New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
accounting
Accounting Principles 9th Edition Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso - Solutions
At September 30, 2012, the accounts of Park Terrace Medical Center (PTMC) include the following:Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 141,000Allowance for uncollectible accounts (credit balance) . . . . . . 3,400During the last quarter
Beta Watches completed the following selected transactions during 2011 and 2012:2011Dec 31 Estimated that uncollectible account expense for the year was 3% of credit sales of $440,000 and recorded that amount as expense. Use the allowance method.31 Made the closing entry for uncollectible account
Sleepy Recliner Chairs completed the following selected transactions:2011Jul 1 Sold inventory to Go – Mart, receiving a $37,000, nine-month, 8% note. Ignore cost of goods sold.Oct 31 Recorded credit- and debit-card sales for the period of $19,000.Nov 3 Card processor drafted company’s checking
Christie Realty loaned money and received the following notes during 2012.RequirementsFor each note, compute interest using a 360-day year. Explanations are not required.1. Determine the due date and maturity value of each note.2. Journalize the entry to record the inception of each of the three
Consider the following transactions for Rural Beginnings.2011Dec 6 Received a $4,000, 90-day, 9% note on account from AM Publishing.31 Made an adjusting entry to accrue interest on the AM Publishing note.31 Made a closing entry for interest revenue.2012Mar 4 Collected the maturity value of the AM
The comparative financial statements of Perfection Cosmetic Supply for 2012, 2011, and 2010 include the data that follow:Requirements1. Compute these ratios for 2012 and 2011:a. Acid-test ratiob. Days sales in receivablesc. Accounts receivable turnover2. Considering each ratio
This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 7-41 of Chapter 7. Lawlor reviewed the receivables list from the June transactions (from Chapter 6). Lawlor identified on July 31 that Johnson was not going to pay his receivable from June 15. Lawlor uses the direct
This problem continues the Draper Consulting, Inc., situation from Problem 7-42 of Chapter 7. Draper reviewed the receivables list from the January transactions (from Chapter 6). Draper identified on February 15 that a customer was not going to pay his receivable of $200 from December 9. Draper
Consider the following January transactions for Shine King Cleaning: Jan 1 Performed cleaning services for Debbie’s D-list for $8,000 on terms 3/10, n/20.3 Shine King decides to adopt the allowance method. Uncollectible account expense is estimated at 2% of credit sales.10 Borrowed money from
Big Ted Toys sells on account. When a customer account becomes three months old, Big Ted converts the account to a note receivable and immediately discounts the note to a bank. During 2012, Big Ted completed the following transactions:Apr 29 Sold goods on account to V. Mayer, $3,000.Dec 1 Received
A company received the following notes during 2012. The notes were discounted on the dates and at the rates indicated:RequirementsIdentify each note by number, compute interest using a 360-day year, and round all interest amounts to the nearest dollar. Explanations are not required.1. Determine the
A company received the following notes during 2012. The notes were discounted on the dates and at the rates indicated:RequirementsIdentify each note by number, compute interest using a 360-day year, and round all interest amounts to the nearest dollar. Explanations are not required.1. Determine the
E-Z Loan, Co., makes loans to high-risk borrowers. E-Z borrows from its bank and then lends money to people with bad credit. The bank requires E-Z Loan to submit quarterly financial statements in order to keep its line of credit. E-Z’s main asset is Notes receivable. Therefore, Uncollectible
Weddings on Demand sells on account and manages its own receivables. Average experience for the past three years has been as follows:Unhappy with the amount of bad debt expense she has been experiencing, Aledia Sanchez, owner of Weddings on Demand, is considering a major change in her business. Her
Paulines Pottery has always used the direct write-off method to account for uncollectibles. The companys revenues, bad-debt write offs, and year-end receivables for the most recent year follow:The business is applying for a bank loan, and the loan officer requires figures
Use Amazon.com’s balance sheet and the Note 1 data on “Allowance for doubtful accounts” in Appendix A at the end of this book.Requirements1. Do accounts receivable appear to be an important asset for Amazon.com?2. Assume that all of “Accounts receivable, Net, and Other” is accounts
