Questions and Answers of College Accounting A Practical Approach

Journalize, record, and post when appropriate the following transactions into the sales journal (same headings as exercise E13-1A) and general journal (page 1). All sales carry terms of 2/10,
John VanWyk owns VanWyk’s Tractor Shop in Bathurst. (In the Excel templates in MyLab Accounting, balances as of April 1 are provided for the accounts receivable and general ledger accounts.) In
Brittney Good opened Brittney’s Cosmetic Market in London, Ontario, on April 1. Brittney offers no sales discount, and 8% PST and 5% GST is charged on all cosmetic sales. The following transactions
Joan Myers, the newly hired bookkeeper of Lyon Company, has until 5 p.m. today to prepare an analysis on December 31, 2021, of accounts receivable by age as well as record the entry for bad debts
In September, the following transactions occurred for Malorie Equipment Supply of Regina. (The Excel templates in MyLab Accounting have balances as of September 1 for certain general ledger and
Laura’s Cosmetic Market of Brandon began operating in April. There is 8% PST and 5% GST on all cosmetic sales. Laura offers no discounts. The following transactions occurred in April:Requireda.
From exercise E13-2B, journalize the receipt of a cheque from Ronald Co. for payment of invoice No. 246 on May 24, 2022, in the cash receipts journal.Data from in exercise E13-2B.Journalize, record,
Kylie Henderson owns and operates Rarity Collectibles Shop in St. John’s. (In the Excel templates in MyLab Accounting, balances as of January 1 are provided for the accounts receivable and general
Kim Brown operates a wholesale computer centre in Whitehorse. All transactions requiring the payment of cash are recorded in the cash payments journal (page 5). The account balances for Brown’s
What is a value-added tax?
On July 8, 2023, Aster Co. issued debit memorandum No. 1 for $400 to Reel Co. for merchandise returned from invoice No. 312, which originally included GST at 5%. Your task is to journalize, record,
As the new accountant for Monique’s Toy House in Halifax, your task is to:a. Journalize the transactions for the month of March.b. Record in subsidiary ledgers and post to the general ledger as
Abbey Joy owns Abbey’s Toy House in Halifax. As her newly hired accountant, your task is to:a. Journalize the transactions for the month of March.b. Record in subsidiary ledgers and post to the
From the following, prepare a schedule of accounts receivable for Blue Co. for May 31, 2021: Accounts Receivable Subsidiary Ledger Bon Co. 5/6 SJ1 105 Peke Co. 5/20 SJ1 63 21 5/27 CRJ1 Green Co. 5/8
Alex Yeoman Painting Co. of Yellowknife uses a purchases journal (page 21) and a general journal (page 32) to record the following transactions. The GST rate is 5%.The paint store has decided to keep
Kim Brown of Whitehorse has hired you as her bookkeeper to record the following transactions in the cash payments journal. She would like you to record and post as appropriate and supply her with a
From exercise E13-7A, prepare a schedule of accounts payable, and verify that the total of the schedule equals the amount in the controlling account.Data from in exercise E13-7A.Journalize, record,
On July 7, 2023, Aster Co. issued debit memorandum No. 3 for $250 to Reel Co. for merchandise returned from invoice No. 632, which originally included GST at 5%. Your task is to journalize, record,
From exercise E13-7B, prepare a schedule of accounts payable and verify that the total of the schedule equals the amount in the controlling account.Data from in E13-7B.Journalize, record, and post
Sudbury Outdoor Wear sells a line of specialized clothing to customers in its local area. For the calendar year 2022, the company sold $325,000 worth of clothing including HST. HST in Ontario is 13%.
Sudbury Outdoor Wear sells a line of specialized clothing to customers in its local area. For the calendar year 2022, the company sold $280,000 worth of clothing before taxes. HST in Ontario is 13%.
On May 1, 2021, April Company bought a patent at a cost of $5,940. It is estimated that the patent will give April a competitive advantage for 4 years. Record in general journal form amortization for
On May 1, 2021, Lincoln Company bought a patent at a cost of $6,120. It is estimated that the patent will give Lincoln a competitive advantage for 6 years. Record in general journal form amortization
King Company bought a light general-purpose truck for $9,000 on March 5, 2021. Calculate the first year’s depreciation using the MACRS method.
Menard Company bought a light general-purpose truck for $8,500 on February 6, 2021. Calculate the first year’s depreciation using the MACRS method.
What is the purpose of the Modified Accelerated Cost Recovery System?
A loss on an exchange of plant assets that has commercial substance must be recognized in the accounting records. True or false?
a. The partnership of Susan and Rihanna began with the partners investing $6,600 and $2,200, respectively. At the end of the first year, the partnership earned net income of $8,600. Under each of the
In order to complete this question, you will need to reference Amazon’s 2020 Annual Report. This can be found using your preferred search engine and going to Amazon’s Investors Relations page,
How is the equity of a partnership different from that of a sole proprietorship?
