Questions and Answers of Financial Accounting Information For Decisions

Refer to Apple’s financial statements in Appendix A to answer the following.1. What percent of the original cost of Apple’s Property, Plant and Equipment account remains to be depreciated as of
On November 30, Petrov Co. has $128,700 of accounts receivable and uses the perpetual inventory system.(1) Prepare journal entries to record the following transactions. (2) Which transaction
Prepare journal entries to record the following transactions of Ridge Company.Mar. 21 Accepted a $9,500, 180-day, 8% note from Tamara Jackson in granting a time extension on her past-due account
The following data are for Rocky Company. (a) Compute Rocky’s accounts receivable turnover. (b) If its competitor, Dixon, has an accounts receivable turnover of 7.5, which company appears
Selected accounts from Bennett Co.’s adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet. Note: Allowance for doubtful accounts is subtracted from
Selected accounts from Fair Trader Co.’s adjusted trial balance for the year ended December 31 follow. Prepare its income statement. Factoring fees $ 300 Interest revenue $ 3,000 .... .... ......
Prepare journal entries for the following transactions of Danica Company. Dec. 13 Accepted a $9,500, 45-day, 8% note in granting Miranda Lee a time extension on her past-due account
On April 1 of Year 1, Respawn accepted a $10,000, 12-month, 8% note from a customer in granting a time extension on his past-due account receivable. Respawn’s year-end is December 31. Compute
On August 2, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his $6,000 account receivable. (1) Compute the maturity date for this note. (2) Prepare
Complete the following table by filling in missing amounts. Principal of Note Annual Interest Rate Time Perlod Interest 90 days 180 days 270 days $ ? 2,000 $10,000 8% 40,000 ? 4 900
Refer to Samsung’s December 31, 2018, financial statements in Appendix A. Does Samsung report its accounts receivable, titled as “Trade receivables,” as a current or noncurrent asset?
Refer to Samsung’s financial statements in Appendix A. What is the amount of Samsung’s accounts receivable, titled as “Trade receivables,” on its December 31, 2018, balance sheet?
Analyze each of the following transactions by showing the effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction.a. The company
BioWare’s year-end unadjusted trial balance shows accounts receivable of $17,000 and sales of $150,000. Uncollectibles are estimated to be 2% of sales. Prepare the December 31 year-end adjusting
Refer to Google’s balance sheet in Appendix A. Does it use the direct write-off method or allowance method in accounting for its accounts receivable? What is the realizable value of its receivables
Helix reported the following information in its financial statements. Write-offs of accounts receivable were $200 in the current year. Helix did not recover any write-offs. Determine bad debts
In its first year of operations, Cloudbox has credit sales of $200,000. Its year-end balance in Accounts Receivable is $10,000, and the company estimates that $1,500 of its accounts receivable is
The following transactions are from Springer Company.Year 1Nov. 1 Accepted a $4,800, 90-day, 8% note in granting Steve Julian a time extension on his past-due account receivable.Dec. 31 Made an
The following transactions are from Ohlm Company.Year 1Dec. 16 Accepted a $10,800, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable.31 Made an adjusting
Sherman Co. began operations in Year 1. During its first two years, the company completed several transactions involving sales on credit, accounts receivable collections, and bad debts. These
Dexter Company uses the direct write-off method. Prepare journal entries to record the following transactions. Mar. 11 Dexter determines that it cannot collect $45,000 of its accounts receivable
Indicate whether each statement best describes the allowance method or the direct write-off method.1. Does not predict bad debts expense.2. Accounts receivable on the balance sheet is reported at net
Access eBay’s January 30, 2019, filing of its 10-K report for the year ended December 31, 2018, at SEC.gov. Required1. What is the amount of eBay’s net accounts receivable at December 31,
Key figures for Samsung follow.1. Compute Samsung’s accounts receivable turnover for the current year.2. In the current year, does Samsung’s accounts receivable turnover underperform or
Grande Co. had credit sales of $20,000 in the current period. Accounts Receivable had a beginning balance of $4,000 and an ending balance of $5,000. Compute its cash collections from its credit sales
Comparative figures for Apple and Google follow.Required1. Compute the accounts receivable turnover for the two most recent years for (a) Apple and (b) Google.2. Which company more quickly collects
Levine Company uses the perpetual inventory system. Prepare journal entries to record the following credit card transactions of Levine Company.Apr. 8 Sold merchandise for $8,400 (that had cost
Use Apple’s financial statements in Appendix A to answer the following.1. What is the amount of Apple’s accounts receivable as of September 29, 2018?2. Compute Apple’s accounts receivable
Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense. Assume that Business Solutions has total revenues of $44,000 during the first three months
Mayfair Co. completed the following transactions and uses a perpetual inventory system.June 4 Sold $650 of merchandise on credit (that had cost $400) to Natara Morris, terms n∕15.5 Sold $6,900 of
Barga Co.’s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $65,000; and Year 2, $123,000.a. Compute its
Samsung’s statement of cash flows in Appendix A reports the change in cash and equivalents for the year ended December 31, 2018. Identify the cash generated (or used) by operating activities, by
Wright Company’s Cash account shows a $27,500 debit balance and its bank statement shows $25,800 on deposit at the close of business on May 31. Prepare its bank reconciliation using the following
Refer to Samsung’s balance sheet in Appendix A. How does its cash (titled “Cash and cash equivalents”) compare with its other current assets (in both amount and percent) as of December 31,
Del Gato Clinic’s Cash account shows an $11,589 debit balance and its bank statement shows $10,555 on deposit at the close of business on June 30. Prepare its bank reconciliation using the
Organic Food Co.’s Cash account shows a $5,500 debit balance and its bank statement shows $5,160 on deposit at the close of business on August 31. Prepare a bank reconciliation using the following
Nolan Company’s Cash account shows a $22,352 debit balance and its bank statement shows $21,332 on deposit at the close of business on June 30. Prepare a bank reconciliation using the following
1. Brooks Agency set up a petty cash fund for $150. At the end of the current period, the fund contained $28 and had the following receipts: entertainment, $70; postage, $30; and printing, $22.
