Questions and Answers of Horngrens Accounting managerial

On November 1, Salem Equipment had a beginning balance in the Supplies account of $$800.$ During the month, Salem Equipment purchased $$1,000$ of supplies. At November 30, Salem Equipment had
Adventure Gaming collects cash from subscribers in advance and then provides online games to subscribers over a one-year period.Requirements 1. Record the journal entry to record the original
Sunny Travel borrowed $$68,000$ on October 1, by signing a one-year, 4% notes payable to City Bank.Requirements 1. Calculate the amount of interest expense to accrue at December 31. Round to the
At the end of June, Toufik Dental had performed $$3,000$ of dental services but has not yet billed customers. Record the adjusting entry for accrued revenue.
In recording adjusting entries, Kimmy Financial Advisors failed to record the adjusting entries for the following situations:a. Supplies on hand, $$400$.b. Accrued revenues, $$2,000$.c. Accrued
Review the steps in the accounting cycle covered in this chapter and answer the following questions:1. What is the fifth step?2. What is the sixth step?3. What would happen if the fifth step was not
Joyful Occasions is a photography business that shoots videos at college parties. The freshman class pays $$2,000$ in advance on February 3 to guarantee services for its party to be held on May 2.
Consider the following independent situations for Sunset View:a. Sunset View had a January 1 beginning balance in its Prepaid Rent account of $$1,200.$ During the year the company made payments for
Consider the following independent situations at December 31:a. On April 1, a business collected $$3,600$ rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one
Consider the following situations:a. Total salaries for all employees is $$4,400$ per month. Employees are paid on the 1st and 15th of the month.b. Work performed but not yet billed to customers
Consider the following situations for Commodores Welding Services:a. Depreciation on the equipment for the current year is $$2,400$.b. Each Monday, Commodores Welding Services pays employees for
The accounting records of Sa’dia Architects include the following selected, unadjusted balances at March 31: Accounts Receivable, $$1,400;$ Supplies, $$1,100;$ Prepaid Rent, $$2,400;$
The unadjusted trial balance for Mar Vista Pet Grooming is as follows:During the 12 months ended December 31, 2025, Mar Vista Pet Grooming:a. Used supplies of $$1,800$.b. Used prepaid insurance of
Reggae Acoustics recorded the following transactions during October:a. Received $$1,500$ cash from customer for three months of service beginning October 1 and ending December 31. The company
The worksheet of Temp Employment Services follows but is incomplete.The following data at April 30, 2025, are given for Temp Employment Services:a. Service revenue accrued, $$1,500$.b. Supplies
The worksheet of Morton Consulting Services follows but is incomplete.Requirements 1. Calculate and enter the adjusted account balances in the Adjusted Trial Balance columns.2. Describe each
Ingrid Legal Services has collected the following data for the December 31 adjusting entries:a. Each Friday, Ingrid Legal Services pays employees for the current week’s work. The amount of the
The unadjusted trial balance of Bytes IT Services at December 31, 2025, and the data needed for the adjustments follow.Adjustment data at December 31 follow:a. On December 15, Bytes IT Services
Eli Legal Services has the following data for the December 31 adjusting entries:a. Each Friday, Eli Legal Services pays employees for the current week’s work. The amount of the weekly payroll is
Cecily Fishing Charters has collected the following data for the December 31 adjusting entries:a. The company received its electric bill on December 20 for $$400$ but will not pay it until January
This and similar cases in later chapters focus on the financial statements of a real company: The Coca-Cola Company and Subsidiaries (NYSE: KO), a total beverage company whose products are sold in
Large City Kennel earns service revenue by caring for the pets of customers. Large City Kennel is organized as a sole proprietorship and owned by Eberly Minx. During the past month, Large City Kennel
Prepare the income statement of Boardwalk Web Design for the year ended December 31, 2025.Boardwalk Web Design has just completed operations for the year ended December 31, 2025. This is the third
Preparing the statement of owner’s equity Prepare the statement of owner’s equity of Boardwalk Web Design for the year ended December 31, 2025.Boardwalk Web Design has just completed operations
Prepare the balance sheet of Boardwalk Web Design as of December 31, 2025.Boardwalk Web Design has just completed operations for the year ended December 31, 2025. This is the third year of operations
As the manager of a Mama Bodhi’s restaurant, you must deal with a variety of business transactions. Give an example of a transaction that has each of the following effects on the accounting
Healthy Nutrition Coaching currently has a return on assets of 10%. Indicate the effects of the following business transactions on Healthy Nutrition Coaching’s return on assets. Consider each
