Question: When a spreadsheet for a statement of

> Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $20,000. Additional costs are $4,000 for delivery and $13,700 for sales tax. During the installation, a com

> On August 2, 2015, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his $6,000 account. Prepare Jun’s journal entry assuming the note is honored by the customer on October 31, 2015.

> Warner Company’s year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600 (credit), and sales of $280,000. Uncollectibles are estimated to be 0.5% of sales. Prepare the December 31 year-end adjusting

> The following list describes aspects of either the allowance method or the direct write-off method to account for bad debts. For each item listed, indicate if the statement best describes either the allowance method or the direct write-off method. ______

> Record the sale by Balus Company of $125,000 in accounts receivable on May 1. Balus is charged a 2.5% factoring fee.

> Daw Company’s December 31 year-end unadjusted trial balance shows a $10,000 balance in Notes Receivable. This balance is from one 6% note dated December 1, with a period of 45 days. Prepare any necessary journal entries for December 31 and for the note’s

> Nolan Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows a $22,352 debit balance. Nolan’s June 30 bank statement shows $21,332 on

> Confucius Bookstore’s inventory is destroyed by a fire on September 5, 2015. The following data for year 2015 are available from the accounting records. Estimate the cost of the inventory destroyed. Jan. I inventory $190,000 Jan. I

> Endor Company begins the year with $140,000 of goods in inventory. At year-end, the amount in inventory has increased to $180,000. Cost of goods sold for the year is $1,200,000. Compute Endor’s inventory turnover and days’ sales in inventory. Assume that

> Refer to QS 7-6 and for each of the May transactions identify the journal in which it would be recorded. Assume the company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal as illustrated in

> Solstice Company determines on October 1 that it cannot collect $50,000 of its accounts receivable from its customer P. Moore. Apply the direct write-off method to record this loss as of October 1.

> Ames Trading Co. has the following products in its ending inventory. Compute lower of cost or market for inventory applied separately to each product. Product Quantity Cost per Unit Market per Unit Mountain bikes .. $600 $550 Skateboards .... 13 350

> Refer to the information in QS 6-10 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on specific identification. Of the units sold, eight are from the December 7 purchase and

> Refer to Samsung’s financial statements in Appendix A. What percent of its current assets are inventory as of December 31, 2013 and 2012? Samsung’s Financial Statements from Appendix A: Samsung Electronics Co

> Refer to Samsung’s financial statements in Appendix A. Compute its cost of goods available for sale for the year ended December 31, 2013. Samsung’s Financial Statements from Appendix A: Samsung Electronics Co

> Refer to Apple’s financial statements in Appendix A and compute its cost of goods available for sale for the year ended September 28, 2013. Apple’s Financial Statements from Appendix A: Apple Inc. CONSOLIDATE

> Refer to Google’s financial statements in Appendix A. On December 31, 2013, what percent of current assets are represented by inventory? Google’s Financial Statements from Appendix A: Google Inc. CONSOLIDAT

> Refer to the information in QS 6-10 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on specific identification. Of the units sold, eight are from the December 7 purchase an

> Peachtree Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of May. May 1 Purchased $10,100 of merchandise on credit from Kraus

> Nestlé, a Switzerland-based company, uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal in a manner similar to that explained in this chapter. Journalize the following summary transacti

> Refer to the information in QS 6-4 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. (Round per unit costs and inventory amounts to cents.) Information fr

> Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn’s house. At the end of the current period, Emma reports she has 1,300 units (products) in her basement, 20 of which were damaged by water and cannot be sold. She also has

> A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 350 units. 150 units remain in ending inventory at January 31. Required Assume the perpetual inventory system is used and then

> Refer to the information in QS 6-10 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs and inventory amounts to cents.)

> Refer to the information in QS 6-10 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs and inventory amounts to cents.) D

> Refer to the information in QS 6-10 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. (Round per unit costs and inventory amounts to cents.) Data from QS

> Income statement information for adidas Group, a German footwear, apparel, and accessories manufacturer, for the year ended December 31, 2013, follows. The company applies IFRS, as adopted by the European Union, and reports its results in millions of eur

> Compute net sales, gross profit, and the gross margin ratio for each separate case a through d. Interpret the gross margin ratio for case a. a Sales $150,000 $550,000 $38,700 $255,700 Sales discounts 5,000 17,500 600 4,800 Sales returns and allowanc

> Identify similarities and differences between the acid-test ratio and the current ratio. Compare and describe how the two ratios reflect a company’s ability to meet its current obligations.

> Use the following information on current assets and current liabilities to compute and interpret the acid-test ratio. Explain what the acid-test ratio of a company measures. Prepaid expenses. Accounts payable . Cash $1,490 $ 700 .... .... Accounts r

> Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 15 units for $20 each. Required Monson uses a perpetual inventory system. Determine the costs assigned

> Refer to QS 5-8 and prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage that is made to solve QS 5-8. Data from QS 5-8: $ 37,800 $ 6,500 Merchandise inventory T. Nix,

> Identify events that might lead to disposal of a plant asset.

