Questions and Answers of Financial Accounting 6th Edition

Refer to the information in BE5–9, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $3,000 (debit). The company still estimates future uncollectible
The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2024, before anyadjustment: Accounts
At the beginning of 2024, Best Heating & Air (BHA) has a balance of $26,000 in accounts receivable. Because BHA is a privately owned company, the company has used only the direct write-off method
At the end of 2024, Worthy Co.’s balance for Accounts Receivable is $20,000, while the company’s total assets equal $1,500,000. In addition, the company expects to collect all of its receivables
During 2024, LeBron Corporation accepts the following notes receivable.1. On April 1, LeBron provides services to a customer on account. The customer signs a fourmonth, 9% note for $7,000.2. On June
Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the end of 2024, its balance for Accounts Receivable is $35,000. The company
Describe the year-end adjusting entries to the allowance for uncollectible accounts in the year subsequent to establishing it.
Brady is hired in 2024 to be the accountant for Anderson Manufacturing, a private company. At the end of 2024, the balance of Accounts Receivable is $29,000. In the past, Anderson has used only the
Calculate the missing amount for each of the following notes receivable. Face Value $11,000 $30,000 $35,000 (d) Annual Interest Rate 6% 5% (c) 8% Fraction of the Year 4 months (b) 6 months 6
On April 1, 2024, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker’s business. The supplier explains that it
On October 1, 2024, Ogneva Corporation loans one of its employees $40,000 and accepts a 12-month, 9% note receivable. Calculate the amount of interest revenue Ogneva will recognize in 2024 and 2025.
Suzuki Supply reports the following amounts at the end of 2024 (before adjustment).Required:1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. Suzuki
Refer to the information in E5–19, but now assume that the balance of the Allowance for Uncollectible Accounts on December 31, 2024, is $1,100 (debit) (before adjustment).Data from in E5-19Suzuki
Refer to the information in BE5–19, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $4,000 (debit). The company still estimates future uncollectible
On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances:During January 2024, the following transactions occur:January 2 Provide services to customers for
Match each of the following types of companies with its definition. Types of Companies Service company Merchandising company Manufacturing company 1. 2. 3. Definitions a. Purchases goods that are
Wayman Corporation reports the following amounts in its December 31, 2024, income statement.Required:Prepare a multiple-step income statement. Sales revenue Interest expense Salaries
What is inventory? Where in the financial statements is inventory reported?
Tisdale Incorporated reports the following amount in its December 31, 2024, income statement.Required:1. Prepare a multiple-step income statement.2. Explain how analyzing the multiple levels of
Refer to the information in BE6–5. Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO.Data from in BE6-5During the year, Wright Company sells 470
Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Coca-Cola and Pepsico for the year ended December 2019. Locate the “Consolidated
Horizon Corporation manufactures personal computers. The company began operations in 2012 and reported profits for the years 2015 through 2022. Due primarily to increased competition and price
Refer to the information in BE5–2. Determine the financial statement effects when the company provides services on account on February 3 and collects cash from the customer on February 9.Data from
The general ledger of Pop’s Fireworks includes the following account balances in 2024:In addition, the following transactions occurred during 2024 and are not yet reflected in the account balances
Refer to the information in BE5–4. Data from in BE5-4At the end of the first year of operations, Mayberry Advertising had accounts receivable of $20,000. Management of the company estimates
Refer to the information in BE5–5. Data from in BE5-5At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $15,000. By the end of the year, actual
Refer to the information in BE5–6. Determine the financial statement effects of collecting cash from an account previously written off as uncollectible.Data from in BE5-6Barnes Books allows for
Refer to the information in BE5–18. Data from in BE5-18On October 1, 2024, Ogneva Corporation loans one of its employees $40,000 and accepts a 12-month, 9% note receivable. Calculate the
What is a multiple-step income statement? What information does it provide beyond “bottom-line” net income?