Dylan worked for a propane gas distributor as an accounting clerk in a small Midwestern town. Last winter, his brother Mike lost his job at the machine plant. By January, temperatures were sub-zero, and Mike had run out of money. Dylan saw that Mike’s account was overdue, and he knew Mike needed
Bob Davidson and Sheila Thornton worked for several years as sales representatives for Xerox Corporation. During this time, they became close friends as they acquired expertise with the company’s full range of copier equipment. Now they see an opportunity to put their experience to work and
This chapter lists the costs included for the acquisition of land. First is the purchase price, which is obviously included in the cost of the land. The reasons for including the other costs are not so obvious. For example, removing a building looks more like an expense.Requirements1. State why the
Rural Tech Support pays $130,000 for a group purchase of land, building, and equipment. At the time of your acquisition, the land has a market value of $70,000, the building $56,000, and the equipment $14,000.Requirement1. Journalize the lump-sum purchase of the three assets for a total cost of
At the beginning of the year, Alaska Freight Airlines purchased a used airplane for $43,000,000. Alaska Freight Airlines expects the plane to remain useful for five years (4,000,000 miles) and to have a residual value of $7,000,000. The company expects the plane to be flown 1,400,000 miles the
At the beginning of 2012, Air Canada purchased a used airplane at a cost of $46,000,000. Air Canada expects the plane to remain useful for eight years (5,000,000 miles) and to have a residual value of $6,000,000. Air Canada expects the plane to be flown 1,300,000 miles the first year and 1,000,000
This exercise uses the Alaska Freight Airlines data from Short Exercise 9-3. Alaska Freight Airlines is deciding which depreciation method to use for income tax purposes.Requirements1. Which depreciation method offers the tax advantage for the first year? Describe the nature of the tax advantage.2.
On July 31, 2012, Logan Services purchased a Xerox copy machine for $40,400. Logan Services expects the machine to last for four years and to have a residual value of $2,000.Requirement1. Compute depreciation on the machine for the year ended December 31, 2012, using the straight-line method.
Assume that Alpha Communications paid $75,000 for equipment with a 15-year life and zero expected residual value. After using the equipment for six years, the company determines that the asset will remain useful for only five more years.Requirements1. Record depreciation on the equipment for year 7
Global Positioning Net purchased equipment on January 1, 2012, for $36,000. Global Positioning Net expected the equipment to last for four years and to have a residual value of $4,000. Suppose Global Positioning Net sold the equipment for $26,000 on December 31, 2013, after using the equipment for
Brown’s Salvage Company purchased a computer for $2,600, debiting Computer equipment. During 2012 and 2013, Brown’s Salvage Company recorded total depreciation of $2,000 on the computer. On January 1, 2014, Brown’s Salvage Company traded in the computer for a new one, paying $2,500 cash. The
TexAm Petroleum holds huge reserves of oil and gas assets. Assume that at the end of 2012, TexAm Petroleum’s cost of oil and gas reserves totaled $72,000,000,000, representing 8,000,000,000 barrels of oil and gas.Requirements1. Which depreciation method does TexAm Petroleum use to compute
When one media company buys another, goodwill is often the most costly asset. TMC Advertising paid $170,000 to acquire Seacoast Report, a weekly advertising paper. At the time of the acquisition, Seacoast Report’s balance sheet reported total assets of $130,000 and liabilities of $70,000. The
Harrington Precision Parts repaired one of its Boeing 737 aircrafts at a cost of $150,000. Harrington Precision Parts erroneously capitalized this cost as part of the cost of the plane.Requirements1. How will this accounting error affect Harrington Precision Parts’ net income? Ignore
Ogden Furniture, Co., purchased land, paying $70,000 cash plus a $300,000 note payable. In addition, Ogden paid delinquent property tax of $2,500, title insurance costing $2,000, and $8,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost
Deadwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows: Lot Appraised Value1 $ 70,5002 235,0003 164,500Deadwood paid $210,000 in cash.Requirement1. Record the purchase in the journal, identifying each lot’s cost
Consider the following expenditures:a. Purchase price.b. Ordinary recurring repairs to keep the machinery in good working order.c. Lubrication before machinery is placed in service.d. Periodic lubrication after machinery is placed in service.e. Major overhaul to extend useful life by three years.f.
