The Art League is a not-for-profit organization dedicated to promoting the arts within the community. There are two programs conducted by the Art League: (1) exhibition and sales of members art...
Aspen Industries became a corporation in the state of Colorado on March 23, 2015. The company was authorized to issue 1 million shares of $6 par value common stock. Since the date of incorporation,...
Beech Corporation, an accrual basis calendar year taxpayer, was organized and began business on August of the current calendar tax year. During the current year, the corporation incurred the...
Joan filed her unextended 2020 tax return on November 15, 2021, paying the $5,000 amount due at that time. Joan has no reasonable cause for failing to file the return by October 15 or for failing to...
In 2008, Gogo became the first company to offer Wi-Fi service on commercial aircraft. It provides the service primarily through ground-based cellular towers. Many air travelers find the $30 price...
Using the trial balance prepared for Binbutti Engineering in Part 4 of Problem 2-10A, prepare an income statement and statement of changes in equity for the three months ended July 31, 2020, and a...
Target Corporation prepares its financial statements according to U.S. GAAP. Targets financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This...
The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO....
On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had originally cost $180,000 but had a book value of only $110,000 when...
The table shows the demand and supply schedules for running shoes. What is the market equilibrium? If the price is $70 a pair, describe the situation in the market. Explain how market equilibrium is...
The Carry-Haul Truck Rental firm has accumulated extra trucks at three of its truck leasing outlets, as shown: Leasing Outlet Extra Trucks 1. Toronto .............................................. 70...
An office building has three floors of rentable space with a single tenant on each floor. The first floor has 20,000 square feet of rentable space and is currently renting for $15 per square foot....
Wholesome Dairy processes milk. The cost of the milk processing is $1,250,000. Wholesome is looking to increase its net income and is exploring the possibility of expanding its products to include...
Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 1:4:5 ratio, and on the day of the liquidation their balance sheet...
The balance sheets of Petrello Company and Sanchez Company as of January 1, 2019, are presented below. On that date, after an extended period of negotiation, the two companies agreed to merge. To...
John Murley operates John?s Cleaning Service. As the bookkeeper, you have been requested to journalize the following transactions: The chart of accounts for John?s Cleaning Service is as follows:...
Paddleboard Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020, is shown below along with some other information. Other information regarding...
Harper Morgan owns White Mountain Assessments in Laconia, New Hampshire. The standard workweek is 40 hours. For the weekly payroll ending September 9, 2022, checks dated September 14, 2022, complete...
1. How important are store locations in Food Citys overall retailing strategy? Explain your answer. 2. Enumerate several criteria that Food City should consider when choosing a new location to open a...
Witten Entertainment is considering buying a machine that costs $545,000. The machine will be depreciated over five years by the straight-line method and will be worthless at that time. The company...
On June 30, 2021, Exploration Inc. signs a lease requiring quarterly payments each year for the next five years. Each of the 20 quarterly payments is $29,122.87, with the first lease payment...
On November 1, 20X1, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Gerakos sells technical support for $30,000. It does not sell the software...
Peck Corporation is authorized to issue 20,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2017, the ledger contained the following...
Comparatively speaking, why do independents have much less power when it comes to negotiating with suppliers and other businesses?
Why does it seem to be necessary for the owner(s) to be on the premises all the time? Can there be personality cults in small businesses? Is it possible for customers to create a personality cult...
While counseling an employee, a supervisor made the following statements. What is wrong with each statement? What would be a better alternative for each? a. Your laziness is becoming a real problem....
You are hired by a small bakery that wants to distribute its products through supermarkets. The market for the bakerys products has been steadily growing, so the bakery needs to expand its...
Josephine Deau operates a water park called Slip and Slide Ltd. Her busiest months are April through September, although, if the weather holds, she extends park access into October. For the month of...
On January 1, 2021, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows:...
Below are transactions for Hurricane Company during 2021. 1. On October 1, 2021, Hurricane lends $9,000 to another company. The other company signs a note indicating principal and 12% interest will...
The following is information for Dundee Realty: a. Balance per the bank statement dated October 31, 2020, is $26,830. b. Balance of the Cash account on the company books as of October 31, 2020, is...
Brian and Kim have a 12-year-old child, Stan. For 2018, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. No election is made to include Stans income on Brian and...
Which of the following is an auditors objective related to the valuation assertion for the auditees PPE and intangible assets ? a. Obtain evidence that the auditee has legal rights to its patents. b....
Your client has asked your advice regarding a recent property sale. Are you required to communicate the advice in writing?
1. Apply the steps in Exhibit 4.3, Ethical Conflicts and Compliance with the Rules of Conduct, and analyze whether the relationships described in this case create a conflict of interests and, if so,...
Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company?s performance, consideration is being given to dropping several flights that appear to be...
