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

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
accounting

Accounting 21st Edition Carl s. warren, James m. reeve, Philip e. fess - Solutions

Identify each of the following accounts of Universal Services Co. as asset, liability, owner’s equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit.a. Accounts Payable b. Accounts Receivable c. Cash d. Cindy Yost, Capital e. Cindy Yost, Drawing
The following table summarizes the rules of debit and credit. For each of the items (a) through (l), indicate whether the proper answer is a debit or acredit.
As of January 1, Seth Fite, Capital, had a credit balance of $10,500. During the year, withdrawals totaled $4,000 and the business incurred a net loss of $8,000.a. Calculate the balance of Seth Fite, Capital, as of the end of the year.b. Assuming that there have been no recording errors, will the
The following errors took place in journalizing and posting transactions:a. A withdrawal of $15,000 by Gerald Owen, owner of the business, was recorded as a debit to Wages Expense and a credit to Cash.b. Rent of $4,500 paid for the current month was recorded as a debit to Rent Expense and a credit
The following errors took place in journalizing and posting transactions:a. A $550 purchase of supplies on account was recorded as a debit to Miscellaneous Expense and a credit to Prepaid Rent.b. Cash of $3,750 received on account was recorded as a debit to Accounts Payable and a credit to
The financial statements for The Home Depot are presented in Appendix E at the end of the text.a. For Home Depot, comparing 2003 with 2002, determine the amount of change in millions and the percent of change for1. Net sales (revenues) 2. Total operating expenses.b. What conclusions can you draw
On August 1 of the current year, a business paid the August rent on the building that it occupies. (a) Do the rights acquired at August 1 represent an asset or an expense? (b) What is the justification for debiting Rent Expense at the time of payment?
The balance in the prepaid insurance account, before adjustment at the end of the year, is $2,475. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:(a) The amount of insurance expired during the year is $1,215;(b) The
The prepaid insurance account had a balance of $5,600 at the beginning of the year. The account was debited for $1,800 for premiums on policies purchased during the year. Journalize the adjusting entry required at the end of the year for each of the following situations:(a) The amount of unexpired
Titanium Financial Services was organized on April 1 of the current year. On April 2, Titanium prepaid $1,260 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. Titanium is also required to pay in January an annual tax (on property) for the previous
At the end of the current year, $11,500 of fees have been earned but have not been billed to clients.a. Journalize the adjusting entry to record the accrued fees.b. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary? Explain.
The balance in the equipment account is $318,500, and the balance in the accumulated depreciation-equipment account is $113,900.a. What is the book value of the equipment?b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $113,900? Explain.
Microsoft Corporation reported Property, Plant, and Equipment of $5,891 million and Accumulated Depreciation of $3,623 million at June 30, 2002.a. What was the book value of the fixed assets at June 30, 2002?b. Would the book value of Microsoft Corporation's fixed assets normally approximate their
On December 31, a business estimates depreciation on equipment used during the first year of operations to be $7,500.(a) Journalize the adjusting entry required as of December 31.(b) If the adjusting entry in (a) were omitted, which items would be erroneously stated on(1) The income statement for
The financial statements for The Home Depot are presented in Appendix E at the end of the text.a. Determine for Home Depot:1. The amount of the change (in millions) and percent of change in net earnings (net income) for the year ended February 2, 2003.2. The percentage relationship between net
The following income statement data (in thousands) for Dell Computer Corporation and Gateway Inc. were taken from their recent annual reports:a. Prepare a vertical analysis of the income statement for Dell.b. Prepare a vertical analysis of the income statement for Gateway.c. Based upon (a) and (b),
On August 31, 2006, the following data were accumulated to assist the accountant in preparing the adjusting entries for Osage Realty:a. Fees accrued but unbilled at August 31 are $7,100.b. The supplies account balance on August 31 is $3,010. The supplies on hand at August 31 are $1,150.c. Wages
