Questions and Answers of Horngrens Accounting managerial

Refer to the Alexia Corporation data in Short Exercise 13-17. Assume the market price of Alexia Corporation’s common stock is $$16.00$ per share. Compute Alexia Corporation’s price/earnings
Keri Corporation is preparing its statement of cash flows by the indirect method. Keri Corporation has the following items for you to consider in preparing the statement:a. Increase in accounts
Horizontal analysis of Liberty Corporation’s balance sheet for 2026 would reporta. Cash as 9.50% of total assets.b. a 17% increase in Cash and Cash Equivalents.c. a current ratio of 1.01.d.
Vertical analysis of Liberty Corporation’s balance sheet for 2026 would reporta. Cash as 9.50% of total assets.b. inventory turnover of 6 times.c. a current ratio of 1.01.d. a 17% increase in Cash.
Which statement best describes Liberty Corporation’s acid-test ratio for 2026?a. Greater than 1b. Equal to 1c. Less than 1d. None of the above
Liberty Corporation’s inventory turnover during 2026 was (amounts rounded)a. 6 times.b. 7 times.c. 8 times.d. not determinable from the data given.
Assume all sales are on credit. During 2026, Liberty Corporation’s days’ sales in receivables ratio was a. 34 days.b. 30 days.c. 32 days.d. 28 days.
Gabe Jaci is interested in investing in Berry Corporation. What types of tools should Jaci use to evaluate the company?
Data for Josephine, Inc. and Laurie Corp. follow:Requirements 1. Prepare common-size income statements.2. Which company earns more net income?3. Which company’s net income is a higher percentage
Bruno Mills’ income statement appears as follows (amounts in thousands):Use the following ratio data to complete Bruno Mills’ income statement:1. Inventory turnover is 3.50 (beginning Merchandise
Winston Corporation has 9,000 shares of 4%, $$10$ par cumulative preferred stock and 47,000 shares of common stock outstanding. Winston Corporation declared no dividends in 2024 and had no
What is a prior-period adjustment?
What does the rate of return on common stockholders’ equity show, and how is it calculated?
Return to the TLM Corporation data in Short Exercise 13-12. TLM Corporation had 10,000 shares of common stock outstanding during 2025. TLM Corporation declared and paid preferred dividends of $6,000
Flipco signed a 10-year note payable on January 1, 2025, of $$800,000$. The note requires annual principal payments each December 31 of $$80,000$ plus interest at 5%.The entry to record the
Maci Corporation has the following amounts as of December 31, 2025.Compute the debt to equity ratio at December 31, 2025. Total assets Total liabilities $51,200 23,700 Total equity 27,500
On December 31, 2025, when the market interest rate is 14%, Cooley Realty issues $$500,000$ of 11.25%, 10-year bonds payable. The bonds pay interest semiannually.The present value of the bonds at
Swenson has a capital balance of $28,000; Sousa’s balance is $22,000. Ha pays $120,000 to purchase Sousa’s interest in the Swenson & Sousa partnership. Sousa receives the full
Abbott and Brown form a partnership. Abbott contributes $$10,000$ cash and merchandise inventory with a current fair value of $$40,000.$ Brown contributes $$5,000$ in cash and land with a
Refer to http://www.pearsonhighered.com/Horngren to view a link to The Coca-Cola Company’s (NYSE: KO) 2021 Annual Report.Requirements 1. Calculate the debt ratio for Coca-Cola as of December 31,
What does the statement of partners’ equity show?
