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Real Communication An Introduction 3rd Edition Dan O'Hair, Mary Wiemann, Dorothy Imrich Mullin - Solutions

(Appendices) Choose five food, beauty, or household products you find in your home.Visit a local store and compare three different sizes of the product and compute unit prices. Compile the information gathered in a chart. For each product, indicate whether the larger size saves you money or costs
(Appendices) Search magazines, newspapers, and the Internet for advertisements.Collect or print out ads that offer the following: (a) something for nothing, (b) bonus for early reply, (c) offers of gifts and prizes, and(d) very short time limit for response to get a special deal. Evaluate the
(Appendices) Visit the Federal Trade Commission’s website to learn about the latest frauds and schemes being carried out against consumers. Write a onepage report on a new scheme that is not discussed in the textbook.LO2-1
(Appendices) Explain how the Federal Reserve Bank affects the money supply in the United States. How do the Fed’s actions, including setting reserve requirements and controlling discount rates, speed up or slow down the economy?LO1-3
(Appendices) Select a commonly used product, such as gasoline or milk, and track the prices of this product over a 20-year period by creating a line graph.Explain price increases and decreases based on supply and demand.LO1-2
(Appendices) Compare and contrast the three major ways economies can be organized. What type of economy exists in the United States? Do you think another type of economy would be better? Explain your answer.LO1-1
(Appendices) PRESENTATION OF SALES REVENUE AND COST OF GOODS SOLD. The accountant for Sneva, Inc., collected the following data for 19x’: LO3 REQUIRED:Assume that Sneva uses the periodic system and records purchases and sales using the gross method. Prepare an income statement through gross
(Appendices) A CLASSIFIED INCOME STATEMENT FOR A MERCHANDISING BUSINESS. For each of the cases presented below, compute the missing amounts: LO8
(Appendices) PURCHASES, PURCHASE RETURNS, AND PAYMENT FOR PURCHASES. Jordan Footwear sells athletic shoes. During April Jordan made the following purchases on credit with terms 3/15, n/40: LO4 Assume that Jordan uses the periodic system and records purchases using the gross method.REQUIRED:1.
(Appendices) PURCHASES, TRANSPORTATION-IN, AND PURCHASE RETURNS. Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses periodic inventory accounting. Alpharack engaged in the following transactions related to purchases during 19x6:a) Purchased on credit 320 Wilbur T-100
(Appendices) PURCHASES, SALES, AND COST OF GOODS SOLD. The following data were available for Jeans Inc., a seller of denim clothing, at January 1 of a recent year:Jeans Inc. records purchases and sales gross. During the year, Jeans Inc. engaged in the following transactions:a) Sold merchandise for
(Appendices) ADJUSTING ENTRY AND PREPARATION OF FINANCIAL STATEMENTS.Michael’s Hardware has the following unadjusted trial balance at the end of 19x3:The following data are also available for preparation of adjusting entries:a) One month’s insurance ($250) remains prepaid at December 31,
(Appendices) ADJUSTING ENTRIES AND PREPARATION OF FINANCIAL STATEMENTS. Sacramento Stores’ unadjusted trial balance as of December 31, 19x2, appears below:The following information is also available for preparation of adjusting entries for Sacramento:a) An electric bill in the amount of $1,100 is
(Appendices) DETERMINING UNCOLLECTIBLE ACCOUNT EXPENSE USING THE AGING METHOD. At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for uncollectible accounts of$2,980 (credit). During the year Tennyson had credit sales of
(Appendices) UNCOLLECTIBLE ACCOUNT EXPENSE: AGING METHOD. Cindy Bagnal, the manager of Cayce Printing Service, has provided you with the following aging schedule for Cayce’s accounts receivable:Cindy indicates that the $126,700 of accounts receivable identified in the table does not include