Brantley Shumaker opened a public relations firm called Gold Star Services on August 1, 2025. The following amounts summarize the business on August 31, 2025:During September 2025, the business
Quick Media Services, and completed the following transactions during December:Analyze the effects of the transactions on the accounting equation of Quick Media Services using a format similar to
Ariella Pfister recently opened an accounting firm on April 1, which operates as a sole proprietorship. The name of the new entity is Ariella Pfister, CPA. Pfister experienced the following events
Bruce Bajaj recently opened a law office on March 1, which operates as a sole proprietorship. The name of the new entity is Bruce Bajaj, Attorney. Bajaj experienced the following events during the
Emalee Shepsle opened a public relations firm called Rock Star on August 1, 2025. The following amounts summarize her business on August 31, 2025:During September 2025, the business completed the
Zora Merz started a new business, Rapid Media Services, and completed the following transactions during December:Analyze the effects of the transactions on the accounting equation of Rapid Media
The bookkeeper of Saturn Landscaping prepared the company’s balance sheet while the accountant was ill. The balance sheet, shown on the next page, contains numerous errors. In particular, the
Darrin Yanagisawa recently opened an accounting firm on October 1, which operates as a sole proprietorship. The name of the new entity is Darrin Yanagisawa, CPA. Yanagisawa experienced the following
Aleda Marek recently opened a law office on December 1, which operates as a sole proprietorship. The name of the new entity is Aleda Marek, Attorney. Marek experienced the following events during the
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”
Starbucks Corporation (NASDAQ: SBUX) is the premier roaster, marketer, and retailer of specialty coffee in the world, operating in 84 countries. Starbucks Corporation generates revenues through
The detailed record of the changes in a particular asset, liability, or owner’s equity is calleda. an account.b. a journal.c. a ledger.d. a trial balance.
Quick Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance show for this error?a. Cash is overstated.b. Liabilities are
Schuster Services reported assets of $800 and equity of $480. What is Schuster Services’ debt ratio?a. 60%b. 40%c. 67%d. Not enough information is provided.
As the manager of Yum Yum Thai, you must deal with a variety of business transactions. Provide an explanation for the following transactions:a. Debit Equipment and credit Cash.b. Debit Saelim,
The following transactions occurred for Molina Engineering:Requirements1. Open the following T-accounts for Molina Engineering: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; Notes
Journalize the transactions of Luna Technology Solutions. Include an explanation with each journal entry. Use the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Advertising; Land;
In December, the first five transactions of Gillespie Consulting have been posted to the T-accounts. Prepare the journal entries that served as the sources for the five transactions. Include an
Daniel Bronstein practices medicine under the business title Daniel Bronstein, M.D. During July, the medical practice completed the following transactions:The business uses the following accounts:
Michael Rose opened a law office on April 1, 2025. During the first month of operations, the business completed the following transactions:Requirements 1. Record each transaction in the journal,
The unadjusted trial balance of Sunshine Financial Advisors is dated March 31, 2025:During April, the business completed the following transactions:Requirements 1. Record the April transactions in
The unadjusted trial balance as of July 31, 2025, for Jack Benito, Registered Dietician, is presented here:Requirements 1. Prepare the income statement for the month ended July 31, 2025.2. Prepare
What are the three manufacturing costs for a manufacturing company? Describe each.
What are product costs for a manufacturing company?
How do period costs differ from product costs for a manufacturing company?
How does a merchandising company calculate unit cost per item sold?
Colgate-Palmolive Company operates two product segments. Go to the company Web site (http://www.colgatepalmolive.com), and then click on the “For Investors” link.From there, go to the SEC filings
Chemex (Singapore) Pte. Ltd. (CS), a manufacturer of specialty chemicals, is the Singapore subsidiary of a large multi-national company. Product quality and innovations are critical to CS’s
A cost that is relevant to a particular decision because it is a future cost and differs among alternatives is calleda. contingency cost.b. relevant cost.c. irrelevant cost.d. sunk cost.
Which of the following is a cost that was incurred in the past and cannot be changed regardless of which future action is taken?a. Irrelevant costb. Sunk costc. Hidden costd. Relevant cost
Which of the following best describes a method that looks at how operating income would differ under each decision alternative that leaves out irrelevant information?a. Differential analysisb.
