Questions and Answers of Essentials Of Accounting For Governmental

PepsiCo, Inc., the parent company of Frito-Lay snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years:a. Determine the (1)
A company reports the following:Sales ............................................................ $6,862,000Average accounts receivable (net) ................ 365,000Determine(a) The accounts
The bond indenture for the 10-year, 9% debenture bonds issued January 2, 20Y5, required working capital of $100,000, a current ratio of 1.5, and a quick ratio of 1.0 at the end of each calendar year
A company reports the following:Cost of goods sold ............ $558,000Average inventory ................. 45,000Determine (a) The inventory turnover and (b) The number of days’ sales in
The following data are taken from the financial statements of Basinger Inc. Terms of all sales are 2/10, n/45.a. For 20Y2 and 20Y3, determine (1) The accounts receivable turnover and (2)
A company reports the following:Cost of goods sold ............. $680,000Average inventory ................. 94,500Determine (a) The inventory turnover and (b) The number of days’ sales
The following information was taken from Tyson Company’s balance sheet:Fixed assets (net) .............. $1,050,000Long-term liabilities ............... 750,000Total liabilities
The following data were extracted from the income statement of Shriver Inc.:a. Determine for each year (1) The inventory turnover and (2) The number of days’ sales in inventory. Round to
The following information was taken from Jacobus Company’s balance sheet:Fixed assets (net) ................... $630,000Long-term liabilities ................. 140,000Total liabilities
A company reports the following:Income before income tax ....... $6,000,000Interest expense ............................. 300,000Determine the times interest earned ratio. Round to one decimal place.
A company reports the following:Income before income tax ........... $6,480,000Interest expense ................................. 600,000Determine the times interest earned ratio. Round to one
Hasbro, Inc. and Mattel, Inc. are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each company as follows
A company reports the following:Sales ....................................... $6,480,000Average total assets ............... 2,400,000Determine the asset turnover ratio. Round to one decimal place.
Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. and The Hershey Company, is as follows (in thousands):a. Determine the ratio of liabilities to
A company reports the following:Sales ..................................... $5,580,000Average total assets ............. 3,100,000Determine the asset turnover ratio. Round to one decimal place.
Three major segments of the transportation industry are motor carriers such as YRC Worldwide, railroads such as Union Pacific, and transportation logistics services such as C.H. Robinson Worldwide,
A company reports the following income statement and balance sheet information for the current year:Net income .................................. $ 110,000Interest expense
A company reports the following income statement and balance sheet information for the current year:Net income ......................... $ 502,000Interest expense ..................... 113,000Average
Ralph Lauren Corporation sells apparel through company-owned retail stores. Recent financial information for Ralph Lauren follows (in thousands):Assume that the apparel industry average return on
A company reports the following:Net income ................................................... $ 750,000Preferred dividends ........................................ 150,000Average stockholders’
The following data were taken from the financial statements of Gates Inc. for the current fiscal year.Assuming that total assets were $6,000,000 at the beginning of the current fiscal year, determine
A company reports the following:Net income .................................................... $500,000Preferred dividends .......................................... 25,000Average stockholders’
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:Bonds payable, 8% ........................ $7,500,000Preferred $4 stock, $50 par ............
A company reports the following:Net income .................................................... $660,000Preferred dividends ........................................ $40,000Shares of common stock
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:Common stock, $20 par (no change during the year) ........................
A company reports the following:Net income .................................................... $640,000Preferred dividends ........................................ $82,000Shares of common stock
The income statement for Stallion Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows:Prepare the Cash flows from
The cost of merchandise sold for Kohl’s Corporation for a recent year was $12,199 million. The balance sheet showed the following current account balances (in millions):Determine the amount of cash
The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:The following additional information is taken from the records:1. Land was sold for $153.2.
Garfunkel Inc. reported the following on the company’s statement of cash flows in Year 2 and Year 1:Eighty percent of the net cash flow used for investing activities was used to replace existing
Burkhalter Inc. reported the following on the company’s statement of cash flows in Year 2 and Year 1:Seventy percent of the net cash flow used for investing activities was used to replace existing
PQR Corporation purchased land for $295,000. Later in the year, the company sold a different piece of land with a book value of $148,000 for $177,000. How are the effects of these transactions
Lagman Corporation purchased land for $310,000. Later in the year, the company sold a different piece of land with a book value of $114,000 for $81,000. How are the effects of these transactions
Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows:a. Prepare the Cash flows from operating activities section of the
Yeoman Inc. reported the following data:Net income .......................................... $170,000Depreciation expense ............................ 29,000Loss on disposal of equipment
The income statement disclosed the following items for the year:The changes in the current asset and liability accounts for the year are as follows:a. Prepare the Cash flows from operating activities
Featherstone Inc. reported the following data:Net income ................................... $296,000Depreciation expense ................... 113,100Gain on disposal of equipment ......