Joe Yusakae just slept through the class in which Professor Ogilvie explained the concept of depreciation. Because the next test is scheduled for Friday, Yusakae telephones Dan Danielson to get his notes from the lecture. Danielson’s notes are concise: “Depreciation—Sounds like Greek to
Papa’s Fried Chicken bought equipment on January 2, 2012, for $39,000. The equipment was expected to remain in service for four years and to perform 11,000 fry jobs. At the end of the equipment’s useful life, Papa’s estimates that its residual value will be $6,000. The equipment performed
Tumble Gymnastics Center, whose fiscal year ends December 31, paid $110,000 for fitness equipment on April 1, 2012, that is expected to have a 10-year life. The expected residual value is $50,000.Requirement1. Select the appropriate depreciation method for income tax purposes. Then determine the
Everyday Hardware Consultants purchased a building for $540,000 and depreciated it on a straight-line basis over a 40-year period. The estimated residual value is $96,000. After using the building for 15 years, Everyday realized that wear and tear on the building would wear it out before 40 years.
On January 2, 2012, Repeat Clothing Consignments purchased showroom fixtures for $11,000 cash, expecting the fixtures to remain in service for five years. Repeat has depreciated the fixtures on a double-declining-balance basis, with zero residual value. On October 31, 2013, Repeat sold the fixtures
Community Bank recently traded in office fixtures. Here are the facts:Old fixtures:• Cost, $96,000.• Accumulated depreciation, $65,000.New fixtures:• Cash paid, $103,000, plus the old fixtures.Requirements1. Record Community Bank’s trade-in of old fixtures for new ones.2. Now let’s change
Safety Trucking Company uses the units-of-production (UOP) depreciation method because UOP best measures wear and tear on the trucks. Consider these facts about one Mack truck in the company’s fleet. When acquired in 2010, the rig cost $450,000 and was expected to remain in service for 10 years
Sierra Mountain Mining paid $448,500 for the right to extract mineral assets from a 500,000-ton deposit. In addition to the purchase price, Sierra also paid a $500 filing fee, a $1,000 license fee to the state of Nevada, and $60,000 for a geological survey of the property. Because Sierra purchased
Miracle Printers (MP) manufactures printers. Assume that MP recently paid $600,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years.Requirements1. Assuming the straight-line method of
Potters, Inc., has acquired several other companies. Assume that Potters purchased Kittery, Co., for $6,000,000 cash. The book value of Kittery’s assets is $12,000,000 (market value, $15,000,000), and it has liabilities of $11,000,000.Requirements1. Compute the cost of the goodwill purchased by
Furniture.com uses automated shipping equipment. Assume that early in year 1, Furniture purchased equipment at a cost of $400,000. Management expects the equipment to remain in service for five years, with zero residual value. Furniture uses straight-line depreciation. Furniture’s CEO informs the
Drive and Fly, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building:Drive and Fly depreciates land improvements over 20 years, buildings over 40 years, and furniture over 10 years, all on a straight-line basis with zero
On January 3, 2012, Trusty Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Trusty spent $3,000 painting it, $1,500 replacing tires, and $4,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $9,000.
