Questions and Answers of Financial Accounting 6th Edition

In which of the three activity categories of a statement of cash flows would each of the following items appear? Indicate for each item whether it represents a cash inflow or a cash outflow:a. Cash
What are the three major types of activities classified on a statement of cash flows? Give an example of a cash inflow and a cash outflow in each classification.
Why are cash equivalents included with cash in a statement of cash flows?
Lady G's Fashions, a specialty retailer of women's apparel, markets its products through retail stores and catalogs. Selected information from its 2019 and 2018 balance sheets is as follows.The
It is the end of the accounting year for Juliet Javetz, controller of a medium-sized, publicly held corporation specializing in toxic waste cleanup. Within the corporation, only Javetz and the
What is the definition of cash equivalents? Give three examples of cash equivalents.
Seaside Surf Shop began operations on July 1, 2019, with an initial investment of $50,000. During the initial 3 months of operations, the following cash transactions were recorded in the firm's
Wyland Consulting, a firm started three years ago by Reyna Wyland, offers consulting services for material handling and plant layout. Its balance sheet at the close of 2018 is as follows.Earlier in
Rhoades Tax Services began business on December 1, 2018. Its December transactions are as follows.Dec. 1 Rhoades invested $20,000 in the business in exchange for common stock.2 Paid $1,200 cash for
Fischer Card Shop is a small retail shop. Fischer's balance sheet at year-end 2018 is as follows. The following information details transactions and adjustments that occurred during 2019.1. Sales
The following selected accounts appear in Zimmerman Company's unadjusted trial balance at December 31, 2018, the end of its fiscal year (all accounts have normal balances).Additional information is
The following adjusted trial balance is for Mayflower Moving Service at December 31, 2018.REQUIRED:a. Prepare closing entries in journal entry form.b. After its closing entries are posted, what is
Trails, Inc., publishes magazines for skiers and hikers. The company's adjusted trial balance for the year ending December 31, 2018, is:REQUIRED:a. Prepare its income statement and statement of
Wheel Place Company began operations on March 1, 2019, to provide automotive wheel alignment and balancing services. On March 31, 2019, the unadjusted balances of the firm's accounts are as
Deliver AII, a mailing service, has just completed its first full year of operations on December 31, 2018. Its general ledger account balances before year-end adjustments follow; no adjusting entries
Market-Probe, a market research firm, had the following transactions in June 2019, its first month of operations.June 1 B. May invested $24,000 cash in the ti.m1 in exchange for common stock.1. The
The following selected accounts appear in Shaw Company's unadjusted trial balance at December 31, 2018, the end of its fiscal year (all accounts have normal balances).REQUIRED:a. Prepare its
The following adjusted trial balance is for Wilson Company at December 31, 2018. REQUIRED:a. Prepare closing entries in journal entry form.b. After the firm's closing entries are posted,
The following adjusted trial balance is for True man Consulting Inc. at December 31, 2018. The company had no stock issuances or repurchases during 2018.REQUIREDa. Prepare its income statement and
The following information relates to the December 31 adjustments for Kwik Print Company. The firm's fiscal year ends on December 31.1. Weekly employee salaries for a five-day week total $ 1,800,
Murdock Carpet Cleaners ended its first month of operations on June 30, 2019. Monthly financial statements will be prepared. The unadjusted account balances are as follows.The following information
B. Lougee opened Lougee Roofing Service on April I. 2019. Transactions for April are as follow:Apr. 1 Lougee contributed $11,500 cash to the business in exchange for common stock.1 Paid $2,880 cash
Snap Shot Company, a commercial photography studio, has just completed its first full year of operations on December 31, 2018. General ledger account balances before year-end adjustments follow; no
Solomon Corporation's adjusted trial balance for the year ending December 31, 2018, is:a. Prepare its income statement and statement of stockholders' equity for the current year. and its balance
The adjusted trial balance of Parker Corporation. prepared December 31, 2018. contains the following selected accounts.a. Prepare entries to close these accounts in journal entry form.b. Set up
Ethan Allen Interiors Inc .. a leading manufacturer and retailer of home furnishings and accessories. sells products through an exclusive network or approximately 300 design centers. All of
Abercrombie & Fitch Co. (ANF) is a specialty retailer of casual apparel. The following information is taken from ANF's fiscal 10-K report for the fiscal year 2017. which ended February 3, 2018.