The net income reported on the income statement for the current year was $290,000. Depreciation recorded on equipment and a building amounted to $150,000 for the year. Balances of the current asset
Panenous Corporation’s comparative balance sheet for current assets and liabilities was as follows:Adjust net income of $351,000 for changes in operating assets and liabilities to arrive at net
Jasneet Corporation’s comparative balance sheet for current assets and liabilities was as follows:Adjust net income of $185,000 for changes in operating assets and liabilities to arrive at net cash
The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is as follows:Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:a. The
Nadal Corporation’s accumulated depreciation—equipment account increased by $17,720, while $3,800 of patent amortization was recognized between balance sheet dates. There were no purchases or
The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:The income statement for the year ended December 31, 20Y6, is as follows:Additional data obtained
The comparative balance sheet of Suffridge Inc. for December 31, 20Y4 and 20Y3, is as follows:Additional data obtained from an examination of the accounts in the ledger for 20Y4 are as follows:a.
Nadal Corporation’s accumulated depreciation—furniture account increased by $17,720, while $3,800 of patent amortization was recognized between balance sheet dates. There were no purchases or
Tidewater Inc., a retailer, provided the following financial information for its most recent fiscal year:Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:a. Retired $300,000 of bonds, on which there was $4,000 of
Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Payments of dividends to common stockholdersb.
The comparative balance sheet of Orange angle Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:Additional data obtained from the income statement and from an examination of the accounts
On its income statement for a recent year, Tesla, Inc., reported a net loss of $1,063 million from operations. On its statement of cash flows, it reported $2,098 million of cash flows from operating
Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows:a. Retirement of bonds payableb. Purchase of inventory for
The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is shown as follows:Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as
The market price for Microsoft Corporation closed at $101.57 and $85.95 on December 31, current year, and previous year, respectively. The dividends per share were $1.68 for current year and $1.56
On December 31, 20Y7, Valur Co. had the following available-for-sale investment disclosure within the Current Assets section of the balance sheet:Available-for-sale investments (at cost)
At the market close of a recent year, McDonald’s Corporation had a closing stock price of $198.01. In addition, McDonald’s Corporation had a dividend per share of $4.19 during the previous year.
M. Jones Inc. purchased the following available for sale securities during 20Y5, its first year of operations:The fair value of the various available-for-sale securities on December 31, 20Y5, was as
Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value of this portfolio on December 31, Year 1, was as follows:On May 10, 20Y4, Gruden Bancorp Inc.
The investments of Charger Inc. include an investment of trading securities of Raiders Inc. The purchased on February 24, 20Y7, for $551,000. These shares were classified as trading securities. As of
JED Capital Inc. makes investments in trading securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are
On October 23, Brynner Company had a market price of $60 per share of common stock. For the previous year, Brynner paid an annual dividend of $0.90 per share. Compute the dividend yield for Brynner
Demopoulos Company acquired $150,000 of Marimar Co., 6% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Demopoulos Company sold $55,000 of
Gillooly Co. purchased $360,000 of 6%, 20-year Lumpkin County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April
On June 30, Rae Corporation had a market price of $100 per share of common stock. For the previous year, Rae paid an annual dividend of $8.00. Compute the dividend yield for Rae Corporation.
Bula Investments acquired $240,000 of Effenstien Corp., 8% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $60,000 of
On January 1, 20Y7, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 20Y7, the cost of the available-for-sale securities was $19,040, and the fair value was
On January 1, 20Y5, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 20Y5, the cost of the available-for-sale securities was $43,290, and the fair value was
Hawkeye Company’s balance sheet reported, under the equity method, its long-term investment in Raven Company for comparative years as follows:In addition, the Year 2 Hawkeye Company income
On January 1, 20Y9, Valuation Allowance for Trading Investments had a zero balance. On December 31, 20Y9, the cost of the trading securities portfolio was $72,600, and the fair value was $79,100.
