Questions and Answers of Fundamentals Of Advanced Accounting

The following information relates to a delivery truck purchased on January 2, 20X1. Depreciation tables are provided in the Working Papers. Your instructor will guide you through the following
Depreciate all plant assets using the straight-line method. Plant asset records, a general journal, and a cash payments journal are provided in the Working Papers. Source documents are abbreviated
Use the plant asset records from On Your Own 8-1. Depreciation tables and a general journal are provided in the Working Papers. Work this problem independently.1. Complete the depreciation table for
Use the plant asset records from On Your Own 8-2. The following transactions occurred in 20X5. A general journal, cash receipts journal, and plant asset records are provided in the Working Papers.
The following information relates to a machine purchased on January 3, 20X1. Work independently to complete the following problem.1. Complete tables showing depreciation expense calculated using the
Mannings, Inc. uses three plant asset accounts: Office Equipment, Store Equipment, and Warehouse Equipment.Instructions:1. Journalize the transactions completed during the current year. Use page 1 of
Dependable Deliveries, Inc., has real property with an assessed value of $350,000.00. The annual tax rate in the city where the property is located is 4.5% of assessed value. Half of the annual tax
Use the plant asset record from Application Problem 8-1. Using the straight-line method, complete a depreciation table for each of the plant assets bought by Mannings, Inc.Data from Problem
Use the plant asset records from Application Problem 8-1 and the depreciation tables from Application Problem 8-3.Instructions:1. Use the plant asset records prepared in Application Problem 8-1. For
Use the plant asset records from Application Problem 8-4. Mannings, Inc., completed the following transactions.Use the appropriate plant asset records from Application Problem 8-4 for additional
On January 2, 20X6, Jamestown, Inc., sold land and a company operations building it is no longer using. The following data relating to the land and building are obtained from the accounting records
The following data relating to an office desk are obtained from the accounting records of Byrum, Inc.Instructions:Prepare a depreciation table showing depreciation expense calculated using the
The following data relating to a truck are obtained from the accounting records of Marcotte, Inc.:Instructions:1. Calculate the depreciation rate.2. Prepare a depreciation table for this truck
The following data relating to a computer are obtained from the accounting records of Caesar Company.Instructions:Prepare a depreciation table showing depreciation expense calculated using MACRS.
The following data relating to a coal mine are obtained from the accounting records of Geist, Inc.Instructions:Prepare a depletion table for this mine showing depletion expense calculated using the
Western, Inc., uses the straight-line method of calculating depreciation expense. Western uses one plant asset account, Office Equipment, account no. 1230. The plant asset records for Western are
McNeilley, Inc., uses the straight-line method to calculate depreciation expense. McNeilley uses two plant asset accounts, Office Equipment and Delivery Equipment.Instructions:Journalize the
Examine the comparison of depreciation methods in the schedule at the top of page 244. Although the amount of depreciation recorded each year varies, the total depreciation over the asset's full life
A corporation's plant assets include office equipment, a building, and the land on which the building is located. The corporation's general ledger includes a single account, Plant Assets, and a
A corporation owns land on which there are both an active coal mine and timber. The corporation also owns an office building and the land on which it is located. The corporation uses three plant
A corporation currently uses straight-line depreciation for all plant assets. Its balance sheet reports accumulated depreciation and its income statement reports the depreciation expense for the
The city in which a corporation is located has a business property tax. This tax is 1% of all business property over $$50,000.$ The corporation is a small service business. Its assets that are
On June 5, 20X3, Fairborn, Inc., purchased a new cutting machine for use in its factory. The machine cost $$15,000.00$ and has an estimated salvage value of $$1,000.00$ and an estimated useful
An income statement is a financial statement prepared on an accrual basis. A statement of cash flows is a financial statement prepared on a cash basis. It shows how and where the company received
What two elements are included in the cost of merchandise available for sale?
If ending merchandise inventory is understated, will the net income be overstated or understated?
Name two ways to determine the number of inventory items on hand.
What inventory costing method does a business usually use?
Which inventory costing method uses the earliest purchase prices to determine the cost of merchandise inventory?
During a period of increasing prices, what inventory costing method will result in the highest reported net income?
What two amounts are needed to apply the lower of cost or market inventory costing method?
