New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
financial accounting
Financial Accounting 5th edition David Spiceland, Wayne M. Thomas, Don Herrmann - Solutions
The following information relates to the intangible assets of University Testing Services (UTS):a. On January 1, 2021, UTS completed the purchase of Heinrich Corporation for $3,510,000 in cash. The fair value of the net identifiable assets of Heinrich was $3,200,000.b. Included in the assets
The following information relates to the intangible assets of Lettuce Express:a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,600,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,440,000.b. Included in the assets
Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021: Solich purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. The
Tasty Subs acquired a delivery truck on October 1, 2021, for $21,600. The company estimates a residual value of $1,200 and a six-year service life.Required:Calculate depreciation expense using the straight-line method for 2021 and 2022, assuming a December 31 year-end.
Piper’s Pizza sold baking equipment for $25,000. The equipment was originally purchased for $72,000, and depreciation through the date of sale totaled $51,000. What was the gain or loss on the sale of the equipment?
Tasty Subs acquired a delivery truck on October 1, 2021, for $21,500. The company estimates a residual value of $2,500 and a six-year service life. It expects to drive the truck 100,000 miles. Actual mileage was 5,000 miles in 2021 and 19,000 miles in 2022. Required:Calculate depreciation
Masterson Supply purchased a small storage building for $20,000 to be used over a five-year period. The building has no residual value. Early in the fourth year, the storage building burned down. Record the retirement of the remaining book value of the storage building.
On August 31, 2021, 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, and checks written by the academy but not yet processed by the bank total $1,425. The company’s balance of cash does not
Assume selected financial data for Walmart and Target, two close competitors in the retail industry, are as follows: Required:1. Calculate the receivables turnover ratio and average collection period for Walmart and Target. Round your answers to one decimal place. Which company has better
Pete?s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August: Required:1. Calculate ending inventory and cost of goods sold at August 31, using the specific identification method. The August 4 sale consists of rackets from beginning
On June 5, Staley Electronics purchases 200 units of inventory on account for $19 each, with terms 2/10, n/30. Staley pays for the inventory on June 12.Required:1. Record transactions for the purchase of inventory and payment on account using a perpetual system.2. Now assume payment is made on June
Creative Technology reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Calculate the total amount to be reported for ending inventory. Unit Cost $45 55 Inventory Optima cameras Inspire speakers Quantity Unit NRV $75 45
Lewis Incorporated and Clark Enterprises report the following amounts for the year. Required:1. Calculate cost of goods sold for each company.2. Calculate the inventory turnover ratio for each company.3. Calculate the average days in inventory for each company.4. Explain which company appears to
Using the amounts below, calculate the inventory turnover ratio, average days in inventory, and gross profit ratio. Net sales Cost of goods sold Beginning inventory Ending inventory $250,000 180,000 55,000 45,000
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000 and then sells this inventory on account on March 17 for $60,000. Record transactions for the purchase and sale of inventory.But now assume that Shankar
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000. In addition to the cost of inventory, the company also pays $600 for freight charges associated with the purchase on the same day. Record the purchase of
Shankar Company uses a perpetual system to record inventory transactions. The company purchases 1,500 units of inventory on account on February 2 for $60,000 ($40 per unit) but then returns 100 defective units on February 5. Record the inventory purchase on February 2 and the inventory return on
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000, with terms 3/10, n/30. On February 10, the company pays on account for the inventory. Record the inventory purchase on February 2 and the payment on
Mulligan Corporation purchases inventory on account with terms FOB shipping point.The goods are shipped on December 30, 2021, but do not reach Mulligan until January 5, 2022.Mulligan correctly records accounts payable associated with the purchase but does not include this inventory in its 2021
During the year, TRC Corporation has the following inventory transactions. For the entire year, the company sells 450 units of inventory for $70 each. Required:1. Using FIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.2. Using LIFO, calculate
Ebbers Corporation overstated its ending inventory balance by $15,000 in the current year. What impact will this error have on cost of goods sold and gross profit in the current year and following year?
