Questions and Answers of Horngrens Accounting 11th Canadian

The unadjusted trial balance of Watson Anvils at December 31, 2024, and the data for the adjustments follow: Adjustment data: a. Unearned Revenue still unearned at December 31, $3,600. b.
Macy’s, Inc. is a premier retailer in the United States, operating nearly 867 stores in 43 states. Macy’s, Bloomingdale’s, and bluemercury are all brands that operate under Macy’s, Inc. The
Journalize the following sales transactions for Tomas Sportswear. Explanations are not required. The company estimates sales returns at the end of each month. Jul. 1 5 Tomas sold $21,000 of men's
Journalize the following sales transactions for Lucy’s Boutique. Explanations are not required. The company estimates sales returns at the end of each month. Mar. 3 Lucy sold $63,000 of women's
Describe the single-step income statement.
1. Journalize the required closing entries at March 31, 2024.2. Set up T-accounts for Income Summary; Mumford, Capital; and Mumford, Withdrawals. Post the closing entries to the T-accounts and
Describe the multi-step income statement.
Prepare Quality Office’s single-step income statement for the year ended March 31, 2024.The adjusted trial balance of Quality Office Systems at March 31, 2024, follows: Account Title Cash QUALITY
Prepare Quality Office’s multi-step income statement for the year ended March 31, 2024.The adjusted trial balance of Quality Office Systems at March 31, 2024, follows: Account Title Cash QUALITY
Ocean Life Boat Supply uses the periodic inventory method. The adjusted trial balance of Ocean Life Boat Supply at December 31, 2024, follows:Requirements1. Journalize the required closing entries at
Crazy Cookies earned net sales revenue of $66,000,000 in 2024. Cost of goods sold was $39,600,000, and net income reached $7,000,000, the company’s highest ever. Compute the company’s gross
Journalize the following transactions that occurred in September for Water Works. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name.
Refer to the Practice Set data provided in Chapters F:2 and F:3 for Crystal Clear Cleaning.Requirements1. Prepare a worksheet (optional) at November 30, 2024. Use the unadjusted trial balance from
What is an invoice?
M Wholesale Company began the year with merchandise inventory of $12,000. During the year, M purchased $92,000 of goods, had purchase discounts of $100, and returned $6,000 due to damage. M also paid
Prepare Camilia Communications’ multi-step income statement for the year ended July 31, 2024.Camilia Communications reported the following figures from its adjusted trial balance for its first year
1. Prepare Camilia Communications’ statement of owner’s equity for the year ended July 31, 2024. Assume that there were no contributions or withdrawals during the year and that the business began
Rocky RV Center’s accounting records include the following accounts at December 31, 2024.Requirements1. Journalize the required closing entries for Rocky.2. Determine the ending balance in the
D & T Printing Supplies’ accounting records include the following accounts at December 31, 2024.Requirements1. Journalize the required closing entries for D & T Printing Supplies assuming
Journalize the following sales transactions for Sanborn Pool Supply Store using the periodic inventory system. Explanations are not required. Dec. 3 17 Sanborn sold $41,900 of pool equipment on
Macarthy Landscape Supply’s selected accounts as of December 31, 2024, follow. Compute the gross profit percentage for 2024. Selling Expenses Interest Revenue Net Sales Revenue Cost of Goods
Clink Electric uses the periodic inventory system. Clink reported the following selected amounts at May 31, 2024:Compute the following for Clink:a. Cost of goods sold.b. Gross profit. Merchandise
The unadjusted trial balance for Tiger Electronics Company at March 31, 2024, follows:Requirements1. Journalize the adjusting entries using the following data:a. Interest revenue accrued, $500.b.
The adjusted trial balance of Sylvia’s Music Company at June 30, 2024, follows:Requirements1. Prepare Sylvia’s multi-step income statement for the year ended June 30, 2024.2. Journalize
The adjusted trial balance of Pamela Potter Theater Company at April 30, 2024, follows:Requirements1. Prepare Pamela Potter’s multi-step income statement for the year ended April 30, 2024.2.