The cash records and bank statement for the month of May for Diaz Entertainment are shown below.Additional information:a. The difference in the beginning balances in the company’s records and the
The cash records and bank statement for the month of July for Glover Incorporated are shown next.Additional information:a. The difference in the beginning balances in the company’s records and the
Below is a summary of all transactions of Pixar Toy Manufacturing for the month of August 2024.Required:Prepare a statement of cash flows for the month of August 2024, properly classifying each of
Following is a summary of all transactions of Dreamworks Bedding Supplies for the month of August 2024.Required:Prepare a statement of cash flows for the month of August, properly classifying each of
Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for The Kroger Company for the year ended February 1, 2020. Locate the “Consolidated Balance
Spielberg Company’s general ledger shows a cash account balance of $23,220 on July 31, 2024. Cash sales of $1,885 for the last three days of the month have not yet been deposited. The bank
On August 31, 2024, the general ledger of the Dean Acting Academy shows a balance for cash of $7,944. Cash receipts yet to be deposited into the checking account total $3,338. The company’s balance
On October 31, 2024, Damon Company’s general ledger shows a cash account balance of $8,397. The company’s cash receipts for the month total $74,320, of which $71,295 has been deposited in the
Brangelina Adoption Agency’s general ledger shows a cash balance of $11,663. The balance of cash in the March-end bank statement is $7,345. A review of the bank statement reveals the following
Clooney Corp. establishes a petty cash fund for $225 and issues a credit card to its office manager. By the end of the month, employees made one expenditure from the petty cash fund (entertainment,
Below are several transactions for Meyers Corporation for 2024.Required:1. For each transaction, determine the amount of cash flows (indicate inflows with a “+” and outflows with a “−”). If
On January 12, Ferrell Incorporated obtains a permit to start a comedy club, which will operate only on Saturday nights. To prepare the club for the grand opening, Ferrell purchases tables and chairs
Smith Law Firm specializes in the preparation of wills for estate planning. On October 1, 2024, the company begins operations by issuing stock for $11,000 and obtaining a loan from a local bank for
Refer to the information in E4–16.Data from in E4-16Following are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.a. Cash used
Refer to the information in E4–16.Data from in E4-16Following are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.a. Cash used
We compared Live Nation Entertainment and AMC Networks at the end of this chapter. What reasons were given for the differences of amounts held in their Cash accounts?
The following transactions occur for Badger Biking Company during the month of June:a. Provide services to customers on account for $50,000.b. Purchase bike equipment by signing a note with the bank
You may refer to the opening story of Tony and Suzie and their decision to start Great Adventures in RWP 1–1. More of their story and the first set of transactions for the company in July are
Horned Frogs Fine Cooking maintains its books using cash-basis accounting. However, the company recently borrowed $50,000 from a local bank, and the bank requires the company to provide annual
Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides to borrow $100,000 from a local bank, and the bank requires Minutemen to provide annual financial
The information necessary for preparing the 2024 year-end adjusting entries for Bearcat Personal Training Academy appears below. Bearcat’s fiscal year-end is December 31.1. At the end of the year,
The information necessary for preparing the 2024 year-end adjusting entries for Gamecock Advertising Agency appears below. Gamecock’s fiscal year-end is December 31.1. On July 1, 2024, Gamecock
Grasshopper Lawn Service provides general lawn maintenance to customers. The company’s fiscal year-end is December 31. Information necessary to prepare the year-end adjusting entries appears
Buzzard Bicycle specializes in custom painting and design of bicycles. December 31 is the company’s fiscal year-end. Information necessary to prepare the year-end adjusting entries appears below.1.
Boilermaker Unlimited specializes in building new homes and remodeling existing homes. Remodeling projects include adding game rooms, changing kitchen cabinets and countertops, and updating
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2024, you come across several items needing further consideration. Currently,
You have recently been hired as the assistant controller for Stanton Temperton Corporation, which rents building space in major metropolitan areas. Customers are required to pay six months of rent in
Jaguar Auto Company provides general car maintenance to customers. The company’s fiscal year-end is December 31. The December 31, 2024, trial balance (before any adjusting entries) appears below.In
Golden Eagle Company has the following balances at the end of November:The following information is known for the month of December:1. Purchases of supplies for cash during December were $4,500.
The general ledger of Pipers Plumbing at January 1, 2024, includes the following account balances:The following is a summary of the transactions for the year:1. January 24 Provide plumbing services
Consider the information in Question 7. Using cash-basis accounting, on which date would Peterson Law record the $100 expense for each scenario?Data from in Question 7Peterson Law asks Executive Lawn
The general ledger of Red Storm Cleaners at January 1, 2024, includes the following account balances:The following is a summary of the transactions for the year:1. March 12 Provide services to
Consider the following transactions for Huskies Insurance Company:1. Income taxes for the year total $42,000 but won’t be paid until next April 15.2. On June 30, the company lent its chief
The general ledger of Jackrabbit Rentals at January 1, 2024, includes the following account balances:The following is a summary of the transactions for the year:1. January 12 Provide services to
Beaver Construction purchases new equipment for $50,400 cash on April 1, 2024. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no
The general ledger of Zips Storage at January 1, 2024, includes the following account balances:The following is a summary of the transactions for the year:1. January 9 Provide storage services for
