 17.4.2. a. Find the percentages for the first day of this month and compare them to last year’s percentages for this

> For each potential customer entering an auto showroom, the type of vehicle desired is recorded. Table 17.4.1 shows data for the past week, together with percentages for the past year at this time. a. Find the percentages for last week’s

> One group of households was asked how satisfied they were with their car, while the other group was asked how dissatisfied they were. Results are shown in Table 17.4.7. a. Which group was more likely to report that they were satisfied? b. Which group was

> The eastern factory had 28 accidents last year, out of a workforce of 673. The western factory had 31 accidents during this time period, out of 1,306 workers. a. Which factory had more accidents? Which factory had a greater accident rate? b. Is there a s

> Does it really matter how you ask a question? A study was conducted that asked whether or not people would pay $30 to eat at a particular restaurant.6 One group was told “there is a 50 percent chance that you will be satisfied,” while the other was told

> Is there evidence consistent with gender discrimination in training level? To answer this, proceed as follows: a. Create a table of counts for the two qualitative variables “gender” and “training level.” b. Compute the overall percentage table and commen

> A commercial bank is reviewing the status of recent real estate mortgage applications. Some applications have been accepted, some rejected, and some are pending while waiting for further information. The data are shown in Table 17.4.6 and graphed in Fig.

> A mail-order company is interested in whether or not “order rates” (the percent of catalogs mailed that result in an order) vary from one region of the country to another. Table 17.4.5 gives recent data on the number o

> Refer to the data for problem 8. a. Find the critical value from the chi-squared table for the 5% level and report the result of the chisquared test. b. Find the critical value from the chi-squared table for the 1% level and report the result of the chis

> a. If an observed count is 3 and the expected count is 8.61, is there any problem with going ahead with a chi-squared test? b. If an observed count is 8 and the expected count is 3.29, is there any problem with going ahead with a chi-squared test?

> Perform a nonparametric analysis of prescription drug prices in the United States and Canada, as reported in Table 16.4.7. a. Is this a paired or unpaired situation? b. Are prices significantly higher in the United States? How do you know? Table 16.4.7

> The number of items returned for each of the past 9 days was 13, 8, 36, 18, 6, 4, 39, 47, and 21. Test to see if the median number returned is significantly different from 40 and find the p-value (as either p>0.05, p

> Are tasting scores significantly different for the Chardonnay and Cabernet-Sauvignon wines listed in Table 10.7.6? Is this a paired or unpaired situation? Table 10.7.6: TABLE 10.7.6 Wine-Tasting Scores Cabernet Cabernet Expert Chardonnay Sauvignon

> Would there be any problem with a nonparametric analysis (two unpaired samples) of data listing day care rates comparing those of the well-to-do Laurelhurst area to other parts of Seattle? Why or why not?

> To understand your competitive position, you have examined the reliability of your product as well as the reliability of your closest competitor’s product. You have subjected each product to abuse that represents about a yearâ&#12

> Your firm is being sued for gender discrimination, and you are evaluating the documents filed by the other side. Their data set is shown in Table 16.4.5. a. Draw box plots for this data set on the same scale and comment on their appearance. b.* Use a non

> Do training levels A, B, and C have approximately the same number of employees, except for randomness? (To answer this, test whether the percentage of employees at each training level differs significantly from the proportions 1/3, 1/3, and 1/3 for the t

> Although Clif Bar & Company is not a public company, it does share its financial information with its employees as part of its open-book management approach. Further, although it does not publicly share its financial information, it does provide a differ

> Some people are tempted to make their finances look worse to get financial aid. Companies sometimes also manage their financial numbers in order to accomplish certain goals. Earnings management is the planned timing of revenues, expenses, gains, and loss

> Amy Sawyer, the bookkeeper for New Hampshire Company, has been trying to determine the correct balance sheet for the company. The company’s balance sheet is shown below. Instructions Explain to Amy Sawyer in a memo why the original ba

> Anya and Nick Ramon, local golf stars, opened the Chip-Shot Driving Range on March 1, 2020, by investing $25,000 of their cash savings in the business. A caddy shack was constructed for cash at a cost of $8,000, and $800 was spent on golf balls and golf

> This exercise will familiarize you with the skills needed (other than accounting skills) to be a successful accountant. Instructions Search the Internet for “start here go places” to access free accounting resources for future CPAs and then answer the f

> Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. The complete annual reports of Amazon and Wal-Mart, including the notes to the financial sta

> PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial stat

> Selected journal entries for the Walt Bryce Company are presented in BE2.7. Post the transactions using the standard form of account. Journal Entries from BE 2.7: J1 Date Account Titles and Explanation Ref. Debit Credit May 5 Accounts Receivable 5,

> The financial statements of Apple Inc. for 2015 are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company’s website. Instructions Refer to Appleâ€&#