(Appendices) UNCOLLECTIBLE ACCOUNT EXPENSE: CREDIT SALES METHOD. The Glass House, a glass and china store, sells nearly half its merchandise on credit. During the past 4 years, the following data were developed for credit sales and uncollectible account losses:In 19x4 The Glass House expanded its
(Appendices) SALES AND SALES RETURNS WITH DISCOUNTS. Fuente Office Supply sells all merchandise on credit with terms 2/10, n/30. Fuente engaged in the following transactions:a) May 1: Fuente sold 50 staplers to Aaron Enterprises at a list price of $12 per stapler.b) May 5: Fuente accepted 4
(Appendices) RECORDING SALES. Sullivan Company sells industrial cleaning supplies and equipment to other businesses. During the first quarter of 19x2, the following transactions occurred:a) On January 10, Sullivan sold on credit 50 cases of paper towels to the WMT Manufacturing Company at a list
(Appendices) SALES AND PURCHASE DISCOUNTS: GROSS AND NET METHODS. Sims Company regularly sells merchandise to Lauber Supply on terms 3/15, n/20. During a recent month, the two firms engaged in the following transactions:a) Sims sold merchandise with a list price of $33,000.b) Sims sold merchandise
(Appendices) EFFECTS OF DISCOUNTS ON SALES AND PURCHASES. Helmkamp Products sells golf clubs and accessories to pro shops. During 19x5, Helmkamp purchased merchandise with a list price of $628,500 on terms 2/10, n/30. Helmkamp paid for $555,000(suppliers’ list price) of the purchases within the
(Appendices) TERMS OF SHIPMENT AND RECORDING PURCHASES. On May 12, Digital Distributors received three shipments of merchandise. The first was shipped F.0.B.shipping point, had a total invoice price of $150,000, and was delivered by a trucking company that collected an additional $12,000 for
(Appendices) TERMS OF SHIPMENT AND ENDING INVENTORY. On December 31, Archive Products had two shipments of merchandise in transit from different suppliers. The first shipment, which arrived on January 5, was shipped F.O.B. shipping point and had a total invoice price of $28,600. The second
(Appendices) PURCHASES, SALES, AND COST OF GOODS SOLD. Printer Supply Company sells computer printers and printer supplies. One of its products is toner cartridges for laser printers. At the beginning of 19x8 there were 200 cartridges on hand at a cost of $60 each. During 19x8 Printer Supply
(Appendices) COMPONENTS OF COST OF GOODS SOLD. Anna’s Corner Store has the following data for a recent year. LO9
(Appendices) PURCHASES AND PURCHASES RETURNS. On November 6, Lubin Products purchased on credit 350 parts kits from Michaels Electronics for $38 per kit. Michaels paid $320 to have the kits shipped to Lubin. Lubin paid for the kits on December 1.On December 15, Lubin discovered that 4 kits were
(Appendices) COST OF PURCHASES. Compass, Inc., purchased 1,000 bags of insulation from Glassco, Inc. The bags of insulation cost $4.25 each. Compass paid Turner Trucking $260 to have all 1,000 bags of insulation shipped to its warehouse. Compass returned 50 bags that were defective and paid for the
(Appendices) PURCHASES RECORDED NET. Clean Wheels Car Wash purchased $54,200(list price) of soap for its car-washing machines. The seller offered credit terms of 2/10, n/20. Clean Wheels records purchases net of discounts. LO2 REQUIRED:1. Prepare the entry to record this purchase in Clean Wheels’
(Appendices) PURCHASES RECORDED GROSS. Dawson Enterprises uses the periodic system and records purchases gross. On a recent day, Dawson engaged in the following three transactions: LO2a) Purchased merchandise on credit with a list price of $24,600 on terms 3/15, n/25.b) Paid for a purchase made 9
(Appendices) PREPARATION OF MERCHANDISING FINANCIAL STATEMENTS. Jay Coat Company has prepared the following unadjusted trial balance as of December Ble Ox2: LO9 The following data are also available:a) The building has an expected life of 20 years and a residual value of $29,000.b) The cost of