Which of the following is not a short-term special business decision?a. Regular and special pricingb. Dropping unprofitable products and segmentsc. Outsourcing and further processingd. Analysis of
Which of the following refers to the full cost to develop, produce, and deliver a product or service?a. Target pricingb. Target full product costc. Cost-plus pricingd. Price-taker
Which of the following refers to a company that has control over the prices of its products and services because its products and services are unique and there is little competition?a. Price-takerb.
The fixed cost that will continue to exist even after a product is dropped is often calleda. Real fixed cost.b. Rigid fixed cost.c. Unavoidable fixed cost.d. Permanent fixed cost.
A factor that restricts production or sale of a product is termeda. unavoidable.b. a constraint.c. a restriction.d. a curb.
A cost of a production process that yields multiple products can be described best asa. a joint cost.b. an opportunity cost.c. a sunk cost.d. a direct cost.
Which of the following is not true about outsourcing?a. It is also called make-or-buy decision.b. The company must consider variable costs compared to the outsourcing costs.c. The company must
What is relevant information and relevant cost? Give an example for each of them.
Briefly define price-setters.
Briefly define price-takers.
There are several kinds of short-term special decisions. Explain this statement.
Give three criteria for price-taker companies.
What are the criteria for price-setter companies?
How is cost-plus pricing calculated?
Briefly explain two rules of outsourcing.
In which situations should managers process further rather than selling the product?
What questions should managers answer when considering special pricing orders?
Suppose Italian Eatery restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each
Al Ahlia manufactures books. The company is trying to decide whether to print the individual pages in-house (the current practice) or have a printing company perform this task. For each of the
Manal Company requires three units of P1 for every unit of A15 that it produces.Currently, P1 is made by Manal, with the following per unit costs in a month when 4,000 units were produced:Variable
Paul Company has three product lines in its retail stores: books, videos, and music.The allocated fixed costs are based on units sold and are unavoidable. Demand of individual products is not
Daouk Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2014, the company incurred costs of $344,000 to produce 40,000 gallons of the chemical. The
Which of the following refers to a process of planning to invest in long-term assets in a way that is most profitable for the company?a. Capital investmentb. Capital budgetingc. Capital assetd.
Which of the following is a capital investment analysis method that measures the length of time it takes to recover the cost of the initial investment?a. Paybackb. Drawbackc. Accounting rate of
Which of the following is not true for payback?a. It is a capital investment analysis method.b. It depends on whether net cash inflows are equal or different.c. The longer the payback period, the
Which of the following is not a key factor for determining the time value of money?a. Principal amountb. Number of periodsc. Interest rated. Depreciation
Interest calculated only on the principal amount is calleda. annual interest.b. basic interest.c. simple interest.d. compound interest.
The management’s minimum desired rate of return on a capital investment is calleda. discount rate.b. flat rate.c. offer rate.d. complimentary rate.
Which of the following is a capital investment analysis method that measures the net difference between the present value of the investment’s net cash inflows and the investment’s cost?a. Net
The present value of net cash inflows divided by initial investment refers toa. profitability index.b. sensitivity analysis.c. net present value.d. internal rate of return.
Which of the following is not a capital investment analysis method?a. Paybackb. Accounting Rate of Return (ARR)c. Net Present Value (NPV)d. Sensitivity analysis
Which of the following is not true for ARR?a. It focus the effects of investment towards operating income.b. It uses accrual accounting figures.c. It uses time value of money.d. It measures the
How does capital asset differ from capital investment?
List four methods for analyzing potential capital investments.
What are the three factors that time value of money depends upon?
Explain how present value is calculated by illustrating the formula for doing so.
Explain how future value is calculated by illustrating the formula for doing so.
What are the strengths of the payback method?
What is the weakness of the Internal Rate of Return (IRR)?
What is the focus of the Internal Rate of Return (IRR)?
Refer to the Stenback Valley Snow Park Lodge expansion project in Short Exercise S26-4. Compute the payback for the expansion project. Round to one decimal place.Data From Short Exercise
Refer to the Stenback Valley Snow Park Lodge expansion project in Short Exercise S26-4. Calculate the ARR. Round to two decimal places.Data From Short Exercise S26-4:Consider how Stenback Valley Snow

Showing 100 - 200 of 474