> Auditors provide a type of certification of corporate financial statements. Certification is used in many other aspects of business as well. For example, it plays a critical role in the sustainability movement. The February 7, 2012, issue of the New York

> Every company needs to plan in order to move forward. Its top management must consider where it wants the company to be in three to five years. Like a company, you need to think about where you want to be three to five years from now, and you need to sta

> Melia’s Maid Company off ers home-cleaning service. Two recurring transactions for the company are billing customers for services performed and paying employee salaries. For example, on March 15, bills totaling $6,000 were sent to customers and $2,000 wa

> Summarized operations for Bayles Co. for the month of July are as follows. Revenues recognized: for cash $20,000; on account $70,000. Expenses incurred: for cash $26,000; on account $40,000. Indicate for Bayles Co. (a) the total revenues, (b) the total e

> Bayler Enterprises had a capital balance of $186,000 at the beginning of the period. At the end of the accounting period, the capital balance was $189,000. a. Assuming no additional investment or withdrawals during the period, what is the net income for

> Selected transactions from the journal of June Feldman, investment broker, are presented below. Instructions a. Post the transactions to T-accounts. b. Prepare a trial balance at August 31, 2020. Date Account Titles and Explanation Ref. Debit Credi

> In February 2020, Ola Gott invested an additional $12,000 in her business, Gott’s Pharmacy, which is organized as a proprietorship. Gott’s accountant, Sal Costa, recorded this receipt as an increase in cash and revenues. Is this treatment appropriate? Wh

> Listed below are some items found in the financial statements of Tony Gruber Co. Indicate in which financial statement(s) the following items would appear. a. Service revenue. b. Equipment. c. Advertising expense. d. Accounts receivable. e. Owner’s capit

> This information is for Paulo Company for the year ended December 31, 2020. Instructions Prepare the 2020 statement of cash fl ows for Paulo Company. Cash received from revenues from customers $600,000 Cash received from investment by owner Cash pa

> Indicate whether each of the following accounts is an asset, a liability, or an owner’s equity account and whether it has a normal debit or credit balance: (a) Accounts Receivable, (b) Accounts Payable, (c) Equipment, (d) Owner’s Drawings, and (e) Suppli

> Presented below is information related to the sole proprietorship of Helen Archer, attorney. Instructions Prepare the 2020 owner’s equity statement for Helen Archer’s legal practice. $330,000 Legal service revenu

> Presented below is financial information related to the 2020 operations of Sea Legs Cruise Company. Instructions Prepare the 2020 income statement for Sea Legs Cruise Company. $ 95,000 Maintenance and repairs expense Utilities expense Salaries and

> Saira Morrow is the sole owner of Buena Vista Park, a public camping ground near the Crater Lake National Recreation Area. Saira has compiled the following financial information as of December 31, 2020. Instructions a. Determine Saira Morrowâ&#12

> Abby Roland is the bookkeeper for Cheng Company. Abby has been trying to determine the correct balance sheet for Cheng Company. Cheng’s balance sheet is shown below. Instructions Prepare a correct balance sheet. Cheng Company Bala

> a. Define the terms assets, liabilities, and owner’s equity. b. What items affect owner’s equity?

> The following information relates to Fleete Co. for the year 2020. Instructions After analyzing the data, prepare an income statement and an owner’s equity statement for the year ending December 31, 2020. $42,000 $ 1,800 Owner's c

> Indicate whether the following items would appear on the income statement (IS), balance sheet (BS), or owner’s equity statement (OE). a. Notes payable b. Advertising expense c. Owner’s capital d. Cash e. Service revenue

> Two items are omitted from each of the following summaries of balance sheet and income statement data for two proprietorships for the year 2020, Greene’s Goods and Solar Enterprises. Instructions Determine the missing amounts. Gre

> Helen Rupp is the owner of a successful printing shop. Recently, her business has been increasing, and Helen has been thinking about changing the organization of her business from a proprietorship to a corporation. Discuss some of the advantages Helen wo

> Hawke Company had the following assets and liabilities on the dates indicated. Hawke began business on January 1, 2019, with an investment of $100,000. Instructions From an analysis of the change in owner’s equity during the year, co

> In alphabetical order below are balance sheet items for Smyth Company at December 31, 2020. Kathy Smyth is the owner of Smyth Company. Prepare a balance sheet, following the format of Illustration 1.9. Accounts payable …………………… $90,000 Accounts receivabl

> An analysis of transactions for Peat DeLoitte & Co. was presented in E1.8. Instructions Prepare an income statement and an owner’s equity statement for August and a balance sheet at August 31, 2020. Assume that August is the compan

> An analysis of the transactions made by Peat Deloitte & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $560 for rent, $4,800 for salaries and wages, and $400 for utilities. Instructions a. Describ

> Falske Computer Timeshare Company entered into the following transactions during May 2020. 1. Purchased computers for $20,000 from Digital Equipment on account. 2. Paid $4,000 cash for May rent on storage space. 3. Received $17,000 cash from customers fo

> Benton Travel Agency purchased land for $90,000 cash on December 10, 2020. At December 31, 2020, the land’s value has increased to $92,000. What amount should be reported for land on Benton’s balance sheet at December 31, 2020? Explain.