On January 1, 2025, Mack contributes land in a partnership with Vendler. Mack purchased the land in 2020 for $$300,000.$ A real estate appraiser now values the land at $$700,000.$ Mack wants
Krechevsky and Weatherby are forming a partnership to develop a theme park. Krechevsky contributes cash of $$3,000,000$ and land with a current fair value of $$11,000,000.$ When Krechevsky
Santillo and Saab had beginning capital balances of $25,000 and $20,000, respectively.The two partners fail to agree on a profit-and-loss-sharing ratio. For the first month (June 2025), the
Adair, Metz, and Bao have capital balances of $24,000, $36,000, and $60,000, respectively.The partners share profits and losses as follows:a. The first $50,000 is divided based on the partners’
Peña has $$75,000$ capital and Hahn has $$45,000$ capital in the Peña & Hahn partnership.Peña and Hahn share profits and losses equally. Pierre contributes cash of $$40,000$ to acquire a 1/4
Enos and Homer have partner capital balances of $$227,000$ and $$173,000,$ respectively.Enos receives 70% of profits and losses, and Homer receives 30%. Assume Poindexter contributes $$100,000$
Jung, Stacy, and Cooper each have a $$200,000$ capital balance. They share profits and losses as follows: 1:2:1 to Jung, Stacy, and Cooper, respectively. Suppose Cooper is withdrawing from the
John, Jean, and Julian each have a $$60,000$ capital balance. John is retiring from the business. The profit-and-loss-sharing ratio for John, Jean, and Julian is 1:2:3, respectively.Journalize the
The Mikhail & Keeling partnership has the following balances on June 30, 2025:Mikhail and Keeling share profits 2:3, respectively. Mikhail and Keeling decide to liquidate the partnership.
The Jacques & Madison partnership has the following balances on December 31, 2025:Jacques and Madison share profits 1:3, respectively. Jacques and Madison decide to liquidate the partnership.
Winterwear Clothiers reported the following selected items at April 30, 2025 (last year’s—2024—amounts also given as needed):Compute Winterwear Clothiers’ (a) acid-test ratio, (b)
Southside Company had the following transactions in June:Requirements 1. Journalize the transactions. Ignore Cost of Goods Sold. Omit explanations.2. Post the transactions to the general ledger and
Green Mountain Landscape Supply completed the following selected transactions during 2025:Journalize the transactions for Green Mountain Landscape Supply using the allowance method. Include the name
Which method is used to compute depletion?a. Double-declining-balance methodb. Straight-line methodc. Depletion methodd. Units-of-production method
On January 1, 2025, a business borrowed $18,000 on a five-year, 5% notes payable. At December 31, 2025, the business should recorda. interest payable of $900.b. notes receivable of $18,000.c. cash
An employee has year-to-date earnings of $$143,903.$ The employee’s gross pay for the next pay period is $$5,000.$ If the FICA—OASDI is 6.2% and the wage base is $$147,000,$ how much
McDaniel and Associates reported the following amounts on its 2025 income statement:What was McDaniel and Associates’ times-interest-earned ratio for 2025?a. 12.10b. 15.52c. 13.10d. 14.52 Net
Poudre River Raft Company had the following liabilities.a. Accounts Payableb. Notes Payable due in three yearsc. Salaries Payabled. Notes Payable due in six monthse. Sales Tax
Consider the following notes payable transactions of Custom Video Productions.Journalize the transactions for the company.Employee: OASDI: 6.2% on first $$147,000$ earned; Medicare: 1.45% up to
Which characteristic identifies a general partnership?a. Limited personal liabilityb. Unlimited lifec. No business income taxd. All of the above
Which characteristic identifies a limited liability company?a. Members have limited personal liability.b. Members can actively participate in the management of the business.c. The LLC can elect not
The partnership of Abbott and Brown splits profits 1/4 to Abbott and 3/4 to Brown. There is no provision for losses. The partnership has a net loss of $200,000.What is Brown’s share of the loss?a.
Partner withdrawalsa. decrease partnership capital.b. increase partnership liabilities.c. decrease partnership net income.d. increase partnership capital.
Charles pays $$30,000$ to Steven to acquire Steven’s $$15,000$ interest in a partnership.The journal entry to record this transaction is Date a. Charles, Capital Steven, Capital b. Steven,
Barajas and Goodman admit Stein to their partnership, with Stein paying $70,000 more than the book value of Stein’s equity in the new business. Barajas and Goodman have no formal
Wright retires from the partnership of Zhang, Lee, and Wright. The partners share profits and losses in the ratio of 3:2:5, respectively. Wright’s capital balance is $$32,000,$ and he receives
The book value of the non-cash assets of the MLW partnership is $$150,000.$ In liquidation, the partnership sells the non-cash assets for $$174,000.$ Partners M, L, and W split profits equally.
