Hospitality Financial Accounting 1st Edition Jerry J Weygandt, Donald E Kieso, Paul D Kimmel, Agnes L DeFranco - Solutions

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Godfreid Company has accounts receivable of $95,400 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts.
Suppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major global transportation/delivery company.(in millions) 2017 2016 Accounts receivable (gross) $ 3,587 $ 4,517 Accounts receivable (net) 3,391 4,359 Allowance for doubtful accounts 196 158 Sales
The following ratios are available for Ming Inc.2017 2016 Current ratio 1.3:1 1.5:1 Accounts receivable turnover 12 times 10 times Inventory turnover 11 times 9 times Instructions(a) Is Ming’s short-term liquidity improving or deteriorating in 2017? Be specifi c in your answer, referring to
Rianna.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end.Journalize transactions related to bad debts.(LO 2), AP PROBLEMS: SET A▼Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120
Presented below is an aging schedule for Bryan Company.Not Yet Number of Days Past Due Customer Total Due 1–30 31–60 61–90 Over 90 Aneesh $ 24,000 $ 9,000 $15,000 Bird 30,000 $ 30,000 Cope 50,000 5,000 5,000 $40,000 DeSpears 38,000 $38,000 Others 120,000 72,000 35,000 13,000 $262,000 $107,000
At December 31, 2017, the trial balance of Malone Company contained the following amounts before adjustment.Debit Credit Accounts Receivable $180,000 Allowance for Doubtful Accounts $ 1,500 Sales Revenue 875,000 Instructions(a) Prepare the adjusting entry at December 31, 2017, to record bad debt
The president of Mossy Enterprises asks if you could indicate the impact certain transactions have on the following ratios.Accounts Average Current Receivable Collection Ratio Turnover Period Transaction (2:1) (103) (36.5 days)1. Received $5,000 on cash sale. The cost of the goods sold was
Milton Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,800. Notes Receivable include the following.Date Maker Face Value Term Maturity Date Interest Rate April
One of Natalie’s friends, Curtis Lesperance, runs a coffee shop where he sells specialty coffees and prepares and sells muffi ns and cookies. He is eager to buy one of Natalie’s fi ne European mixers, which would enable him to make larger batches of muffi ns and cookies. However, Curtis cannot
Hudson Corporation’s balance sheet at December 31, 2016, is presented below.HUDSON CORPORATION Balance Sheet December 31, 2016 Cash $13,100 Accounts payable $ 8,750 Accounts receivable 19,780 Common stock 20,000 Allowance for doubtful accounts (800) Retained earnings 12,730 Inventory 9,400
Refer to the fi nancial statements of Apple Inc. in Appendix A.Instructions(a) Calculate the accounts receivable turnover and average collection period for 2014.(Assume all sales were credit sales.)(b) Did Apple have any potentially signifi cant credit risks in 2014?(c) What conclusions can you
The fi nancial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C.Instructions(a) Based on the information contained in these fi nancial statements, compute the following 2014 values for each company.(1) Accounts
The fi nancial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E.Instructions(a) Based on the information contained in these fi nancial statements, compute the following values for each company for the most recent
Suppose the information below is from the 2017 fi nancial statements and accompanying notes of The Scotts Company, a major manufacturer of lawn-care products(in millions) 2017 2016 Accounts receivable $ 270.4 $ 259.7 Allowance for uncollectible accounts 10.6 11.4 Sales revenue 2,981.8 2,871.8 Total
Purpose: To learn more about factoring from websites that provide factoring services.Address: www.ccapital.net, or go to www.wiley.com/college/kimmel Instructions Go to the website, click on Invoice Factoring, and answer the following questions.(a) What are some of the benefi ts of factoring?(b)
Emilio and René Santos own Club Fandango. From its inception, Club Fandango has sold merchandise on either a cash or credit basis, but no credit cards have been accepted.During the past several months, the Santos have begun to question their creditsales policies. First, they have lost some sales
Under IFRS:(a) the entry to record estimated uncollected accounts is the same as GAAP.(b) it is always acceptable to use the direct write-off method.(c) all financial instruments are recorded at fair value.(d) None of the above.