Gretta Chung Associates surveys American eating habits. The company’s accounts include Land, Buildings, Office equipment, and Communication equipment, with a separate accumulated depreciation account for each asset. During 2012 and 2013, Gretta Chung completed the following transactions:2012Jan 1
McCabe Oil Company has an account titled Oil and gas properties. McCabe paid $6,200,000 for oil reserves holding an estimated 500,000 barrels of oil. Assume the company paid $510,000 for additional geological tests of the property and $490,000 to prepare for drilling. During the first year, McCabe
Midland Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Midland purchased goodwill as part of the acquisition of ShipleyWireless Company, which had the following figures:Book value of assets . . . . . . . . . . . . . . . . . $ 750,000Market value of assets . .
On May 31, 2012, Express Delivery, the overnight shipper, had total assets of $21,000,000,000 and total liabilities of $13,000,000,000. Included among the assets were property, plant, and equipment with a cost of $17,000,000,000 and accumulated depreciation of $10,000,000,000. During the year ended
Best Parking, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building:Best Parking depreciates land improvements over 25 years, buildings over 50 years, and furniture over 12 years, all on a straight-line basis with zero
On January 8, 2012, Speedway Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Speedway spent $4,000 painting it, $2,500 replacing tires, and $8,000 overhauling the engine. The truck should remain in service for five years and have a residual value of
Hilda Carr Associates surveys American eating habits. The company’s accounts include Land, Buildings, Office equipment, and Communication equipment, with a separate accumulated depreciation account for each asset. During 2012 and 2013, Hilda Carr completed the following transactions:2012 Jan 1
Garrison Oil Company has an account titled Oil and gas properties. Garrison paid $6,400,000 for oil reserves holding an estimated 500,000 barrels of oil. Assume the company paid $530,000 for additional geological tests of the property and $460,000 to prepare for drilling. During the first year,
Heartland Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Heartland purchased goodwill as part of the acquisition of Shurburn Wireless Company, which had the following figures:Book value of assets. . . . . . . . . . . . . . . . . $ 800,000Market value of
On May 31, 2012, Overnight It, the overnight shipper, had total assets of $22,000,000,000 and total liabilities of $10,000,000,000. Included among the assets were property, plant, and equipment with a cost of $15,000,000,000 and accumulated depreciation of $8,000,000,000. During the year ended May
This problem continues the Lawlor Lawn Service, Inc., situation from Problem 8-41 of Chapter 8. Refer to the Chapter 2 data for Exercise 2-61. In Chapter 2, we learned that Lawlor Lawn Service, Inc., had purchased a lawn mower, $1,200, and weed whacker, $240, on May 3, 2012 and that they were
This problem continues the Draper Consulting, Inc., situation from Problem 8-42 of Chapter 8. Refer to Problem 2-62 of Chapter 2. In Chapter 2, we learned that Draper Consulting, Inc., had purchased a Dell computer, $1,800, and office furniture, $4,200 on December 3 and 4, respectively, and that
Western Bank & Trust purchased land and a building for the lump sum of $3,000,000. To get the maximum tax deduction, Western allocated 90% of the purchase price to the building and only 10% to the land. A more realistic allocation would have been 70% to the building and 30% to the
Suppose you are an investment advisor, and you are looking at two companies to recommend to your clients, Shelly's Seashell Enterprises and Jeremy Feigenbaum Systems. The two companies are virtually identical, and both began operations at the beginning of the current year. During the year, each
Refer to the Amazon.com financial statements, including Notes 1 and 3, in Appendix A at the end of this book. Answer the following questions.Requirements1. Which depreciation method does Amazon use for reporting in the financial statements? What type of depreciation method does the company probably
Jim Reed manages a fleet of utility trucks for a rural county government. He’s been in his job 30 years, and he knows where the angles are. He makes sure that when new trucks are purchased, the salvage value is set as low as possible. Then, when they become fully depreciated, they are sold off by
On December 31, 2012, Edgmont, Co., purchased $10,000 of inventory on a one-year, 10% note payable. Edgmont uses a perpetual inventory system.Requirements1. Journalize the company’s accrual of interest expense on June 30, 2013, its fiscal year-end.2. Journalize the company’s payment of the note
Trekster Corporation guarantees its snowmobiles for three years. Company experience indicates that warranty costs will add up to 4% of sales. Assume that the Trekster dealer in Colorado Springs made sales totaling $533,000 during 2012. The company received cash for 30% of the sales and notes
Farley Motors, Inc., a motorcycle manufacturer, included the following note (adapted) in its annual report: Notes to Consolidated Financial Statements7 Commitments and Contingencies (Adapted)The Company self-insures its product liability losses in the United States up to $3,000,000.Catastrophic
Gloria Traxell is paid $800 for a 40-hour workweek and time-and-a-half for hours above 40.Requirements1. Compute Traxell’s gross pay for working 48 hours during the first week of February. Carry amounts to the nearest cent.2. Traxell is single, and her income tax withholding is 10% of total pay.