Consider the following situations for Shocker:1. On November 28, 2024, Shocker received a $4,500 payment from a customer for services to be rendered evenly over the next three months. Deferred
Fighting Irish Incorporated pays its employees $5,600 every two weeks ($400/ day). The current two-week pay period ends on December 28, 2024, and employees are paid $5,600. The next two-week pay
Refer to the information in E3–10.Data from in E3-10Consider the following situations for Shocker:1. On November 28, 2024, Shocker received a $4,500 payment from a customer for services to be
Midshipmen Company borrows $15,000 from Falcon Company on July 1, 2024. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2025. (1) Record the borrowing for
Below are the restated amounts of net income and retained earnings for Volunteers Inc. and Raiders Inc. for the period 2015–2024. Volunteers began operations in 2016, while Raiders began several
Below are transactions for Wolverine Company during 2024.1. On December 1, 2024, Wolverine received $4,000 cash from a company that rents office space from Wolverine. The payment, representing rent
The December 31, 2024, unadjusted trial balance for Demon Deacons Corporation is presented below.At year-end, the following additional information is available:1. The balance of Prepaid Rent, $7,200,
The December 31, 2024, adjusted trial balance for Fightin’ Blue Hens Corporation is presented below.Required:1. Prepare an income statement for the year ended December 31, 2024.2. Prepare a
Refer to the information in BE3–12. (1) Record the lending for Falcon on July 1, 2024. (2) Record the adjusting entry for Falcon on December 31, 2024. (3) Calculate the 2024 year-end adjusted
Below are transactions for Hurricane Company during 2024.1. On October 1, 2024, Hurricane lent $9,000 to another company. The other company signed a note indicating principal and 12% interest will be
The following account balances appear in the 2024 adjusted trial balance of Beavers Corporation: Service Revenue, $275,000; Salaries Expense, $110,000; Supplies Expense,
Seminoles Corporation’s fiscal year-end is December 31, 2024. The following is a partial adjusted trial balance as of December 31.Required:1. Prepare the necessary closing entries.2. Calculate the
Laker Incorporated’s fiscal year-end is December 31, 2024. The following is an adjusted trial balance as of December 31.Required:1. Prepare the necessary closing entries.2. Calculate the ending
The following account balances appear in the 2024 adjusted trial balance of Spiders Corporation: Common Stock, $30,000; Retained Earnings, $8,000; Dividends, $1,000; Service
Refer to the adjusted trial balance in E3–16.Data from in E3-16The December 31, 2024, adjusted trial balance for Fightin’ Blue Hens Corporation is presented below.Required:1. Record the necessary
On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances:During January 2024, the following transactions occur:January 2 Purchase rental space for one year
The following account balances appear in the 2024 adjusted trial balance of Blue Devils Corporation: Cash, $5,000; Accounts Receivable, $9,000; Supplies, $19,000; Land,
On January 1, 2024, Red Flash Photography had the following balances: Cash, $12,000; Supplies, $8,000; Land, $60,000; Deferred Revenue, $5,000; Common Stock $50,000; and Retained Earnings, $25,000.
Refer to the information in BE3–6. Determine the financial statement effects for (1) The purchase of supplies during the year and (2) The adjusting entry for supplies used by the end of
At the end of the period, Sanders Company reports the following amounts: Assets = $12,000; Liabilities = $8,000; Revenues = $5,000; Expenses = $3,000. Calculate stockholders’ equity.
Refer to the information in BE3–7. Determine the financial statement effects for (1) The payment of rent in advance on October 1 and (2) The adjusting entry for rent expired by December
An examination of the cash activities during the year shows the following.Suzie has not reconciled the company’s cash balance with that of the bank since the company was started. She asks Summit
Refer to the information in BE3–10. Determine the financial statement effects for (1) The cash received in advance on November 1 and (2) The adjusting entry for services provided by
Refer to the information in BE3–11. Determine the financial statement effects of the adjusting entry for salaries owed on December 31, 2024.Data from in BE3-11Fighting Irish Incorporated pays its
Refer to the information in BE3–13. Determine the financial statement effects for (1) The borrowing on July 1, 2024, and (2) The adjusting entry for interest owed on December 31,
Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet each day but makes bank deposits only once per week. The following provides information from the
The Carmike 8 Cinema is a modern theatre located close to a college campus. The cashier, located in a box office at the theatre entrance, receives cash from customers and operates a machine that
On October 31, 2024, the bank statement for the cash account of Blockwood Video shows a balance of $12,751, while the company’s records show a cash balance of $12,381. Information that might be
RiverHawk Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in 2024, RiverHawk has the following account balances.The following transactions occur
Thunder Cat Services specializes in training and veterinary services to household pets, such as dogs, birds, lizards, fish, horses, and of course, cats. After the first 11 months of operations in
Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Apple for the year ended September 28, 2019. Locate the “Consolidated Statements of
Gator Investments provides financial services related to investment selections, retirement planning, and general insurance needs. At the end of the year on December 31, 2024, the company reports the
Tar Heel Corporation provides the following information at the end of 2024.Required:Prepare the income statement, statement of stockholders’ equity, and balance sheet for Tar Heel Corporation on
Cornhusker Company provides the following information at the end of 2024.Required:Prepare the income statement, statement of stockholders’ equity, and balance sheet for Cornhusker Company on
At the beginning of 2024, Artichoke Academy reported a balance in common stock of $150,000 and a balance in retained earnings of $50,000. During the year, the company issued additional shares of

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