> Wattan Company reports beginning inventory of 10 units at $60 each. Every week for four weeks it purchases an additional 10 units at respective costs of $61, $62, $65, and $70 per unit for weeks 1 through 4. Calculate the cost of goods available for sale

> Prepare journal entries to record each of the following sales transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Apr. 1 Sold merchandise for $3,000, granting the customer terms of 2y10, EOM; in

> Refer to the information in QS 6-4 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs and inventory amounts to cents.) I

> Refer to the information in QS 6-4 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. (Round per unit costs and inventory amounts to cents.) Information from QS 6-4:

> Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Nov. 5 Purchased 600 units of product at a cost of $10 per unit. Terms of th

> Use the following information (in random order) from a service company and from a merchandiser to compute net income. For the merchandiser, also compute gross profit, the goods available for sale, and the cost of goods sold. Krug Service Company Kl

> A car dealer acquires a used car for $14,000, terms FOB shipping point. Additional costs in obtaining and offering the car for sale include $250 for transportation-in, $900 for import duties, $300 for insurance during shipment, $150 for advertising, and

> Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). 1. Sold $20,000 of merchandise, that cost $15,000, on MasterCard credit cards. The net cash receipts from sales are immediately de

> The following selected information is from Princeton Company’s comparative balance sheets. The company’s net income for the year ended December 31, 2015, was $48,000. 1. Compute the cash received from the sale of its

> The plant assets section of the comparative balance sheets of Anders Company is reported below. Refer to the balance sheet data above from Anders Company. During 2015, a building with a book value of $70,000 and an original cost of $300,000 was sold at

> If inventory errors are said to correct themselves, why are accounting users concerned when such errors are made?

> The plant assets section of the comparative balance sheets of Anders Company is reported below. Refer to the balance sheet data above from Anders Company. During 2015, equipment with a book value of $40,000 and an original cost of $210,000 was sold at

> Use the following information to determine this company’s cash flows from operating activities using the indirect method. MOSS COMPANY Selected Balance Sheet Information December 31, 2015 and 2014 2015 2014 Current assets Cash ...

> For each of the following three separate cases X, Y and Z, compute cash flows from operations using the indirect method. The list includes all balance sheet accounts related to cash from operating activities. Case X Case Y Case Z Net income $ 4,000

> Answer each of the following questions related to international accounting standards. 1. Which method, indirect or direct, is acceptable for reporting operating cash flows under IFRS? 2. For each of the following four cash flows, identify whether it is r

> Use the following financial statements and additional information to (1) prepare a statement of cash flows for the year ended December 31, 2016, using the indirect method, and (2) analyze and briefly discuss the statement prepared in part 1 with specia

> Refer to the data in QS 16-11. Use the direct method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company. Data from QS 16-11: CRUZ, INC. Comparative Balance Sheets December 31

> Refer to the data in QS 16-11. 1. How much cash is paid to acquire inventory during year 2015? 2. How much cash is paid for operating expenses during year 2015? Data from QS 16-11: CRUZ, INC. Comparative Balance Sheets December 31, 2015 2015 2014

> Refer to the data in QS 16-11. 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2015? 2. Assume that no additional notes payable are issued in 2015. What cash amount is paid to reduce the notes payable bala

> Refer to the data in QS 16-11. Furniture costing $55,000 is sold at its book value in 2015. Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sal

> Does the balance in the Accumulated Depreciation— Machinery account represent funds to replace the machinery when it wears out? If not, what does it represent?

> Use the following balance sheets and income statement to answer this. Required Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company. CRUZ, INC. Comparat

> During the current year, Reed Consulting Group acquired long-term available-for-sale securities at a $70,000 cost. At its December 31 year-end, these securities had a fair value of $58,000. This is the first and only time the company purchased such secur

> Hiker Company completes the following transactions during the current year. Prepare the May 9 and June 2 journal entries and the December 31 adjusting entry. This is the first and only time the company purchased such securities. May 9 Purchases 200 share

> Journ Co. purchased short-term investments in available-for-sale securities at a cost of $50,000 on November 25, 2015. At December 31, 2015, these securities had a fair value of $47,000. This is the first and only time the company has purchased such secu

> Kitty Company began operations in 2014 and maintains short-term investments in trading securities. The year-end cost and fair values for its portfolio of these investments follow. Prepare journal entries to record each December 31 year-end fair value adj

> The Carrefour Group reports the following description of its trading securities (titled “financial assets reported at fair value in the income statement”). Carrefour’s financial statements report &a

> Return on total assets can be separated into two important components. 1. Write the formula to separate the return on total assets into its two basic components. 2. Explain how these components of the return on total assets are helpful to financial state