On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: The $30,000 beginning balance of inventory consists of 300 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions:January 3 Purchase 1,200
Ebbers Corporation overstated its ending inventory balance by $15,000 in the current year. What impact will this error have on cost of goods sold and gross profit in the current year and following year?What impact will this error have on ending inventory and retained earnings in the current year
For each company, calculate the missing amount. Cost of Goods Sold Sales Revenue Operating Expenses $3,500 Company Gross Profit Net Income $18,000 20,000 13,000 16,000 Lennon Harrison McCartney Starr (a) $11,000 9,000 6,000 $8,000 $4,500 (b) 4,000 10,000 6,000 (c) 6,500 1,500 (d)
Tisdale Incorporated reports the following amount in its December 31, 2021, income statement. Required:1. Prepare a multiple-step income statement.2. Explain how analyzing the multiple levels of profitability can help in understanding the future profit-generating potential of Tisdale
Wayman Corporation reports the following amounts in its December 31, 2021, income statement. Required:Prepare a multiple-step income statement. $ 50,000 $390,000 Income tax expense Sales revenue Interest expense 130,000 20,000 Cost of goods sold Advertising expense Salaries expense 40,000 30,000
T. L. Jones Trucking Services establishes a petty cash fund on April 3 for $200. By the end of April, the fund has a cash balance of $97. The company has also issued a credit card and authorized its office manager to make purchases. Expenditures for the month include the following items:Utilities
The cash records and bank statement for the month of July for Glover Incorporated are shown below. Additional information:a. The difference in the beginning balances in the company?s records and the bank statement relates to check #530, which is outstanding as of June 30, 2021.b. Check #533 is
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 Bank to provide her with a six-month bank statement.To save time, Suzie makes deposits at the bank
Midshipmen Company borrows $15,000 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2022. (1) Record the borrowing for Midshipmen on July 1, 2021. (2) Record the adjusting entry for Midshipmen on December 31,
Below are transactions for Wolverine Company during 2021.1. On December 1, 2021, Wolverine receives $4,000 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue.2. Wolverine purchases a one-year
Boilermaker House Painting Company incurs the following transactions for September.1. September 3 Paint houses in the current month for $20,000 on account.2. September 8 Purchase painting equipment for $21,000 cash.3. September 12 Purchase office supplies on account for $3,500.4. September 15 Pay
RiverHawk Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in 2021, RiverHawk has the following account balances. The following transactions occur during December 2021: December 1 Pay rent for mountain lodges for the month of December,
Omaha Beef Co. purchased a delivery truck for $50,000. The residual value at the end of an estimated eight-year service life is expected to be $10,000. The company uses straight-line depreciation for the first six years. In the seventh year, the company now believes the truck will be useful for a
Powder Ski Shop reports inventory using the lower of cost and net realizable value (NRV). Information related to its year-end inventory appears below. Calculate the total amount to be reported for ending inventory. Quantity Inventory Unit Cost Unit NRV Ski jackets Skis $ 95 $115 20 25 300 350
El Tapitio purchased restaurant furniture on September 1, 2021, for $45,000. Residual value at the end of an estimated 10-year service life is expected to be $6,000. Calculate depreciation expense for 2021 and 2022, using the straight-line method, and assuming a December 31 year-end.
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000, with terms 3/10, n/30. On February 10, the company pays on account for the inventory. Record the inventory purchase on February 2 and the payment on
Betty Foods has separate patents for its chocolate chip cookie dough and vanilla ice cream. In the current year, both patents were challenged in court. Betty Foods spent $240,000 in legal fees to successfully defend its cookie dough, and $300,000 in legal fees in an unsuccessful defense of its
Shankar Company uses a perpetual system to record inventory transactions. The company purchases 1,500 units of inventory on account on February 2 for $60,000 ($40 per unit) but then returns 100 defective units on February 5. Record the inventory purchase on February 2 and the inventory return on
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000. In addition to the cost of inventory, the company also pays $600 for freight charges associated with the purchase on the same day. Record the purchase of
Finley Co. is looking for a new office location and sees a building with a fair value of $400,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $80,000. Finley offers to buy both
For each item below, indicate whether FIFO or LIFO will generally result in a higher reported amount when inventory costs are rising versus falling. The first answer is provided as an example. Higher Cost of Goods Sold Higher Total Assets Higher Net Income Inventory Costs Rising Declining FIFO
Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book.Required:1. Which company carries a greater inventory balance as a percentage of total assets?2. Which company has a
At the beginning of November, Yoshi Inc.’s inventory consists of 60 units with a cost per unit of $94. The following transactions occur during the month of November.November 2 Purchase 90 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30.November 3 Pay cash for
Trends by Tiffany sells high-end leather purses. The company has the following inventory transactions for the year. Required:1. Using FIFO, calculate ending inventory and cost of goods sold.2. Using LIFO, calculate ending inventory and cost of goods sold.3. Because trends in purses change
Horizon Corporation manufactures personal computers. The company began operations in 2012 and reported profits for the years 2012 through 2019. Due primarily to increased competition and price slashing in the industry, 2020’s income statement reported a loss of $20 million. Just before the end of
During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO. Transaction Date Number of Units 60 250 200
During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. Transaction Date Number of Units 60 250 200
Bingerton Industries began the year with inventory of $85,000. Purchases of inventory on account during the year totaled $310,000. Inventory costing $335,000 was sold on account for $520,000.Required:Record transactions for the purchase and sale of inventory using a perpetual system.