You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an initial stock offering to the public. This REIT specializes in the...
Ann Marcus, CPA, is performing an audit for one of her clients, Artistcraft Ltd., a glass factory, for its December 31, 2020, year end. The audit program requires a substantive analytical procedure...
Charles Edward Company established a subsidiary in a foreign country on January 1, 2020, by investing FC 3,200,000 when the exchange rate was $0.50/FC. Charles Edward negotiated a bank loan of FC...
Kay Wing, Inc., prepared the following balance sheet at December 31, 20X0. Kay Wing, Inc. Balance Sheet as of December 31, 20X0 Cash $ 65,000 Accounts receivable 37,000 Inventory 70,000 Long-term...
Sky High Sports Nashville Operations, LLC, operated a trampoline park in Nashville, Tennessee. At the park, during a dodgeball tournament, Jacob Blackwell, a minor, suffered a torn tendon and a...
Quebec Urban Furniture, Inc. produces all types of office furniture. The "Executive Secretary" is a chair that has been designed using ergonomics to provide comfort during long work hours. The chair...
1. Using the competing values model in Exhibit 14.4, what type of culture (adaptability, achievement, involvement, consistency) would you say is dominant at 5 Star? At Amtech? What is your evidence?...
Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Target Corporation (TGT) is one of the largest value-priced general merchandisers operating in the United States. Target...
Suppose there are 100 young people born each period. Each young person receives 250 goods, but nothing when middle-aged or when old. People can access a storage technology that yields one good next...
Which describes the impact of a debit entry? a. Assets Liabilities Owners Equity RevenuesExpenses b. Assets Liabilities Owners Equity RevenuesExpenses c. Assets Liabilities Owners Equity...
1. Was TierOnes accounting for the loan loss reserve indicative of managed earnings? How would you make that determination? 2. What is the purpose of the auditor's assessment of ICFR? Describe the...
A tabular summary of the transactions for Star & Co., an accounting firm, for its first month of operations, July 2021, follows: Instructions a. Describe each transaction that occurred in the month....
On January 1, 2020, Panther, Inc., issued securities with a total fair value of $577,000 for 100 percent of Stark Corporations outstanding ownership shares. Stark has long supplied inventory to...
1. Defend Rack and Shelving Manufacturings (RSM) new product development strategy of tying new rack and shelving products to ASTs AGV/robotic innovation cycles. 2. How will product manufacturers and...
On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for $105,000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY National Bank for an $84,000...
1. Volkswagens annual report explains that, The Volkswagen Group consists of two divisions: the Automotive Division and the Financial Services Division. The Automotive Division comprises the...
Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $40,000...
Locate the financial statements and related disclosure notes of FedEx Corporation for the fiscal year ended May 31, 2017. You can locate the report online at www.fedex.com. Use the information...
1. Considering both economic and ethical aspects, is it appropriate for companies like Novo Nordisk to conduct clinical trials in, for example, India? What exactly are the principles that should...
Electronic Enterprises (EE) experienced eight accounting events during Year 6. These events affected EEs financial statements as shown in the following horizontal financial statements model: Required...
During 2018, Palo Fiero purchases the following property for use in his calendar yearend manufacturing business: Palo uses the accelerated depreciation method under MACRS, if available, and does not...
Vanderpool Investments specializes in low-risk government bonds. Identify each of Vanderpools transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a...
On March 10, 2013, Elizabeth, a college professor, purchased a house for $300,000. She did not move into the house until August 8, 2013. On August 1, 2014, she accepted a position as a visiting...
If the price level recently increased by 20% in England while falling by 5% in Canada, how much must the exchange rate change if PPP holds? Assume that the current exchange rate is 0.55 pounds per...
The two employees of Silver Co. receive various fringe benefits. Silver Co. provides vacation at the rate of $315 per day. Each employee earns one day of vacation per month worked. In addition,...
The following financial statements were prepared on December 31, Year 6. Additional Information: Pearl purchased 80% of the outstanding voting shares of Silver for $3,300,000 on July 1, Year 2, at...
Financial statement data for Metro Moving Company for 2020 follow. Additional information: 1. Vehicles that cost $65,000 and had a net carrying amount of $10,000 were sold for $14,000. 2. A cash...
On January 2, 2021, Sanborn Tobacco Inc. bought 5% of Jackson Industrys capital stock for $90 million. Jackson Industrys net income for the year ended December 31, 2021, was $120 million. The fair...
Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow: Copper?s...
Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of Sawyers outstanding shares continue to trade at a collective value of $174,000. On the acquisition date,...
Rottino Company purchased a new machine on October 1, 2022, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for...
This information relates to Benser Co. for the year 2022. Retained earnings, January 1, 2022............................... $67,000 Advertising...
