Questions and Answers of Horngrens Accounting 11th Canadian

How often are financial statements prepared? What is a fiscal year? What is an interim period?
DoItForYou Concierge Services experienced the following selected transactions during October:Required1. Show how each transaction would be accounted for using the accrual basis of accounting. Use the
During the year ended February 28, 2021, Aritzia Inc. (Aritzia) recorded numerous accruals and deferrals. As a long-term employee of Aritzia’s accounting and finance staff, it is your job to
The net income of EZ Furniture decreased sharply during 2023. Mariah Tessier, owner of the store, anticipates the need for a bank loan in 2024. Late in 2023, she instructs the accountant to record a
The adjusted trial balances of Pacific Services at December 31, 2023, and December 31, 2022, include these amounts:Analysis of the accounts at December 31, 2023, reveals these transactions for
Start from the unadjusted trial balance that Crystal Clear Cleaning prepared at November 30, 2022:Required1. Using the data provided from the unadjusted trial balance and Chapter 2, prepare all
In December, Northern Kiteboarding magazine collected $80,000 for subscriptions for the next calendar year. The company collects cash in advance and then downloads the magazines to subscribers each
The Jarrin & Martin partnership has the following balances on December 31, 2024:Jarrin and Martin share profits 1:3, respectively. Jarrin and Martin decide to liquidate the partnership.
1. Prepare the balance sheet for Wilson Towing Service as of June 30, 2024.2. What does the balance sheet report?The account balances of Wilson Towing Service at June 30, 2024, follow:
1. Prepare the income statement for Wilson Towing Service for the month ending June 30, 2024.2. What does the income statement report?The account balances of Wilson Towing Service at June 30, 2024,
1. Prepare the statement of owner’s equity for Wilson Towing Service for the month ending June 30, 2024. Assume Wilson contributed $11,000 during June.2. What does the statement of owner’s equity
Refer to the data in Short Exercise S-F:4-1. Prepare Dalton’s statement of owner’s equity for the year ended December 31, 2024. Assume the owner made no contributions during the year.Short
Refer to http://www.pearsonhighered.com/Horngren to view a link to Target Corporation’s Fiscal 2018 Annual Report. Requirements 1. Calculate the debt ratio for Target Corporation as of
This problem continues the Canyon Canoe Company situation from Chapter F:3.Requirements1. Complete the worksheet at December 31, 2024 (optional). Use the unadjusted trial balance from Chapter F:2 and
Logan Realty loaned money and received the following notes during 2024.Requirements1. Determine the maturity date and maturity value of each note.2. Journalize the entries to establish each Note
Biagas had net sales of $55,600,000 for the year ended May 31, 2024. Its beginning and ending total assets were $52,800,000 and $98,500,000, respectively. Determine Biagas’s asset turnover ratio
Micron Precision purchased a computer for $2,500, debiting Computer Equipment. During 2022 and 2023, Micron Precision recorded total depreciation of $1,600 on the computer. On January 1, 2024, Micron
White Company purchased equipment for $22,000. White recorded total depreciation of $19,000 on the equipment. On January 1, 2024, White traded in the equipment for new equipment, paying $23,200 cash.
