Question: Wilmington Chemical Company produces three

> The following expenses were incurred by a merchandising business during the year. In which expense section of the income statement should each be reported: (A) selling, (B) administrative, or (C) other? 1. Advertising expense 2. Depreciation expense on s

> Financial information related to Ebony Interiors for February and March 2018 is as follows: A. Prepare balance sheets for Ebony Interiors as of February 28 and March 31, 2018. B. Determine the amount of net income for March, assuming that no additional

> Rearrange the following steps in the accounting cycle in proper sequence: A. A post-closing trial balance is prepared. B. Adjustment data are assembled and analyzed. C. Adjusting entries are journalized and posted to the ledger. D. An adjusted trial bala

> After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $2,450,000 and a credit of $3,000,000. At the same date, Retained Earnings has a credit balance of $8,222,600 and Dividends has a balance

> Prior to its closing, Income Summary had total debits of $1,190,500 and total credits of $1,476,300. Briefly explain the purpose served by the income summary account and the nature of the entries that resulted in the $1,190,500 and the $1,476,300.

> The debits and credits for five related transactions, A through E, are presented in the following T accounts. Describe each transaction. Cash Sales 39,200 A 41,160 Accounts Recelvable Cost of Goods Sold 41,160 C 1,960 25,200 A E 39,200 Inventory 1,2

> The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 2018, the end of the fiscal year: Prepare an income statement. Depreciation Expense Insur

> The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 2018: Prepare an income statement. $ 75,000 $ 10,650 Rent Expense 724,500 Salari

> The controller of New Wave Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in

> Triton Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended April 30, 2018: Based on the preceding spreadsheet, prepare an income statement, retained earnings statem

> Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently,

> On January 2, Yorkshire Company acquired 40% of the outstanding stock of Fain Company for $500,000. For the year ended December 31, Fain earned income of $140,000 and paid dividends of $50,000. Journalize the entries for Yorkshire Company for the purchas

> The total assets and total liabilities (in millions) of Keurig Green Mountain Coffee, Inc. and Starbucks Corporation follow: Determine the stockholders’ equity of each company. Keurig Starbucks Assets $4.797 $10,753 Liabilities 1,

> On January 1, 20Y5, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 20Y5, the cost of the available-for-sale securities was $24,260, and the fair value was $26,350. Journalize the adjusting entry to record the u

> A fertilizer manufacturing company wants to relocate to Yellowstone County. A report from a fired researcher at the company indicates the company’s product is releasing toxic by-products. The company suppressed that report. A later report commissioned by

> From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, identify those that would appear on the balance sheet: 1. Accounts Receivable 2. Cash 3. Common Stock 4. Fees Earned 5. Land 6. Supplies 7

> Jets Bancorp Inc. purchased a portfolio of trading securities during 20Y3. The cost and fair value of this portfolio on December 31, 20Y3, was as follows: Journalize the entry to record the adjustment of the trading security portfolio to fair value on

> Portions of the salaries expense account of a business follow: A. Indicate the nature of the entry (payment, adjusting, closing, reversing) from which each numbered posting was made. B. Journalize the complete entry from which each numbered posting was

> Storm, Inc. purchased the following available-for-sale securities during 20Y9, its first year of operations: The market price per share for the available-for-sale security portfolio on December 31, 20Y9, was as follows: Market Price per

> In teams, select a company from one of the following industries: banking, food service, manufacturing, or retail. For this company: A. Identify the primary activities that the company must perform to provide its product or service. B. Identify an activit

> Taser Consulting is a consulting firm owned and operated by Annamarie Phipps. The following end-of-period spreadsheet was prepared for the year ended October 31, 2018: Based on the preceding spreadsheet, prepare an income statement, retained earnings s

> The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accounta

> Based on the data in Exercise 4-23, prepare the closing entries for Alert Security Services Co. Data from Exercise 4-23: Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Aler

> Based on the data in Exercise 4-22, prepare the adjusting entries for Alert Security Services Co. Data from Exercise 4-22: Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services has been

> Based on the data in Exercise 4-23, prepare an income statement, retained earnings statement, and balance sheet for Alert Security Services Co. Data from Exercise 4-23: Alert Security Services Co. offers security services to business clients. Complete

> Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services has been prepared on the following end-of-period spreadsheet for the year ended October 31, 2018: The data for year-end adjustments

> The following accounts were taken from the unadjusted trial balance of Orion Co., a congressional lobbying firm. Indicate whether or not each account would normally require an adjusting entry. If the account normally requires an adjusting entry, use the

> Bev’s Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, an

> On August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August: A. Opened a business bank account with a deposit of $35,000 in exchange for common stock. B. Purchased supplies on account

> Continental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Instructions: 1. Assuming that the desired rate of return is 20%, pre

> Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put together sets of recordings that appeal to all ages. Duri

> D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and

> The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2018, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows: Instructio

> Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 2018, are presented in Problem 5-5B. Instructions: 1. Prepare a single-step income statement in the format. 2. Prepare a retained earnings statement. 3. Prepare a ba

> The financial statements at the end of Atlas Realty’s first month of operations follow: Instructions: By analyzing the interrelationships among the four financial statements, determine the proper amounts for A through Q. Atlas

> For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2018, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basi

> On April 1, 2018, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: A. Opened a business bank account with a deposit of $24,000 in exchange for common stock. B. Paid rent on office

> Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 2018, the end of the fiscal year, the balances of selected accounts from the ledger of Dynamic Weight Loss ar

> Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services’ accounting clerk prepared the following unadjusted trial balance at July 31, 2018: The data n

> The Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 2018, the accountant for The Signage Company prepared the trial balances shown at the top of the following page. Instructions: Journalize the seven

> Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following un Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following un Crazy adjusted trial balance at the end of its first year of ope

> On August 1, 2018, Rafael Masey established Planet Realty, which completed the following transactions during the month: A. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock,

> Ken Jones, an architect, organized Jones Architects on April 1, 2018. During the month, Jones Architects completed the following transactions: A. Transferred cash from a personal bank account to an account to be used for the business in exchange for comm

> Tech Support Services has the following unadjusted trial balance as of January 31, 2018: The debit and credit totals are not equal as a result of the following errors: A. The cash entered on the trial balance was overstated by $8,000. B. A cash receipt

> On June 30, 2018, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions: 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simki

> On October 1, 2018, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be

> Jose Loder established Bronco Consulting on August 1, 2018. The effect of each transaction and the balances after each transaction for August follow: Instructions: 1. Prepare an income statement for the month ended August 31, 2018. 2. Prepare a retaine

> The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $145,000 at May 1, 2017, the beginning of the year, and dividends

> The following accounts appeared in recent financial statements of Delta Air Lines: Accounts Payable……………………………………………………………….Flight Equipment Advanced Payments for Equipment……………………Frequent Flyer (Obligations) Air Traffic Liability…………………………………………………………………

> The investment committee of Auntie M’s Restaurants Inc. is evaluating two restaurant sites. The sites have different useful lives, but each requires an investment of $900,000. The estimated net cash flows from each site are as follows:

> The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: The wind turbines require an investment of $887,600, while the biofuel equipment r

> Com-Tel Inc. manufactures and assembles two models of smartphones—the Tiger Model and the Lion Model. The process consists of a lean cell for each product. The data that follow concern only the Lion Model lean cell. For the year, Com-Tel Inc. budgeted th

> Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Each project requires an investment of $900,000. A rate of 15% has been selected for the net present value analysis. Instructions

> The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows: Each project requires an investment of $75,000. Straight

> The investment committee of Sentry Insurance Co. is evaluating two projects, office expansion and upgrade to computer servers. The projects have different useful lives, but each requires an investment of $490,000. The estimated net cash flows from each p

> Night Glow Inc. recently began production of a new product, the halogen light, which required the investment of $600,000 in assets. The costs of producing and selling 10,000 halogen lights are estimated as follows: Night Glow Inc. is currently consider

> The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The activity analysis revealed the follo

> Master Chef Appliance Company manufactures home kitchen appliances. The manufacturing process includes stamping, final assembly, testing, and shipping. In the stamping operation, a number of individuals are responsible for stamping the steel outer surfac