> Complete the following descriptions by filling in the blanks. 1. Equity securities giving an investor significant influence are accounted for using the ______ ______. 2. Available-for-sale debt securities are reported on the balance sheet at ______ _____

> Montero Co. holds 100,000 common shares (40%) of ORD Corp. as a long-term investment. ORD Corp. paid a $100,000 dividend on November 1, 2015, and reported a net income of $700,000 for 2015. Prepare Montero’s entries to record (a) the receipt of the divi

> On May 20, 2015, Montero Co. paid $1,000,000 to acquire 25,000 common shares (10%) of ORD Corp. as a long-term investment. On August 5, 2016, Montero sold one-half of these shares for $625,000. What valuation method should be used to account for this sto

> Why does the Bad Debts Expense account usually not have the same adjusted balance as the Allowance for Doubtful Accounts?

> Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 5%, which implies a selling price of 123 3⁄8. The straight-line method is used to allocate

> Sylvestor Company issues 10%, five-year bonds, on December 31, 2014, with a par value of $100,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to record (a) the issuance of bonds on December 31,

> Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 1⁄2. The straight-line method is used to allocate

> Using the bond details in QS 14-4, confirm that the bonds’ selling price is approximately correct (within $100). Use the present value tables B.1 and B.3 in Appendix B. Bond Details from QS 14-4: Garcia Company issues 10%, 15-year bond

> Using the bond details in QS 14-2, confirm that the bonds’ selling price is approximately correct (within$100). Use the present value tables B.1 and B.3 in Appendix B. Bond Details from QS 14-2: Enviro Company issues 8%, 10-year bonds

> Refer to the information in QS 14-19 for Vodafone Group Plc. The following price quotes (from Yahoo! Finance Bond Center) relate to its bonds payable. The price quote indicates that the 4.625% bonds have a market price of 111.67 (111.67% of par value), r

> Vodafone Group Plc reports the following information among its bonds payable as of March 31, 2013 (pounds in millions). a. What is the par value of the 4.625% bond issuance? What is its book (carrying) value? b. Was the 4.625% bond sold at a discount o

> Assume that a company purchases land for $1,000,000, paying $400,000 cash and borrowing the remainder with a long-term note payable. How should this transaction be reported on a statement of cash flows?

> What are some investing activities reported on the statement of cash flows?

> Refer to Samsung’s statement of cash flows in Appendix A. What investing activities result in cash outflows for the year ended December 31, 2013? List items and amounts. Samsung’s Statement of Cash Flow from Appendix

> Explain why writing off a bad debt against the Allowance for Doubtful Accounts does not reduce the estimated realizable value of a company’s accounts receivable.

> Refer to Google’s statement of cash flows in Appendix A. What are its cash flows from financing activities for the year ended December 31, 2013? List the items and amounts. Google’s Statement of Cash Flow from Appendi

> Refer to Apple’s statement of cash flows in Appendix A. (a) Which method is used to compute its net cash provided by operating activities? (b) Its balance sheet shows an increase in accounts (trade) receivable from September 29, 2012,

> If a company reports positive net income for the year, can it also show a net cash outflow from operating activities? Explain.

> For investments in available-for-sale securities, how are unrealized (holding) gains and losses reported?

> Under what conditions should investments be classified as current assets? As long-term assets?

> Identify the three classes of non-influential and two classes of influential investments in securities.

> Assume a U.S. company makes a credit sale to a foreign customer that is required to make payment in its foreign currency. In the current period, the exchange rate is $1.40 on the date of the sale and $1.30 on the date the customer pays the receivable. Wi

> Why does a company that issues bonds between interest dates collect accrued interest from the bonds’ purchasers?

> Does the straight-line or effective interest method produce an interest expense allocation that yields a constant rate of interest over a bond’s life? Explain.

> What are the contract rate and the market rate for bonds?

> Why might a business prefer a note receivable to an account receivable?

> What is a bond indenture? What provisions are usually included in it?

> What is the advantage of issuing bonds instead of obtaining financing from the company’s owners?

> Describe the two basic types of pension plans.

> Compare and contrast an operating lease with a capital lease.

> What obligation does an entrepreneur (owner) have to investors that purchase bonds to finance the business?

> Describe the debt-to-equity ratio and explain how creditors and owners would use this ratio to evaluate a company’s risk.

> What is the difference between the market value per share and the par value per share?

> List the general rights of common stockholders.

> How is book value per share computed for a corporation with no preferred stock? What is the main limitation of using book value per share to value a corporation?

> What is the difference between a stock dividend and a stock split?

> Why are incidental costs sometimes ignored in inventory costing? Under what accounting constraint is this permitted?

> How does declaring a stock dividend affect the corporation’s assets, liabilities, and total equity? What are the effects of the eventual distribution of that stock?

> Identify and explain the importance of the three dates relevant to corporate dividends.