What are the two major steps in the closing process?
What is the purpose of a post-closing trial balance? Which of the following accounts should not appear in the post-closing trial balance: Cash; Unearned Revenue; Prepaid Rent; Depreciation Expense;
Dehning Corporation is an international manufacturer of films and industrial identification products. Included among its prepaid expenses is an account titled Prepaid Catalog Costs; in recent years,
At the beginning of January, the first month of the accounting year. the supplies account had a debit balance of $825. During January, purchases of $260 worth of supplies were debited to the account.
Creative Designs, a firm providing art services for advertisers, began business on June 1, 2019. The following transactions occurred during the month of June.1. Anne Clem invested $12.000 cash to
Minute Maid, a firm providing housecleaning services, began business on April 1, 2019. The following transactions occurred during the month of April.April 1. Falcon invested $9,000 cash to begin the
Deluxe Building Services offers custodial services on both a contract basis and an hourly basis. On January 1, 2019, Deluxe collected $20,100 in advance on a six-month contract for work to be
El Puerto de Liverpool (Liverpool) is a large retailer in Mexico. The following accounts are selected from its annual report for the fiscal year ended December 31, 2017. For the fiscal year ended
On December 31, 2017, the credit balances of the Common Stock and Retained Earnings accounts were $30,000 and $18,000, respectively, for Architect Services Company. Its stock issuances for 2018
Assume you are in the process of closing procedures for Echo Corporation. You have already closed all revenue and expense accounts to the Retained Earnings account. The total debits to Retained
Amazon.com Inc. is one of the world's leading e-commerce companies. with almost $120 billion in revenues for the fiscal year ended December 31, 2017. For the year ended December 31, 2017. Amazon's
Hatcher Company closes its accounts on December 31 each year. On December 31, 2018. Hatcher accrued $600 of interest income that was earned on an investment but not yet received or recorded (the
The adjusted trial balance as of December 31, 2018, for Brooks Consulting Company contains the following selected accounts.a. Prepare entries to close these accounts in journal entry form.b. Set up
For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement effects template, and (b) in journal entry form.1. Unrecorded depreciation on
Norton Company closes its accounts on December 31 each year. The company works a five-day work week and pays its employees every two weeks. On December 31, 2018, Norton accrued $4,700 of salaries
Selected T-account balances for Fields Company are shown below as of January 31, 2019; adjusting entries have already been posted. The firm uses a calendar-year accounting period but prepares monthly
Jake Thomas began Thomas Refinishing Service on July 1, 2019. Selected accounts are shown below as of July 31. before any adjusting entries have been made.Using the following information. prepare the
Selected accounts of Ideal Properties, a real estate management firm, are shown below as of January 31, 2019, before any adjusting entries have been made.Monthly financial statements are prepared.
Healy Corporation recorded service revenues of $100,000 in 2018, of which $70,000 were for credit and $30,000 were for cash. Moreover, of the $70,000 credit sales, it collected $20,000 cash on those
Next to each item, indicate whether it would most likely be reported on the balance sheet (B), the income statement (I), or the statement of stockholders' equity (SE).a. Liabilities ____________b.