On what assumptions is the gross profit method of estimating inventory based?
To use the retail method of estimating inventory, what records must be kept?
Explain a merchandise inventory turnover ratio of 5.0.
How is the average number of days' sales in merchandise inventory calculated?
Harper Company uses a voucher system for cash payments. Jonathan Bartell, the bookkeeper, receives and verifies the invoices. He then prepares the voucher and enters the voucher in the voucher
Information is the key to a successful business. The loss of information can inhibit the ability of accountants to prepare reports and managers to make business decisions. Computer viruses can
Kelly White, the bookkeeper for Greenfield, Inc., is setting up the company’s voucher system. As she plans, she is trying to decide how many columns to use in the voucher register. She is also
Harbour House Interiors has two departments: Paint and Wallpaper. Harbor House completed the transactions below.Instructions:Use a form similar to the one below. For each transaction, indicate:a.
LightSource has two departments, Office and Residential. The following data are obtained from the accounting records on March 31 of the current year:Instructions:1. Prepare an estimated merchandise
AllSports Center is a merchandising business that sells sports clothing and equipment. AllSports Center’s December 31 trial balance is recorded on a 12-column work sheet in the Working Papers. The
The work sheet from Application Problem 4-3 is needed to complete this problem.1. Prepare departmental margin statements for AllSports Center’s Clothing Department and Equipment Department.
The work sheet from Application Problem 4-3 is needed to complete this problem.1. Journalize the adjusting entries for AllSports Center. Use page 13 of a general journal.2. Journalize the closing
Klein Sporting Goods is a merchandising business that specializes in golf and tennis equipment. The company uses a yearly fiscal period. Klein’s December 31 trial balance is recorded on a 12-column
The departmental margin statement for the Personal Digital Assistant (PDA) department of DigitalHelp, Inc., for the years 20X8 and 20X9 is provided in the Working Papers. The company has set a goal
What two features are required if responsibility accounting is to be successful?
For what type of accounts does Zytech have separate departmental accounts in the general ledger?
In order to ensure the features of a responsibility accounting system, what should be done if a direct expense used by different departments is documented by a single invoice?
In addition to regular financial statements, what other reports does a departmentalized business prepare?
What are the two principal methods for determining amounts of merchandise on hand?
What are the three sections of a departmental statement of gross profit?
What two reports are prepared to prove the accuracy of posting to subsidiary ledgers?
Why are adjustments made to certain accounts at the end of the fiscal period?
What account balances are extended to the Balance Sheet columns of a work sheet?
Where does Zytech obtain the information to prepare the direct expenses section of the income statement?
How is the component percentage for departmental margin calculated?
What two comparisons can be made using the component percentage for departmental margin to determine if a department is performing satisfactorily?
Where does Zytech obtain the information to prepare the indirect expenses section of the income statement?
Which accounts are closed at the end of an accounting period?
Which accounting activities in the accounting cycle are performed at the end of a fiscal period?
One of the most frequently asked questions or requests during an interview is "Tell me about yourself." When responding to this inquiry, focus on how your education, skills, abilities, personal
The following data are obtained from financial information for InfoTech for the month ended August 31 of the current year:You are asked to report the estimated ending inventory on August 31 using the
Cyber Graphics is a departmentalized business. An interim statement of gross profit is prepared monthly. A departmental statement of gross profit is prepared at the end of each fiscal year. The
Anew accounting clerk for CalTech Corporation prepared the following trial balance using the general ledger account balances listed below.1, Total the trial balance columns for the accounting clerk.
In this chapter, you have learned that the cost of merchandise is a significant cost for all merchandising businesses.In order to maximize profits, management attempts to keep this cost as low as
In a voucher system, what general ledger account is used to record all amounts to be paid by check?
What is the purpose of using prenumbered voucher forms?
A voucher register is similar to and replaces what journal?
A check register is similar to and replaces what journal?
What account is debited for each check recorded in a check register?
What accounts are affected, and how, when a debit memorandum is issued for the return of merchandise purchased and the original voucher is canceled?
What is the first step in canceling a voucher?
Where is the information obtained for preparing a voucher for payroll?
