Questions and Answers of College Accounting A Practical Approach

Carrie Carney discounted a $14,000, 9%, 90-day note at Freemond Bank. She recorded the following entry:How much interest did Carrie Carney lose by discounting the note? Cash Notes Receivable Interest
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report and find the Consolidated Statement of Earnings. What was interest expense in 2009 and 2010?
“Perfecto!” Stan shouted up to his friends Javier and Miguel. The two men had just launched their own handyman service, and Stan had given them their first job:installing his new Subway
From the following facts, calculate the correct cost of inventory for Jake Company.• Cost of inventory on shelf, $4,600, which includes $340 of goods received on consignment.• Goods in transit en
Reggie Company on July 1, 201X, had inventory costing $31,500 and during July had net purchases of $67,200. Over the years, Reggie Company’s gross profit averaged 43% on sales. Given that the
From the following facts, calculate the correct cost of inventory for Bird Company.• Cost of inventory on shelf, $4,100, which includes $330 of goods received on consignment.• Goods in transit en
Go to the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm and find out how inventories are valued. How much inventory did Kellogg’s have in 2010?
• Subway uses approximately 60 acres of lettuce a day—the equivalent of more than 17 football fields of lettuce.• If you take all the cheese that is produced for Subway restaurants in a year
Calculate the total cost of the machine given the following:List price ................................... $2,950 Cash discount ..................................8%Freight
Steve Pierce depreciates his truck by the straight-line method. Calculate the yearly depreciation expense given the following: Cost Residual value Service of useful life $7,100 $2,400 4 years
If a machine had a cost of $6,400 with an accumulated depreciation of $650, what would be its book value?
If Steve Pierce depreciated his truck by the units-of-production method, calculate the first year’s depreciation based on the following: Cost $7,100 Residual value $2,400 Estimated mileage 47,000
If Steve Pierce depreciated his truck by the double declining-balance method, calculate the depreciation expense for year 1. Cost Residual value Service of useful life $7,100 $2,400 4 years
Complete the following: Account a. Gain on Sale of Plant Assets b. Accumulated Depletion c. Loss on Disposal of Plant Assets Category Financial Statement Found on
Francis Company incurred the following expenditures to buy a new machine:• Invoice, $26,000 less 13% cash discount.• Freight charges, $540.• Assembly charges, $1,600.• Special base to support
Martha Company incurred the following expenditures to buy a new machine:What is the actual cost of the machine? Invoice, Freight charges, Assembly charges, Special base to support machine, Machine
Go to the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm, find paragraph entitled “property” under ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF
Phil Russo wants to have a one-third interest in a law practice that has two partners with capital balances as follows:How much must Phil invest into the partnership? Rocco Stanton, Capital Art
Go to the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm and explain why Kellogg’s is not classified as a partnership.
Jarvis Co. owed $14,600 each year for four years to holders of cumulative preferred stock. This year Jarvis pays out $180,000 in dividends to preferred and common. How much did each class of stock
Go to the consolidated balance sheet in the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm. What is the amount of retained earnings in 2010? What is the par
The waitress set down a plate of nachos and two pints of beer in front of Stan and his old college buddy, Ron Ebbers. Ever since they’d run into each other at Stan’s Subway restaurant, the two
Seven months after its closing, Pebbles Co. discovered that depreciation was understated by $16,000. Provide the journal entry to adjust the prior period error (ignore any tax effects).
Go to the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm and find the consolidated balance sheet. What is the cost of treasury stock for Kellogg’s in 2010
“A convenience store?” asked Stan, incredulous.“Yep, a convenience store,” replied Carrie Zabrinsky, “or, as they say in the business, a c-store.”Stan had arranged a meeting with his
Go to the annual 2010 report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm and find note 6 for Debt. What is Kellogg’s scheduled repayment of long-term debt in 2010 (in
From the financial statements and additional information provided in Problem 21B-1 for Dean Company, prepare a statement of cash flows using the direct method.
Go to the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm and find the Statement of Cash Flows for Kellogg’s. What is net cash provided by operations in 2010?
Go to the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm and find the Consolidated Balance Sheet. Calculate for Kellogg’s the current ratio for 2009 and 2010.
“And the Number 1 for sales this month is . . .” Carrie Zabrinsky smiled broadly and paused to add a little suspense to the announcement. As a development agent for Subway, she had decided to
When you look at the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm, do you think Kellogg’s uses a voucher system?
Go to the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm and locate Item 7. Find the net sales figure for Latin America for 2010.
Go to the 2010 annual report for Kellogg’s Company at http://investor.kelloggs.com/annuals.cfm and find Note 16. What is the cost of finished goods and materials in process for 2010?