Robert Pilar and Ronald Slate enter into a partnership. On December 1, 202X, Robert invests $7,000 cash in the partnership. Ronald invests $4,800 cash and store equipment with a historical cost of
Ethan Smith and Crystal Banks form a partnership on May 1, 202X. Smith contributes cash of $44,000. Banks contributes $29,000 cash and land with a historical cost of $19,000 and a current fair value
Ed Hidalgo and Carrie Lewis form a partnership on May 1, 202X. Hidalgo contributes $39,000. Lewis contributes $30,000 cash and land with a historical cost of $18,500 and a current fair value of
a. The partnership of Katie and Leon began with the partners investing $5,000 and $3,000, respectively. At the end of the first year, the partnership earned net income of $8,600. Under each of the
Bob Miller and Whitney Benson are partners with capital balances of $1,600 and $500, respectively. They share all profits and losses equally. From the following independent situations, journalize the
Go to the 2020 annual report for American Airlines and explain the benefits of being a corporation rather than a partnership.
List five characteristics of a partnership.
Bob Miller and Whitney Abayo are partners with capital balances of $1,750 and $350, respectively. They share all profits and losses equally. From the following independent situations, journalize the
L. White, V. Khatri, and E. Rackhaus are partners with capital balances of $92,000, $81,000, and $69,000, respectively. Rackhaus sells his interest in the company for $90,000 to P. Solvay. White and
The following is the Paid-In Capital section of stockholders’ equity for the Renzo Corporation on June 1, 202X:The following transactions occurred in the months of June and July:1. Journalize the
Sullivan, Ritchie, and Hajiha have capital balances before liquidation of $15,000, $26,000, and $36,000, respectively. Cash balance is $51,000, and the partners share losses and gains in a 3:2:1
The following is the Paid-In Capital section of stockholders’ equity for the Royce Corporation on June 1, 202X:The following transactions occurred in the months of June and July:1. Journalize the
What are the four steps of the liquidation process?
In order to complete this question, you will need to reference Amazon’s 2020 Annual Report. This can be found using your preferred search engine and going to Amazon’s Investors Relations page,
Perez Corporation has capital stock of $8,000. Its Retained Earnings account has a $16,000 balance. Cash has a balance of $12,000. What is the total of stockholders’ equity for Perez Corporation?
Lue Corporation was authorized to issue 30,000 shares of common stock. Record the journal entry for each of the following independent situations, assuming Lue issues 7,000 shares at $12 on July 20,
Lebron Corporation was authorized to issue 30,000 shares of common stock. Record the journal entry for each of the following independent situations, assuming Lebron issues 5,800 shares at $12 on July
Pick a company of your choice, go to its Annual Report for 2020, and determine the par value of its common stock.
On July 10, 202X, Vaccaro Corporation issued 2,800 shares of common stock with a par value of $103 in exchange for equipment with a fair market value of $327,000. Journalize the appropriate entry.
On July 10, 202X, Hogan Corporation issued 3,100 shares of common stock with a par value of $99 in exchange for equipment with a fair market value of $321,000. Journalize the appropriate entry.
Kirkus Corporation has 19,000 shares outstanding of $8 par value, 8% preferred stock, and 38,000 shares outstanding of $8 par-value common stock. In its first 5 years of operation, the company paid
Dinh Corporation has 25,000 shares outstanding of $10 par value, 6% preferred stock, and 50,000 shares outstanding of $10 par-value common stock. In its first 5 years of operation, the company paid
On July 31, 202X, Ling Corporation had the following stockholders’ equity:On August 5, 202X, the board of directors declared a 7% stock dividend to beissued on September 6, 202X, to the
Kane Corporation was just issued a charter by the state of New York. This charter gives Kane the authority to issue 325,000 shares of $7 par-value common stock. Consider the following transactions:1.
List the advantages of the corporate form of organization.
Quincy Corporation in its first 3 years of operation paid out the following dividends:• Year 1: $0• Year 2: $32,000• Year 3: $85,000
From the following partial mixed list, select the appropriate titles and prepare a stockholders’ equity section using the source-of-capital approach as shown in the Blueprint example for Reality
Explain the difference between Paid-In Capital and retained earnings.
Pauling Corporation began its business on January 1, 202X. It sold at $32 per share, 6,400 shares of no-par common stock with a stated value of $19 per share. The charter of Pauling indicated that
Explain the account Paid-In Capital in Excess of Par Value as it relates to exchange of stock for noncash assets.
What is the purpose of the account Organization Costs?
The stockholders’ equity of Huerta Company is as follows:Given a redemption value of $108 per share for the preferred stock, calculate the book value per share of preferred and common stock,
What is the difference between market value and book value of stock?
Given the following, prepare the book value per share for preferred and common stock:• Preferred Stock $98,000; 1,100 shares issued and outstanding.• Common Stock $170,000; 1,800 shares issued
Redfern Corporation has 400,000 shares of $4 par value common stock issued and outstanding. Record the following entries into the general journal for Redfern: 202X July Aug. 2 Declared a cash
List the three important dates that are associated with the dividend process.
