Questions and Answers of Essentials Of Accounting For Governmental

Ergonomic Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 80,000 shares of preferred 2% stock, $70 par, and 900,000 shares of $11
On January 31, Outback Coast Resorts Inc. reacquired 18,700 shares of its common stock at $45 per share. On April 20, Wilderness Resorts sold 10,600 of the reacquired shares at $52 per share. On
On May 27, Idress Clothing Inc. reacquired 18,700 shares of its common stock at $45 per share. On August 3, Idress Clothing sold 41,000 of the reacquired shares at $17 per share. On November 14,
Advance Life Co. is an HMO for businesses in the Albuquerque area. The following account balances appear on the balance sheet of Advance Life Co.: Common stock (600,000 shares authorized; 400,000
Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 8. One hundred thousand shares of common stock are authorized, and
Yeomen Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Yeomen Grill Restaurant Corporation, which had 35,000 shares of common stock outstanding,
Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 8. Five hundred thousand shares of common stock are authorized,
Sesimic Inc. reported the following results for the year ended June 30, 20Y5:Retained earnings, July 1, 20Y4 .... $1,700,000Net income .......................................... 311,000Cash dividends
Haggen Cruises Inc. reported the following results for the year ended October 31, 20Y9:Retained earnings, November 1, 20Y8 ..... $11,775,000Net income
Financial statement data for the years ended December 31 for Cottontop Corporation follow:a. Determine the earnings per share for 20Y3 and 20Y2.b. Does the change in the earnings per share from 20Y2
Yard Spray Inc. develops and produces spraying equipment for Yard maintenance and industrial uses. On January 31 of the current year, Yard Spray Inc. reacquired 50,000 shares of its common stock at
Financial statement data for the years ended December 31 for Brown Cow Inc. follow:a. Determine the earnings per share for 20Y6 and 20Y5.b. Does the change in the earnings per share from 20Y5 to 20Y6
The following accounts and their balances were selected from the unadjusted trial balance of Block Ayala Group Inc., a freight forwarder, at October 31, the end of the current fiscal year:Common
Pressure Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended January 31, 20Y2:Retained earnings, February 1, 20Y1. . . . . . . . . . . . . . . . .
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year:Common Stock, $45 par . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PicsApart Arts, Inc., had earnings of $565,000 for the year. The company had 55,000 shares of common stock outstanding during the year and issued 23,000 shares of $50 par value preferred stock. The
List the errors in the following Stockholders’ Equity section of the balance sheet prepared as of the end of the current year:List of errors in the preceding statement of stockholders'
The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are as follows. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y9.
Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as
Caterpillar Inc. and Deere & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported
Tri-City Ironworks Co. reported $44,500,000 for equipment and $29,800,000 for accumulated depreciation—equipment on its balance sheet. Does this mean (a) That the replacement cost of the
New lithographic equipment, acquired at a cost of $800,000 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $90,000.
A building acquired at the beginning of the year at a cost of $1,1933,000 has an estimated residual value of $220,000 and an estimated useful life of 40 years. Determine (a) The
Godwin Co. owns three delivery trucks. Details for each truck at the end of the most recent year follow:• At the beginning of the year, a hydraulic lift is added to Truck 1 at a cost of $4,500. The
A refrigerator used by a wholesale warehouse has a cost of $64,000, an estimated residual value of $5,100, and an estimated useful life of 12 years. What is the amount of the annual depreciation
Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows:a. Timber rights on a tract of land were purchased for $1,600,000 on
Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows:a. On December 31, the company determined that $3,400,000 of goodwill
Equipment with a cost of $304,000 has an estimated residual value of $41,600, has an estimated useful life of 16 years, and is depreciated by the straight-line method. (a) Determine the amount
A diesel-powered tractor with a cost of $136,700 and estimated residual value of $14,500 is expected to have a useful operating life of 18,800 hours. During April, the tractor was operated 160 hours.
A truck with a cost of $123,000 has an estimated residual value of $24,000, has an estimated useful life of 12 years, and is depreciated by the straight-line method. (a) Determine the amount of
On February 14, Foster Associates Co. paid $4,700 to repair the transmission on one of its delivery vans. In addition, Foster paid $920 to install a GPS system in its van. Journalize the entries for
A Computer System acquired on January 1 at a cost of $35,000 has an estimated useful life of 10 years. Assuming that it will have no residual value, determine the depreciation for each of the first
On August 7, Blue Ocean Inflatables Co. paid $2,800 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter
A storage tank acquired at the beginning of the fiscal year at a cost of $61,000 has an estimated residual value of $9,000 and an estimated useful life of 20 years. Determine the following: (a)
Equipment was acquired at the beginning of the year at a cost of $280,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an
Equipment was acquired at the beginning of the year at a cost of $287,100. The equipment was depreciated using the straight-line method based on an estimated useful life of 15 years and an estimated
Snow Mining Co. acquired mineral rights for $342,000,000. The mineral deposit is estimated at 306,000,000 tons. During the current year, 55,600,000 tons were mined and sold.a. Determine the depletion
Poff Mining Co. acquired mineral rights for $165,650,000. The mineral deposit is estimated at 559,000,000 tons. During the current year, 22,900,000 tons were mined and sold.a. Determine the depletion
On December 31, it was estimated that goodwill of $4,700,000 was impaired. In addition, a patent with an estimated useful economic life of 12 years was acquired for $1,260,000 on April 1.a.
On December 31, it was estimated that goodwill of $1,600,000 was impaired. In addition, a patent with an estimated useful economic life of 15 years was acquired for $594,000 on August 1.a. Journalize
Financial statement data for years ending December 31 for Dennis Company follow:a. Determine the fixed asset turnover ratio for Year 1 and Year 2.b. Does the change in the fixed asset turnover ratio
A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual value of $340,000 and an estimated useful life of 10 years. Determine (a) The depreciable
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk.a. Fee paid to
Equipment acquired at the beginning of the year at a cost of $470,000 has an estimated residual value of $62,000 and an estimated useful life of 10 years. Determine (a) The depreciable
A truck acquired at a cost of $202,800 has an estimated residual value of $18,000, has an estimated useful life of 440,000 miles, and was driven 113,000 miles during the year. Determine (a) The
McMullen Company purchased tool sharpening equipment on May 1 for $162,000. The equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $3,600.
A tractor acquired at a cost of $678,000 has an estimated residual value of $48,000, has an estimated useful life of 45,000 hours, and was operated 3,330 hours during the year. Determine (a) The
Equipment acquired at the beginning of the year at a cost of $540,000 has an estimated residual value of $40,000 and an estimated useful life of 10 years. Determine (a) The
Equipment acquired on January 6 at a cost of $401,000 has an estimated useful life of 18 years and an estimated residual value of $25,100. a. What was the annual amount of depreciation for the
Financial statement data for years ending December 31 for Xiong Company follow:a. Determine the fixed asset turnover ratio for Year 1 and Year 2.b. Does the change in the fixed asset turnover ratio
Backwood Mining Co. acquired mineral rights for $53,200,000. The mineral deposit is estimated at 19,000,000 tons. During the current year, 2,500,000 tons were mined and sold.a. Determine the amount
Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone) along with related
Amazon.com, Inc. is the world’s leading Internet retailer of merchandise and media. Amazon also designs and sells electronic products, such as e-readers. Netflix, Inc. is the world’s leading
Verizon Communications Inc. is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following information regarding fixed assets:Verizon’s
FedEx Corporation and United Parcel Service, Inc. compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery
The following table shows the sales and average book value of fixed assets for three different companies from three different industries for a recent year:a. For each company, determine the fixed
Assume the same facts as in Exercise 9-27, except that the book value of the press traded in is $108,500. (a) What is the amount of cash given? (b) What is the gain or loss on the
On May 15, Franklin Co. borrowed cash from Dakota Bank by issuing a 60-day note with a face amount of $180,000.a. Determine the proceeds of the note, assuming that the note carries an interest rate
The following items were selected from among the transactions completed by Shin Co. during the current year:Jan. 10. Purchased merchandise on account from Beckham Co., $420,000, terms n/30.Feb. 9.
On January 26, McMaster Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $324,000.a. Determine the proceeds of the note, assuming that the note carries an interest
Lowe’s Companies Inc., a major competitor of The Home Depot in the home improvement business, operates over 1,800 stores. Lowe’s recently reported the following balance sheet data (in
On June 1, 20Y6, Hannah Ellis established an interior decorating business, Whitworth Designs. During the month, Hannah completed the following transactions related to the business:June 1. Hannah
List the errors you find in the following balance sheet. Prepare a corrected balance sheet. Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 20Y3 Assets Current assets: Cash.... $
The transactions completed by Fleetfoot Courier Company during December, the first month of the fiscal year, were as follows:Dec. 1. Issued Check No. 610 for December rent, $5,260.2. Issued Invoice
Schofield Co. Sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording
Simons Company has sales of $24,000,000 and related cost of goods sold of $13,300,000for its first year of operating ending December 31, 20Y6. Simons Company provides customers a refund for any
Swartz Company had sales of $7,800,000 and related cost of goods sold of $4,500,000 for its first year of operations ending December 31, 20Y3. Swartz company provides customers a refund for any
The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:Instructions1. Record the inventory, purchases, and cost of
The following three identical units of Item A are purchased during April:Assume that one unit is sold on April 30 for $132. Determine the gross profit for April and ending inventory on April 30 using
The following three identical units of Item Beta are purchased during June:Assume that one unit is sold on June 27 for $270. Determine the gross profit for June and ending inventory on June 30 using
Beginning inventory, purchases, and sales data for portable game players are as follows:The business maintains a perpetual inventory system, costing by the first-in, first-out method.a. Determine the
Beginning inventory, purchases, and sales for Item Delta are as follows:Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) The cost of
Beginning inventory, purchases, and sales for Item FK7 are as follows:Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) The cost of merchandise
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost
Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon .com uses its e-commerce services, features, and technologies to sell its products through the Internet.
Beginning inventory, purchases, and sales for Item GY9 are as follows:Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) The cost of merchandise
The general merchandise retail industry has a number of segments represented by the following companies:For a recent year, the following cost of merchandise sold and beginning and ending inventories
Beginning inventory, purchases, and sales for H76 are as follows:Assuming a perpetual inventory system and using the weighted average method, determine (a) The weighted average unit cost after
Beginning inventory, purchases, and sales for J101 are as follows:Assuming a perpetual inventory system and using the weighted average method, determine (a) The weighted average unit cost after
The following units of a particular item were available for sale during the calendar year:The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of
The units of an item available for sale during the year were as follows:There are 17 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the
The following units of a particular item were available for sale during the calendar year:The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of
The units of an item available for sale during the year were as follows:There are 73 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the
The units of an item available for sale during the year were as follows:There are 1,000 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine
The units of an item available for sale during the year were as follows:There are 1,200 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in Exhibit 9. Inventory
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in Exhibit 9. Inventory
During the taking of its physical inventory on August 31, 20Y7, Robin Interiors Company incorrectly counted its inventory as $543,500 instead of the correct amount of $560,700. Indicate the effect of
During the taking of its physical inventory on December 31, 20Y7, Combine Engine Company incorrectly counted its inventory as $274,100 instead of the correct amount of $270,700. Indicate the effect
Financial statement data for years ending December 31 for Amsterdam Company follow:a. Determine the inventory turnover for 20Y4 and 20Y3.b. Determine the days’ sales in inventory for 20Y4 and 20Y3.
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. Inventory Item Cost per Unit Market
Financial statement data for years ending December 31 for Salsa Company follow:a. Determine the inventory turnover for 20Y7 and 20Y6. Round to decimal place.b. Determine the days’ sales in
The following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and Mattel Inc., a manufacturer of toys, including
Kroger, Sprouts Farmers Market, Inc., and Whole Foods Markets, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent
A business using the retail method of inventory costing determines that merchandise inventory at retail is $1,235,000. If the ratio of cost to retail price is 54%, what is the amount of inventory to
A business using the retail method of inventory costing determines that merchandise inventory at retail is $396,400. If the ratio of cost to retail price is 61%, what is the amount of inventory to be
A business using the retail method of inventory costing determines that merchandise inventory at retail is $775,000. If the ratio of cost to retail price is 66%, what is the amount of inventory to be
The cash account for Norwegian Medical Co. at April 30 indicated a balance of $403,784. The bank statement indicated a balance of $468,460 on April 30. Comparing the bank statement and the
The following items may appear on a bank statement:1. Bank correction of an error from recording a $7,400 deposit as $4,7002. EFT payment3. Note collected for company4. Service chargeUsing the
The following data were gathered to use in reconciling the bank account of Torres Company:Balance per bank ................................... $14,385Balance per company records ................

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