(Appendices) PERIODICAND PERPETUAL INVENTORY SYSTEMS. A list of inventory-system characteristics is presented below. Match each characteristic with one of the following:(A) periodic inventory systems, (B) perpetual inventory systems, or (C) both periodic and perpetual inventory systems.1. Inventory
(Appendices) INVENTORY TURNOVER. A recent annual report for The Limited shows cost of goods sold for the year of approximately $5,286 million and average inventory of approximately $769 million during the year.REQUIRED:1. Calculate The Limited’s inventory turnover.2. Assuming a 365-day year, how
(Appendices) ENDING INVENTORY, COST OF GOODS SOLD, AND GROSS MARGIN. Wilson Company sells a single product. At the beginning of the year, Wilson had 120 units in stock at a cost of $8 each. During the year Wilson purchased 850 more units at a cost of $8 each and sold 210 units at $13 each, 250
(Appendices) ENDING INVENTORY AND COST OF GOODS SOLD. Hempstead Company has the following data for 19x9: LO8
(Appendices) CORRECTING AN ERRONEOUS WRITE-OFF. The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,710 that had been determined to be uncollectible. Accordingly, he debited accounts receivable for 5 $1,710 and credited uncollectible account expense for
(Appendices) ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. At the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for uncollectible accounts of $6,307. During the year Kullerud made credit sales of $890,000, collected receivables in the amount of $812,000, wrote off
(Appendices) UNCOLLECTIBLE ACCOUNT EXPENSE: AGING METHOD. Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year: LO6
(Appendices) AGING RECEIVABLES AND UNCOLLECTIBLE ACCOUNT EXPENSE. Perkinson Corporation sells paper products to a large number of retailers. Perkinson’s accountant has prepared the following aging schedule for its accounts receivable at the end of the year:LO7 Before adjusting entries are
(Appendices) UNCOLLECTIBLE ACCOUNT EXPENSE: CREDIT SALES METHOD. Bradford~Plumbing had the following data for a recent year. LO8 REQUIRED:1. Compute uncollectible account expense for the year. 2. Determine the ending balances in accounts receivable and allowance for uncollectible accounts.
(Appendices) UNCOLLECTIBLE ACCOUNT EXPENSE: CREDIT SALES METHOD. Gilmore Electronics had the following data for a recent year. LO3
(Appendices) AVERAGE UNCOLLECTIBLE ACCOUNT LOSSES AND UNCOLLECTIBLE ACCOUNT EXPENSE. The accountant for Porile Company prepared the following data for sales and uncollectible account losses: LO8 REQUIRED:1. What is the weighted average percentage of uncollectible account losses for 19x4 through
(Appendices) ACCOUNTS RECEIVABLE TURNOVER. A recent annual report for Gerber Products Company shows credit sales for the year of approximately $1,269 million and average accounts receivable of approximately $118 million during the year. LO2 REQUIRED:1. Calculate Gerber’s accounts receivable
(Appendices) INTERNAL CONTROL FOR SALES. Alcoa Building Products distributes aluminum siding and related building products to building contractors, all of whom purchase on credit. LO6 REQUIRED:List three documents prepared by Alcoa for each sales transaction and describe the purpose of each
(Appendices) SALES RETURNS. Swan and Bloom, Inc., is a wholesaler of novelty items to small stores. All sales are on credit with no discount offered. During March, Swan and Bloom accepted the following sales returns:a) Johnson Company returned merchandise with a list price of $600. Johnson had not
(Appendices) SALES, SALES RETURNS, AND SALES ALLOWANCES. The contractor sales department of a Builders’ Square store in suburban Chicago had the following salesrelated transactions on a recent day:a) List price of building supplies sold on credit was $14,700; terms 3/15, n/45.b) Cash sales of
(Appendices) SALES RECORDED NET. Using the data in Exercise 6-27, assume that Nevada records sales gross. LO8 REQUIRED:1. Prepare the entries to record this sale in Nevada’s journal.2. Prepare the entry for Nevada’s journal to record receipt of cash for the sale within the discount period.3.
