Questions and Answers of Financial Accounting Tool

The following information pertains to Lance Company. 1. Cash balance per bank, July 31, $8,732. 2. July bank service charge not recorded by the depositor $45. 3. Cash balance per
The following information pertains to Ranchero Company. 1. Cash balance per books, August 31, $7,364. 2. Cash balance per bank, August 31, $7,328. 3. Outstanding checks, August 31,
The following control procedures are used in Bunny’s Boutique Shoppe for cash disbursements. 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash
Using the data in BE7.10, indicate (a) the items that will result in an adjustment to the depositor’s records and (b) why the other items do not require adjustment. Data From Problem BE
The following reconciling items are applicable to the bank reconciliation for Forde Co. Indicate how each item should be shown on a bank reconciliation. a. Outstanding checks. b. Bank debit
The cash register tape for Bluestem Industries reported sales of $6,871.50. Record the journal entry that would be necessary for each of the following situations. (a) Sales per cash register
The internal control procedures in Dayton Company result in the following provisions. Identify the principles of internal control that are being followed in each case. a. Employees who have
What was Apple’s balance in cash and cash equivalents at September 30, 2017? Did it report any restricted cash? How did Apple define cash equivalents?
“To have maximum effective internal control over cash disbursements, all payments should be made by check or electronic funds transfer.” Is this true? Explain.
The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available at the company’s
LaTour Inc. is based in France and prepares its financial statements (in euros) in accordance with IFRS. In 2022, it reported cost of goods sold of €578 million and average inventory of €154
You are the controller of Garton Inc. H. K. Logan, the president, recently mentioned to you that she found an error in the 2021 financial statements which she believes has corrected itself. She
Suppose the following information is from the 2022 annual report of American Greetings Corporation (all dollars in thousands). The notes to the company’s financial statements also include the
On December 1, 2022, Waylon Company had the account balances shown below The following transactions occurred during December. Dec. 3 Purchased 4,000 units of inventory on account at a cost
The management of National Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data. Units
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. Instructions a. Calculate the inventory turnover for 2020, 2021, and 2022. (Round to one decimal
The following comparative information is available for Rose Company for 2022. Instructions a. Determine net income under each approach. Assume a 30% tax rate. b. Determine net cash
Rusthe Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 74 units were sold. Instructions Calculate the ending inventory at May 31 using
Mather sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Mather’s purchases of EZslide snowboards during September. During the same month, 102
a. Jeri Company sells three different categories of tools (small, medium and large). The cost and net realizable value of its inventory of tools are as follows. Determine the value of the
Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley, Inc.: ending inventory $155,377, beginning to inventory $119,035,
Sunnyside Marine Products began the year with 10 units of marine fl oats at a cost of $11 each. During the year, it made the following purchases: May 5, 30 unit at $16; July 16, 15 units at $19; and
The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available at the company’s website.
Matilda Company reported the following amounts (in euros) in 2022: Net income, €150,000; Unrealized gain related to the revaluation of buildings, €10,000; and Unrealized loss on non-trading
Three years ago, Karen Suez and her brother-in-law Reece Jones opened Gigasales Department Store. For the first 2 years, business was good, but the following condensed income statement results for
The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions a. Based on the
The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions a. Based on the
The financial statements for Apple Inc. are presented in Appendix A. Instructions Answer these questions using the Statement of Operations. a. What was the percentage change in net
On November 1, 2022, IKonk, Inc. had the following account balances. The company uses the perpetual inventory method. During November, the following summary transactions were
On December 1, 2022, Devine Distributing Company had the following account balances. During December, the company completed the following summary transactions. Dec. 6 Paid $1,600 for
At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $2,500, Inventory $3,500, and Common Stock $6,000. The following transactions occurred during
Zhou Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all inventory on credit and uses a periodic inventory system. The
At the end of Oates Department Store’s fiscal year on November 30, 2022, these accounts appeared in its adjusted trial balance. Additional facts: 1. Inventory on November 30, 2022, is
The trial balance of People’s Choice Wholesale Company contained the following accounts shown at December 31, the end of the company’s fiscal year. Adjustment data: 1. Depreciation is
An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years. As an experienced, knowledgeable
Wolford Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city
At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $2,500, Inventory $3,500, and Common Stock $6,000. The following transactions were completed
Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters’ ledger showed Cash of $8,000 and Common Stock of $8,000. May 1
The following selected accounts from the Blue Door Corporation’s general ledger are presented below for the year ended December 31, 2022: InstructionsPrepare a multiple-step income statement.
At December 31, 2022, Highland Corporation estimates that goods with a selling price of $4,700 and a cost of $1,870 that were sold on account during the current period will be returned during the
Below is a series of cost of goods sold sections for companies B, M, O, and S. Instructions Fill in the lettered blanks to complete the cost of goods sold sections. Beginning inventory
The trial balance of Mendez Company at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventory $18,700, Purchases $154,000, Sales Revenue $190,000, Freight-In
In its income statement for the year ended December 31, 2022, Laine Inc. reported the following condensed data. Instructions a. Prepare a multiple-step income statement. b. Prepare a
Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions). Instructions a. Prepare a multiple-step
In its income statement for the year ended December 31, 2022, Darren Company reported the following condensed data.Instructions a. Prepare a multiple-step income statement. b. Calculate the
Presented below is information for Lieu Co. for the month of January 2022. Instructions a. Prepare an income statement using the format presented in Illustration 5.12.b. Prepare a
Jean Karns is the new owner of Jean’s Computer Services. At the end of July 2022, her first month of ownership, Jean is trying to prepare monthly financial statements. She has the following
The ledger of Umatilla, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries. An analysis of the accounts shows the following. 1. Insurance expires at
Using the data in BE4.15 , identify the accounts that would be included in a post closing trial balance. Data from BE 4. 15The following selected accounts appear in the adjusted trial balance
Partial adjusted trial balance data for Levin Corporation are presented in BE4.13. The balance in Retained Earnings is the balance as of January 1. Prepare a retained earnings statement for the year
The adjusted trial balance of Levin Corporation at December 31, 2022, includes the following accounts: Retained Earnings $17,200, Dividends $6,000, Service Revenue $32,000, Salaries and Wages Expense
At December 31 of the current year, Cullen Corporation had a number of items that were not reflected in its accounting records. Maintenance and repair costs of $770 were incurred but not paid.
The bookkeeper for Tran Company asks you to prepare the following accrual adjusting entries at December 31. Use these account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest
The unadjusted trial balance of Northern Exposure Inc. had these balances for the following select accounts: Supplies $3,100, Unearned Service Revenue $8,200, and Prepaid Rent $1,200. At the end of
Using the data in BE4.7 , journalize and post the entry on July 1 and the adjusting entry on December 31 for Marsh Insurance Co. Marsh uses the accounts Unearned Service Revenue and Service
On July 1, 2022, Ling Co. pays $12,400 to Marsh Insurance Co. for a 2-year insurance contract. Both companies have fiscal years ending December 31. For Ling Co., journalize and post the entry on July
Lahey Advertising Company’s trial balance at December 31 shows Supplies $8,800 and Supplies Expense $0. On December 31, there are $1,100 of supplies on hand. Prepare the adjusting entry at December
This activity provides information about career opportunities for CPAs. Instructions Search the Internet for “start here go places” to access free accounting resources for future CPAs
The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions.a. Based on the
The financial statements of Apple Inc. in Appendix A contain the following selected accounts, all in thousands of dollars. Instructions a. What is the increase and decrease side for each
On July 31, 2022, the general ledger of Hills Legal Services Inc. showed the following balances: Cash $4,000, Accounts Receivable $1,500, Supplies $500, Equipment $5,000, Accounts Payable $4,100,
Ayala Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred: Apr. 1 Stockholders
Bindy Crawford created a corporation providing legal services, Bindy Crawford Inc., on July 1, 2022. On July 31 the balance sheet showed Cash $4,000, Accounts Receivable $2,500, Supplies $500,
Nona Curry started her own consulting firm, Curry Consulting Inc., on May 1, 2022. The following transactions occurred during the month of May. May 1 Stockholders invested $15,000
The tabular analysis of transactions for Wolfe Company is presented in E3.4. Instructions Prepare an income statement and a retained earnings statement for August and a classified balance
A tabular analysis of the transactions made during August 2022 by Wolfe Company during its first month of operations is shown as follows. Each increase and decrease in stockholders’ equity is
During 2022, its first year of operations as a delivery service, Persimmon Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $100,000
Brady Company entered into these transactions during May 2022, its first month of operations. 1. Stockholders invested $40,000 in the business in exchange for common stock of the
The following accounts are taken from the ledger of Chillin’ Company at December 31, 2022. Prepare a trial balance in good form. Notes Payable Common Stock Equipment Cash $20,000 25,000 $6,000
