New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
management accounting information
Principles Of Accounting Volume 2 Chapters 12-25 1st Edition Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton - Solutions
19. What are the three underlying assumptions of accounting information systems?
18. Is there a need for a general journal when special journals are used by a business? Why or why not?
17. Define the terms foot and crossfoot.
16. What does the following notation in the Ref. column of a special journal mean? CP4
15. Subsidiary ledger postings are made daily regardless of the special journal from which they are posted. Discuss the validity of this statement.
14. What is the purpose of a cash payments journal? Are all cash payments recorded here? Why or why not?
13. What types of transactions are recorded in the purchases journal?
12. What is the purpose of the cash receipts journal? What types of transactions are recorded in this journal?
11. What is the purpose of the revenue journal? How often are transactions posted to the general ledger Accounts Receivable account from this journal?
10. What is a special journal? List the four special journals illustrated in the chapter.
9. When subsidiary accounts are used without special journals, the Ref. column of the general journal will include a checkmark (✓) and an account number (210). What is the purpose of each?
8. Explain what a control account is. Describe each of the two control accounts illustrated in the chapter.
7. What are two advantages of using subsidiary ledgers?
5. What is a subsidiary ledger? What type of information is contained in an accounts receivable subsidiary ledger? 6. What is a schedule of accounts receivable? Why is it necessary? When is it generated?
4. Which is easier to understand: How a computerized accounting system functions or how a manual accounting system functions? Explain.
3. Is it easier or more difficult to find errors in a computerized accounting information system? Why or why not?
2. What is the key difference between manual and computerized accounting information systems?
1. What is an accounting information system?
CP4-5 Aggregating Accounts on an Adjusted Trial Balance to Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet Assume that you recently were hired for a job in Evansville, Indiana, at the head office of Escalade, Inc., which makes Goalrilla TM and Goaliath basketball
CP4-4 Ethical Decision Making: A Real-Life Example On December 12, 2002, the SEC filed a lawsuit against four executives of Safety-Kleen Corp., one of the country’s leading providers of industrial waste collection and disposal services. The primary issue was that the executives had directed
CP4-3 Examining Adjustments: Internet-Based Team Research As a team, select an industry to analyze. Using your Web browser, each team member should acquire the annual report or 10-K for one publicly traded company in the industry with each member selecting a different company. (See CP1-3 in Chapter
CP4-2 Comparing Financial Information Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book, or download the annual reports from the Cases section of the text’s Web site at www.mhhe.com/LLPW1e . Required: 1. Refer to the notes to the
CP4-1 Finding Financial Information Refer to the financial statements of The Home Depot in Appendix A at the end of this book, or download the annual report from the Cases section of the text’s Web site at www.mhhe.com/LLPW1e . Required: 1. The company’s Prepaid Advertising Expenses are
PB4-6 Completing a Worksheet and Preparing Closing Entries (Chapter Supplement) Marine Pool Service & Repair, a sole proprietorship owned by Robert Horn, has been in operation for several years. Revenues have increased gradually from both the pool cleaning and repair services. The annual
PB4-5 Recording Transactions (including adjusting entries), Preparing Financial Statements, Closing the Books, and Analyzing a Key Ratio Comprehensive Review Problem (Chapters 2, 3, and 4) Alison Renny began operations of her furniture repair shop (Lazy Sofa Furniture) on January 1, 2010. The
PB4-4 Preparing Closing Entries and Computing and Analyzing Net Profit Margin Federal Express Corporation delivers packages and freight to over 220 countries via air and land routes. The company also owns FedEx Kinko’s. The following is a simplified list of adjusted accounts and amounts reported
PB4-3 Preparing an Adjusted Trial Balance, Closing Journal Entries, and Post-Closing Trial Balance Pacific Sunwear of California operates three chains of retail stores under the names Pacific Sunwear (also known as PacSun), Pacific Sunwear (PacSun) Outlet, and d.e.m.o. The following is a simplified
PB4-2 Determining Financial Statement Effects of Adjusting Journal Entries Refer to PB4-1. Required: Using the following headings, indicate the effect of each adjusting journal entry and the amount of the effect. Use + for increase, – for decrease, and NE for no effect. BALANCE SHEET Transaction
PB4-1 Recording Adjusting Journal Entries Greenly Company’s annual accounting year ends on June 30. It is June 30, 2010, and all of the 2010 entries except the following adjusting journal entries have been made:a. The company earned service revenue of $2,000 on a special job that was completed