On January 2, 2023, Comfy Clothing Consignments purchased showroom fixtures for $17,000 cash, expecting the fixtures to remain in service for five years. Comfy has depreciated the fixtures on a
On January 2, 2022, Pet Spa purchased fixtures for $37,800 cash, expecting the fixtures to remain in service for six years. Pet Spa has depreciated the fixtures on a straight-line basis, with $9,000
Blackerby Photo reported the following figures on its December 31, 2024, income statement and balance sheet:Compute the asset turnover ratio for 2024. Round to two decimal places. Net
Wimot Trucking Company uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the
Ellie Johnson Associates surveys American eating habits. The company’s accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation
During 2024, Mora Company completed the following transactions:Record the transactions in the journal of Mora Company. Jan. 1 Apr. 1 Traded in old office equipment with book value of $55,000 (cost
Whitney Plumb Associates surveys American eating habits. The company’s accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation
During 2024, Lora Company completed the following transactions:Record the transactions in the journal of Lora Company. Jan. 1 Traded in old office equipment with book value of $55,000 (cost
On January 3, 2024, Rapid Delivery Service purchased a truck at a cost of $100,000. Before placing the truck in service, Rapid spent $3,000 painting it, $600 replacing tires, and $10,400 overhauling
On January 3, 2024, Speedy Delivery Service purchased a truck at a cost of $67,000. Before placing the truck in service, Speedy spent $3,000 painting it, $1,200 replacing tires, and $3,500
Abernathy Electronics, Inc. reported the following amounts on its 2024 income statement:What is Abernathy’s times-interest-earned ratio for 2024? Year Ended December 31, 2024 Net income $
The general ledger of Prompt Ship at June 30, 2024, the end of the company’s fiscal year, includes the following account balances before payroll and adjusting entries.The additional data needed to
The following transactions of Philadelphia Pharmacies occurred during 2023 and 2024:Journalize the transactions in Philadelphia’s general journal. Explanations are not required. 2023 Jan. 9 29 Feb.
On December 31, 2023, Franklin purchased $13,000 of merchandise inventory on a one-year, 9% note payable. Franklin uses a perpetual inventory system.Requirements1. Journalize the company’s purchase
What do short-term notes payable represent?
The following transactions of Belkin Howe occurred during 2024:Requirements1. Journalize required transactions, if any, in Howe’s general journal. Explanations are not required.2. What is the
The income statement for Vermont Communications, Inc. follows. Assume Vermont Communications, Inc. signed a three-month, 3%, $6,000 note on June 1, 2024, and that this was the only note payable for
Trail Runner guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately 5% of sales.Assume that the Trail Runner dealer in Colorado Springs
Lee Werner is general manager of Worldwide Salons. During 2024, Werner worked for the company all year at a $12,400 monthly salary. He also earned a year-end bonus equal to 20% of his annual
The Murphy & Kent partnership has the following balances on June 30, 2024:Murphy and Kent share profits 3:2, respectively. Murphy and Kent decide to liquidate the partnership. Journalize the sale
This problem continues the Canyon Canoe Company situation from Chapter F:10. Amber Wilson is continuing her analysis of the company’s position and believes the company will need to borrow $15,000
Loiselle and Randall formed a partnership on March 15, 2024. The partners agreed to contribute equal amounts of capital. Loiselle contributed her sole proprietorship’s assets and liabilities
What causes a partnership to dissolve?
On January 1, 2024, Mackus contributes land in a partnership with Williams. Mackus purchased the land in 2019 for $275,000. A real estate appraiser now values the land at $700,000. Mackus wants
On December 31, 2024, Demetrius and Garnett agree to combine their sole proprietorships into a partnership. Their balance sheets on December 31 are shown as follows:Requirements1. Journalize the
George, Murphy, and Lincoln, a partnership, is considering admitting Thorton as a new partner. On July 31, 2024, the capital accounts of the three existing partners and their profit-and-loss-sharing
Kurt and Wyatt are forming a partnership to develop a theme park near Carlson City, Florida. Kurt contributes cash of $3,000,000 and land with a current market value of $10,500,000. When Kurt
Stone and Smith had beginning capital balances of $18,000 and $13,000, respectively. The two partners fail to agree on a profit-and-loss-sharing ratio. For the first month (June 2024), the
Describe an S corporation.
ABC is a partnership owned by Angus, Black, and Campini, who share profits and losses in the ratio of 2:1:1, respectively. The account balances of the partnership at June 30, 2024,
How can partnership profits and losses be allocated?