The unadjusted trial balance for Turtle Electronics Company follows:Requirements1. Journalize the adjusting entries using the following data:a. Interest revenue accrued, $350.b. Salaries (Selling)
The records of Farm Quality Steak Company list the following selected accounts for the quarter ended April 30, 2024:Requirements1. Prepare a single-step income statement.2. Prepare a multi-step
Trudel Department Store uses a periodic inventory system. The adjusted trial balance of Trudel Department Store at December 31, 2024, follows:Requirements1. Prepare Trudel Department Store’s
Journalize the following transactions that occurred in January 2024 for Jill’s Water World. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or
This problem continues the Canyon Canoe Company situation and focuses on non merchandising transactions, adjusting and closing entries, and preparing financial statements. Canyon Canoe Company does
Ward Hardware used the FIFO inventory costing method in 2024. Ward plans to continue using the FIFO method in future years. Which accounting principle is most relevant to Ward’s decision?
Suppose you manage Campbell Appliance. The store’s summarized financial statements for 2025, the most recent year, follow:Assume that you need to double net income. To accomplish your goal, it will
New York Pool Supplies’ merchandise inventory data for the year ended December 31, 2025, follow:Requirements1. Assume that the ending merchandise inventory was accidentally overstated by $1,800.
What is the goal of conservatism?
How is QuickBooks organized?
The records of Grade A Beef Company list the following selected accounts for the quarter ended September 30, 2024:Requirements1. Prepare a single-step income statement.2. Prepare a multi-step income
Travis Department Store uses a periodic inventory system. The adjusted trial balance of Travis Department Store at December 31, 2024, follows:Requirements1. Prepare Travis Department Store’s
Nutriset Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended March 31, 2025, Nutriset’s preliminary income statement,
Clarmont Resources, which uses the FIFO inventory costing method, has the following account balances at May 31, 2025, prior to releasing the financial statements for the year:Clarmont has determined
Nature Foods Grocery reported the following comparative income statements for the years ended June 30, 2025 and 2024:During 2025, Nature Foods Grocery discovered that ending 2024 merchandise
Calm Day reported the following income statement for the year ended December 31, 2025:Requirements1. Compute Calm Day’s inventory turnover rate for the year.2. Compute Calm Day’s days’ sales in
Empire State Carpets’ books show the following data. In early 2026, auditors found that the ending merchandise inventory for 2023 was understated by $8,000 and that the ending merchandise inventory
Antique Carpets’ books show the following data. In early 2026, auditors found that the ending merchandise inventory for 2023 was understated by $8,000 and that the ending merchandise inventory for
Some of L and K Electronics’ merchandise is gathering dust. It is now December 31, 2024, and the current replacement cost of the ending merchandise inventory is $32,000 below the business’s cost
What is a special journal?
1. Prepare headings for a sales journal. Journalize the transactions that should be recorded in the sales journal. Assume the company uses the perpetual inventory system.2. Total each column of the
What is a control account?