PA4-6 Completing a Worksheet and Preparing Closing Entries (Chapter Supplement) Anderson Plumbing Supply has partially completed the following worksheet for the year ended December 31, 2010:Required: 1. Use additional columns for Adjusted Trial Balance, Income Statement, Owner’s Equity, and
PA4-5 Recording Transactions (including adjusting journal entries), Preparing Financial Statements, Closing the Books, and Analyzing a Key Ratio: Comprehensive Review Problem (Chapters 2, 3, and 4) Harry Hermann began operations of his machine shop (H-H Tool) on January 1, 2009. The annual
PA4-4 Preparing Closing Entries and Computing and Analyzing Net Profit Margin Starbucks Corporation purchases and roasts high-quality whole bean coffees and sells them along with fresh-brewed coffees, its exclusive line of Frappucino blended beverages, Italian-style espresso beverages, and premium
PA4-3 Preparing an Adjusted Trial Balance, Closing Journal Entries, and Post-Closing Trial Balance Dell is the world’s largest computer systems company selling directly to customers. The following is a list of adjusted accounts and amounts reported for a recent fiscal year ended February 3. The
PA4-1 Recording Adjusting Journal Entries Jordan Company’s annual accounting year ends on December 31. Jordan Broome owns and manages the company. It is now December 31, 2009, and all of the 2009 entries have been made except for the following:a. The company owes interest of $400 on a bank loan
E4-19 Completing a Worksheet Starting with an Unadjusted Trial Balance (Chapter Supplement) Fairbanks Company is completing its annual accounting information processing cycle at December 31, 2011. The following worksheet has been started.Data not yet recorded for 2011:a. Half of Prepaid Insurance
E4-18 Recording Initial Transactions and Subsequent Adjustments During the month of September, Texas Go-Kart Company had the following business activities:a. Paid rent on September 1 on the track facility for six months at a total cost of $12,000.b. Sold season tickets on September 1 for 12-month
E4-17 Analyzing Financial Information Using Net Profit Margin Refer to the financial statements created in E4-15. Required: Compute and interpret the net profit margin ratio for Mint Cleaning for 2010.
E4-16 Recording Closing Entries Refer to E4-14. Required: 1. Using the adjusted balances in E4-14, give the closing journal entries for 2010. 2. What is the purpose of closing the books at the end of the accounting period?
E4-15 Reporting an Income Statement, Statement of Owner’s Equity, and Balance Sheet Refer to E4-14. Required: Using the adjusted balances in E4-14, prepare a classified income statement, statement of owner’s equity, and classified balance sheet for 2010.
E4-14 Recording Adjusting Entries and Preparing an Adjusted Trial Balance Mint Cleaning, owned by Kat Slifer, had the following unadjusted accounts at the end of its second year of operations ending December 31, 2010. To simplify this exercise, the amounts given are in thousands of dollars and have
E4-13 Recording Adjusting Entries and Preparing an Adjusted Trial Balance Ninja Sockeye Star, owned by Johnny Chen, had the following unadjusted accounts at the end of its second year of operations ending December 31, 2009. The accounts have normal debit or credit balances. Cash $12,000 Wages
E4-12 Reporting an Adjusted Income Statement Dyer Rental Store, a sole proprietorship owned by Jessica Dyer, completed its first year of operations on December 31, 2010. Because this is the end of the annual accounting period, the business’s bookkeeper prepared the following tentative income
E4-10 Inferring Transactions from Accrual Accounts Deere & Company was incorporated in 1868 and today is the world’s leading producer of agricultural equipment. The company also provides credit, managed health care plans, and insurance products for businesses and the general public. The
E4-9 Recording Transactions Including Adjusting and Closing Journal Entries Cooper Paving, owned by Chuck Cooper, uses the following accounts:Required: For each of the following independent situations, give the journal entry by entering the appropriate code(s) and amount(s). The first one is an
E4-8 Determining Financial Statement Effects of Adjusting Journal Entries Refer to E4-7. Required: For each transaction in E4-7, indicate the amount and direction of effects of the adjusting journal entry on the elements of the balance sheet and income statement. Use the following format: + for
E4-7 Recording Adjusting Journal Entries Jaworski’s Ski Store is completing the accounting process for its first year ended December 31, 2010. The transactions during 2010 have been journalized and posted. The following data are available to determine adjusting journal entries:a. The balance in
E4-6 Recording Adjusting Journal Entries Refer to E4-5. Required: Prepare adjusting journal entries at December 31, 2009, for (a) insurance and (b) shipping supplies.
E4-5 Determining Adjustments and Accounting Equation Effects Mary Fes, owner of Fes Company, has hired you to help with the accounting entries at the end of the year on December 31, 2009. In developing information for the adjusting journal entries, you learned the following:a. A two-year insurance
E4-4 Recording Adjusting Journal Entries Refer to E4-3. Required: Record the required adjusting journal entries for transactions a and b.