Ho-Kim-Ling Design Company is a partnership owned by three individuals. The partners share profits and losses in the ratio of 30% to Ho, 40% to Kim, and 30% to Ling. At December 31, 2024, the firm
The partnership of Seymour, Packard, & Malone has experienced operating losses for three consecutive years. The partners—who have shared profits and losses in the ratio of Seymour, 15%;
Lincoln and Rafferty formed a partnership on March 15, 2024. The partners agreed to contribute equal amounts of capital. Lincoln contributed her sole proprietorship’s assets and liabilities (credit
Fultz and Hunter form a partnership on January 1, 2024, contributing $59,000 and $20,000, respectively. The partnership had net income of $164,000. Based on the partnership agreement, Fultz’s share
LOT is a partnership owned by Long, Oliver, and Taker. The partners’ profit-and-loss- sharing ratio is 2:2:1, respectively. The adjusted trial balance of the partnership at November 30, 2024,
On October 1, 2024, Art, Bryce, and Chad formed the A, B, and C partnership. Art contributed $20,000; Bryce, $32,000; and Chad, $48,000. Art will manage the store; Bryce will work in the store
Huang-Kong-Lung Design Company is a partnership owned by three individuals. The partners share profits and losses in the ratio of 30% to Huang, 40% to Kong, and 30% to Lung. At December 31, 2024, the
Hudson, Meehan, and Loiselle, a partnership, is considering admitting Thompson as a new partner. On July 31, 2024, the capital accounts of the three existing partners and their
On October 1, 2024, Andy, Brian, and Caden formed the A, B, and C partnership. Andy contributed $27,300; Brian, $45,500; and Caden, $57,200. Andy will manage the store; Brian will work in the store
The partnership of Saxton, Parkerson, & Murray has experienced operating losses for three consecutive years. The partners—who have shared profits and losses in the ratio of Saxton, 10%;
JNW is a partnership owned by Johnson, Noon, and West. The partners’ profit-and-loss- sharing ratio is 1:1:2, respectively. The adjusted trial balance of the partnership at April 30, 2024,
Discount Furniture, Inc. completed the following treasury stock transactions in 2024:Requirements1. Journalize these transactions. Explanations are not required.2. How will Discount Furniture, Inc.
Voyage Comfort Specialists, Inc. reported the following stockholders’ equity on its balance sheet at June 30, 2024:Requirements1. Identify the different classes of stock that Voyage Comfort
Danny’s Hamburgers issued 6%, 10-year bonds payable at 90 on December 31, 2024. At December 31, 2026, Danny reported the bonds payable as follows:Danny’s pays semiannual interest each June 30 and
Wilson, Turner, and White decide to form a T-shirt design partnership. Amber Wilson figures this T-shirt design business will help her other company, Canyon Canoe Company, with any T-shirt design
What is a corporation?
Accountants for Benson, Inc. have assembled the following data for the year ended December 31, 2024:Prepare Benson’s statement of cash flows using the indirect method. Include an accompanying
Verifine Corp. reported the following on its comparative income statement:Prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2025. (In
What is par value?
Java Company earned net income of $85,000 during the year ended December 31, 2024. On December 15, Java declared the annual cash dividend on its 4% preferred stock (par value, $120,000) and a $0.25
Great Value Optical Company reported the following amounts on its balance sheet at December 31, 2024 and 2023:Prepare a vertical analysis of Great Value’s assets for 2024 and 2023. Cash and
On January 1, 2024, Lakeman-Fay signed a $1,500,000, 15-year, 7% note. The loan required Lakeman-Fay to make annual payments on December 31 of $100,000 principal plus interest.Requirements1.
Accel’s Companies, a home improvement store chain, reported the following summarized figures:Requirements1. Compute the inventory turnover, days’ sales in inventory, and gross profit percentage
On January 1, 2024, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with face value of $600,000. The bonds pay interest on June 30 and December 31.Requirements1. If the market interest
Muscateer Corp. reported the following revenues and net income amounts:Requirements1. Calculate Muscateer’s trend analysis for revenues and net income. Use 2022 as the base year and round to the
Accel’s Companies, a home improvement store chain, reported the following summarized figures:Requirements1. Compute the debt ratio and the debt to equity ratio at May 31, 2024, for Accel’s
On January 1, 2024, Educators Credit Union (ECU) issued 8%, 20-year bonds payable with face value of $1,000,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is
This problem continues the Canyon Canoe Company situation from Chapter F:13. Canyon Canoe Company is considering raising additional capital for further expansion. The company wants to finance a new
Accel’s Companies, a home improvement store chain, reported the following summarized figures:Requirements1. Compute Accel’s Companies’ current ratio at May 31, 2024 and 2023.2. Did Accel’s
Accel’s Companies, a home improvement store chain, reported the following summarized figures:Requirements1. Compute earnings per share (EPS) for 2024 for Accel’s. Round to the nearest cent.2.