> The following selected transactions were completed during March of the current year: 1. Billed customers for fees earned, $54,100. 2. Purchased supplies on account, $1,250. 3. Received cash from customers on account, $43,800. 4. Paid creditors on account

> Jamarcus Bradshaw, plant manager of Georgia Paper Company’s papermaking mill, was looking over the cost of production reports for July and August for the Papermaking Department. The reports revealed the following: Jamarcus was concern

> HD Hogg Motorcycle Company manufactures a variety of motorcycles. Hogg’s purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its

> Zenith Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscel

> Identify each of the following accounts of Kaiser Services Co. as asset, liability, stockholders’ equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit: A. Accounts Payable B. Accounts Receivable C. Cash D.

> The total assets and total liabilities (in millions) of Dollar Tree Inc. and Target Corporation follow: Determine the stockholders’ equity of each company. Dollar Tree $2,772 1,601 Target $44,553 28,322 Assets Liabilities

> The adjusting entry for accrued fees was omitted at October 31, the end of the current year. Indicate which items will be in error, because of the omission, on (A) the income statement for the current year and (B) the balance sheet as of October 31. Also

> Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,400

> Kankakee Cosmetics Company is planning a one-month campaign for December to promote sales of one of its two cosmetics products. A total of $150,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The fol

> I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: I Love My Chocolate Company does not expect there to be any beginning or ending in

> On August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the funds to invest in $1,000,000 of 4% U.S. Treasury bonds that mature in 15 years.

> Farr Industries Inc. manufactures only one product. For the year ended December 31, the contribution margin increased by $560,000 from the planned level of $5,200,000. The president of Farr Industries Inc. has expressed concern about such a small increas

> On October 3, 2018, Regal Company purchased $3,600 of supplies on account. In Regal’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. A. Journalize the October 3, 2018, transaction on page 91 of Regal Compan

> The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Instruction

> The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The company has three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended Ju

> Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as foll

> CodeHead Software Inc. does software development. One important activity in software development is writing software code. The manager of the WordPro Development Team determined that the average software programmer could write 25 lines of code in an hour

> Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 40,000 units of product were as follows: Each unit requires 0.3 hour of direc

> As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Fac

> The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales

> The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December: A. Estimated sales f

> The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: A. E

> For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8, the following unit sales data were reported for the year: For the year ending December 31, 20Y9, unit sales are expected to follow the

> The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $2,200 per ton, and ingot can be sold without further processing for $1,100 per ton. Ingot is prod

> Valdespin Company manufactures three sizes of camping tents—small (S), medium (M), and large (L). The income statement has consistently indicated a net loss for the M size, and management is considering three proposals: (1) continue Siz

> Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows: Instructions: 1. Prepare a table indic

> During the first month of operations ended July 31, Western Creations Company produced 80,000 designer cowboy hats, of which 72,000 were sold. Operating data for the month are summarized as follows: During August, Western Creations produced 64,000 desi

> The demand for solvent, one of numerous products manufactured by RZM Industries Inc., has dropped sharply because of recent competition from a similar product. The company’s chemists are currently completing tests of various new formulas, and it is antic

> During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of which 72,000 were sold. Operating data for the month are summarized as follows: Instructions: 1. Prepare an income statement ba

> Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its “products.” The overhead has been separated into three major a

> Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: The estimated fixed costs for the current year are $2,498,600. Instructions: 1. Determine the esti

> Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller

> For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost of $60, and fixed costs of $480,000. Instructions: 1. Compute the anticipated break-even sales (units). 2. Compute the sales (units) required to realize a

> Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows: The division of costs between variable and fixed is as follows: Management is considering a plant ex

> Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,160 tires were as follows: Each tire requires 0.5 hour of direct labor. Ins

> Orange County Chrome Company manufactures three chrome-plated products—automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Orange C

> Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Price……………â&#12

> Black and Blue Sports Inc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows: Indirect labor……………â€&

> The management of Orange County Chrome Company, described in Problem 1A, now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Stamping Department……………

> Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2018, are presented in Problem 5-5A. Instructions: 1. Prepare a single-step income statement in the format. 2. Prepare a retained earnings statement. 3. Prepare b

> Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roast

> Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process—