Return to the Gloria Traxell payroll situation in Short Exercise 10-4. Traxell’s employer, College of San Bernardino, pays all the standard payroll taxes plus benefits for the employee retirement plan (5% of total pay), health insurance ($113 per employee per month), and disability insurance ($8
Suppose you work for MRK, the accounting firm, all year and earn a monthly salary of $5,700. There is no overtime pay. Your withheld income taxes consume 15% of gross pay. In addition to payroll taxes, you elect to contribute 5% monthly to your retirement plan. MRK also deducts $150 monthly for
Consult your solutions for Short Exercises 10-4 and 10-5.Requirements1. Journalize salary expense and payment for College of San Bernardino related to the employment of Gloria Traxell.2. Journalize benefits expense for College of San Bernardino related to the employment of Gloria Traxell.3.
Consider the following transactions of Pearl Software: Mar 31 Recorded cash sales of $180,000, plus sales tax of 8% collected for the state of Texas.Apr 6 Sent March sales tax to the state.Requirement1. Journalize the transactions for the company.
Consider the following note payable transactions of Creative Video Productions.2012May 1 Purchased equipment costing $17,000 by issuing a one-year, 6% note payable.Dec 31 Accrued interest on the note payable.2013May 1 Paid the note payable at maturity.Requirement1. Journalize the transactions for
TransWorld Publishing completed the following transactions during 2012:Oct 1 Sold a six-month subscription, collecting cash of $330, plus sales tax of 9%.Nov 15 Remitted (paid) the sales tax to the state of Tennessee.Dec 31 Made the necessary adjustment at year-end to record the amount of
Edmund OMally Associates reported short-term notes payable and salary payable as follows:During 2012, OMally paid off both current liabilities that were left over from 2011, borrowed money on short-term notes payable, and accrued salary expense. Requirement1. Journalize all
The accounting records of Clay Ceramics included the following at January 1, 2012:In the past, Clays warranty expense has been 8% of sales. During 2012, Clay made sales of $136,000 and paid $7,000 to satisfy warranty claims.Requirements1. Journalize Clays warranty expense
Henry Striker manages a Frosty Boy drive-in. His straight-time pay is $10 per hour, with time-and-a-half for hours in excess of 40 per week. Striker’s payroll deductions include withheld income tax of 8%, FICA tax of 7.65%, and a weekly deduction of $5 for a charitable contribution to the United
Ricardo’s Mexican Restaurants incurred salary expense of $65,000 for 2012. The payroll expense includes employer FICA tax of 7.65%, in addition to state unemployment tax of 5.4% and federal unemployment tax of 0.8%. Of the total salaries, $17,000 is subject to unemployment tax. Also, the company
The following transactions of Denver Pharmacies occurred during 2011 and 2012:Requirement1. Journalize the transactions in Denvers general journal. Explanations are notrequired.
The following transactions of Brooks Garrett occurred during 2012:Apr 30 Garrett is party to a patent infringement lawsuit of $200,000. Garrett’s attorney is certain it is remote that Garrett will lose this lawsuit.Jun 30 Estimated warranty expense at 2% of sales of $400,000.Jul 28 Warranty
The general ledger of Speedy Ship at June 30, 2012, the end of the companys fiscal year, includes the following account balances before adjusting entries.The additional data needed to develop the adjusting entries at June 30 are as follows:a. The long-term debt is payable in annual
Louis Welch is general manager of United Tanning Salons. During 2012, Welch worked for the company all year at a $6,200 monthly salary. He also earned a yearend bonus equal to 10% of his salary. Welch’s federal income tax withheld during 2012 was $850 per month, plus $924 on his bonus check.