For each of the following items, indicate whether it is most likely reported on the balance sheet (B), the income statement (I), or the statement of stockholders' equity (SE).a. Accounts receivable
For each of the following items, indicate whether it is most likely reported on the balance sheet (B), the income statement (I), or the statement of stockholders' equity (SE).a. Cash (year-end
Use your knowledge of accounting relations to complete the following table for L Brands, Inc. (All amounts in$ millions.) Fiscal year ending January 28, 2017 February 3, 2018 $ (258) Beginning
Following the example in a below, indicate the effects of transactions b through ion assets, liabilities, and equity, including identifying the individual accounts affected.a. Rendered legal services
Following the example in a below, indicate the effects of transactions b through ion assets, liabilities, and equity, including identifying the individual accounts affected.a. Paid cash to acquire a
Following is financial information from Johnson & Johnson for the year ended December 31, 2017. Prepare the 2017 fiscal-year retained earnings reconciliation for Johnson & Johnson ($
Guay Corp., a start-up company, provided services that were acceptable to its customers and billed those customers for $350,000 in 2018. However, Guay collected only $280,000 cash in 2018, and the
Report the effects for each of the following independent transactions using the financial statement effects template. If no entry should be made, answer "No entry." Balance Sheet Income Statement
Report the effects for each of the following independent transactions using the financial statement effects template. If no entry should be made, answer "No entry." Balance Sheet Income Statement
Report the effects for each of the following independent transactions using the financial statement effects template. If no entry should be made, answer "No entry." Balance Sheet Income Statement
Refer to the transactions in M2-3I. Prepare journal entries for each of the transactions (a) through (f).M2-31: Balance Sheet Income Statement Cash Noncash Liabil- Contrib. Earned Net Expenses =
The following balance sheet data are reported for Beaver, Inc., at May 31, 2019.Assume that on June1, 2019. only the following two transaction occurred.June I Purchased additional equipment costing
For each of the four separate situations 1 through 4 below, compute the unknown amounts referenced by the letters a through d shown. 1 2 3 Beginning Assets.. $28,000 18,600 $12,000 5,000
Balance sheet information for Lang Services at the end of 2018 and 2017 is:a. Prepare its balance sheet for December 31 of each year.b. Lang Services raised $5,000 cash through issuing additional
Following is balance sheet information for Lynch Services at the end of 2018 and 2017.a. Prepare balance sheets at December 31 of each year.b. The firm declared and paid a cash dividend of $10,000 in
The following balance sheet data are reported for Brownlee Catering at September 30, 2019.Assume that on October I, 2019, only the following two transactions occurred:October 1 Purchased additional
Bai man Corporation commences operations at the beginning of January. It provides its services on credit and bills its customers $30,000 for January sales to be collected in February. Its employees
Following are selected accounts for The Procter & Gamble Company for June 30, 2017.a. Indicate the appropriate classification of each account as appearing in either its balance sheet (B) or its
Shoprite Holdings Ltd is an African food retailer listed on the Johannesburg Stock Exchange. The following accounts are selected from its annual report for the fiscal year ended July 2, 2017. The
El Puerto de Liverpool (Liverpool) is a large retailer in Mexico. The following accounts are selected from its annual report for the fiscal year ended December 31, 2017. The amounts below are in
Following are selected accounts for Kimberly-Clark Corporation for 2017.a. Indicate the appropriate classification of each account as appearing in either its balance sheet (B) or its income statement
Record the effect of each of the following independent transactions using the financial statements effects template provided. Confirm that Assets = Liabilities + Equity for each transaction. Balance
Use the information in Exercise 2-44 to complete the following.a. Prepare journal entries for each of the transactions (1) through (9).b. Set up T-accounts for each of the accounts used in part a and
The following balance sheet data are reported for Bettis Contractors at June 30, 2019.Assume that during the next two days only the following three transactions occurred:July 1 Paid $5,000
Record the effect of each of the following independent transactions using the financial statement effects template provided. Confirm that Assets = Liabilities + Equity. Balance Sheet Income Statement