Refer to the child mortality example discussed in Chapter 8 (Example 8.1). The example there involved the regression of the child mortality (CM) rate on per capita GNP (PGNP) and female literacy rate...
Elizabeth owns 100% of Omega Corporation's stock and also runs the company as its CEO. Omega is a C corporation that expects to earn $400,000 before deducting any salary paid to Elizabeth. Elizabeth...
On October 1, 2019, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey...
Rust Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $295,000, has a four-year life, and requires $77,000 in pretax annual operating costs....
1. Which of the reasons for strategic drift are evident in the Kodak story? 2. Drawing on the lessons from Part 1 of the book as a whole, how might Kodaks problems have been avoided?
1. Map Vanguards corporate culture to the cultural web elements of paradigm, stories, symbols, power, organisation structure, control styles and rituals and routine. 2. How do the various elements of...
Milt Pearson, the president of Supergrip Corporation Limited (SCL), is concerned with the results achieved by SCL for the fiscal year ended May 31, 2010, and has called a meeting of the Executive...
The information necessary for preparing the 2021 year-end adjusting entries for Bearcat Personal Training Academy appears below. Bearcats fiscal year-end is December 31. 1. Depreciation on the...
The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: The following transactions occurred during 2021 (assume the retirements were the first ever...
Silver Ridge Plumbing?s year end is October 31. The company?s trial balance prior to adjustments follows: Additional information: 1. The equipment has an expected useful life of 10 years. The...
On January 1, 20X1, Pluto Company acquired all of Saturn Companys common stock for $1,000,000 cash. On that date, Saturn had retained earnings of $200,000 and common stock of $600,000. The book...
Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their beginning basis is $33,000 for Phil and $31,000 for Liz. The partnership had the...
1. It has been suggested by Jamie Lee and Ross professional investment counselor to perform a financial check-up as the first step in investing in mutual funds, even though they are investing $50,000...
Wade Corp. has 150,000 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in...
A hotel has 400 rooms. Last night 5 rooms were out of order. Last night the hotel sold 300 rooms at an ADR of $215.00. What was the hotels RevPAR last night? a. $163.29 b. $163.25 c. $161.29 d....
You are auditing the financial statements for your new client, Paper Packaging Corporation, a manufacturer of paper containers, for the year ended March 31, 2019. Paper Packaging is a public company....
Match the organizations on the left with the functions on the right. Each function should be used only once. Organization Function Institute of Internal Auditors a. The group that creates and...
On August 15, 2020, Japan Ideas consigned 500 electronic play systems, costing $100 each, to YoYo Toys Company. The cost of shipping the play systems amounted to $1,250 and was paid by Japan Ideas....
Ricky Fowler borrowed $70,000 on March 1, 2018. This amount plus accrued interest at 6% compounded semiannually is to be repaid March 1, 2028. To retire this debt, Ricky plans to contribute to a debt...
The intangible assets section of Glover Restaurants at December 31, 2019, is presented below. Patents (60,000 cost less 6,000 amortization) ..................................54,000 Franchises (48,000...
M. Gonzales has the following transactions during August. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis as shown in the chapter. Aug. 1 Opens an office as a...
Tran Technologies licenses its functional intellectual property to Lyon Industries. Terms of the arrangement require Lyon to pay Tran $500,000 on April 1, 2021, when Lyon first obtains access to...
Target adopted the new leasing standard for the year ended February 2, 2019, using the modified retrospective approach outlined in ASC Topic 842. All questions relate to the year ended February 2,...
Javier and Anita Sanchez purchased a home on January 1 of year 1 for $1,000,000 by paying $200,000 down and borrowing the remaining $800,000 with a 6 percent loan secured by the home. The Sanchezes...
Zimmer Chemical Co. has chemical manufacturing facilities around the world. Recently, Zimmer erected a new facility in South Korea at a cost of $48 million and plans to operate the new facility for a...
Finn Fixes is a new charity that repairs donated cars for use by unemployed job seekers. Finn collects the cars from area junkyards. The first year Finn is in operation, jobs programs bought cars...
Scorchys Tacos restaurant is considering expanding into suburban markets in Houston, Texas, with three new locations. Because of the floods in 2017, many restaurants never reopened, creating a...
MWC Corp. is currently in the sixth year of its existence (2020). In 20152019, it reported the following income and (losses) (before net operating loss carryovers or carrybacks). 2015: ($ 70,000)...
During 2020, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for-profit institution. 1. Gross charges for patient services, all charged to Patient...
The following information came from a recent balance sheet of The Coca Cola, Co. a. Determine the amount of total liabilities reported in Coca-Colas balance sheet at the beginning of the year. b....
Boise Companys investments in equity securities at December 31 show total cost of $200,000 and total fair value of $210,000. Boise has less than a 20% ownership interest in the equity securities....
Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home office and properly allocates the following expenses to her office:...