TeleTronics uses a voucher register similar to the one described in this chapter.Instructions:1. Prepare Voucher 87 for the September 1 transaction.2. Journalize the transactions completed during
TeleTronics uses a check register similar to the one described in this chapter.Instructions:1. Use page 9 ofa check register. Record the bank balance brought forward on September 1 oft he current
Nygren Supply Company uses a voucher register similar to the one described in this chapter.Instructions:Journalize the transactions completed during February of the current year. Use page 2 of a
Bowman Service Center uses a voucher form and a voucher register similar to the ones described in this chapter.Bowman Service Center's payroll register for May 15 oft he current year shows the
Jameson Company uses a voucher register and a check register similar to the ones described in this chapter.Instructions:1. Use page 20 of a check register. Record the bank balance brought forward on
Cayman Company uses a voucher system. All of the vendors with whom Cayman Company does business offer terms of 2/10, n/30. Cayman has a policy of paying all invoices within the discount period. The
Stanford Clothiers, an upscale department store, has locations in four different cities. Each quarter, the company charts departmental sales for each location. Use the information presented in the
CarpetWorld employs a departmental supervisor for each of its two departments, Carpet and Drapery.Departmental supervisors receive a biweekly salary and monthly commissions of 1% of net sales. They
CarpetWorld has two departments, Carpet and Drapery. It uses a biweekly payroll system. It pays its salesclerks and employees in the accounting department on an hourly basis, and they receive 1/2
Use the payroll register from Application Problem 3-2. A partially completed employee earnings record for each of CarpetWorld’s employees appears in the Working Papers.Instructions:Complete the
Use the payroll register from Application Problem 3-2.Instructions:1. Record the March 19 payroll payment on page 6 of a cash payments journal. The source document is Check No. 463.2. Use a grid
Use the following payroll data for John’s Automotive for the first quarter of the current year. Employer tax rates are social security, 6.2%; Medicare, 1.45%; federal unemployment, 0.8%; and state
ColdGuard has two departments, Windows and Doors. It uses a biweekly payroll system of 26 pay periods per year. ColdGuard pays salesclerks and employees in the accounting department on an hourly
Assume Congress recently passed an Act raising all payroll taxes. The new rates are as follows:Social Security: 7.1% of earnings up to a maximum of $$94,500$ in each calendar year• Medicare:
Write a letter to two local payroll processing companies. Request information about their services. When you receive the information, compare and contrast the services offered by the two companies.
Zytech deducts department sales returns and allowances and sales discounts from sales before calculating manager discounts. Mary Dennenberg, manager of the Audio Department, does not think this
Tony Parducci, a new payroll clerk for PowerGlide, prepared the commissions record shown here for Dianne Connelly.PowerGlide pays all salespersons a biweekly salary of $$1,300.00$ plus a monthly
Expenses incurred in one fiscal period but not paid until a later date are called accrued expenses. During the last fiscal period of each year, Costco incurs salary and benefit expenses that are not
Sequoia Sport Apparel is a retail store with two departments: Clothing and Shoes. The general ledger and accounts receivable ledger are included in your Working Papers. The balances are recorded as
Colonial Furnishings has two departments: Tables and Chairs. The general ledger and accounts receivable ledger are provided in the Working Papers. The balances are recorded as of June 1 of the
EuroFashions has two departments: Jewelry and Watches.Instructions:1. Journalize the transactions completed during April of the current year. Use page 9 of a sales journal and a general journal and
Assume that EuroFashions, the business described in Mastery Problem 2-3, is located in a state that does not charge a retail sales tax. Also assume that EuroFashions offers customers terms of 1/10,
The preparation of a Career Portfolio was discussed in the Applied Communication activity. In addition to labeling one divider “Resume,’ label another divider “Personal Letters.” One type of
Pacific Patio specializes in tables, umbrellas, and barbeques. All accounting records are kept on a departmental basis. When a customer returns merchandise or receives an allowance, a journal entry
Ogden’s, Inc., sells a complete line of hardware and lawn and garden products. To encourage early payment for sales on account, it offers a sales discount. The company has separate departmental
The preparation of a Career Portfolio can be an extremely useful tool in helping you make the transition from school to work. The purpose of the portfolio is to assist you in collecting, organizing,
Maria Hector manages a card and gift shop. The shop's general ledger includes a single sales account and a single purchases account. Periodically, Ms. Hector has an accountant review her

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