Jelly Bean, Inc. began 2024 with cash of $58,000. During the year, Jelly Bean earned revenue of $595,000 and collected $614,000 from customers. Expenses for the year totaled $427,000, of which Jelly
Old Mills’ income statement appears as follows (amounts in thousands):Use the following ratio data to complete Old Mills’ income statement:1. Inventory turnover is 3.70 (beginning Merchandise
Accel’s Companies, a home improvement store chain, reported the following summarized figures:Requirements1. Compute the profit margin ratio for Accel’s Companies for 2024.2. Compute the rate of
What is horizontal analysis, and how is a percentage change computed?
Grand Oaks Realty’s net revenue and net income for the following five-year period, using 2021 as the base year, follow:Requirements1. Compute a trend analysis for net revenue and net income. Round
Theta Designs, Inc. has the following data:Perform a vertical analysis of Theta Designs’ balance sheet for each year. THETA DESIGNS, INC. Comparative Balance Sheet December 31, 2024 and
Traditional Mills’ balance sheet appears as follows (amounts in thousands):Use the following ratio data to complete Traditional Mills’ balance sheet.1. Current ratio is 0.72.2. Acid-test ratio is
Data for Mulberry Designs, Inc. follow:Requirements1. Prepare a horizontal analysis of the comparative income statement of Mulberry Designs, Inc. Round percentage changes to one decimal place.2. Why
Data for Research Enterprises follows:compute the dollar amount of change and the percentage of change in Research Enterprises’ working capital each year during 2025 and 2024. What do the
The following data are adapted from the financial statements of Bridget’s Shops, Inc.:Prepare Bridget’s condensed balance sheet as of December 31, 2024. Total Current Assets Accumulated
Big Beautiful Photo Shop has asked you to determine whether the company’s ability to pay current liabilities and total liabilities improved or deteriorated during 2024. To answer this question, you
Micatin, Inc.’s comparative income statement follows. The 2023 data are given as needed.Requirements1. Calculate the profit margin ratio for 2025 and 2024.2. Calculate the rate of return on total
Net sales revenue, net income, and common stockholders’ equity for Azbel Mission Corporation, a manufacturer of contact lenses, follow for a four-year period.Requirements1. Compute trend analyses
Comparative financial statement data of Sanfield, Inc. follow:1. Market price of Sanfield’s common stock: $51.48 at December 31, 2024, and $37.08 at December 31, 2023.2. Common shares outstanding:
In its annual report, XYZ Athletic Supply, Inc. includes the following five-year financial summary:RequirementsAnalyze the company’s financial summary for the fiscal years 2020–2024 to decide
This problem continues the Canyon Canoe Company situation from Chapter F:16. The company wants to invest some of its excess cash in trading securities and is considering two investments, The Paddle
Luxury Suites Hotels includes the following selected accounts in its general ledger at December 31, 2024:Prepare the liabilities section of Luxury Suites’ balance sheet at December 31, 2024. Notes
Jackson Corporation has the following amounts as of December 31, 2024.Compute the debt to equity ratio at December 31, 2024. Total assets Total liabilities Total equity $ 55,250 22,750 32,500
On January 1, 2024, Powell Company issued $350,000 of 10%, five-year bonds payable at 102. Powell Company has extra cash and wishes to retire the bonds payable on January 1, 2025, immediately after
McQueen Company issued a $100,000, 7.5%, 10-year bond payable. Journalize the following transactions for McQueen Company and include an explanation for each entry:a. Issuance of the bond payable at
On December 31, 2024, when the market interest rate is 8%, Biggs Realty issues $450,000 of 5.25%, 10-year bonds payable. The bonds pay interest semiannually. The present value of the bonds at

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