Baskin-Robbins is one of the world?s largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso ?n Cream. Assume that a local Baskin-Robbins in Raleigh, North Carolina, has the following amounts for the month of July
Toys ?R? Us sells a variety of children?s toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2021.Required:1. Prepare a multiple-step income statement for the month ended March 31, 2021.2. Calculate the inventory turnover ratio for the
During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO. Calculate ending inventory and cost of goods
On June 5, Staley Electronics purchases 200 units of inventory on account for $20 each.After closer examination, Staley determines 40 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $35 each.Required:Record
Payless ShoeSource and Dillard?s both offer men?s formal footwear. Payless offers lower- to middle-priced footwear, whereas Dillard?s offers more specialized, higher-end footwear. The average price for a pair of shoes in Payless may be about $50, whereas the average price in Dillard?s may be about
During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. Calculate ending inventory and cost of goods
Over a four-year period, Jackie Corporation reported the following series of gross profits. In 2021, the company performed a comprehensive review of its inventory accounting procedures. Based on this review, company records reveal that ending inventory was understated by $11,000 in 2019.
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Sylvester uses a periodic inventory system and believes there are
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000 and then sells this inventory on account on March 17 for $60,000. Record transactions for the purchase and sale of inventory.
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report
Jimmie?s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June: Required:1. Calculate ending inventory and cost of goods sold at June 30, using the specific identification method. The June 7 sale consists of fishing reels from beginning
Sandra?s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Required:1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning
On April 1, 2021, 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 has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to
Describe the year-end adjustment to the allowance for uncollectible accounts in the year subsequent to establishing it
Brady is hired in 2021 to be the accountant for Anderson Manufacturing, a private company. At the end of 2021, the balance of Accounts Receivable is $29,000. In the past, Anderson has used only the direct write-off method to account for bad debts. Based on a detailed analysis of amounts owed,
Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the end of 2021, its balance for Accounts Receivable is $35,000. The company estimates that of this amount, $4,000 is not likely to be collected in 2022. In 2022, the actual
At the beginning of 2021, Brad’s 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 to account for uncollectible accounts. However, at the end of 2021, BHA wishes to obtain a loan
At the end of 2021, 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 in 2022. In 2022, however, one customer owing $2,000 becomes a bad debt on March 14. Record the
The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $110,000; Allowance for Uncollectible Accounts = $4,000 (debit). The center estimates
Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $70,000; Allowance for Uncollectible Accounts = $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Required: 1. Estimate the
How does accounting for uncollectible accounts affect the amount reported for net accounts receivable?
On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the services, the customer signs a three-year, 10% note. The face amount is due at the end of the third year, while annual interest is due each December 1.Required:1. Record the acceptance of the note on
Humanity International sells medical and food supplies to those in need in underdeveloped countries. Customers in these countries are often very poor and must purchaseitems on account. At the end of 2021, total accounts receivable equal $1,300,000. The company understands that it’s dealing with
On April 15, 2021, Sampson Consulting provides services to a customer for $110,000. To pay for the services, the customer signs a three-year, 12% note. The face amount is due at the end of the third year, while annual interest is due each April 15. (Hint: Because the note is accepted during the
In an effort to boost sales in the current year, Roy?s Gym has implemented a new program where members do not have to pay for their annual membership until the end of the year. The program seems to have substantially increased membership and revenues. Below are year-end amounts. Arnold, the owner,
Refer to the information in BE5–8, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $3,000 (debit). The company still estimates future uncollectible accounts to be $15,000. What is the adjustment Dahir would record for Allowance for Uncollectible
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.June 12, 2021 Provide services to customers on account for $41,000. September 17, 2021 Receive $25,000 from customers on account.December 31, 2021 Estimate that 45% of accounts
At the beginning of the year, Bryers Incorporated reports inventory of $8,000. During the year, the company purchases additional inventory for $23,000. At the end of the year, the cost of inventory remaining is $10,000. Calculate cost of goods sold for for the year.
Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $130,000; Allowance for Uncollectible Accounts = $2,100 (debit). On December 31, 2021, Southwest estimates uncollectible accounts to be 20% of accounts receivable.Required:1. Record
Physicians’ Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $60,000; Allowance for Uncollectible Accounts = $1,100 (credit). On December 31, 2021, Physicians’ estimates uncollectible accounts to be 15% of accounts receivable.Required:1.
During 2021, its first year of operations, Pave Construction provides services on account of $160,000. By the end of 2021, cash collections on these accounts total $110,000. Pave estimates that 25% of the uncollected accounts will be uncollectible. In 2022, the company writes off uncollectible
Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company’s accounting manager provides Willie with the following information, before any adjustment. Using estimates of uncollectible accounts to overstate
Letni Corporation engages in the manufacture and sale of semiconductor chips for the computing and communications industries. During the past year, operating revenues remained relatively flat compared to the prior year but management notices a big increase in accounts receivable. The increase in
Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2021, Pearl provides services on account of $590,000. Of this amount, $80,000 remains receivable at the end of the year. An aging schedule as of December 31, 2021, is provided below. Required:1. Calculate the allowance
Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, the company provides services of $410,000 on account. Of this amount, $60,000 remains uncollected at the end of the year. An aging schedule as of December 31, 2021, is
The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations.February 2, 2021 Provide services to customers on account for $38,000.July 23, 2021 Receive $27,000 from customers on account.December 31, 2021 Estimate that 25% of uncollected accounts will
Kelly’s Jewelry has the following transactions during the year: total jewelry sales = $750,000; sales discounts = $20,000; sales returns = $50,000; sales allowances = $30,000. In addition, at the end of the year the company estimates the following transactions associated with jewelry sales in the
Data Recovery Services (DRS) specializes in data recovery from crashed hard drives. The price charged varies based on the extent of damage and the amount of data being recovered. DRS offers a 10% discount to students and faculty at educational institutions. Consider the following transactions
Assume the following scenarios.Scenario 1: During 2021, IBM provides consulting services on its mainframe computer for $11,000 on account. The customer does not pay for those services until 2022.Scenario 2: On January 1, 2021, Gold’s Gym sells a one-year membership for $1,200 cash.Normally, this
Tony and Suzie are ready to expand Great Adventures even further in 2022. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such
Assume the following scenarios.Scenario 1: During 2021, The Hubbard Group provides services of $900,000 for repair of a state highway. The company receives an initial payment of $300,000 with the balance to be received the following year.Scenario 2: Rolling Stone magazine typically charges $80 for
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 company?s cash ledger for the month ending February 28, 2021. Information from February?s bank statement
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 bank statement relates to checks #469 and #470, which are outstanding as of April 30, 2021 (prior
Below is a summary of all transactions of Pixar Toy Manufacturing for the month of August 2021. Required:Prepare a statement of cash flows for the month of August 2021, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the
Spielberg Company’s general ledger shows a checking account balance of $22,970 on July 31, 2021. The July cash receipts of $1,885, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July
On October 31, 2021, Damon Company’s general ledger shows a checking 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 bank. In addition, the company has written checks for $72,467, of which $70,982 has been processed
Smith Law Firm specializes in the preparation of wills for estate planning. On October 1, 2021, the company begins operations by issuing stock for $11,000 and obtaining a loan from a local bank for $35,000. By the end of 2021, the company provides will preparation services of $42,000 cash and pays
For each company, calculate the ratio of cash to non-cash assets. Total Assets Total Liabilities Cash Tuohy Incorporated Oher Corporation $4,200 $3,500 $23,400 $25,700 $3,600 $6,200
Below are amounts (in millions) for Glasco Company and Sullivan Company.Both companies have total revenues of $2,500, $3,000, and $3,500 in each year.Required:Make a prediction as to which firm will have the higher ratio of cash to noncash assets at the end of year 3. Year 123 GLASCO COMPANY
You may refer to the opening story of Tony and Suzie and their decision to start Great Adventures in AP 1–1. More of their story and the first set of transactions for the company in July are presented in AP 2–1 and repeated here.July 1 Sell $10,000 of common stock to Suzie.1 Sell $10,000 of
Fighting Irish Incorporated pays its employees $5,600 every two weeks ($400/ day). The current two-week pay period ends on December 28, 2021, and employees are paid $5,600. The next two-week pay period ends on January 11, 2022, and employees are paid $5,600. (1) Record the adjusting entry on
Showing 4300 - 4400
of 7094
First
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Last
Step by Step Answers
Get 50% OFF
Claim Now