Selected account balances before adjustment for Flanders Realty at March 31, 2006, the end of the current year, are as follows:Data needed for year-end adjustments are as follows:a. Supplies on hand at March 31, $350.b. Depreciation of equipment during year, $1,450.c. Rent expired during year,
Wild Trout Co., an outfitter store for fishing treks, prepared the following trial balance at the end of its first year of operations:For preparing the adjusting entries, the following data were assembled:a. Supplies on hand on November 30 were $315.b. Fees earned but unbilled on November 30 were
Dynamo Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 2006, the accountant for Dynamo Company prepared the trial balances shown below.InstructionsJournalize the seven entries that adjusted the accounts at March 31. None of the accounts were affected by
On October 31, 2006, the following data were accumulated to assist the accountant in preparing the adjusting entries for Melville Realty:a. The supplies account balance on October 31 is $1,875. The supplies on hand on October 31 are $310.b. The unearned rent account balance on October 31 is $4,020,
Selected account balances before adjustment for Maltese Realty at May 31, 2006, the end of the current year, are as follows:Data needed for year-end adjustments are as follows:a. Unbilled fees at May 31, $1,150.b. Supplies on hand at May 31, $360.c. Rent expired $6,000.d. Depreciation of equipment
Anguilla Company, an electronics repair store, prepared the following trial balance at the end of its first year of operations:For preparing the adjusting entries, the following data were assembled:a. Fees earned but unbilled on April 30 were $3,200.b. Supplies on hand on April 30 were $1,010.c.
Expose Company specializes in the repair of music equipment and is owned and operated by Gavin Staub. On June 30, 2006, the end of the current year, the accountant for Expose Company prepared the following trial balances:InstructionsJournalize the seven entries that adjusted the accounts at June
Is the work sheet a substitute for the financial statements? Discuss.
In the Income Statement columns of the work sheet, the Debit column total is greater than the Credit column total before the amount for the net income or net loss has been included. Would the income statement report a net income or a net loss? Explain.
In the Balance Sheet columns of the work sheet for Teton Co. for the current year, the Debit column total is $68,500 greater than the Credit column total before the amount for net income or net loss has been included. Would the income statement report a net income or a net loss? Explain.
The fiscal years for several well-known companies were as follows:What general characteristic shared by these companies explains why they do not have fiscal years ending December31?
If a company has positive working capital, will its current ratio always be greater than 1? Explain.
The balances for the accounts listed below appear in the Adjusted Trial Balance columns of the work sheet. Indicate whether each balance should be extended to(a) An Income Statement column(b) A Balance Sheet column.1. Accounts Payable 2. Accounts Receivable 3. Fees Earned 4. Kathy Chang, Drawing
The steps performed in completing a work sheet are listed below in random order.a. Extend the adjusted trial balance amounts to the Income Statement columns and the Balance Sheet columns.b. Enter the adjusting entries into the work sheet, based upon the adjustment data.c. Add the Debit and Credit
Ithaca Services Co. offers cleaning services to business clients. Complete the following work sheet for Ithaca ServicesCo.
Based upon the data in Exercise 4-5, prepare the adjusting entries for Ithaca Services Co.
The following account balances were taken from the Adjusted Trial Balance columns of the work sheet for Larynx Messenger Service, a delivery service firm, for the current fiscal year ended June 30, 2006:Prepare an incomestatement.
The following revenue and expense account balances were taken from the ledger of Sirocco Services Co. after the accounts had been adjusted on March 31, 2006, the end of the current fiscal year:Prepare an incomestatement.
At the balance sheet date, a business owes a mortgage note payable of $500,000, the terms of which provide for monthly payments of $13,750.Explain how the liability should be classified on the balance sheet.
Tudor Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on April 30, 2006, the end of the current fiscal year, the balances of selected accounts from the ledger of Tudor Co. are as follows:Prepare a classified balance sheet that
Green Earth Co. is a consulting firm specializing in pollution control. The entries in the Adjustments columns of the work sheet for Green Earth Co. are as follows.Prepare the adjusting journalentries.
Prior to its closing, Income Summary had total debits of $450,750 and total credits of $712,500.Briefly explain the purpose served by the income summary account and the nature of the entries that resulted in the $450,750 and the $712,500.