E4-3 Determining Adjustments and Accounting Equation Effects MoBo, a wireless phone carrier owned by sole proprietor Morris Bonner, completed its first year of operations on December 31, 2011. All of the 2011 entries have been recorded except for the following:a. At year-end, employees earned wages
E4-2 Identifying Adjustments by Scanning a Trial Balance Coach, Inc. —the maker of handbags and other women’s and men’s accessories—was owned by Sara Lee Corporation until April 2001, when Coach was spun off as a separate company. Assume the following adjusted balances were reported in
E4-1 Preparing an Adjusted Trial Balance Gibson Consultants provides marketing research for clients in the retail industry. The company had the following adjusted balances at December 31, 2010:Required: 1. Prepare an adjusted trial balance for Gibson Consultants at December 31, 2010. Solve for the
M4-22 Computing Net Profit Margin Refer to the adjusted account balances in M4-20. Required: 1. Compute net income. 2. Compute net profit margin for H&R Tacks. 3. What does the result of your computation suggest about H&R Tacks?
M4-21 Closing the Books Refer to the adjusted account balances in M4-20. Prepare closing journal entries on December 31.
M4-20 Preparing an Adjusted Trial Balance The following alphabetical listing is the adjusted account balances for H&R Tacks, owned and managed by Jeremy Daily. Accounts Payable $ 400 Insurance Expense $ 3,600 Prepaid Insurance $ 3,600 Accounts Receivable 500 Interest Expense 500 Service Revenue
M4-19 Preparing and Posting Adjusting Journal Entries At December 31, the unadjusted trial balance of H&R Tacks reports Interest Payable of $0 and Interest Expense of $0. Interest incurred and owed in December totals $500. (See requirements on prior page.)
M4-18 Preparing and Posting Adjusting Journal Entries At December 31, the unadjusted trial balance of H&R Tacks reports Wages Payable of $0 and Wages Expense of $20,000. Employees have been paid for work done up to December 27, but the $1,200 they have earned for December 28–31 has not yet been
M4-17 Preparing and Posting Adjusting Journal Entries At December 31, the unadjusted trial balance of H&R Tacks reports Unearned Revenue of $5,000 and Service Revenue of $33,800. One-half of the unearned revenue has been earned as of December 31. (See requirements on prior page.)
M4-16 Preparing and Posting Adjusting Journal Entries At December 31, the unadjusted trial balance of H&R Tacks reports Prepaid Insurance of $7,200 and Insurance Expense of $0. The insurance was purchased on July 1 and provides coverage for 12 months. (See requirements on prior page.)
M4-15 Preparing and Posting Adjusting Journal Entries At December 31, the unadjusted trial balance of H&R Tacks reports Equipment of $38,000 and zero balances in Accumulated Depreciation and Depreciation Expense. Depreciation for the period is estimated to be $6,000. (See requirements on prior
M4-14 Preparing and Posting Adjusting Journal Entries At December 31, the unadjusted trial balance of H&R Tacks reports Supplies Expense of $0 and Supplies of $9,000, representing the beginning cost of Supplies plus the amount purchased during the year. On December 31, supplies costing $1,300 are
M4-13 Analyzing Financial Information Refer to M4-9. Compute the net profit margin ratio, and interpret what the result suggests for Sky Blue Company.
M4-12 Recording Closing Journal Entries Refer to the adjusted accounts in M4-9. Prepare closing journal entries on December 31, 2010. M4-13 Analyzing Financial Information Refer to M4-9. Compute the net profit margin ratio, and interpret what the result suggests for Sky Blue Company.
M4-11 Reporting a Balance Sheet Refer to M4-9. Prepare a classified balance sheet at December 31, 2010. Are Sky Blue Company’s assets financed primarily by debt or equity?
M4-10 Reporting a Statement of Owner’s Equity Refer to M4-9. Prepare a statement of owner’s equity for 2010. Assume that the owner did not make any investments during the year.
M4-9 Reporting an Income Statement Sky Blue Company, owned by sole proprietor Anna Cerveny, provides computer technology services to customers. The company has the following adjusted accounts at December 31, 2010. Cash $ 1,200 A. Cerveny, Capital $ 3,400 Accounts Receivable 2,000 A. Cerveny,
M4-8 Recording Adjusting Journal Entries Using the information in M4-7, for each transaction, (1) identify the type of adjustment and (2) prepare the adjusting journal entry required on December 31, 2010.
M4-7 Determining Accounting Equation Effects of Adjustments For each of the following transactions for Sky Blue Company owned by sole proprietor Anna Cerveny, give the effects amounts and direction of effect (+ for increase or − for decrease) of the adjustments required at the end of the month on
M4-6 Recording Adjusting Journal Entries Using the information in M4-5, for each transaction, (1) identify the type of adjustment and (2) prepare the adjusting journal entry required on December 31, 2010.
M4-5 Determining Effects of Adjustments For each of the following transactions for Sky Blue Company owned by sole proprietor Anna Cerveny, give the effects amounts and direction of effect (+ for increase or − for decrease) of the adjustments required at the end of the month on December 31, 2010.