(Appendices) SALES RECORDED GROSS. Nevada Company sold merchandise with a list price of $12,500 to Small Enterprises on terms 3/15, n/30. Nevada records sales net of discount. LO2 REQUIRED:1. Prepare the entries to record this sale in Nevada’s journal.2. Prepare the entry for Nevada’s journal
(Appendices) EFFECTS OF SALES DISCOUNTS. Castore Security Systems makes all sales on credit, with terms 2/10, n/30. During 19x9, the list price (prediscount) of goods sold was $720,000. Customers paid $550,000 (list price) of these sales within the discount period and the remaining $170,000 (list
(Appendices) DISCOUNT POLICY AND GROSS MARGIN. Compton Electronics sells Motorola cellular phones. During 19x8, Compton sold 1,000 units for $300 per unit. Each unit costs Compton $180. At present, Compton offers no sales discount. Compton’s controller suggests that a generous sales discount
(Appendices) ETHICS AND INVENTORIES. Mary Cravens is an accountant for City Appliance Corporation. One of Mary’s responsibilities is developing the ending inventory amount for the calculation of cost of goods sold each month. At the end of September, Mary noticed that the ending inventory for a
(Appendices) ERRORS IN ENDING INVENTORY. From time to time, business newspapers report that the management of a company has misstated its profits by knowingly establishing an incorrect amount for its periodic-system ending inventory.LO6 REQUIRED:1. Explain how a misstatement of ending inventory can
(Appendices) INCOME EFFECTS OF UNCOLLECTIBLE ACCOUNTS. The credit manager and the accountant for Goldsmith Company are attempting to assess the effect on net income of writing off $100,000 of receivables. Goldsmith uses the aging method of determining uncollectible account expense and has the
(Appendices) INTERNAL CONTROL FOR SALES. Yancy’s Hardware has three stores. Each store manager is paid a salary plus a bonus on the sales made by his or her store. On January 5, 19x6, Bill Slick, manager of one of the stores, resigned. Bill’s store had doubled its expected December 19x5 sales,
(Appendices) INTERNAL CONTROL FOR SALES. Gateway 2000 is a large mail-order computer and software business located in South Dakota. Most of Gateway’s customers call on its toll-free phone line and order computers and software, paying with a credit card. LO85 REQUIRED:Explain why the shipping and
(Appendices) FINANCIAL ANALYSIS OF RECEIVABLES. A chain of retail stores located in Kansas and Nebraska has requested a loan from First Chicago. The balance sheet of the retail chain shows significant accounts receivable related to its in-house credit card. You are employed by First Chicago as a
(Appendices) SALES DISCOUNT POLICIES. Consider three businesses, all of which offer price reductions to their customers. The first is an independently owned Shell service station located at a busy intersection in Cincinnati, Ohio, that offers a 3% discount for cash purchases of gasoline. The second
(Appendices) Identify the accounting items for which adjustments are made to the purchase price of goods acquired for resale when determining the cost of purchases. Assume that the firm uses the gross method of recording purchase discounts. LO70
(Appendices) Describe the difference between F.O.B. shipping point and F.O.B. destination. LO56
(Appendices) Why are adjustments made to the gross purchase price of goods acquired for resale? LO90
(Appendices) What are the components of cost of goods available for sale and of cost of goods sold? Assume that the firm uses the gross method of recording purchase discounts. LO45
(Appendices) How do the periodic and perpetual inventory accounting systems differ from each other? LO64
(Appendices) Write the formulas for the calculation of accounts receivable turnover and inventory turnover. What do these calculations tell us about accounts receivable and inventory? LO53
(Appendices) Name the two allowance methods used to compute uncollectible account expense. For each method, how is uncollectible account expense computed and what does the balance of the allowance for uncollectible accounts represent? LO54
(Appendices) Why is the allowance procedure preferred over the direct write-off procedure for uncollectible accounts? LO77
(Appendices) What kind of account is allowance for uncollectible accounts? What does it represent? LO86
(Appendices) Why does the accountant make an entry to record uncollectible account expense in the period of sale rather than in the period in which an account is determined to be uncollectible? LO25
(Appendices) Describe the documents that underlie the typical accounting system for sales. Give an example of a failure of internal control that might occur if these documents were not properly prepared. LO65
(Appendices) Why do readers of financial statements prefer the separate disclosure of gross sales revenue and sales returns and allowances to the disclosure of a single net sales revenue amount? LO61
(Appendices) What are sales allowances? How do sales allowances differ from sales discounts? LO22
(Appendices) What are sales returns? Why do sales returns occur? LO86
(Appendices) What are trade discounts and quantity discounts? From an accounting viewpoint, how does the effect of trade and quantity discounts on selling (or invoice) price differ from the effect of sales discounts? LOy
(Appendices) What is a sales discount? How can sales discounts be recorded? LO9
(Appendices) Be familiar with management's responsibilities for reporting on internal control under Section 404 of the Sarbanes-Oxley Act. LO8
5. List your five favorite TV shows. What do they have in common? Are these the same top five that your friends would list? Why or why not? What is it specifically that you like about these shows? What needs are being met by watching them? How do you think they affect you?