The following transactions of Plymouth Pharmacies occurred during 2011 and 2012:Requirement1. Journalize the transactions in Plymouths general journal. Explanations are notrequired.
The following transactions of Dunn Miles occurred during 2012: Apr 30 Miles is party to a patent infringement lawsuit of $230,000. Miles’s attorney is certain it is remote that Miles will lose this lawsuit. Jun 30 Estimated warranty expense at 3% of sales of $430,000.Jul 28 Warranty claims paid
The general ledger of Pack-N-Ship at June 30, 2012, the end of the companys fiscal year, includes the following account balances before adjusting entries.The additional data needed to develop the adjusting entries at June 30 are as follows:a. The long-term debt is payable in annual
Lenny Worthington is general manager of Crossroad Tanning Salons. During 2012, Worthington worked for the company all year at a $6,100 monthly salary. He also earned a year-end bonus equal to 5% of his salary. Worthington’s federal income tax withheld during 2012 was $810 per month, plus $928 on
This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 9-39 of Chapter 9. Refer to the Chapter 2 data for Exercise 2-61. Lawlor Lawn Service, Inc., is considering hiring its first “real” employee. The employee will earn $900 weekly and will have $81 in federal income tax
This problem continues the Draper Consulting, Inc., situation from Problem 9-40 of Chapter 9. Refer to Problem 2-62 of Chapter 2. Draper Consulting, Inc., believes the company will need to borrow $300,000 in order to expand operations. Draper consults the bank and secures a 10%, five-year note on
Golden Bear Construction Co. operates throughout California. The owner, Gaylan Beavers, employs 15 work crews. Construction supervisors report directly to Beavers, and the supervisors are trusted employees. The home office staff consists of an accountant and an office manager.Because employee
Sell-Soft Corporation is the defendant in numerous lawsuits claiming unfair trade practices. Sell-Soft has strong incentives not to disclose these contingent liabilities. However, GAAP requires that companies report their contingent liabilities.Requirements1. Why would a company prefer not to
Many small businesses have to squeeze down costs any way they can just to survive. One way many businesses do this is by hiring workers as “independent contractors” rather than as regular employees. Unlike rules for regular employees, a business does not have to pay Social Security (FICA) taxes
Details about a company’s liabilities appear in a number of places in the annual report. Use Amazon.com’s financial statements, including Note 1, to answer the following questions. Amazon’s financial statements are in Appendix A at the end of this book.Requirements1. Give the breakdown of
Sara Chung knew the construction contractors in her area well. She was the purchasing manager at the power plant, a business that was the major employer in the region. Whenever a repair or maintenance job came up, Sara’s friends would inflate the invoice by 10%. The invoice would then be passed
In recent years, the airline industry has dominated headlines. Consumers are shopping Priceline.com and other Internet sites for the lowest rates. The airlines have also lured customers with frequent-flyer programs, which award free flights to passengers who accumulate specified miles of travel.
What is the economic entity assumption?
What is the basic accounting equation? Discuss.
The basic accounting equation is: Assets = Liabilities + Owner’s Equity. Replacing the words in that equation with dollar amounts, what is Coca-Cola’s accounting equation at December 31, 2007?
Why is the normal operating cycle for a merchandising company likely to be longer than for a service company?
When is cost of goods sold determined in a perpetual inventory system?
Explain the meaning of the credit terms 2/10, n/30.
Explain why the Merchandise Inventory account will usually require adjustment at year-end.
What merchandising account(s) will appear in the post closing trial balance?
Showing 11000 - 11100
of 107766
First
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
Last
Step by Step Answers