Identify each of the following statements as either true or false.a. A guideline for safeguarding cash is that all cash receipts be deposited monthly or yearly.b. A voucher system of control is a
Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,028 and No. 5893 for $494. Check No. 5893 was
Key figures for Samsung follow.Required1. Compute cash and cash equivalents as a percent (rounded to one decimal) of total current assets, total assets, total current liabilities, and total
Identify the fraud triangle risk factor (opportunity, pressure, or rationalization) in each situation.1. Employees are told to report increased income or be fired.2. Several salesclerks share the
Key comparative figures for Apple and Google follow.Required1. Compute days’ sales uncollected (rounded to one decimal) for the current year and the prior year for (a) Apple and (b) Google.2. Which
Use Apple’s financial statements in Appendix A to answer the following.1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 29, 2018, and (b) September 30,
Santana Rey receives the March bank statement for Business Solutions on April 11, 2021. The March 31 bank statement shows an ending cash balance of $67,566. The general ledger Cash account, No. 101,
Following are five separate cases involving internal control issues.a. Tywin Company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never
Indicate which statements are true and which are false.1. Separation of recordkeeping for assets from the custody over assets helps reduce fraud.2. The primary objective of internal control
Spade Co. is considering either FIFO or LIFO. Determine which method results in the lowest income tax expense in the current year when (a) Inventory costs are rising (b) Inventory costs are
Complete the following table by indicating whether FIFO or LIFO results in the lower reported amount for each of the three accounting measures. Lowest Ending Inventory Lowest Cost of Goods Sold
Compute the missing amounts in the separate income statements A, B, and C. A B $ ? $20,000 $90,000 Sales Cost of goods sold Gross profit Expenses Net income 40,000 30,000 35,000 11,500 6,000 ? ?
Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the following separate statements. Assume a period of increasing costs.1. Results in the highest cost of goods
Refer to Samsung’s financial statements in Appendix A. What percent of its current assets is inventory as of December 31, 2018 and 2017?
Refer to Samsung’s financial statements in Appendix A. Compute its cost of goods available for sale for the year ended December 31, 2018.
Refer to Apple’s financial statements in Appendix A and compute its cost of goods available for sale for the year ended September 29, 2018.
Refer to Apple’s financial statements in Appendix A. On September 29, 2018, what percent of current assets is represented by inventory?
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150
Wattan Company reports beginning inventory of 10 units at $60 each. Every week for four weeks it purchases an additional 10 units at respective costs of $61, $62, $65, and $70 per unit for weeks 1
Access the September 29, 2018, 10-K report for Apple, Inc. (ticker: AAPL), filed on November 5, 2018, from the EDGAR filings at SEC.gov.Required1. What products are manufactured by Apple?2. What
Key figures for Samsung follow.Required1. For the most recent two years, compute Samsung’s (a) inventory turnover and (b) days’ sales in inventory.2. Is the change in Samsung’s inventory
A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include$250 for transportation-in.$300 for
Comparative figures for Apple and Google follow.Required1. Compute inventory turnover for each company for the most recent two years shown.2. Compute days’ sales in inventory for each company for
Use Apple’s financial statements in Appendix A to answer the following.Required1. What amount of inventories did Apple report as a current asset (a) on September 29, 2018? (b) On September 30,
Save-the-Earth Co. reports the following income statement accounts for the year ended December 31. Prepare a multiple-step income statement that includes separate categories for net sales, cost of
Vitamix reports the following information for its year ended December 31: cash sales of $60,000; sales on credit of $90,000; general and administrative expenses of $17,000; sales returns of $11,000;
(a) Compute the acid-test ratio for each of the following separate cases.(b) Which company is in the best position to meet short-term obligations? Camaro GTO Torino Cash..... $2,000 $ 110 $1,000
The following information on current assets and current liabilities is for Belkin Company. (a) Compute Belkin’s acid-test ratio. (b) If its competitor, Logit, has an acid-test ratio of
Clear Water Co. reports the following balance sheet accounts as of December 31. Prepare a classified balance sheet. Buildings ... $25,000 Notes payable (due in 7 years) $30,000 Accounts receivable.