Explain the time period assumption. LO6
Explain the accrual basis of accounting. LO6
Explain why adjusting entries are needed. LO6
Identify the major types of adjusting entries. LO6
Prepare adjusting entries for prepayments. LO6
Prepare adjusting entries for accruals. LO6
Describe the nature and purpose of an adjusted trial balance. LO6
Prepare adjusting entries for the alternative treatment of prepayments. LO6
The ledger of Heavenly Cruiselines includes the following accounts. Explain why each account may require adjustment. LO6(a) Prepaid Insurance (c) Unearned Revenue(b) Depreciation Expense (d) Interest Payable
Riko Cigar Company accumulates the following adjustment data at December 31. Indicate(a) the type of adjustment (prepaid expense, accrued revenues and so on), and (b) the accounts before adjustment (overstated or understated). LO6 1. Supplies of $100 are on hand.2. Services provided but unbilled
Sain Design Company specializes in menu design for foodservices. Its trial balance at December 31 shows Supplies $8,700 and Supplies Expense $0. On December 31, there are $1,700 of supplies on hand. Prepare the adjusting entry at December 31, and using T accounts, enter the balances in the
The bookkeeper for Rosenberg Consulting Company asks you to prepare the following accrued adjusting entries at December 31. LO6 1. Interest on notes payable of $300 is accrued.2. Services provided but unbilled total $1,250.3. Salaries earned by employees of $900 have not been recorded.Use the
The trial balance of Hoi Catering Company includes the following balance sheet accounts.Identify the accounts that require adjustment. For each account that requires adjustment, indicate(a) the type of adjusting entry (prepaid expenses, unearned revenues, accrued revenues, and accrued expenses) and
Jawson Catering accumulates the following adjustment data at December 31. LO6 1. Services provided but unbilled total $750.2. Store supplies of $300 have been used.3. Utility expenses of $225 are unpaid.4. Unearned revenue of $260 has been earned.5. Salaries of $900 are unpaid.6. Prepaid insurance
The ledger of Easy Party Supplies Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. LO6 Debit Credit Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation—Equipment $ 8,400 Notes Payable
Karen Tong, D.D.S., opened a flower shop on January 1, 2004. During the first month of operations the following transactions occurred. LO6 1. Performed services for hotel clients. At January 31, $875 of such services was earned but not yet billed to the hotel companies.2. Utility expenses incurred
Samwise Gamgee started his own hospitality consulting firm, Gamgee Company, on June 1, 2004. Gamgee Company performs feasibility studies to determine if restaurants should be opened at certain locations. The trial balance at June 30 is as follows. LO6 GAMGEE COMPANY Trial Balance June 30, 2004
Julie Brown started her own consulting firm, Wedding Consulting, on May 1, 2004. The trial balance at May 31 is as follows. LO6 WEDDING CONSULTING Trial Balance May 31, 2004 Account Number Debit Credit 101 Cash $ 6,500 110 Accounts Receivable 4,000 120 Prepaid Insurance 3,600 130 Supplies 1,500 135
The financial statements of Hilton are presented in the Appendix at the end of this textbook. LO6 Instructions(a) Using the consolidated financial statements and related information, identify items that may result in adjusting entries for prepayments.(b) Using the consolidated financial statements
A wealth of accounting-related information is available via the Internet. For example, the Rutgers Accounting Web offers access to a great variety of sources. LO6 Address: www.accounting.rutgers.edu/raw Steps: Click on Accounting Resources, or click on RAW’s Features. (Note: Once on this page,
Explain the accrual basis of accounting and the reasons for adjusting entries.
Prepare an adjusted trial balance and closing entries.
Describe the purpose and the basic form of a worksheet.
All of the following are required steps in the accounting cycle except:(a) journalizing and posting closing entries.(b) preparing an adjusted trial balance.(c) preparing a post-closing trial balance.(d) prepare fi nancial statements from the unadjusted trial balance.
The income statement of Bragg Co. for the month of July shows net income of $1,400 based on Service Revenue $5,500, Salaries and Wages Expense $2,300, Supplies Expense$1,200, and Utilities Expense $600. In reviewing the statement, you discover the following.1. Insurance expired during July of $450
Arapaho Company ended its fi scal year on July 31, 2017. The company’s adjusted trial balance as of the end of its fi scal year is as shown below.ARAPAHO COMPANY Adjusted Trial Balance July 31, 2017 Account Titles Debit Credit Cash $ 15,940 Accounts Receivable 8,580 Equipment 16,900 Accumulated
(a) What information do accrual-basis fi nancial statements provide that cash-basis statements do not?(b) What information do cash-basis fi nancial statements provide that accrual-basis statements do not?
