Questions and Answers of Fundamental Accounting Principles 25th

Gomez Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Prepare a purchases journal like the one in Exhibit 7.9. Journalize the
Li Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Prepare a cash receipts journal like the one in Exhibit 7.7. Journalize the
Marx Supply uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Prepare a cash payments journal like the one in Exhibit 7.11. Journalize the
Refer to Exercise 7-7 and for each of the transactions identify the journal in which it would be recorded.Assume the company uses a sales journal, purchases journal, cash receipts journal, cash
Smith Auto uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize its transactions that should be recorded in the general journal. For
Greenleaf Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Prepare a cash payments journal like the one in Exhibit 7.11. Journalize
Following is a cash receipts journal and a partial chart of accounts for a company. For each posting reference a through k, enter (1) An x for an amount not individually posted, (2) A ✓
Following are (1) two transactions involving a customer as reported in the accounts receivable subsidiary ledger and (2) two transactions involving a supplier as reported in the accounts payable
The following T-accounts show postings of selected transactions. Indicate the journal used in recording each of these postings a through e. Cash Accounts Receivable Inventory (d) 500 (e) 300 (b)
Warton Company posts individual sales to the accounts receivable subsidiary ledger immediately. At the end of each month, Warton posts the end-of-month totals to the general ledger.1. Open an
The following companies are competitors in the same industry and have many of the same suppliers. (a) Calculate days’ payable outstanding for each of the following companies (round to one
Santana Rey receives the March bank statement for Business Solutions on April 11, 2022. The March 31 bank statement shows an ending cash balance of $67,566. The general ledger Cash account, No. 101,
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 28, 2019, (b)
Key comparative figures for Apple and Google follow.Required 1. Compute days’ sales uncollected (rounded to one decimal) for the current year and the prior year for (a) Apple (b)
Key figures for Samsung follow.Required 1. Compute cash and cash equivalents as a percent (rounded to one decimal) of total current assets, total assets, total current liabilities, and total
Review the opening feature of this chapter that highlights Jean Liu and Review the opening feature of this chapter that highlights Jean Liu and Didi Chuxing (or DiDi).The company plans to open a
Anna’s Cookies combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported for cash and cash equivalents.. $100 in coins held in store
Franco Co.’s recordkeeper left town after the manager discovered that a large sum of money had been stolen. The recordkeeper had written and signed several checks made payable to her fiancé and
Recommend an internal control procedure for each situation: (a) A concession company has one employee who sells towels, coolers, and sunglasses at the beach. Each day, the employee is given
Use the following information to prepare the current assets section of Lima Company’s classified balance sheet as of December 31. Adjusted Trial Balance Cash and equivalents Accounts receivable
Use the following accounts with normal balances to prepare Bosco Company’s classified balance sheet as of December 31. Merchandise inventory.... $ 3,000 Land ... $24,000 Accounts receivable.. 5,000
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
General Ledger (GL) Assignments expose students to general ledger software similar to that in practice.GL is part of Connect, and GL assignments are auto-gradable and have algorithmic options.GL 9-1
Refer to the information in Exercise 9-18 and prepare the journal entries for the following year for Danica Company.Data From Exercise 9-18Prepare journal entries for the following transactions of
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
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
Selected ledger account balances for Business Solutions follow.Required1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2022. Compute amounts
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
A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce
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 receivable.31.
Prepare journal entries to record the following transactions of Namco.April 1. Accepted a $5,000, 90-day, 4% note from Travis in granting a time extension on his past-due account receivable.June 30.