Transactions made by Mickelson Co. for the month of March are shown below. Prepare a tabular analysis that shows the effects of these transactions on the expanded accounting equation, similar to that
An inexperienced bookkeeper prepared the following trial balance that does not balance. Prepare a correct trial balance, assuming all account balances are normal. Birellie Company Trial Balance
From the ledger balances below, prepare a trial balance for Peete Company at June 30, 2022. All account balances are normal. Accounts Payable Cash Common Stock Dividends Equipment Service
For each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance. a. Bonds Payable. b. Unearned Service Revenue. c. Depreciation
During 2022, Rostock Company entered into the following transactions. 1. Purchased equipment for $286,176 cash. 2. Issued common stock to investors for $137,590 cash. 3. Purchased
During 2022, Manion Corp. entered into the following transactions. 1. Borrowed $60,000 by issuing bonds. 2. Paid $9,000 cash dividend to stockholders. 3. Received $13,000 cash from a
The following information is available for Lessila Bowling Alley at December 31, 2022. Prepare a classified statement of financial position. Assume that $13,900 of the notes payable will be paid
The following list of terms or phrases are discussed in this chapter.1. Free cash flow 2. Securities and Exchange Commission (SEC) 3. Solvency 4. Financial Accounting Standards Board
Micado Corporation was formed on January 1, 2022. At December 31, 2022, Miko Liu, the president and sole stockholder, decided to prepare a balance sheet, which appeared as follows. Miko
On June 1, 2022, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2022, and the
headquartered in San Francisco, is one of the nation’s largest financial institutions. Suppose it reported the following selected accounts (in millions) as of December 31, 2022. Retained
Grouper Company provides you with the following balance sheet information as of December 31, 2022 In addition, Grouper reported net income for 2022 of $16,000, income tax expense of $3,200, and
a. Smiley Corporation issues $300,000 of bonds for $315,000. (i) Prepare the journal entry to record the issuance of the bonds, and (ii) show how the bonds would be reported on the balance sheet at
Harvard Inc. issues $4 million, 5-year, 8% bonds at 102, with interest payable on January 1. The straight-line method is used to amortize bond premium. a. Prepare the journal entry to record the
Alpine Company issues $2 million, 10-year, 7% bonds at 99, with interest payable on December 31. The straight-line method is used to amortize bond discount. a. Prepare the journal entry to
Suppose the 2022 adidas financial statements contain the following selected data (in millions). Compute the following values and provide a brief interpretation of each. a. Working
Presented here are liability items for O’Brian Inc. at December 31, 2022. Prepare the liabilities section of O’Brian’s balance sheet. FICA taxes payable Interest payable Notes payable
Presented here are long-term liability items for Stevens Inc. at December 31, 2022. Prepare the long-term liabilities section of the balance sheet for Stevens Inc. Bonds payable (due
The balance sheet for Gelher Company reports the following information on July 1, 2022. Gelher decides to redeem these bonds at 102 after paying annual interest. Prepare the journal entry to
Clooney Corporation issued 3,000 7%, 5-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. a. Prepare the journal entry to record the sale of these bonds on
Ravine Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2022.
Bridle Inc. issues $300,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022.
The following words and phrases were discussed in this chapter. 1. Notes receivable. 2. Cash (net) realizable value. 3. Accounts receivable turnover. 4. Aging the accounts
The following ratios are available for Ming Inc. Instructions a. Is Ming’s short-term liquidity improving or deteriorating in 2022? Be specifi c in your answer, referring to relevant
Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportation/delivery company.Instructions Answer each of the following
Eileen Corp. had the following balances in receivable accounts at October 31, 2022 (in thousands): Allowance for Doubtful Accounts $52, Accounts Receivable $2,910, Other Receivables $189, and Notes
Vandiver Company had the following select transactions. Apr. 1, 2022 Accepted Goodwin Company’s 12-month, 6% note in settlement of a $30,000 account receivable. July 1, 2022 Loaned
These transactions took place for Bramson Co. 2021 May 1 Received a $5,000, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney.Dec. 31 Accrued interest
On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,400, Dallas Co. estimates that 9% of its accounts receivable balance of $90,000 will become uncollectible and
Godfreid Company has accounts receivable of $95,400 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to
Assume the following information for Larry Corp. Accounts receivable (beginning balance)...........$142,000 Allowance for doubtful accounts (beginning balance) ...........11,360 Net

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