Some of M and C Electronics’ merchandise is gathering dust. It is now December 31, 2024, and the current replacement cost of the ending merchandise inventory is $24,000 below the business’s cost
Chipotle Mexican Grill, Inc. owns and operates more than 2,452 restaurants throughout the United States, 37 international Chipotle restaurants, and two non-Chipotle restaurants. Steve Ells, founder,
Restaurants do a large volume of business by credit and debit cards. Suppose Summer, Sand, and Castles Resort restaurant had these transactions on January 28, 2024:Requirements1. Suppose Summer,
Jim Root Company operates four bowling alleys. The business just received the October 31, 2024, bank statement from City National Bank, and the statement shows an ending balance of $910. Listed on
The Cash account of Guard Dog Security Systems reported a balance of $2,540 at December 31, 2024. There were outstanding checks totaling $400 and a December 31 deposit in transit of $100. The bank
Abby Perry recently opened her own law office on December 1, which she operates as a sole proprietorship. The name of the new entity is Abby Perry, Attorney. Perry experienced the following events
Starbucks Corporation is the premier roaster, marketer, and retailer of specialty coffee in the world, operating in 78 countries. Starbucks generates revenues through company-operated stores,
Prepare the income statement of Centerpiece Arrangements for the year ended December 31, 2024.Centerpiece Arrangements has just completed operations for the year ended December 31, 2024. This is the
This and similar cases in later chapters focus on the financial statements of a real company— Target Corporation, a discount merchandiser that sells a wide assortment of general merchandise and
Prepare the balance sheet of Centerpiece Arrangements as of December 31, 2024.Centerpiece Arrangements has just completed operations for the year ended December 31, 2024. This is the third year of
Prepare the statement of owner’s equity of Centerpiece Arrangements for the year ended December 31, 2024.Centerpiece Arrangements has just completed operations for the year ended December 31, 2024.
Wizco Advertising’s balance sheet data at May 31, 2024, and June 30, 2024, follow:For each of the following situations that occurred in June 2024 with regard to owner contributions and owner
Polk Street Homes had the following cash transactions for the month ended July 31, 2024.Prepare the statement of cash flows for Polk Street Homes for the month ended July 31, 2024. Cash
List the four financial statements. Briefly describe each statement.
Mountain Drycleaners started 2024 with total assets of $19,000 and total liabilities of $14,000. At the end of 2024, Mountain’s total assets stood at $12,000 and total liabilities were
The records of Felix Company show the following at December 31, 2024:Requirements1. Compute the missing amount for Felix Company. You will need to work through owner’s equity.2. Did Felix earn a
Prepare the income statement for Damon Design Studio for the year ending December 31, 2024.The assets, liabilities, and equities of Damon Design Studio have the following balances at December 31,
Prepare the statement of owner’s equity for Damon Design Studio for the year ending December 31, 2024.The assets, liabilities, and equities of Damon Design Studio have the following balances at
During 2024, Flowing Rivers Spa reported revenue of $30,000. Total expenses for the year were $15,000. Flowing Rivers Spa ended the year with total assets of $43,000, and it owed debts totaling
The assets, liabilities, and equities of Damon Design Studio have the following balances at December 31, 2024. The owner, Eric Damon, began the year with a $39,000 capital balance, contributed
Morning Bean Food Equipment Company had the following transactions for the month ending January 31, 2024. Morning Bean’s cash balance on January 1, 2024, was $11,800.Prepare the statement of cash
Meg McKinney opened a public relations firm called Solid Gold on August 1, 2024. The following amounts summarize her business on August 31, 2024:During September 2024, the business completed the
Presented here are the accounts of Hometown Décor Company for the year ended December 31, 2024.Requirements1. Prepare Hometown Décor Company’s income statement for the year ended December 31,
Picture Perfect Photography works weddings and prom-type parties. The balance of Williamson, Capital was $16,000 at December 31, 2023. At December 31, 2024, the business’s accounting records show
Allen Shonton recently opened his own accounting firm on April 1, which he operates as a sole proprietorship. The name of the new entity is Allen Shonton, CPA. Shonton experienced the following
Annette Pachelo recently opened her own law office on March 1, which she operates as a sole proprietorship. The name of the new entity is Annette Pachelo, Attorney. Pachelo experienced the following