> Selected transactions for Poway Landscaping Company are listed below. 1. Made cash investment to start business. 2. Paid monthly rent. 3. Purchased equipment on account. 4. Billed customers for services performed. 5. Withdrew cash for owner’s personal us

> Classify each of the following items as owner’s drawings (D), revenue (R), or expense (E). a. Advertising expense b. Service revenue c. Insurance expense d. Salaries and wages expense e. Owner’s drawings f. Rent revenue g. Utilities expense

> Presented below is selected information related to Kirby Company at December 31, 2020. Kirby reports financial information monthly. a. Determine the total assets of Kirby Company at December 31, 2020. b. Determine the net income that Kirby Company repo

> Financial statement information about four different companies is as follows. Instructions a. Determine the missing amounts. b. Prepare the owner’s equity statement for Alpha Company. c. Write a memorandum explaining the sequence for

> Diehl Cleaners has the following balance sheet items. Accounts payable …………………….. Accounts receivable Cash ……………………………………………….. Notes payable Equipment …………………… Salaries and wages payable Supplies ………………………………………….. Owner’s capital Instructions Classify

> State the rules of debit and credit as applied to (a) asset accounts, (b) liability accounts, and (c) the owner’s equity accounts (revenue, expenses, owner’s drawings, and owner’s capital).

> What uses of financial accounting information are made by (a) investors and (b) creditors?

> Maisie Taft started her own consulting fi rm, Maisie Consulting, on May 1, 2020. The following transactions occurred during the month of May. May 1 Maisie invested $7,000 cash in the business. 2 Paid $900 for offi ce rent for the month. 3 Purchased

> The following situations involve accounting principles and assumptions. 1. Sosa Company owns buildings that are worth substantially more than they originally cost. In an effort to provide more relevant information, Sosa reports the buildings at fair valu

> Transactions made by A. Marti and Co., a law firm, for the month of March are shown below. Prepare a tabular analysis which shows the effects of these transactions on the expanded accounting equation, similar to that shown in Illustration 1.8. 1. The

> Use the expanded accounting equation to answer each of the following questions. a. The liabilities of Platt Company are $90,000. Owner’s capital is $150,000; drawings are $40,000; revenues, $450,000; and expenses, $340,000. What is the amount of Platt Co

> At the beginning of the year, Gilles Company had total assets of $800,000 and total liabilities of $300,000. Answer the following questions. a. If total assets increased $150,000 during the year and total liabilities decreased $60,000, what is the amount

> On June 1, Cindy Godfrey started Divine Designs Co., a company that provides craft opportunities, by investing $12,000 cash in the business. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of

> Angela Duff y, president of Duff y Company, has instructed Jana Barth, the head of the accounting department for Duff y Company, to report the company’s land in the company’s accounting reports at its fair value of $170,000 instead of its cost of $100,00

> Classify the following items as investment by owner (I), owner’s drawings (D), revenues (R), or expenses (E). Then indicate whether each item increases or decreases owner’s equity. 1. Drawings. 2. Rent revenue. 3. Advertising expense. 4. Owner puts perso

> Given the accounting equation, answer each of the following questions. a. The liabilities of Berber Company are $120,000 and the owner’s equity is $230,000. What is the amount of Berber Company’s total assets? b. The total assets of Berber Company are $1

> Melissa Estes, a beginning accounting student, believes debit balances are favorable and credit balances are unfavorable. Is Melissa correct? Discuss.

> Sonya Jared opened a law offi ce on July 1, 2020. On July 31, the balance sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment $6,000, Accounts Payable $4,200, and Owner’s Capital $8,800. During August, the following tra

> Indicate whether each of the five statements presented below is true or false. 1. Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable. 2. The standards of conduct by which actions are judged as

> Indicate whether each of the five statements presented below is true or false. 1. The three steps in the accounting process are identification, recording, and examination. 2. The accounting process includes the bookkeeping function. 3. Managerial account

> After numerous campus interviews, Travis Chase, a senior at Great Northern College, received two office interview invitations from the Baltimore offices of two large fi rms. Both firms offered to cover his out-of-pocket expenses (travel, hotel, and meals

> Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. They passed many happy hours mastering every type of cookie imaginable and later creating new recipes that were both healthy and delicious. Now at the star

> On April 1, Julie Spengel established Spengel’s Travel Agency. The following transactions were completed during the month. 1. Invested $15,000 cash to start the agency. 2. Paid $600 cash for April offi ce rent. 3. Purchased equipment for $3,00