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report and find the balance sheet of Kellogg’s. Did Kellogg’s Accounts Payable go up or down from 2009 to
When Stan took the big leap from being an employee to a Subway owner, the thing that terrified him most was not the part about managing people—that was one of his strengths as a marketing manager.
Discuss the concept of cross-referencing.
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report, and find the statement of earnings. Sales are the revenue for a merchandise company. How much did
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report, and look at Note 1 under Property. Find out how Kellogg’s depreciates its equipment. How is the
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report and find Note 1 in Basis of Presentation. What is the fiscal year for Kellogg’s Company?
“You wait and see,” Stan told his new sandwich artist Wanda Kurtz. “Everything will fall into place soon.” Wanda had a tough time serving customers quickly enough, and Stan was in the middle
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report. How often do you think Kellogg’s reconciles its bank statement? What type of security control may be in
Subway now requires all of its franchisees to submit their weekly sales and inventory reports electronically using new point-of-sale (POS) touch-screen cash registers. With the new POS registers,
The employer doesn’t have to contribute to Social Security. Agree or disagree? Please explain.
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report. Go to Notes to Consolidated Financial Statements and calculate from Note 16 how much Advertising Expense
Like every Subway restaurant owner, Stan needs to keep a master file of important employee information. This file contains every employee’s name, address, phone number, Social Security number, rate
Why does payroll information center on 13-week quarters?
Why is the year-end adjusting entry needed for workers’ compensation insurance?
In December 200B, Mary is trying to find out whether she is a monthly or semiweekly depositor for FICA (OASDI and Medicare) and federal income tax for 200C. Please advise based on the following taxes
Meghan’s Grocery Store made the following Form 941 payroll tax deposits during the look-back period of July 1, 201A, through June 30, 201B:Should Meghan’s Grocery Store make Form 941 tax deposits
If Meghan’s Grocery Store downsized its operation during the second quarter of 201B and, as a result, paid only $6,119.83 in Form 941 taxes for the quarter that ended on June 30, 201B, should
Louise’s Grocery Store made the following Form 941 payroll tax deposits during the look-back period of July 1, 201A, through June 30, 201B:Should Louise’s Grocery Store make Form 941 tax deposits
If Louise’s Grocery Store downsized its operation during the second quarter of 201B and, as a result paid only $6,120.07 in Form 941 taxes for the quarter that ended on June 30, 201B, should
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report. Go to Notes to Consolidated Financial Statements and find Note 8: Pension Benefits. How much did
“As an employer, Stan, what are your tax responsibilities?” asked Angel Tavarez, president of the Los Palmos Kiwanis club. They were at one of the luncheons sponsored by the club every month, and
What is a contra-cost?
Calculate Net Purchases from the following: Purchases, $30; Purchases Returns and Allowances, $4; Purchases Discounts, $1.
Vintage Co. paid the cost of freight, $90. Journalize the transaction. Assume that Vintage Co. is the buyer.
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report, and locate the balance sheet. How much has merchandise inventory increased from 2009 to 2010?
Edmond Co. purchased merchandise costing $350,000. Calculate the cost of goods sold under the following situations:a. Beginning inventory $37,000 and no ending inventoryb. Beginning inventory $49,000
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report and find the Consolidated Statement of Earnings. What is the cost of goods sold in 2010?
From the following, calculate net sales:Purchases $101 Sales Discount $21 Gross Sales 176 Operating Expenses 48 Sales Returns and Allowances 18
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report and locate the consolidated statement of earnings. How much has Selling and General Administrative Expense
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report. See Note 16 Supplemental Financial Data and find the balance in Allowance for Doubtful Accounts for 2009
Def ine capital.
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kellogg’s 2010 Annual Report. Find the balance sheet and calculate the following: How much did cash increase in 2010 from 2009?
“Hey, Stan the man!” a loud voice boomed. “I never thought I’d see you making sandwiches!”Stan Hernandez stopped layering lettuce in a foot-long submarine sandwich and grinned at his old
From the following information, calculate the payroll tax expense for Blue Company for the payroll of April 9:The FICA tax rate for Social Security is 6.2% on the first $142,800 earned, and Medicare
Update the trial balance for Huggin’s Moving Co. (Figure 4.23) for July 31, 202X.Adjustment Data to Update Trial BalanceA. Insurance expired, $700.B. Moving supplies on hand, $1,400.C. Depreciation
Use the following adjustment data on March 31 to complete a partial worksheet up to the adjusted trial balance (see Figure 4.25).A. Fitness supplies on hand, $1,200.B. Depreciation taken on fitness
Update the trial balance for Josefina’s Landscaping Service (Figure 4.22) for December 31, 202X.Adjustment Data to Update the Trial BalanceA. Rent expired, $750.B. Landscaping supplies on hand
On February 6, 202X, Anthony Pastore made the journal entry in Figure 3.33 to record the purchase on account of office equipment priced at $1,200. This journal entry had not yet been posted when the
The chart of accounts for Kim’s Tree Trimming Service is as follows:Kim’s Tree Trimming Service completed the following transactions during the month of October:A. Sam Kim invested $30,000 in the
Pick a corporation of your choice and report on its cash position. Does it have any accounts receivable?