Green T-Shirts, a T-shirt business, is growing fast and needs a better accounting information system. Consider the features of an effective system. Which features are most important? Why? Which
Use the following abbreviations to indicate the journal in which you would record transactions a through n.J = General journalS = Sales journalCR = Cash receipts journalP = Purchases journalCP = Cash
Dorian Lewis, engineer, is considering using a computerized accounting system for her professional engineering business. Lewis has asked that you help her understand the components of a computerized
Espinoza Air Conditioning & Heating had the following select financial data as of June 30, 2025.What is Espinoza Air Conditioning & Heating’s cash ratio?a. 0.34b. 0.65c. 0.78d. 1.54 Cash
Prepare the journal entries for the following petty cash transactions of Online Gaming Supplies: Mar. 1 31 Apr. 15 Established a petty cash fund with a $150 balance. The petty cash fund has $14 in
A purchasing agent for Gordon Supplies receives the goods that he purchases and also approves payment for the goods.Requirements 1. How could this purchasing agent cheat his company?2. How could
Restaurants do a large volume of business by credit and debit cards. Suppose LakesideResort restaurant had these transactions on January 28:Requirements1. Suppose Lakeside Resort’s processor
For each timing difference listed, identify whether the difference would be reported on the book side of the reconciliation or the bank side of the reconciliation. In addition, identify whether the
Rasmussen Banners reported the following figures in its financial statements:Compute the cash ratio for Rasmussen Banners. Cash Cash Equivalents Total Current Liabilities $ 28,800 2,200 24,800
H & H sells pet supplies and food and handles all sales with a cash register. The cash register displays the amount of the sale. It also shows the cash received and any change returned to the
Colette’s Great Cars purchases high-performance auto parts from a Montana vendor.Curt Simpson, the accountant for Colette’s Great Cars, verifies receipt of merchandise and then prepares, signs,
How is the net cost of inventory purchased calculated?
Describe the multi-step income statement.
Describe the journal entry when a customer pays outside the discount period when a company uses the net method for recording sales transactions.
Canyon Canoe Company decided to carry and sell T-shirts with its logo printed on them. Canyon Canoe Company uses the perpetual inventory system to account for the inventory and the gross method for
Canyon Canoe Company does not typically prepare adjusting and closing entries each month, but the company is surprised at how popular the shirts are and wishes to know the net income for January
Crystal Clear Cleaning has decided that, in addition to providing cleaning services, it will sell cleaning products. Crystal Clear Cleaning uses the perpetual inventory system.During December 2025,
At December 31, 2025, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2025?a. Overstates cost of goods sold and understates
Boston Communications reported the following figures in its annual financial statements:Compute the rate of inventory turnover and days’ sales in inventory for Boston Communications. Cost of Goods
The periodic inventory records of Rosalyn Prosthetics indicate the following for theAt July 31, Rosalyn Prosthetics counts two units of merchandise inventory on hand.Compute ending merchandise
The periodic inventory records of Rosalyn Prosthetics indicate the following for theAt July 31, Rosalyn Prosthetics counts two units of merchandise inventory on hand.Compute ending merchandise
The periodic inventory records of Rosalyn Prosthetics indicate the following for theAt July 31, Rosalyn Prosthetics counts two units of merchandise inventory on hand.Compute ending merchandise
Western Michigan C-Store, a regional convenience store chain, maintains milk inventory by the gallon. The first month’s milk purchases and sales at its Kalamazoo, Michigan, location
Assume that the Thumbelina Specialty store purchased and sold a line of dolls during December as follows:Requirements 1. Compute the cost of goods sold, cost of ending merchandise inventory, and
Assume that ET Tire Store completed the following perpetual inventory transactions for a line of tires:Requirements 1. Compute cost of goods sold and gross profit using the FIFO inventory costing
Grandma Gwen’s Bakery reported net sales revenue of $52,000 and cost of goods sold of $22,000. Compute Grandma Gwen’s Bakery’s correct gross profit if the company made either of the following