> Genesis Company performs the following accounting tasks during the year. ____ Analyzing and interpreting information. ____ Classifying economic events. ____ Explaining uses, meaning, and limitations of data. ____ Keeping a systematic chronological diary

> Ellynn Kole is the assistant chief accountant at Doman Company, a manufacturer of computer chips and cellular phones. The company presently has total sales of $20 million. It is the end of the first quarter. Ellynn is hurriedly trying to prepare a trial

> After researching the different forms of business organization. Natalie Koebel decides to operate “Cookie Creations” as a proprietorship. She then starts the process of getting the business running. In November 2019, the following activities take place.

> Vera Ernst is a licensed dentist. During the fi rst month of the operation of her business, the following events and transactions occurred. April 1 Invested $20,000 cash in her business. 1 Hired a secretary-receptionist at a salary of $700 per week payab

> Pete Harcourt, a fellow student, contends that the double entry system means each transaction must be recorded twice. Is Pete correct? Explain.

> Holz Disc Golf Course was opened on March 1 by Ian Holz. The following selected events and transactions occurred during March. Mar. 1 Invested $20,000 cash in the business. 3 Purchased Rainbow Golf Land for $15,000 cash. The price consists of land $12,0

> The Starr Theater, owned by Meg Vargo, will begin operations in March. The Starr will be unique in that it will show only triple features of sequential theme movies. As of March 1, the ledger of Starr showed No. 101 Cash $3,000, No. 140 Land $24,000, No.

> The following trial balance of Sergei Asbrecht Co. does not balance. Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors. 1. Cash received from a customer in pay

> Maquoketa Services was formed on May 1, 2020. The following transactions took place during the first month. Transactions on May 1: 1. Jay Bradford invested $40,000 cash in the company, as its sole owner. 2. Hired two employees to work in the warehouse. T

> Lennon Industries had the following transactions. 1. Borrowed $5,000 from the bank by signing a note. 2. Paid $3,900 cash for a computer. 3. Purchased $650 of supplies on account. Instructions a. Indicate what accounts are increased and decreased by eac

> Transaction data for Royale Real Estate Agency are presented in E2.4. Instructions Journalize the transactions. Data From E2.4: Oct. 1 James Royale begins business as a real estate agent with a cash investment of $17,000. 2 Hires an administrative a

> The following information relates to Royale Real Estate Agency. Oct. 1 James Royale begins business as a real estate agent with a cash investment of $17,000. 2 Hires an administrative assistant. 3 Purchases office furniture for $1,900, on account. 6 Sell

> Data for M. Acosta, interior decorator, are presented in E2.2. Instructions Journalize the transactions using journal page J1. Data from E2.2: Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. J

> Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $3,000 cash for use in business. 9 Purchased supplies on account for $600. 11 B

> Kim Yi has prepared the following list of statements about accounts. 1. An account is an accounting record of either a specific asset or a specific liability. 2. An account shows only increases, not decreases, in the item it relates to. 3. Some items, su

> Transactions for the Oleg Thorn Company for the month of June are presented below. Identify the accounts to be debited and credited for each transaction. June 1 Oleg Thorn invests $5,000 cash in a small welding business of which he is the sole proprietor

> Beyers Security Company provides security services. Selected transactions for Beyers are presented below. Oct. 1 Invested $66,000 cash in the business. 2 Hired part-time security consultant. Salary will be $2,000 per month. First day of work will be Octo

> The accounts in the ledger of Prompt Delivery Service contain the following balances on July 31, 2020. Instructions Prepare a trial balance with the accounts arranged as illustrated in the chapter and fi ll in the missing amount for Cash. $ 7,640 P

> The bookkeeper for J.L. Kang Equipment Repair made a number of errors in journalizing and posting, as described below. 1. A credit posting of $525 to Accounts Receivable was omitted. 2. A debit posting of $750 for Prepaid Insurance was debited to Insuran

> Selected transactions for Bonnie Donne Company during its fi rst month in business are presented below. Sept. 1 Invested $10,000 cash in the business. 5 Purchased equipment for $14,000 paying $4,000 in cash and the balance on account. 25 Paid $3,000 ca

> Presented below is the ledger for Shumway Co. Instructions a. Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20, and provide explanations for each. b. Determine the October 31 balance for each of the accounts abo

> The T-accounts below summarize the ledger of Negrete Landscaping Company at the end of the first month of operations. Instructions a. Prepare the complete general journal (including explanations) from which the postings to Cash were made. b. Prepare a

> Alma Ortiz has prepared the following list of statements about the general ledger. 1. The general ledger contains all the asset and liability accounts but no owner’s equity accounts. 2. The general ledger is sometimes referred to as simply the ledger. 3.