An accountant prepared the following post-closing trial balance:Prepare a corrected post-closing trial balance. Assume that all accounts have normal balances and that the amounts shown arecorrect.
The financial statements for The Home Depot are presented in Appendix E at the end of the text.a. Determine the working capital (in millions) and the current ratio for Home Depot as of February 2, 2003 and February 3, 2002.b. What conclusions concerning the company's ability to meets its financial
The following data (in thousands) were taken from recent financial statements of 7 Eleven, Inc., a convenience store chain:a. Compute the working capital and the current ratio as of December 31, 2002 and 2001. Round to two decimal places.b. What conclusions concerning the companyâ€™s ability
Portions of the wages expense account of a business are shown at the top of the following page.a. Indicate the nature of the entry (payment, adjusting, closing, reversing) from which each numbered posting was made.b. Journalize the complete entry from which each numbered posting wasmade.
During the current year, merchandise is sold for $250,000 cash and for $975,000 on account. The cost of the merchandise sold is $735,000.a. What is the amount of the gross profit?b. Compute the gross profit percentage (gross profit divided by sales).c. Will the income statement necessarily report a
In 2003, Best Buy Co. reported net sales of $20,946 million. Its gross profit was $5,236 million. What was the amount of Best Buy’s cost of merchandise sold?
Identify the errors in the following incomestatement:
Two items are omitted in each of the following four lists of income statement data. Determine the amounts of the missing items, identifying them byletter.
On January 31, 2006, the balances of the accounts appearing in the ledger of Calloway Company, a furniture wholesaler, are as follows:a. Prepare a multiple-step income statement for the year ended January 31, 2006.b. Compare the major advantages and disadvantages of the multiple-step and
Journalize the entries for the following transactions:a. Sold merchandise for cash, $6,900. The cost of the merchandise sold was $4,830.b. Sold merchandise on account, $7,500. The cost of the merchandise sold was $5,625.c. Sold merchandise to customers who used MasterCard and VISA, $10,200. The
The debits and credits for three related transactions are presented in the following T accounts. Describe eachtransaction.
A retailer is considering the purchase of one hundred units of a specific item from either of two suppliers. Their offers are as follows:A: $400 a unit, total of $40,000, 2/10, n/30, plus transportation costs of $625.B: $403 a unit, total of $40,300, 1/10, n/30, no charge for transportation.Which
Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discountperiod.
Pulmonary Inc.’s perpetual inventory records indicate that $382,800 of merchandise should be on hand on March 31, 2006. The physical inventory indicates that $371,250 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Pulmonary Inc. for the year
The financial statements for Home Depot are presented in Appendix E at the end of the text.a. Determine the ratio of net sales to average total assets for Home Depot for the years ended February 2, 2003, and February 3, 2002.b. What conclusions can be drawn from these ratios concerning the trend
Winn-Dixie Stores reported the following data in its financial statements for 2002:Net sales and revenues ......... $12,334,353,000Total assets at end of 2002 ...... 2,937,578,000Total assets at end of 2001 ...... 3,041,670,000a. Compute the ratio of net sales to assets for 2002. Round to
Myrina Rug Company had the following credit sales transactions during August 2006:The August 1 inventory was $19,000, consisting of:During August, Myrina Rug Company purchased the following rugs from Draco RugImporters:The general ledger includes the following accounts:AccountNumber Account11
Why is cash the asset that often warrants the most attention in the design of an effective internal control structure?
The combined cash count of all cash registers at the close of business is $110 less than the cash sales indicated by the cash register records. (a) In what account is the cash shortage recorded? (b) Are cash shortages debited or credited to this account?
In which section of the income statement would a credit balance in Cash Short and Over be reported?
In what order are vouchers ordinarily filed (a) In the unpaid voucher file and(b) In the paid voucher file? Give reasons for the answers.
Explain why some cash payments are made in coins and currency from a petty cash fund.
What account or accounts are debited when? (a) Establishing a petty cash fund and (b) Replenishing a petty cash fund?
