Questions and Answers of Horngrens Accounting 11th Canadian

Singleton Sports Products, which uses the perpetual inventory system, has the following account balances (in alphabetical order) on August 31, 2023:Additional data at August 31, 2023:a. A physical
Items from the accounts of Marchand Distributors at May 31, 2023, follow, listed in alphabetical order. Marchand Distributors uses the perpetual inventory system. The operating expenses are
The accounts of Massood’s Muffins at July 31, 2023, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the accounts Selling Expenses and General
The adjusted trial balance of Harrison Trading Company at September 30, 2023, appears below. Harrison Trading Company uses the perpetual inventory system.Required1. Journalize Harrison Trading
1. Use the data in P5–6B to prepare Massood’s Muffins’ multi-step income statement for the year ended July 31, 2023.2. Massood Sterling, the owner of the company, strives to earn a gross margin
The following amounts summarize Berloni Company’s merchandising activities during 2023. Berloni uses the perpetual inventory system. Set up T-accounts for Inventory and Cost of Goods Sold. Post the
Selected accounts from the accounting records of Burke Imports at September 30, 2023, are shown below. Burke Imports uses the periodic inventory systemRequired1. Using the financial statement format
Tuttle Electronics’ unadjusted trial balance below pertains to December 31, 2023.Additional data at December 31, 2023:a. Insurance expense for the year should total $21,600.b. Store fixtures have
The following transactions occurred between Wentworth Pharmaceuticals and Tweed Drug Stores during June of the current year:RequiredJournalize these transactions, first on the books of Tweed Drug
Mid-Century Antiques, which uses a periodic inventory system, engaged in the following transactions during July of the current year:RequiredJournalize the preceding transactions on the books of
Selected accounts of Olsevik Janitorial Supplies, at July 31, 2023, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the Selling Expenses account and
Refer to the data in P5–12B.Data from P5–12BTuttle Electronics’ unadjusted trial balance below pertains to December 31, 2023.Additional data at December 31, 2023:a. Insurance expense for the
Bark Buddy reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31, 2023:Prepare Bark Buddy’s multi-step income statement for the year
Kellet International engaged in the following transactions during November 2023, the first month of the company’s fiscal year. Assume the company had no inventory on hand prior to November 3.
Name the new contra accounts introduced.
Give the adjusting entry for inventory if shrinkage is $5,000 on December 31.
Journalize, without explanations, the following transactions of Digbey Auto Parts, a distributor that uses the periodic inventory system, during the month of June 2023: Jun.
The periodic inventory records of Presley Video Sales include these accounts at December 31, 2023:RequiredCompute Presley Video’s cost of goods sold for 2023. Purchases..... Purchase
Selected amounts from the accounting records of Waldron Video Sales for the year ended December 31, 2023, follow:Required1. Waldron Video Sales uses the perpetual inventory system. Prepare the
This exercise continues recordkeeping for the Canyon Canoe Company. You do not have to have completed any previous questions to complete this exercise. At the beginning of January 2024, Canyon Canoe
Rees Distributors uses the periodic inventory system. Rees reported these amounts at May 31, 2023:Compute Rees Distributors’:a. Net sales revenueb. Cost of goods soldc. Gross margin Inventory, May
Smart Lighting, an LED bulb superstore, uses the FIFO method for valuing inventories. It began August with 50 units of a smart light bulb that costs $80 each. During August, the store completed
Lengyel Lawn Supply, which uses the FIFO method, began March with 200 units of fertilizer inventory that cost $40 each. During March, Lengyel completed these inventory transactions:Required1. Prepare
For the year ended December 31, 2023, Home Distributors, a retailer of homerelated products, reported net sales of $429,500 and cost of goods sold of $225,000. The company’s balance sheets at
The inventory costing method chosen by a company can affect the financial statements and thus the decisions of the users of those statements.Required1. A leading accounting researcher stated that one
During 2022, Bryant Electronics changed to the weighted-average-cost method of accounting for inventory. Suppose that during 2023 Bryant Electronics changes back to the FIFO method and in the
Why is merchandise inventory so important to a retailer or wholesaler?
On September 30, 2023, its fiscal year end, NS Services recorded an adjusting entry for $2,000 ------of interest it owes at year end and will include as part of its payment on October 31, 2023. On
Kamlhani Imports is a furniture distributor that uses the FIFO cost method with itsperpetual inventory system. The following information is for the first item that it is selling— bean bag
PEI Distributors purchases inventory in crates of merchandise. Assume the company began July with an inventory of 30 units that cost $300 each. During the month, the company engaged in the following
Gamsu’s Office Depot sells office furniture. The company’s fiscal year ends on March 31, 2023. On January 1, 2023, inventory consisted of 20 office dividers that cost $1,800 each. During the
Lally Company accounting records yield the following data for the year ended December 31, 2023:Required1. Journalize Lally Company’s inventory transactions for the year in a perpetual system. Use
Snowboard Solutions carries an inventory of snowboards, bindings, and accessories. The sales price of each binding is $125. Company records indicate the following for a popular slip-on
Buntzell Industrial Supplies distributes industrial equipment. The company’s fiscal year ends on March 31, 2023. One department in the company had 50 industrial sinks that cost $540 each on hand at
If beginning inventory is $60,000, purchases total $135,000, and ending inventory is $62,500, how much is cost of goods sold?