Assume that Laurence Coffee Shop completed the following periodic inventory transactions for a line of merchandise inventory:Requirements 1. Compute ending merchandise inventory, cost of goods sold,
Consider the data of the following companies which use the periodic inventory system:Requirements 1. Supply the missing amounts in the preceding table.2. Prepare the income statement for the year
Start from the unadjusted trial balance that Crystal Clear Cleaning prepared at November 30, 2025:Consider the following adjustment data:a. Cleaning supplies on hand at the end of November were
Grupo Televisa, S.A.B. and Subsidiaries (NYSE: TV) in the Notes to Consolidated Financial Statements for the year ending December 31, 2020, states that the property, plant and equipment reported on
The Coca-Cola Company (NYSE: KO)—like all other businesses—makes adjusting entries at year-end in order to measure assets, liabilities, revenues, and expenses properly. Examine Coca-Cola
Which of the following accounts would not be included in the current liabilities category of the classified balance sheet?a. Unearned Revenueb. Salaries Payablec. Any portion of a long-term
If a business had a net loss for the year, what would be the closing entry to close Income Summary and transfer the net loss to the Owner, Capital account?
Refer to the data in Short Exercise S-F:4-1. Prepare Hermine Hair Stylists’ unclassified balance sheet at December 31, 2025. Use the account form.Data From Exercise 4-1:Hermine Hair Stylists’
Refer to the data in Short Exercise S-F:4-1. Prepare Hermine Hair Stylists’ classified balance sheet at December 31, 2025. Assume the Notes Payable is due on December 1, 2032. Use the report
Cornell Leo Enterprises had the following accounts and normal balances listed on its December 31 adjusted trial balance: Service Revenue, $$20,600;$ Salaries Expense, $$7,200$; Rent Expense,
Denton Insurance Agency started the year with a beginning Denton, Capital balance of $$25,000.$ During the year, Denton Insurance Agency earned $$40,000$ of Service Revenue and incurred
Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance The adjusted trial balance of
The unadjusted trial balance of Sindy Investment Advisers at December 31, 2025, follows:Adjustment data at December 31, 2025:a. Unearned Revenue earned during the year, $$500$.b. Supplies on hand,
Completing the accounting cycle from journal entries to postclosing trial balance with a worksheet On December 1, Zaray Avelino began an auto repair shop, Avelino’s Quality Automotive.The following
Continuing Problem F:2-1 continues with the company introduced in Chapter F:1, Canyon Canoe Company. Here you will account for Canyon Canoe Company’s transactions as it is actually done in
Consider the following transactional data for the first month of operations for Crystal Clear Cleaning.Requirements 1. Journalize the transactions, using the following accounts: Cash; Accounts
Part of Universal Logistics Holdings, Inc.’s (NASDAQ: ULH) services involves providing freight shipments for customers. Services, such as shipping cars and trucks, are a significant part of the
Your friend Dean McChesney requested that you advise him on the effects that certain transactions will have on his business, A-Plus Travel Planners. Time is short, so you cannot journalize the
What step in the accounting cycle is completed after the unadjusted trial balance is prepared?a. Post journal entries to the accounts in the ledger.b. Prepare the adjusted trial balance.c. Journalize
List and describe Steps 5 and 6 of the accounting cycle.
The Red Violets Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $$900$ for 6 months of advertising.How much advertising expense should Red Violets Law Firm
Secure Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill.
Clips Online sells subscriptions for $$36$ for 12 months. The company collects cash in advance and then subscribers have access to unlimited movies each month. Apply the revenue recognition
Suppose on January 1, Ahmed’s Tavern prepaid rent of $$18,000$ for the full year. At July 31, how much rent expense should be recorded for the period January 1 through July 31?
A select list of transactions for Texas Delivery Service follows:For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting
On April 1, Soccer Kicks of Toledo prepaid six months of rent, $$4,800$.Requirements 1. Record the journal entry for the April 1 payment.2. Record the adjusting entry required at April 30.3. Using

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