The petty cash account has a debit balance of $800. At the end of the accounting period, there is $110 in the petty cash fund, along with petty cash receipts totaling $690. Should the fund be replenished as of the last day of the period? Discuss.
Identify each of the following reconciling items as: (a) An addition to the cash balance according to the bank statement, (b) A deduction from the cash balance according to the bank statement, (c) An addition to the cash balance according to the depositor's records, (d) A deduction from the cash
Which of the reconciling items listed in Exercise 7-8 require an entry in the depositor's accounts?
Identify the errors in the following bankreconciliation:
Prometheus Co. records all cash receipts on the basis of its cash register tapes. Prometheus Co. discovered during April 2006 that one of its sales clerks had stolen an undetermined amount of cash receipts when she took the daily deposits to the bank. The following data have been gathered for
For a recent fiscal year, Circuit City’s quarterly balances of cash and cash equivalents were as follows:End of February ........ $885 millionEnd of May ......... $1,176 millionEnd of August ........ $847 millionEnd of November ......... $438 millionWhat would you expect would be the
The financial statements for Home Depot are presented in Appendix E at the end of the text.a. Compute the doomsday ratio for Home Depot for 2003 and 2002.b. What conclusions can be drawn from comparing the ratios for 2003 and 2002?
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $883,150 and Allowance for Doubtful Accounts has a balance of $123,250. Describe how the accounts receivable and the allowance for doubtful accounts are reported on the balance sheet.
The note receivable dishonored in Question 14 is paid on August 29 by the maker, plus interest for 30 days, 12%. What entry should be made to record the receipt of the payment?
At the end of the current year, the accounts receivable account has a debit balance of $840,000, and net sales for the year total $7,150,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions:a. The allowance account before
Mobley Company issued a promissory note to Ellsworth Company. (a) Who is the payee? (b) What is the title of the account used by Ellsworth Company in recording the note?
During its first year of operations, O'Hara Automotive Supply Co. had net sales of $4,050,000, wrote off $112,350 of accounts as uncollectible using the direct write-off method, and reported net income of $212,800. If the allowance method of accounting for uncollectibles had been used, 21/2% of net
The maker of a $20,000, 9%, 120-day note receivable failed to pay the note on the due date of July 30. What accounts should be debited and credited by the payee to record the dishonored note receivable?
Earthlink, Inc., is a nationwide Internet Service Provider (ISP). Earthlink provides a variety of services to its customers, including narrowband access, broadband or high-speed access, and Web hosting services. For the years ending December 31, 2002 and 2001, Earthlink reported the following (in
Fridley Company sells carpeting. Over 50% of all carpet sales are on credit. The following procedures are used by Fridley to process this large number of credit sales and the subsequent collections.a. A formal ledger is not maintained for customers who sign promissory notes. Fridley simply keeps a
Hilton Hotels Corporation owns and operates casinos at several of its hotels, located primarily in Nevada. At the end of a fiscal year, the following accounts and notes receivable were reported (in thousands):a. Compute the percentage of allowance for doubtful accounts to the gross hotel accounts
Herman€™s Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Herman€™s credit terms are n/30. As of the end of business on July 31, the following accounts receivable were past due.Determine the number of days each account is pastdue.
The accounts receivable clerk for Intimacy Mattress Company prepared the following partially completed aging-of-receivables schedule as of the end of business on November 30.The following accounts were unintentionally omitted from the aging schedule.a. Determine the number of days past due for
Intimacy Mattress Company has a past history of uncollectible accounts, as shown below. Estimate the allowance for doubtful accounts, based on the aging-of-receivables schedule you completed in Exercise 8-4.PercentageAge Class UncollectibleNot past due ................. 1%1–30 days past due
Using the data in Exercise 8-5, assume that the allowance for doubtful accounts for Intimacy Mattress Company has a credit balance of $7,180 before adjustment on November 30. Journalize the adjusting entry for uncollectible accounts as of November 30.
Using the data in Exercise 8-7, assume that the allowance for doubtful accounts for Kubota Co. had a debit balance of $1,575 as of December 31, 2006.Journalize the adjusting entry for uncollectible accounts as of December 31, 2006.