On December 31, Jarden Co.’s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.Required1. Compute
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
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 28, 2019?2. Compute Apple’s accounts receivable
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
Flynn Co. determines that it cannot collect $7,000 of its accounts receivable from its customer, MDC. Record the journal entry required of Flynn under (a) The direct write-off method
Prepare journal entries for Sal Co. to record the following under (a) the direct write-off method and (b) the allowance method.May 3. Sal Co. determines that it cannot collect its accounts receivable
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible. Prepare the
Daley Company prepared the following aging of receivables analysis at December 31.a. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable.b. Prepare the
Refer to the information in Exercise 9-14 to complete the following requirements.a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts
Key comparative figures for Apple and Google follow.1. What is the debt ratio for Apple in the current year and for the prior year? 2. What is the debt ratio for Google in the current year and
1. Use the following information to complete the Adjustments columns of the work sheet. a. Depreciation on equipment, $3 d. Supplies available at December 31, $15 b. Accrued salaries,
The adjusted trial balance for Anara Co. on December 31 of the current year follows. Petra Anara invested $40,000 cash in the business during the year. The P. Anara, Capital account balance was
The adjusted trial balance of Karise Repairs on December 31 follows.Required1. Prepare an income statement and a statement of owner’s equity for the year, and a classified balance sheet at December
Set up T-accounts for the following accounts and amounts with normal balances as of December 31: K. Korver, Capital $18,000; K. Korver, Withdrawals $2,000; Services Revenue
Ace Company reports revenues of $40,000 and expenses of $31,000. The owner made no additional investments during the period but withdrew $5,000 cash from the business. After closing entries are
Using Wilson Trucking Company’s adjusted trial balance from E 4-10, prepare its December 31 closing entries.Data From Exercise 4-10Use the following adjusted trial balance at December 31 of Wilson
Following are accounts and year-end adjusted balances of Cruz Company as of December 31.1. Prepare the December 31 closing entries. The account number for Income Summary is 901.2. Prepare the
Use the following selected accounts and amounts with normal balances from Buildex Co.’s adjusted trial balance to prepare its income statement for the year ended December 31. Cash $ 9,000 $ 4,000
Use the following selected accounts and amounts with normal balances from Andrea Co. to prepare its classified balance sheet at December 31. $ 8,000 30,000 13,000 Accounts payable Accounts
J. Clancy owns Clancy Consulting. On December 31 of the prior year, the J. Clancy, Capital account balance was $20,000. During the current year, Clancy invests an additional $15,000 in assets but
Use the following selected accounts and amounts with normal balances from Juan Co. to prepare its classified balance sheet at December 31. Wages payable.. $ 1,000 Accounts receivable.. $ 7,000
Hawk Company used the following information to prepare adjusting entries at its December 31 year-end.Prepare any necessary reversing entries for accounting adjustments a through e assuming that the
Trey Co. entered into the following two transactions. Trey prepares financial statements annually at December 31.a. Trey rents a building for $2,800 per month beginning December 1. By agreement, Trey
Geralt Company made an adjusting entry at its December 31 year-end for $800 of wages earned by employees but not yet paid. Geralt uses reversing entries. Prepare the reversing entry Geralt must
Santana Rey created Business Solutions on 31, 2021. Santana The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set
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
Valley Company’s adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: Sales Salaries Expense,
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
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
1. At year-end, Barr Co. had shipped $12,500 of merchandise FOB destination to Lee Co. Which company should include the $12,500 of merchandise in transit as part of its year-end inventory?2. Parris
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 28, 2019? (b) On
Refer to the information in Problem 6-1A and assume the periodic inventory system is used.Required1. Compute cost of goods available for sale and the number of units available for sale.2. Compute the
Refer to the information in Problem 6-1B and assume the periodic inventory system is used.Required1. Compute cost of goods available for sale and the number of units available for sale.2. Compute the
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
Key figures for Samsung follow.Required1. For the most recent two years, compute Samsung’s (a) Inventory turnover (b) Days’ sales in inventory.2. Is the change in Samsung’s inventory
Refer to sales and purchases data from Exercise 6-3 and record journal entries for Laker Company’s sales and purchases transactions. Assume for this assignment that the company uses a perpetual