Use the information in Exercise 2-47 to complete the following.a. Prepare journal entries for each of the transactions 1 through 9.b. Set up T-accounts for each of the accounts used in part a and
Review the following selected income statement and balance sheet data for fiscal years ending in 2017.REQUIREDa. Compare and discuss how these companies finance their operations.b. Which companies
Selected data from Hewlett-Packard Company at October 31, 2017, follow.REQUIRED:a. Using the data for Apple Inc. in P2-49, compare and discuss the two companies on the basis of how they finance their
Review the following selected income statement and balance sheet data for Verizon Communications Inc. as of December 31, 2017.df,dniREQUIRED:a. Using the data for Comcast Corporation in P2-49,
At the beginning of 2018, Barth Company reported the following balance sheet.REQUIRED:a. At the end of 2018, Barth Company reported the following assets and liabilities: Cash, $8,800; Accounts
Abercrombie & Fitch Co. and Nordstrom, Inc., are major retailers that concentrate in the higher-end clothing lines. Following are selected data from their 2017 fiscal-year ended February 3, 2018,
Selected balance sheet amounts for Kimberly-Clark Corp, a consumer products company, for four recent years follow:REQUIRED:a. Compute the missing balance sheet amounts for each of the four years
Selected balance sheet amounts for Sears Holdings Corp., a retail company, for four recent fiscal years follow:REQUIRED:a. Compute the missing balance sheet amounts for each of the four years
On December 1, 2018, R. Lambert formed Lambert Services, which provides career and vocational counseling services to graduating college students. The following transactions took place during
Use the information in Problem 2-57 to complete the following requirements.REQUIRED:a. Prepare journal entries for each of the transactions 1 through 11.b. Set up T-accounts for each of the accounts
Selected balance sheet amounts for Apple Inc., a retail company. for four recent fiscal years follow:REQUIRED:a. Compute the missing balance sheet amounts for each of the four years shown.b. What
Selected balance sheet amounts for Alibaba Group Holding Ltd, a China-based online and mobile commerce company, for three recent fiscal years ending March 31 follow:REQUIRED:a. Compute the missing
Selected income statement information for Nike, Inc., a manufacturer of athletic footwear, for four recent fiscal years ending May 31 follows.REQUIREDa. Compute the: missing amounts for each of the
On June 1, 2019, a group of pilots in Melbourne, Australia, formed Outback Flights by issuing common stock for $50,000 cash. The group then leased several amphibious aircraft and docking facilities,
Use the information in Problem 2-62 to complete the following requirements.REQUIREDa. Prepare journal entries for each of the transactions 1 through 12.b. Set up T-accounts for each of the accounts
Selected income statement information for Starbucks Corporation, a coffee-related restaurant chain, for four recent fiscal years follows.REQUIRED:a. Compute the missing amounts for each of the four
Would each of the following transactions increase, decrease, or have no effect on equity?a. Paid cash to acquire supplies.b. Paid cash for dividends to shareholders.c. Paid cash for salaries.d.
Determine the following for each separate company case:a. The stockholders' equity of Jensen Corporation, which has assets of $450,000 and liabilities of $326,000.b. The liabilities of Sloan &
Determine the missing amount in each of the following separate company cases. Assets Llabilities Equity $200,000 $85,000 2$ h. 32,000 28,000 C. 93,000 52,000
Determine the missing amount in each of the following separate company cases. Assets Liabilities Equity a. $375,000 $105,000 b. ? 43,000 11,000 C. 678,000 422,000
The following information is reported for Kinney Corporation at the end of 2018.a. Compute the amount of retained earnings reported at the end of 2018.b. If the amount of retained earnings at the
Define net working capital. Explain how increasing the amount of trade credit can reduce the net working capital for a company.
What three conditions must be satisfied to require reporting of a liability on the balance sheet?
Identify three intangible assets that are likely to be excluded from the balance sheet because they cannot be reliably measured.
Assets are recorded at historical costs even though current market values might, arguably, be more relevant to financial statement readers. Describe the reasoning behind historical cost usage.
What does the term current denote when referring to assets?
What does the concept of liquidity refer to? Explain.
What are the two essential characteristics of an asset?

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