Complete the following chart by placing an X in the appropriate column. Use the indirect method. Increase in Accounts Receivable Increase in Prepaid Insurance Add to Cash Flow from
From the following income statement (Figure 21.14), balance sheet (Figure 21.15), and additional data for Okafor Company, prepare a statement of cash flows using the indirect method. Additional
On July 1, Moray Corporation issued 6%, 12-year bonds with a face value of $100,000 for $62,350 because the current market rate is 12%. Record the following entries, assuming that the interest method
On January 1, Ocampo Corporation sold $360,000 of 10-year sinking fund bonds. The corporation expects to earn 9% on the sinking fund balance and is required to deposit $23,000 at the end of each year
What is the carrying value of a bond?
Journalize the following transactions:a. Set up a bond sinking fund with an initial deposit of $7,000.b. Earned $230 interest on sinking fund balance.c. Sinking fund of $25,000 was used to pay off
Using your search engine, find the net cash flow provided from operating activities in the FedEx’s 2020 Annual Report.
From the comparative balance sheet of Hata Corporation in Figure 22.12, do the following: (a) Prepare a horizontal analysis of each item for the amount of increase or decrease as well as the
From the comparative balance sheet of Dean Corporation in Figure 22.6: (a) Prepare a horizontal analysis of each item for the amount of increase or decrease as well as the percent increase or
Prepare a horizontal analysis of the comparative income statement for Alvin Co. for the years ending December 31, 2020, and December 31, 2021. (Round to the nearest hundredth of a percent as needed.)
Prepare a horizontal analysis of the comparative income statement for Abbie Co. for the years ending December 31, 2021, and December 31, 2020. (Round to the nearest hundredth of a percent as needed.)
From the following, prepare a common-size, comparative income statement for Tam Co. by converting the dollar amounts into percentages. (Round to the nearest hundredth of a percent.) Use net sales as
Compare and contrast the needs of investors, creditors, and management as they relate to financial statement analysis.
From the comparative income statement of Nowak Company in Figure 22.7, do the following:a. Prepare a horizontal analysis with the amount of increase or decrease during 2021 along with the percent
From the comparative income statement of Miller Company in Figure 22.13, do the following:a. Prepare a horizontal analysis with the amount of increase or decrease during 2021 along with the percent
From the following, prepare a common-size, comparative income statement for Tanesha Co. by converting the dollar amounts into percentages. (Round to the nearest hundredth of a percent.) Use net sales
Simpson Corporation has 300,000 shares of common stock issued and outstanding. On June 9, 202X, the board of directors declared a $0.52 per share dividend, payable on July 16, 202X, to stockholders
At the beginning of January 202X, the stockholders’ equity of Hillside Corporation consisted of the following:1. Record the transactions in general journal form.2. Prepare the stockholders’
On January 1, Banh Co. issued five $2,200, 4%, 20-year bonds at 92. Record the journal entry.
Using your preferred search engine, find out the amount of long-term debt for General Electric in its 2020 annual report.
Simpson Corporation issued $275,000 of 4%, 10-year bonds at 96 on February 1, 202X, with semiannual interest payable on February 1 and August 1. Amortization of discount is by the straight-line
On July 1, Weems Corporation issued 6%, 25-year bonds with a face value of $105,000 for $66,641 because the current market rate is 10%. Record the following entries, assuming the interest method is
On June 1, 202X, Lisua Corporation issued $300,000 of 10%, 5-year bonds for $324,465, yielding a market rate of 8%. Interest is paid on December 1 and June 1. Lisua Corporation uses the interest
Dividends reduce earnings before taxes. True or false? Explain.
On May 1, 202X, Chang Corporation issued $400,000 of 12%, 20-year bonds at 109. The interest is payable on November 1 and May 1. The premium is amortized by the straight-line method. Prepare an
On May 1, 202X, Santos Corporation issued $600,000 of 6%, 20-year bonds at 107. The interest is payable on November 1 and May 1. The premium is amortized by the straight-line method. Prepare an
On May 1, 202X, Maltby Corporation issued $925,000 of 12%, 25-year bonds to lenders at par (100). Interest is to be paid semiannually on November 1 and May 1. Journalize the following entries:a.
On November 1, 202X, Alliance Corporation issued $875,000 of 3%, 12-year bonds to lenders at par (100). Interest is to be paid semiannually on May 1 and November 1. Journalize the following
Journalize the following transactions:a. Jarrod Co. acquired 110 shares of its own $5 par value common stock at $16 per share.b. Twenty-seven of the treasury shares are reissued at $21 per share.c.
The following is the stockholders’ equity of Pierro Corporation on October 1, 202X:1. Journalize the transactions in general journal form.2. Prepare the stockholders’ equity section of the
The following is the stockholders’ equity of Petri Corporation on October 1, 202X:1. Journalize the transactions in general journal form.2. Prepare the stockholders’ equity section of the balance
From the following, prepare in proper form a statement of retained earnings for Quincy Company for the year ended December 31, 2021. Retained Earnings, January 1, 2021 Net Income,
From the following, prepare in proper form a statement of retained earnings for Jing Company for the year ended December 31, 2022. Retained Earnings, January 1, 2022 Net Income,
Common Stock Dividend Distributable is a liability. Agree or disagree? Defend your position.

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