Refer to the information in Problem 6-3A and assume the periodic inventory system is used.Required1. Compute cost of goods available for sale and the number of units available for sale.2. Compute the
Refer to the information in Problem 6-3B and assume the periodic inventory system is used.Data From Problem 6-3BAloha Company uses a perpetual inventory system. It entered into the following
Use the data in Exercise 6-3 to compute gross profit for the month of January for Laker Company similar to that in Exhibit 6.8 for the four inventory methods.1. Which method yields the highest gross
Review the chapter’s opening feature highlighting Jeff Bezos and Whole Foods. Assume that the business consistently maintains an inventory level of $30,000, meaning that its average and ending
Refer to the information in Exercise 6-3 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using (a) Specific
Use the data and results from Exercise 6-6A to compute gross profit for the month of January for the company similar to that in Exhibit 6.8 for the four inventory methods.Required1. Which method
Refer to the information in Exercise 6-8 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c)
Refer to the information in QS 6-11 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method.Data From QS
Refer to sales and purchases data from Exercise 6-11 and record journal entries for Tree Seedlings’s sales and purchases transactions. Assume for this assignment that the company uses a perpetual
Refer to the information in Exercise 6-11 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c)
Refer to the information in QS 6-11 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on specific identification. Of
Refer to the information in QS 6-11 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.Data From QS
Refer to the information in QS 6-11 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method.Data From QS
Refer to the information in QS 6-11 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on specific identification. Of the
In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventory by $10,000. Determine how this error affects each of the following.a.
Assume that Santana Rey expands Business Solutions’s system to include special journals.Required1. Locate the transactions related to January through March 2022 for Business Solutions in Chapter
Refer to Apple’s financial statements in Appendix A. 1. What amount of accounts payable did Apple report on (a) September 28, 2019? (b) On September 29, 2018?2. Compute days’ payable
Key figures for Apple and Google follow.Required 1. Compute days’ payable outstanding for each company for the most recent two years. 2. For the current year, which company took more time to
SP 1 On October 1, 2021, Santana Rey launched a computer services company, Business Solutions, that is organized as a proprietorship and provides consulting services, computer system installations,
Key financial figures for Apple’s two most recent fiscal years follow. Required 1. What is the total amount of assets invested in Apple in the current year? 2. What is Apple’s
Key comparative figures for both Apple and Google follow. Required 1. What is the total amount of assets invested for the current year in (a) Apple and (b) Google? 2. What is the
Refer to Apple’s financial statements in Appendix A. Assume that the owners, sometime during their first five years of business, desire to expand their computer product services to meet business
Part A. Identify the following questions as most likely to be asked by an Internal user or an External user of accounting information. 1. Which inventory items are out of stock? 2. Should
Samsung is a leading global manufacturer that competes with Apple and Google. Key financial figures for Samsung follow. Required 1. What is the return on assets for Samsung in the (a)
Use the information in Problem 1-3A to prepare the statement of owner’s equity for Armani Company for the current year ended December 31.Data From Problem 1-3AAs of December 31 of the current year,
Use the information in Problem 1-3B to prepare the statement of owner’s equity for Audi Company for the current year ended December 31. Data From Problem 1-3BAs of December 31 of the current
Use the information in Problem 1-3A to prepare the current year-end balance sheet for Armani Company.Data From Problem 1-3AAs of December 31 of the current year, Armani Company’s records show the
Complete the following table with either a yes or no regarding the attributes of a sole proprietorship, partnership, corporation, and limited liability company (LLC). Attribute Present Sole
Determine whether each of the following transactions increases or decreases equity. a. Owner invested cash in the company. b. Incurredc. Performed services for a client. b. Incurred
What are some accounting-related professions?
a. At the beginning of the year, Addison Company’s assets are $300,000 and its equity is $100,000. During the year, assets increase $80,000 and liabilities increase $50,000. What is the equity at
a. On January 1, Lumia Company’s liabilities are $60,000 and its equity is $40,000. On January 3, Lumia purchases and installs solar panel assets costing $10,000. For the panels, Lumia pays $4,000
On December 31, Hawkin’s records show the following accounts. Use this information to prepare a December income statement for Hawkin. $ 5,100 Accounts payable.... $ 6,000 Wages expense. Rent

Showing 1100 - 1200 of 1250