Using the year-end information from QS 4-15, prepare the gross profit section of a multiple-step income statement.QS 4-15Vitamix reports the following information for its year ended December 31: cash
The following list includes temporary accounts from the December 31 adjusted trial balance of Emiko Co. Use these normal account balances to journalize closing entries. Debit Credit Debit Credit $
Compute the missing amounts in the separate (partial) income statements A, B, and C. A B C Sales Sales discounts $ ? $20,000 $90,000 2,000 1,500 500 Sales returns and allowances 7,000 4,000 35,000 ?
At the beginning of the year, SnapIt had $10,000 of inventory. During the year, SnapIt purchased $35,000 of merchandise and sold $30,000 of merchandise. A physical count of inventory at year-end
Indicate whether each statement describes a multiple-step income statement or a single step income statement.1. Commonly reports detailed computations of net sales and other costs and expenses.2.
The following summarizes Tesla’s merchandising activities for the year. Set up T-accounts for Merchandise Inventory and for Cost of Goods Sold. Enter each line item into one or both of the two T
Analyze each transaction in Exercise 4-6 by indicating its effects on the income statement specifically, identify the accounts and amounts (including + or −) for each transaction.Exercise 4-6Allied
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products. Prepare journal entries to record the following transactions for Allied assuming it uses
For each transaction of Sealy Co., (a) Determine whether or not Sealy owns the goods during transit. (b) If Sealy is responsible for transportation costs, record the entry for shipping
Prepare journal entries to record the following transactions of Recycled Fashion retail store. Recycled Fashion uses a perpetual inventory system and the gross method.Mar. 3 Purchased $1,150 of
Key comparative figures for Samsung, Apple, and Google follow.Required1. Compute the gross margin ratio for each of the three companies.2. Is Samsung’s gross margin ratio better or worse than that
Barkley Company’s adjusted account balances from its general ledger on March 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: Sales Salaries Expense,
Use the following information (in random order) from a merchandising company and from a service company. Not all information may be necessary for the solutions.a. For the merchandiser only, compute
Key comparative figures for Apple and Google follow.Required1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies.2. Which company earns
Refer to Apple’s financial statements in Appendix A to answer the following.Required1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for
Santana Rey created Business Solutions on October 1, 2020. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up
Fill in the blanks in the following separate income statements a through e. a b d Sales...... $62,000 $43,500 $55,000 $ ? $25,600 Cost of goods sold Merchandise inventory, beginning.... 8,000 17,050
Match each phrase with its definition. A. Sales discount B. Credit period C. Discount period D. FOB destination E. FOB shipping point F. Gross profitG. Merchandise
Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets, Current Liabilities, and Long-Term Liabilities. For each of the
For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account.a.
Stark Company has the following adjusted accounts with normal balances at its December 31 year-end. Prepare an adjusted trial balance for Stark Company at December 31. Notes payable.....
For each separate case, record an adjusting entry (if necessary).a. Barga Company purchases $20,000 of equipment on January 1. The equipment is expected to last five years and be worth $2,000 at the
Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Equity. For each of the
At the end of its annual accounting period, the company must make three adjusting entries. For each of these adjusting entries, indicate the account to be debited and the account to be credited.a.
Access EDGAR online (SEC.gov) and locate the 10-K report of The Gap, Inc. (ticker: GPS), filed on March 20, 2017. Review its financial statements reported for the year ended January 28, 2017, to
Key comparative figures for Samsung, Apple, and Google follow.Required1. Compute profit margin for Samsung, Apple, and Google.2. Which company has the highest profit margin? In millions Samsung Apple
Key figures for the recent two years of both Apple and Google follow.Required1. Compute profit margins for (a) Apple and (b) Google for the two years of data reported above.2. In the current year,
For each of the following separate situations, determine the amount of expense each company should recognize in December (using accrual basis accounting).a. Chipotle has monthly wages expense of
Use Apple’s financial statements in Appendix A to answer the following. 1. Compute Apple’s profit margin for fiscal years ended (a) September 29, 2018, (b) September 30, 2017.2. Is
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. (Transactions for the first two months are described in the Chapter 2 serial problem.) The
For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis accounting).a. On December 7, Oklahoma City Thunder sold a $90 ticket to a
Choose from the following list of terms and phrases to best complete the statements below.a. Fiscal year b. Timeliness c. Accrual basis accountingd. Annual financial statementse. Cash
a. Compute the debt ratio for each of the three companies.b. Which company has the most financial leverage? Company Expenses Total Assets Net Income Total Liabilities $22,000 67,000 12,000 $19,000 $

Showing 1000 - 1100 of 1440