4. Think of a controversial issue about which you have very strong opinions. Write one paragraph describing the key problem and its main causes, taking care to present your information as objectively as possible, and then send it to a few friends. Can they detect where you stand on the issue based
3. Compare the news coverage for a political controversy on the Web sites of Fox News, CNN, MSNBC, NPR, and the wire services (AP and Reuters). What are the similarities? What are the differences? Then check the Web sites for both Media Matters for America and Media Research Center (or its
2. Take notes as you watch one of your usual TV programs. What are some underlying messages of the story or the events? What are the values and traits of the characters you like the most and the least? Are they stereotypical? If so, what would a nonstereotypical character actually look like?
1. LaunchPad for Real Communication offers key term videos and encourages selfassessment through adaptive quizzing. Go to bedfordstmartins.com/realcomm to get access to:LearningCurve Adaptive Quizzes.Video clips that illustrate key concepts, highlighted in teal in the Real Reference section that
6. Practice five skills for becoming a more mindful and media literate consumer
5. Describe how the convergence of media technologies can enhance or hinder your participation in the social and political process
4. Articulate how media exert influence on your attitudes and behaviors
3. Provide two explanations for the effects of mass media
2. Describe how the business of media and the principle of free speech shape the kinds of media content you encounter
1. Define mass and mediated communication
6. Conduct an in-depth information-gathering interview, and write a four-to fivepage report in which you summarize the information you received. Then comment on what you learned about the interview process. The interview must last at least one hour; the interviewee must be a close acquaintance who
5. Create a questionnaire that you will use the next time you visit a physician.Focus your questions on what is already known about your condition and what you want to know about possible treatment. You may also want to ask questions about the training and experience of the physician in a way that
4. Assess your goals for employment, and then design (or revise) a résumé for the job that interests you the most. Use the guidelines in this chapter to make it clear and action-oriented. Prepare additional résumés for other positions, keeping in mind that your résumé should highlight the
3. A good source for seeing the subtle differences between legal and illegal job interview questions is at the following job Web site: www.jobweb.com/Interview/help.aspx?id=1343&terms=illegal+questions. Use this site to organize a discussion with your classmates about how you would respond to
2. Observe a press conference on television. Who is being interviewed? Who is conducting the interview? What is the goal of the press conference? How is control distributed? List five questions that are asked, and label them according to the types listed in this chapter (open, closed, bipolar,
1. LaunchPad for Real Communication offers key term videos and encourages selfassessment through adaptive quizzing. Go to bedfordstmartins.com/realcomm to get access to:LearningCurve Adaptive Quizzes.
6. Secure job interviews and manage them with confidence
5. Prepare for the role of interviewee
4. Devise an interview strategy from the interviewer’s point of view
3. Describe the three parts of an interview:opening, questions, and conclusion
2. Outline the different types of interviews
1. Define the nature of interviews
4. At one point in this chapter, we asked you to think of a time when an instructor presented a viewpoint that went against one of your deeply held beliefs. Now it’s time for you to be the speaker.c Choose a topic that you feel very passionate about (a controversial topic would work best here).c
3. On your next grocery store trip or while waiting in a doctor’s office, look through some magazine advertisements (bridal magazines are particularly interesting to search). As you page through the advertisements looking for examples of appeals to ethos, logos, and pathos, consider the following
2. Check out a persuasive speech video. You can view one of the persuasive speech videos that accompany this textbook, or you can check one out on YouTube.Listen to and watch the speech critically in light of what you have learned about persuasion. Does the speaker use a clear proposition of fact,
1. LaunchPad for Real Communication offers key term videos and encourages selfassessment through adaptive quizzing. Go to bedfordstmartins.com/realcomm to get access to:LearningCurve Adaptive Quizzes.Video clips that illustrate key concepts, highlighted in teal in the Real Reference section that
6. Choose an appropriate organizational strategy for your speech

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