M4-4 Matching Transactions with Type of Adjustment Match each transaction with the type of adjustment that will be required by entering the appropriate letter in the space provided. Transaction 1. Supplies for office use were purchased during the year for $500, and $100 of the office supplies
M4-3 Matching Transactions with Type of Adjustment Match each transaction with the type of adjustment that will be required by entering the appropriate letter in the space provided. Transaction 1. An expense has not yet been incurred but has been paid in advance. 2. Rent has not yet been collected
M4-2 Preparing an Adjusted Trial Balance Macro Company has the following adjusted accounts and balances at year-end (June 30, 2010):Required: Prepare an adjusted trial balance for Macro Company at June 30, 2010. Accounts Payable $ 300 Depreciation Expense $ 110 Prepaid Expenses $ 40 Accounts
M4-1 Understanding Concepts Related to Adjustments Match each of the following situations to two applicable reasons that require an adjustment to be made. ____ & ____ 1. Northwest Airlines provided flights this month for customers who paid cash last month for tickets. A. Revenue has been earned. B.
10. Assume that a company receives a bill for $10,000 for advertising done during the current year. If this expense is not yet recorded by the end of the year, what will the adjusting journal entry include?a. Debit to Advertising Expense of $10,000.b. Credit to Advertising Expense of $10,000.c.
9. Assume the balance in Prepaid Insurance is $2,500 but it should be $1,500. The adjusting journal entry should include which of the following?a. Debit to Prepaid Insurance for $1,000.b. Credit to Insurance Expense for $1,000.c. Debit to Insurance Expense for $1,000.d. Debit to Insurance Expense
8. Which of the following trial balances is used as a source for preparing the income statement?a. Unadjusted trial balance.b. Preadjusted trial balance.c. Adjusted trial balance.d. Post-closing trial balance.
7. Company A owns a building. Which of the following statements regarding depreciation is false from an accounting perspective?a. As the value of the building decreases over time, it “depreciates.”b. Depreciation is an estimated expense to be recorded each period during the building’s life.c.
6. An adjusted trial balancea. Shows the ending balances in a “debit” and “credit” format before adjusting journal entries are posted.b. Is prepared after closing entries have been posted.c. Is a tool financial analysts use to review the performance of publicly traded companies.d. Shows the
5. An adjusting journal entry to recognize accrued salaries payable would cause which of the following?a. A decrease in assets and owner’s equity.b. A decrease in assets and liabilities.c. An increase in expenses, liabilities, and owner’s equity.d. An increase in expenses and liabilities and a
4. On December 31, an adjustment is made to reduce unearned revenue and report revenue earned during the period. How many accounts will be included in this adjusting journal entry?a. None.b. One.c. Two.d. Three.
3. When a concert promotions company collects cash for ticket sales two months in advance of the show date, which of the following accounts is affected?a. Accrued Liability.b. Accounts Receivable.c. Prepaid Expense.d. Unearned Revenue.
2. Which account is least likely to appear in an adjusting journal entry?a. Cash.b. Interest Receivable.c. Accumulated Depreciation.d. Salaries Payable.
1. Which of the following accounts would not appear in a closing journal entry?a. Interest Revenue.b. Accumulated Depreciation.c. Owner’s Capital.d. Salary Expense.
18. How is a company’s net profit margin computed and what does it measure?
17. What is a post-closing trial balance? Is it a useful part of the accounting cycle? Explain.
16. Is the owner’s drawing account considered an asset, liability, or owner’s equity account? Is it a permanent or temporary account? Does it normally have a debit or credit balance?
15. Why are the income statement accounts closed but the balance sheet accounts are not?
14. How do permanent accounts differ from temporary accounts?
13. What is the purpose of closing journal entries?
12. Explain how the financial statements in question 11 relate to each other.
11. What is the equation for each of the following statements: (a) income statement, (b) statement of owner’s equity, and (c) balance sheet?
10. Using the information in question 8, prepare the journal entry and adjusting journal entries to be made on December 31, January 31, February 28, and March 31.
9. Using the information in question 8, determine the amounts and accounts that will be reported on the January 31 balance sheet and the income statement for the month ended January 31.
8. On December 31, a company makes a $9,000 payment to rent a warehouse in January, February, and March of the following year. Show the accounting equation effects of the transaction on December 31, as well as the adjustments required on January 31, February 28, and March 31.
7. What is an adjusted trial balance? What is its purpose?
6. Explain the differences between depreciation expense and accumulated depreciation.
5. What is a contra-asset? Give an example of one.
4. Explain the effect of adjusting journal entries on cash.
3. List the four types of adjustments, and give an example of each type.
Showing 1700 - 1800
of 4138
First
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Last
Step by Step Answers
Get 50% OFF
Claim Now