If beginning inventory is $44,000, purchases total $109,000, and cost of goods sold is $115,000, how much is ending inventory?
What two items determine the cost of ending inventory?
Winslow Products, which uses a periodic inventory system, began 2023 with 6,000 units of inventory that cost a total of $90,000. At year end, the physical count indicated 20,000 units of inventory on
Answer these questions in your own words:a. Why does FIFO produce the lower cost of goods sold during a period of rising prices?b. Why does moving-weighted-average costing produce the higher cost of
The Cookie Company (TCC) began August 2023 with 100 units of inventory that cost $60 each. The sale price of each of those units was $100. During August, TCC completed these inventory
Northeast Tire began May with 50 units of inventory that cost $264 each. During May, Northeast Tire completed these inventory transactions:Required1. The above data are taken from Northeast Tire’s
Kim’s Shirt and Tie Shop uses a periodic inventory system. Kim’s completed the following inventory transactions during April, its first month of operations:a. Compute Kim’s ending inventory and
Kelso Electrical’s inventory records for industrial switches indicate the following at November 30, 2023:The physical count of inventory at November 30, 2023, indicates that six units remain in
1. Supply the missing income statement amounts for each of the following companies for the year ended December 31, 2023:2. Prepare the income statement for Bell Co., which uses the periodic inventory
Determine the value of the inventory to be reported on the balance sheet by applying the lower-of-cost-and-net-realizable-value rule to the following data:
The accounting records of Keller Music Stores show these data (in thousands):In early 2024, a team of auditors discovered that the ending inventory of 2021 had been understated by $10,000. Also, the
Trump Luggage Sales uses a periodic inventory system. The inventory data for the year ended December 31, 2022, follow:Assume that the ending inventory was accidentally overstated by $4,000. What are
The financial records of Sketch Drawing and Home Plans show these data (in thousands):In early 2024, a potential investor’s auditors discovered that the ending inventory of 2021 had been overstated
Sang-beom Shoe Company has a periodic inventory system and uses the gross margin method of estimating inventories for interim financial statements. The company had the following account balances for
Kenora Supplies has a periodic inventory system and uses the gross margin method of estimating inventories for interim financial statements. The business had the following account balances for the
Williamson Landscape Supplies, which uses a perpetual inventory system and the FIFO costing method, has these account balances at December 31, 2023, prior to releasing the financial statements for
Before the following financial statement was released, it was discovered that the current net realizable value of ending inventory was $96,000.1. Journalize the entry to apply the
Hartley Home Furniture has had poor sales in the last year. The rate of inventory turnover has dropped, and some of the business’s merchandise is gathering dust. At the same time, competition has
Danilov Computers uses a perpetual inventory system for the purchase and sale of their SSD inventory and had the following information available on November 30, 2023:Required1. Calculate the cost of
You read that companies should use the specific-unitcost method to most accurately value items that have been sold and transferred to cost of goods sold, yet most companies do not use this method.
Stanislav IT Solutions uses the perpetual inventory system for the purchase and sale of jump drive inventory and had the following information available on August 31, 2023:Required1. Calculate the
John’s Septic Systems Company reported the comparative income statement for the years ended September 30, 2023, and 2022, shown below:During 2023, accountants for the company discovered that ending
How does the consistency principle affect accounting for inventory?
Assume Dollar Valu Store estimates its inventory by the gross margin method when preparing monthly financial statements (it uses the periodic method otherwise). For the past 2 years, the cost of
What is the goal of conservatism when you apply it to inventory?
Magic Carpets began the year with inventory of $1,400,000. Inventory purchases for the year totalled $3,200,000. Sales revenue for the year was $7,000,000, and the gross margin was 45 percent. How
A fire wiped out Pichai Paper Company’s inventory. The insurance company will accept an estimate using the retail method. Last year’s balance sheet stated that the ending inventory was $15,000,
Determine whether each of the actions below in buying, selling, and accounting for inventories is ethical or unethical. Give your reason for each answer.1. Frank’s Tea Company knowingly overstated
Lids has three lines of hats: baseball, winter, and fashion. On May 18, 2023, Lids had a fire that destroyed the baseball hat inventory. Sales for the period January 1 to May 18 for the baseball hats
Identify two methods of estimating inventory amounts.
Check Yes or No in the following tables to indicate whether each of the accounts would usually require an adjusting entry to be made to the specific account listed. Account Accounts
Jack Johnson is the sole proprietor of Kitwanga Seasonal Fisheries and Landscaping (KSFL). KSFL operates in the traditional territories of the Gitxsan First Nation in northern British Columbia. Jack
FancyJohns, the luxury portable toilet rental company, has collected the following data for the December 31 adjusting entries:a. Each Friday, FancyJohns pays employees for the current week’s work.