Presented here are the accounts of Pembroke Bookkeeping Company for the year ended December 31, 2024:Requirements1. Prepare Pembroke Bookkeeping Company’s income statement for the year ended
Meg McIntyre opened a public relations firm called Pop Chart on August 1, 2024. The following amounts summarize her business on August 31, 2024:During September 2024, the business completed the
Amos Sharp recently opened his own accounting firm on October 1, which he operates as a sole proprietorship. The name of the new entity is Amos Sharp, CPA. Sharp experienced the following events
Canyon Canoe Company is a service-based company that rents canoes for use on local lakes and rivers. Amber Wilson graduated from college about 10 years ago. She worked for one of the “Big Four”
Incomplete versions of the comparative financial statements of Kayma Carpet Corp. follow (amounts in thousands):
You are a bank loans officer trying to decide which of these two customers has more fixed assets than the other, relative to their total assets.Required1. Prepare a common-size analysis to compare
Comparative financial statement data of Old Tyme Candies Corp. appear below:Other information:• Market price of Old Tyme Candies Corp. common shares: $24.00 at December 31, 2020, and $12.00 at
Comparative financial statement data of Avenger Hardware Ltd. are as follows:Other information:• Market price of Avenger Hardware Ltd. common shares: $19.00 at December 31, 2020, and $31.00 at
Compute the dollar change and the percentage change (rounded to one decimal place) in Juti Corp.’s working capital each year during 2019 and 2020. Is this trend favourable or unfavourable? 2020
For each of the following ratios, indicate whether it is a liquidity, efficiency, solvency, or profitability ratio by checking off the appropriate column: Ratio Liquidity Efficiency Solvency
Compare the results of two years of ratios for Prince George Corp.Required1. Identify whether the change from 2019 to 2020 was good 1 + 2 or bad 1 - 2.2. Assess whether the performance in 2020 is
Assume that you are purchasing shares in a company in the variety store and gas bar supply business. Suppose you have narrowed the choice to BFI Trading Ltd. and Lin Corp. and have assembled the
The financial statements of Baca Bay Ltd. include the following items:RequiredCompute the following ratios for 2020, showing results to two decimal places: (a) Current ratio, (b) Acid-test
Waterloo Chip Ltd.’s financial statements for the year ended December 31, 2020, are shown below:Required1. Perform a horizontal analysis of the comparative balance sheets. Round all calculations to
Cruz Burgers Inc.’s financial statements for the year ended December 31, 2020, are shown below:
Suppose the days’ sales in receivables ratio of Stratham Corp. increased from 33 days at January 1 to 45 days at December 31. Is this a good sign or a bad sign about the company? What might
The Hip Apple Pie Corporation has requested that you determine whether the company’s ability to pay its current liabilities and long-term debt has improved or deteriorated during 2020. To answer
Use the Bastion Computer Corp. data to compute the following for 2020:1. Inventory turnover.2. Days’ sales in receivables. All sales are made on account. Round interim dollar amounts in this
Compute four ratios that measure the ability to earn profits for Elk Ranch Ltd., whose comparative income statement appears below. Additional data follow.Did the company’s operating performance
Use the financial statements of Bastion Computer Corp.1. Compute the debt ratio and the debt/equity ratio at December 31, 2020.2. Is Bastion Computer Corp.’s ability to pay its liabilities strong
Evaluate the common shares of Payment Software Inc. as an investment. Specifically, use the three share (value) ratios to determine whether the shares have increased or decreased in attractiveness
Use the financial statements of Bastion Computer Corp.1. Compute these profitability measures for 2020:a. Return on salesb. Return on assets; interest expense for 2020 was $0.6 millionc. Return on
Use the financial statements of Bastion Computer Corp., plus the following item (in millions):Number of common shares outstanding . . . . . . . . . 0.81. Compute earnings per share (EPS). Round the
The company wants to invest some of its excess cash in trading securities and is considering two investments, Paddle Company (PC) and Recreational Life Vests (RLV). The income statement, balance
Recently, the price–earnings ratio of WestJet Airlines was 10.1 and the price–earnings ratio of Air Canada was 3.65. Which company did the stock market favour? Explain.
A summary of Pasmore Ltd.’s income statement appears as follows:
The following data are adapted from the financial statements of Pospisil Tennis Shops, Inc.:Total current assets......................................................... $1,216,000Accumulated

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