On January 6, 20Y8, Bulldog Co. purchased 34% of the outstanding stock of Gator Co. for $212,000. Gator Co. paid total dividends of $24,000 to all shareholders on June 30, 20Y8. Gator had a net loss
On January 1, 20Y3, Valuation Allowance for Trading Investments had a zero balance. On December 31, 20Y3, the cost of the trading securities portfolio was $364,000, and the fair value was $309,000.
On January 4, 20Y4, Ferguson Company purchased 480,000 shares of Silva Company directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the
Journalize the entries to record the following selected bond investment transactions for Marr Trust:a. Purchased for cash $180,000 of Hotline Inc. 5% bonds at 100 plus accrued interest of $1,500.b.
International Financial Reporting Standard No. 16 provides companies the option of valuing property, plant, and equipment at either historical cost or fair value. If fair value is selected, then the
Journalize the entries to record the following selected bond investment transactions for Beacon Trust:a. Purchased for cash $420,000 of Vasquez City 6% bonds at 100 plus accrued interest of $6,300.b.
On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid
Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a recent year using the fair value
On January 2, 20Y7, Mikedes Company acquired 30% of the outstanding stock of Violet Company for $720,000. For the year ended December 31, 20Y7, Violet Company earned income of $190,000 and paid
The following equity investment transactions were completed by Vintage Company during a recent year:Apr. 10. Purchased 11,000 shares of Delew Company’s common stock for a price of $60 per share
Equity investments: Less than 20% ownership On September 12, 3,000 shares of Denver Company's common stock are acquired at a price of $40 per share plus a $300 brokerage commission. On October 15, an
On February 22, Triangle Corporation acquired 34,000 shares of the 500,000 outstanding common stock of Jupiter Co. at $25 plus commission charges of $680. On June 1, a cash dividend of $1.70 per
On January 23, 15,000 shares of Aurora Company's common stock are acquired at a price of $25 per share plus a $150 brokerage commission. On April 12, a $0.50-per-share dividend was received on the
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B.Data From Problem 7-1B.The beginning inventory of merchandise at Dunne Co. and
We-Sell Realty, organized August 1, 20Y9, is owned and operated by Omar Farah. How many errors can you find in the following statements for We-Sell Realty, prepared after its first month of
The beginning inventory for Rhodes Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B.Data From Problem 7-1B.The beginning inventory of merchandise at Dunne Co.
The beginning inventory for Rhodes Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B.Data From Problem 7-1B.The beginning inventory of merchandise at Dunne Co.
Beginning inventory, purchases, and sales for Item Widget are as follows:Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) The cost of
Red Market Corporation has 370,000 shares of $27 par common stock outstanding. On June 8, Red Market Corporation declared a 5% stock dividend to be issued August 12 to stockholders of record on July
The accounting firm of Deloitte & Touche is the largest international accounting firm in the world as ranked by total revenues. For two recent years, Deloitte & Touche reported the following
Venssa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $25,800; accounts
Floatin Away Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:For the current pay period, the
Fitzpatrick Co. sold $391,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 3% of the sales price. On August 15, a customer
Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $35,000,000 of five-year, 12% bonds at a market (effective) interest rate of 10%, with interest
On the first day of the fiscal year, a company issues an $5,300,000, 8%, five-year bond that pays semiannual interest of $212,000 ($5,300,000 × 8% × ½), receiving cash of $5,520,390. Journalize
Desmond Co. is considering the following alternative financing plans:Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond
Henriksen Co., which produces and sells biking equipment, is financed as follows:Bonds payable, 5% (issued at face amount) ........... $6,000,000Preferred $2.00 stock, $100 par
Vatican Co. is considering the following alternative financing plans:Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond
Based on the data in Exercise 14-1, what factors other than earnings per share should be considered in evaluating these alternative financing plans?Data from Exercise 14-1,Henriksen Co., which
On July 1, Year 1, Khatri Industries Inc. issued $18,000,000 of 10-year, 5% bonds at a market (effective) interest rate of 6%, receiving cash of $16,661,102. Interest on the bonds is payable
The first day of the fiscal year, a company issues a $3,500,000, 5%, 10-year bond that pays semiannual interest of $87,500 ($3,500,000 × 5% × ½ year), receiving cash of $3,500,000. Journalize the
O'Halloran Inc. produces and sells outdoor equipment. On July 1, Year 1, O'Halloran Inc. issued $32,000,000 of Six-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of

Showing 100 - 200 of 801