Journalize the following December 31 transactions for Jieun Printing Services. No explanations are required.a. Equipment cost is $24,000 and is expected to be useful for 10 years, at which time it
At the beginning of the month, Supplies were $500. During the month, the company purchased $600 of supplies. At month’s end, November 30, $400 of supplies were still on hand.a. What was the cost of
Cryptocurrency Finder is buying the first computer for their new server farm. Suppose the company paid $5,000 for this computer, which it expects to last for 3 years. Describe how the company would
Suppose Resort Travel borrowed $60,000 on March 1 by signing a note payable to Royal Bank. Resort Travel’s interest expense on the note payable for the remainder of its fiscal year (March through
Employees of Ralph’s Llama Farm work Monday through Friday and are paid every Friday for work done that week. The daily payroll is $13,900, and the last payday was Friday, December 28. What is the
The manager of Qwik-Pick-Up, a convenience store, presents the company’s balance sheet to a banker to obtain a loan. The balance sheet reports that the company’s property, plant, and equipment
Shell Collector magazine collects cash from subscribers in advance and then mails the magazines to subscribers over a 1-year period. Give the adjusting entry that the company makes to record the
TentRentals Company sets up a large event tent for the local food festival. The tent will be rented to the Business Improvement Association for 2 weeks for a total cost of $3,500. The event takes
Give the entry to record accrued interest revenue of $7,200.
On November 1, 2023, Freya Albatter’s orthodontic office received a $2,500 prepayment from a client for dental work to be performed on November 22. The appointment got postponed until January 15,
On July 31, 2023, Magnus’s Muffins paid $18,000 for business insurance for the next year. Record the entries for the purchase of the insurance by recording it as an expense and then making a
Fort Services initially records all prepaid expenses as expenses and all unearned revenues as revenues. Given the following information, prepare the necessary adjusting entries at December 31, 2023,
Refer to the data in S3–17. Compute Yessie Financial Advisors’ total assets at December 31, 2023. Remember that Accumulated Amortization is a contra asset.Data from S3–17Compute Yessie
Compute Yessie Financial Advisors’ net income for the year ended December 31, 2023, using the adjusted trial balance below. Account Title Cash Office Supplies YESSIE FINANCIAL ADVISORS Adjusted
On December 31, 2022, Grover Company made the following errors:a. Did not accrue interest of $7,500 owed on loans due next yearb. Did not accrue service revenue in the amount of $9,200.Assuming the
Blazing Software Consulting had the following accounts and account balances after adjusting entries. Assume all accounts have normal balances. Prepare the adjusted trial balance for Blazing Software
Refer to the data in E3–14. Prepare Toronto Mobile Pet Grooming’s income statement and statement of owner’s equity for the year ended June 30, 2023. Then prepare the balance sheet on that
Prepare an adjusted trial balance for Toronto Mobile Pet Grooming as at June 30, 2023. Assume that all accounts have their normal balances. List expenses in alphabetical order. Accounts
Snowbird Supports Company purchased a 2-year insurance policy on October 1, 2021. The appropriate adjustment was made at that year end. On January 1, 2022, the balance in the Prepaid Insurance
Connect Air completed the following transactions during 2023:Required1. Open T-accounts for Advertising Expense, Prepaid Advertising, Unearned Flight Revenue, and Flight Revenue.2. Journalize these
Kempenfelt Papers pays $4,800 for an insurance policy that covers 4 years. At the end of the first year, the balance of its Prepaid Insurance account contains two elements. What are the two elements,
Millennial Communications provides management consulting services. The business had the following account balances:The following transactions occurred during December:a. On December 1, paid cash for
Online Security Buddies provides consulting services to small businesses that require computer security but are too small to have their own IT person on staff. The business had the following account
The unadjusted trial balance of Halifax Research at December 31, 2023, appears below:Adjustment data:a. Accrued consulting revenue at December 31, $3,800.b. The prepaid balance of $12,000 represented
On April 1, 2023, you prepaid 3 months of rent for a total of $18,000. Give your adjusting entry to record rent expense at April 30, 2023. Include the date of the entry and an explanation. Then,
Consider the unadjusted trial balance of Burrows Landscaping at December 31, 2023, and the related month-end adjustment data:The following adjustments need to be made on December 31 before the
The unadjusted trial balance of Pigeon Delivery at December 31, 2023, appears below. The data needed for the month-end adjustments follow the trial balance.Adjustment data at December 31:a. Prepaid
The unadjusted trial balance of Speedy Drone Delivery at December 31, 2023, appears below. The data needed for the month-end adjustments follow the trial balance.Adjustment data:a. Unearned delivery
Chef’s Catering completed the following selected transactions during May 2023:Required1. Show whether each transaction would be handled as a revenue or an expense using both the cash-basis and
What two questions do the recognition criteria for revenues help answer?
During the year ended December 31, 2020, TELUS Corporation (TELUS) recorded numerous accruals and deferrals. As a long-term employee of TELUS’s accounting and finance staff, it is your job to
Kobe Company receives two orders from Windsor Company for products costing $5,000. Answer the following questions about them:1. The December 20, 2022, order will not be shipped until January 5, 2023.

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