Joanna Trickett, a retired military officer, opened Trickett’s Catering Service. As her accountant, analyze the transactions listed and present them in proper form.a. The analysis of the
Cynthia Castle, president of Castle Co., went to a conference on tax planning. One of the speakers at the conference advised the audience to put off showing expenses until next year because doing so
Dove.com received a bank statement from Billings Bank indicating a bank balance of $8,500. Based on Dove.com’s check stubs, the ending checkbook balance was $8,806. Your task is to prepare a bank
a. Calculate the total wages earned for each hourly employee assuming an overtime rate of 1.5 over 40 hours.b. Calculate the total biweekly earnings of these newly hired salaried employees.
a. Calculate the total wages earned for each employee assuming an overtime rate of 1.5 over 40 hours.b. Calculate the total biweekly earnings of these newly hired salaried employees.
During the month of November, the following transactions occurred.Assignment1. Record the following transactions in the general journal and post them to the general ledger.2. Prepare a trial balance
Compute the net pay for each employee using the federal income tax withholding table in Figure 7.3. Assume that FICA Social Security tax is 6.2% on a wage base limit of $142,800, FICA Medicare is
From the following information, calculate the payroll tax expense for Caterer Company for the payroll of April 9:The FICA Social Security tax rate is 6.2% on the first $142,800 earned, and FICA
Compute the net pay for each employee using the federal income tax withholding table in Figure 7.3. Assume that FICA Social Security tax is 6.2% on a wage base limit of $142,800; Medicare is 1.45% on
The following is the monthly payroll for the last 3 months of the year for Jones’ Sporting Goods Shop, 2 Boat Road, Lynn, MA 01945. The shop is a sole proprietorship owned and operated by Bill
Refer to Exercise 7A-3. If F. Sampson earned $2,300 for the week instead of $280, what effect would this change have on the total payroll tax expense?Data From Exercise 7A-3From the following
Refer to Exercise 7A-3 and assume that the state changed Caterer Company’s SUTA tax rate to 4.9%. What effect would this change have on the total payroll tax expense?Data From Exercise 7A-3From the
From Concept Check 2, calculate Tom’s net pay. The state income tax rate is 10%, and charitable contributions are $55.Data from concept check 2Tom Hanson, single, has cumulative earnings before
The first 9 months of the year have concluded for Suarez Digital Services. Sid Suarez wants to make the necessary adjustments to his accounts to prepare accurate financial statements for the last 6
From the following prepare a schedule of Accounts Payable for Ronson.com for May 31, 202X: Accounts Payable Subsidiary Ledger Beland Co. Dr. Cr. 5/25 GJ1 12 53 5/20 GJ1 Roy Co. Dr. Cr. 65 5/7
The following is an updated schedule of accounts payable as of January 31, 202Y.Assignment1. Journalize the transactions. Use the perpetual method.2. Record in the accounts payable subsidiary ledger
Search for a different company’s annual report on the Internet and report if the company uses the perpetual or periodic method in accounting for their inventory. This information will also be found
Logan Co. paid $300 to Pedroza Co. for merchandise purchased on account, and received a $30 purchase discount. Journalize the entry for Logan Co.
To assist you in recording these transactions for the month of January, 202Y (new year), at the end of this problem is the schedule of accounts receivable as of December 31 of the previous year
Tisha Allen opened Tisha’s Cosmetic Market on December 1. An 8% sales tax is calculated and added to all cosmetic sales. Tisha’s offers no sales discounts. The following transactions occurred in
Pick a company of your choice and report the cost of sales in 2020.
From the following, complete a worksheet for Washington Company from the following trial balance (Figure 11.15) and additional data.Additional DataA. Physical count of inventory on December 31,
Prepare a worksheet for Altuve Co. from the following trial balance (Figure 11.9) and additional data.Additional DataA. Inventory physical count, $13B. Store supplies on hand, $4C. Depreciation on
Using Concept Check 1, calculate:a. Gross profitb. Net income or net lossData from concept check 1From the following, calculate net sales: Cost of Goods Sold Gross Sales Sales Returns and
Explain the components of Net Sales.
From the following, calculate net sales: Cost of Goods Sold Gross Sales Sales Returns and Allowances Sales Discounts Operating Expenses $150 200 6 10 25
From the following trial balance (Figure 11.13) and additional data, complete the worksheet for Rene’s Wholesale Fashion Outlet.Additional DataA. Physical count of inventory on December 31,

Showing 1 - 100 of 751