Anchor.com, a computer consulting firm, has decided to write off the $7,130 balance of an account owed by a customer. Journalize the entry to record the write-off,(a) Assuming that the allowance method is used(b) Assuming that the direct write-off method is used.
Journalize the following transactions in the accounts of Linden Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:Feb. 20. Sold merchandise on account to Darlene Brogan, $12,100. The cost of the merchandise sold was $7,260.May 30.
Journalize the following transactions in the accounts of Graybeal Co., a hospital supply company that uses the direct write-off method of accounting for uncollectible receivables:July 6. Sold merchandise on account to Dr. Jerry Jagers, $18,500. The cost of the merchandise sold was $11,100.Sept. 12.
Using the data in Exercise 8-13, assume that during the second year of operations O'Hara Automotive Supply Co. had net sales of $4,800,000, wrote off $114,800 of accounts as uncollectible using the direct write-off method, and reported net income of $262,300.a. Determine what net income would have
Determine the due date and the amount of interest due at maturity on the followingnotes:
Magpie Interior Decorators issued a 120-day, 6% note for $24,000, dated April 10, to Peel's Furniture Company on account.a. Determine the due date of the note.b. Determine the maturity value of the note.c. Journalize the entries to record the following:(1) Receipt of the note by the payee(2)
The series of seven transactions recorded in the following T accounts were related to a sale to a customer on account and the receipt of the amount owed. Briefly describe eachtransaction.
The following selected transactions were completed by Cassidy Co., a supplier of elastic bands for clothing:2005Dec. 13. Received from Visage Co., on account, a $25,000, 120-day, 6% note dated December 13.Dec. 31. Recorded an adjusting entry for accrued interest on the note of December 13.31.
Journalize the following transactions of Prairie Theater Productions:July 8. Received a $30,000, 90-day, 8% note dated July 8 from Pennington Company on account.Oct. 6. The note is dishonored by Pennington Company.Nov. 5. Received the amount due on the dishonored note plus interest for 30 days at
Journalize the following transactions in the accounts of Blue Sky Co., which operates a riverboat casino:Mar. 1. Received a $15,000, 60-day, 5% note dated March 1 from Absaroka Co. on account.18. Received a $12,000, 90-day, 9% note dated March 18 from Sturgis Co. on account.Apr. 30. The note dated
List any errors you can find in the following partial balancesheet.
Circuit City Stores, Inc. is a national retailer of brand-name consumer electronics including televisions, DVD players, compact disc players, personal computers, printers, video games, DVD movies, and music. For the fiscal years 2003 and 2002, Circuit City reported the following (in
Use the Circuit City data in Exercise 8-22 to analyze days' sales in receivables.a. Compute the days' sales in receivables at the end of 2003 and 2002. Round to one decimal place.b. What conclusions can be drawn from these analyses regarding Circuit City's efficiency in collecting receivables?
The Limited Inc. sells women's and men's clothing through specialty retail stores, including Structure, Limited, Express, Lane Bryant, and Lerner New York. The Limited sells women's intimate apparel and personal care products through Victoria Secret and Bath & Body Works stores. For the fiscal
Theisen Co., a building construction company, holds a 90-day, 6% note for $20,000, dated March 15, which was received from a customer on account. On April 14, the note is discounted at the bank at the rate of 8%.a. Determine the maturity value of the note.b. Determine the number of days in the
Journalize the following transactions in the accounts of Allied Theater Productions:June 1. Received a $60,000, 60-day, 8% note dated June 1 from Rhodes Company on account.July 1. Discounted the note at City Bank at 9%.31. The note is dishonored by Rhodes Company; paid the bank the amount due on
The following transactions, adjusting entries, and closing entries were completed by Elko Contractors Co. during the year ended December 31, 2006:Mar. 15. Received 60% of the $18,500 balance owed by Bimba Co., a bankrupt business, and wrote off the remainder as uncollectible.Apr. 16. Reinstated the

Showing 28400 - 28500 of 107766

First
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved