Questions and Answers of Essentials Of Accounting For Governmental

During the current year, merchandise is sold for $21,100 cash and $341,700 on account. The cost of the merchandise sold is $217,200. What is the amount of the gross profit?
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as
The following selected transactions were completed by Niles Co. during March of the current year:Mar. 1. Purchased merchandise from Haas Co., $43,250, terms FOB shipping point, 2/10, n/eom. Prepaid
During the current year, merchandise is sold for $45,870,000. The cost of the merchandise sold is $33,026,000.a. What is the amount of the gross profit?b. Compute the gross profit percentage (gross
During the current year, merchandise is sold for $366,100 cash and $1,420,000 on account. The cost of the merchandise sold is $1,014,300. What is the amount of the gross profit?
The comparative segment revenues for Yum! Brands, a global quick-serve restaurant company, are as follows:a. Provide a horizontal analysis of the segment revenues using the prior year as the base
Twenty-First Century Fox, Inc. is one of the world’s largest entertainment companies that includes Twentieth Century Fox films, Fox Broadcasting, Fox News, the FX, and various satellite properties.
The cash payments and purchases journals for Magnolia Landscaping follow. The accounts payable control account has a June 1, 20Y1, balance of $3,590, consisting of an amount owed to Augusta Sod
Fernandez Services Inc. had the following transactions during the month of April:Apr. 4. Purchased office supplies from Officemate Inc. on account, $825.9. Purchased office equipment on account from
The debits and credits from three related transactions are presented in the following creditor’s account taken from the accounts payable ledger:Describe each transaction and identify the source of
Using the following cash payments journal, identify each of the posting references, indicated by a letter, as representing (1) a posting to a general ledger account, (2) a posting to a subsidiary
Using the following purchases journal, identify each of the posting references, indicated by a letter, as representing (1) a posting to a general ledger account, (2) a posting to a subsidiary ledger
Lasting Summer Inc. has $2,510 in the October 1 balance of the accounts receivable account consisting of $1,060 from Champion Co. and $1,450 from Wayfarer Co. Transactions related to revenue and cash
Transactions related to revenue and cash receipts completed by Augusta Inc. during the month of March 20Y8 are as follows:Mar. 2. Issued Invoice No. 512 to Santorini Co., $2,235.4. Received cash from
Verity Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system’s invoice information:Prepare
The revenue and cash receipts journals for Polaris Productions Inc. follow. The accounts receivable control account has a January 1, 20Y4, balance of $4,720 consisting of an amount due from Clear
The debits and credits from two transactions are presented in the following creditor’s (supplier’s) account:Describe each transaction and the source of each posting. NAME ADDRESS Quinlan Inc.
The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account has a July 1, 20Y2, balance of $625 consisting of an amount due from Aladdin Co. There were no
The debits and credits from two transactions are presented in the following creditor’s (supplier’s) account:Describe each transaction and the source of each posting. NAME ADDRESS Sunstar
Shannon Consulting Company had the following transactions during the month of October: Oct. 2. Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $1,625.3. Issued Invoice No. 322
The debits and credits from two transactions are presented in the following customer account:Describe each transaction and the source of each posting. NAME ADDRESS Eclypse Products Inc. 46 W. Main
The following purchase transactions occurred during October for Non-Stop Inc.: Oct. 6. Purchased office supplies for $1310, on account from U-Save Supply Inc.14. Purchased office equipment for
The debits and credits from three related transactions are presented in the following customer’s account taken from the accounts receivable subsidiary ledger:Describe each transaction and identify
The following purchase transactions occurred during March for Celebration Catering Service:Mar. 11. Purchased party supplies for $820, on account from Party Hearty Supplies Inc.14. Purchased party
The debits and credits from two transactions are presented in the following customer account: NAME ADDRESS Central Entertainment 125 Wycoff Ave. Post. Ref. Date Feb. 1 Item Balance Debit Credit
Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Jordan Inc., which had a $1,080 beginning balance. In addition, there
Transactions related to revenue and cash receipts completed by Sterling Engineering Services during the period June 2–30 are as follows:June 2. Issued Invoice No. 717 to Yee Co., $2,210.3. Received
The following revenue transactions occurred during April:Apr. 6. Issued Invoice No. 78 to Lemon Co. for services provided on account, $1,710.11. Issued Invoice No. 79 to Hitchcock Inc. for services
Using the following revenue journal for Westside Cleaners Inc., identify each of the posting references, indicated by a letter, as representing (1) posting to general ledger accounts or (2) posting
The following revenue transactions occurred during August: Aug. 4. Issued Invoice No. 162 to Carson Enterprises Co. for services provided on account, $255.15. Issued Invoice No. 163 to City Electric
Based on the data in Exercise 4-25, prepare the two closing entries for Alert Security Services Co.Data from Exercise 4-25,Alert Security Services Co. offers security services to business clients.
Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the following end-of-period spreadsheet for the year
Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co.: Alert Security Services Co. End-of-Period
Based on the data in Exercise 4-25, prepare an income statement, statement of owner’s equity, and balance sheet for Alert Security Services Co. Data from Exercise 4-25,Alert Security Services
Based on the data in Exercise 4-24, prepare the adjusting entries for Alert Security Services Co.Data from Exercise 4-24Alert Security Services Co. offers security services to business clients. The
Prior to closing, total revenues were $8,315,000 and total expenses were $6,460,000. During the year, the owner made no additional investments and withdrew $408,000. After the closing entries, how
The following data (in thousands) were taken from recent financial statements of Star-bucks Corporation:a. Compute the working capital and the current ratio for Year 2 and Year 1. Round to two
The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.:a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Round to
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 are correct.
Creative images Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances
MaxFit Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 20Y4, the end of the fiscal year, the balances of
Current assets and current liabilities for Sandstone Properties Company follow:a. Determine the working capital and current ratio for 20Y9 and 20Y8.b. Is the change in the current ratio from 20Y8 to
Current assets and current liabilities for Konex Properties Company follow:a. Determine the working capital and current ratio for 20Y9 and 20Y8.b. Is the change in the current ratio from 20Y8 to 20Y9
Identify each of the following as (a) a current asset or (b) property, plant, and equipment:1. Accounts Receivable2. Building3. Cash4. Land5. Prepaid Insurance6. Supplies
Selected accounts from the ledger of Masterpiece Arts for the fiscal year ended April 30, 20Y2, are as follows:Prepare a statement of owner’s equity for the year. Angelo Phelps, Drawing 2,300 Apr.
Assume that you recently accepted a position with Five Star National Bank & Trust as an assistant loan officer. As one of your first duties, you have been assigned the responsibility of
Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended June 30, 20Y6:Based on the preceding
Ava Marie Rowland owns and operates Road Runner Delivery Services. On January 1, 20Y3, Ava Marie Rowland, Capital had a balance of $781,000. During the year, Ava Marie made no additional investments
Identify the errors in the following trial balance. All accounts have normal balances. Mascot Co. Unadjusted Trial Balance For the Month Ending July 31, 20Y3 Account Debit Balances 36,000 Credit
Prepare a journal entry on June 30 for the withdrawal of $9,500 by Glaire Hope for personal use.
The unadjusted trial balance of Lakota Freight Co. at March 31, 20Y7, the end of the year, follows:The data needed to determine year-end adjustments are as follows:a. Supplies on hand at March 31 are
The unadjusted trial balance of Recessive Interiors at January 31, 20Y7, the end of the year, follows:The data needed to determine year-end adjustments are as follows:a. Supplies on hand at January
The following accounts appear in an adjusted trial balance of Carbinaro Consulting. Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c)
The following account balances were taken from the adjusted trial balance for Capstone Messenger Service, a delivery service firm, for the fiscal year ended April 30, 20Y7:Depreciation Expense
For the past several years, Samantha Hiogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business,
The following accounts appear in an adjusted trial balance of Kangaroo Consulting. Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c)
For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 20Y9, Jeff decided to move to rented quarters and to operate the business, which was
The following revenue and expense account balances were taken from the ledger of Guardian Health Services Co. after the accounts had been adjusted on February 28, 20Y0, the end of the fiscal
After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances were taken from the ledger of Magenta Delivery Services Co.:Ellie Liu, Capital
FedEx Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31:Depreciation Expense ................................ $3,095Purchased
Are closing entries recorded before or after preparing the (a) Adjusted trial balance, (b) Financial statements, (c) Post-closing trial balance?
After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co.:Oscar Killingworth, Capital
Serenity Systems Co. offers its services to residents in the Seattle area. Selected accounts from the ledger of Serenity Systems Co. for the fiscal year ended December 31, 20Y1, are as
For the year ending April 30, Safeguard Medical Services Co. mistakenly omitted adjusting entries for (1) $1,700 of supplies that were used, (2) unearned revenue of $8,000 that was earned, and (3)
For the year ending August 31, Solstice Medical Co. mistakenly omitted adjusting entries for (1) depreciation of $8,400, (2) fees earned that were not billed of $64,400, and (3) accrued wages of
The Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 20Y5, the accountant for The Signage Company prepared the trial balances shown at the top of
Emerson Company is a small editorial services company owned and operated by Suzanne Emerson. On October 31, 20Y6, Emerson Company's accounting clerk prepared the Unadjusted Trial balance shown on the
Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services’ accounting clerk prepared the following unadjusted trial
Several years ago, your brother opened Magna Appliance Repairs. He made a small initial investment and added money from his personal bank account as needed. He withdrew money for living expenses at
At the end of the current year, $18,540 of fees have been earned but have not been billed to clients. Journalize the adjusting entry (include an explanation) to record the accrued fees.
Perimeter Realty Co. pays weekly salaries of $14,800 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that
At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney:Net income for April
At the end of the current year, $27,480 of fees have been earned but have not been billed to clients. Journalize the adjusting entry (include an explanation) to record the accrued fees.
Blue Ocean Realty Co. pays weekly salaries of $33,300 for a six-day workweek (Monday thru Saturday). Journalize the necessary adjusting entry (include an explanation) assuming that the accounting
The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are
Silver star Realty Co. pays weekly salaries of $16,200 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry (include an explanation) assuming that the
Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon’s income statements through income from operations for two recent years are as follows (in millions):a. Prepare a
On August 1, 20Y1, New house. received $13,200 for the rent of land for 12 months. Journalize the adjusting entry (include an explanation) required for unearned rent on December 31, 20Y1.
The following data are taken from recent financial statement of Nike, Inc. (in millions):a. Determine the amount of change (in millions) and percent of change in net income from Year 1 to Year 2.
The balance in the unearned fees account, before adjustment at the end of the year, is $316,290. Journalize the adjusting entry (include an explanation) required if the amount of unearned fees at the
The following income statement data for AT&T Inc. and Verizon Communications Inc. were taken from their recent annual reports (in millions):a. Prepare a vertical analysis of the income statement
The prepaid insurance account had a beginning balance of $6,800 and was debited for $25,100 of premiums paid during the year. Journalize the adjusting entry (include an explanation) required at the
The supplies account had a beginning balance of $4,085 and was debited for $7,810 for supplies purchased during the year. Journalize the adjusting entry (include an explanation) required at the end
The estimated amount of depreciation on equipment for the current year is $14,400. Journalize the adjusting entry (include an explanation) to record the depreciation.
The estimated amount of depreciation on equipment for the current year is $8,120. Journalize the adjusting entry (include an explanation) to record the depreciation.
For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance
For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance
The estimated amount of depreciation on equipment for the current year is $8,200. Journalize the adjusting entry to record the depreciation.
Two income statements for Upward Company follow:a. Prepare a vertical analysis of Upward Company’s income statements.b. Does the vertical analysis indicate a favorable or an unfavorable Change?
The balance in the equipment account is $3,240,000, and the balance in the accumulated depreciation—equipment account is $2,134,000.a. What is the book value of the equipment?b. Does the balance in
Two income statements for Upward Company follow:a. Prepare a vertical analysis of Versatile Company’s income statements.b. Does the vertical analysis indicate a favorable or an unfavorable Change?
In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $58,683 million and Accumulated Depreciation of $29,223 million.a. What was the book value of the fixed
The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement
Out search Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Out search Signals Company prepared the following end-of-period spreadsheet at
Last Chance Company offers legal consulting advice to prison inmates. Last Chance Company prepared the end-of-period spreadsheet shown at the top of the following page at June 30, 20Y1, the end of
The unadjusted trial balance of PS Music as of July 31, 20Y9, along with the adjustment data for the two months ended July 31, 20Y9, are shown in Chapter 3. Based upon the adjustment data, the
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y5. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter.
The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement
Balances for each of the following accounts appear in an adjusted trial balance. Identify each as (a) Asset. (b) Liability. (c) Revenue. (d) Expense.1. Accounts Receivable2.
Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 20Y3, the end of the fiscal year, the accountant for Finders Investigative

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