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example.Net Cash Income(a) Purchased $100 of supplies for cash. −$100 $ 0(b)
The ledger of Melmann Company includes the following accounts. Explain why each account may require adjustment.(a) Prepaid Insurance. (c) Unearned Service Revenue.(b) Depreciation Expense. (d) Interest Payable.
The trial balance of Woods Company includes the following balance sheet accounts.Identify the accounts that might require adjustment. For each account that requires adjustment, indicate (1) the type of adjusting entry (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2)
The required steps in the accounting cycle are listed in random order below. List the steps in proper sequence.(a) Prepare a post-closing trial balance. (f) Journalize and post closing entries.(b) Prepare an adjusted trial balance. (g) Prepare financial statements.(c) Analyze business transactions.
A list of concepts is provided below in the left column, with descriptions of the concepts in the right column. There are more descriptions provided than concepts. Match the description to the concept.1. ______ Cash-basis accounting.2. ______ Fiscal year.3. ______ Revenue recognition principle.4.
The ledger of Umatilla, Inc. on March 31, 2017, includes the following selected accounts before adjusting entries.Debit Credit Supplies 2,500 Prepaid Insurance 2,400 Equipment 30,000 Unearned Service Revenue 10,000 An analysis of the accounts shows the following.1. Insurance expires at the rate of
Paloma Company shows the following balances in selected accounts of its adjusted trial balance.Supplies $32,000 Service Revenue $108,000 Supplies Expense 6,000 Salaries and Wages Expense 40,000 Accounts Receivable 12,000 Utilities Expense 8,000 Dividends 22,000 Rent Expense 18,000 Retained Earnings
The following independent situations require professional judgment for determining when to recognize revenue from the transactions.(a) Southwest Airlines sells you an advance-purchase airline ticket in September for your fl ight home in December.(b) Ultimate Electronics sells you a home theater on
These accounting concepts were discussed in this and previous chapters. LO3 1. Economic entity assumption. 6. Materiality.2. Expense recognition principle. 7. Full disclosure principle.3. Monetary unit assumption. 8. Going concern assumption.4. Periodicity assumption. 9. Revenue recognition
Here are some accounting reporting situations. LO3(a) East Lake Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain.(b) Hilo Company is in its fi fth year of operation and has yet to issue fi
Franken Company, a ski tuning and repair shop, opened on November 1, 2016. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski season, April 30, 2017. LO3 Cash Cash Receipts Payments Issuance of common shares
The ledger of Howard Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. LO3 Debit Credit Supplies $ 3,000 Prepaid Insurance 3,600 Equipment 25,000 Accumulated Depreciation—Equipment $ 8,400 Notes Payable 20,000 Unearned
The ledger of Armour Lake Lumber Supply on July 31, 2017, includes the selected accounts below before adjusting entries have been prepared. LO3 Debit Credit Investment in Note Receivable $ 20,000 Supplies 24,000 Prepaid Rent 3,600 Buildings 250,000 Accumulated Depreciation—Buildings $140,000
Selected accounts of Villa Company are shown here. LO3 Supplies Expense July 31 750 Salaries and Wages Payable July 31 1,000 Salaries and Wages Expense July 15 1,000 31 1,000 Service Revenue July 14 3,800 31 900 31 500 Supplies July 1 Bal. 1,100 July 31 750 10 200 Accounts Receivable July 31 500
This is a partial adjusted trial balance of Ramon Company. LO3 RAMON COMPANY Adjusted Trial Balance January 31, 2017 Debit Credit Supplies $ 700 Prepaid Insurance 1,560 Salaries and Wages Payable $1,060 Unearned Service Revenue 750 Supplies Expense 950 Insurance Expense 520 Salaries and Wages
On December 31, 2017, Waters Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $150,000, total liabilities $70,000, and stockholders’ equity $80,000.The incorrect income statement showed net
Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2017. LO3 1. Purchased a 1-year insurance policy on June 1 for $1,800 cash.2. Paid $6,500 on August 31 for 5 months’ rent in advance.3. On September 4, received $3,600
A partial adjusted trial balance for Ramon Company is given in E4-15. LO3 Instructions Prepare the closing entries at January 31, 2017.
Selected year-end account balances from the adjusted trial balance as of December 31, 2017, for Tippy Corporation is provided below. LO3 Debit Credit Accounts Receivable $ 72,600 Dividends 26,300 Depreciation Expense 13,200 Equipment 212,800 Salaries and Wages Expense 91,100 Accounts Payable $
The trial balances shown below are before and after adjustment for Ryan Company at the end of its fiscal year. LO3 RYAN COMPANY Trial Balance August 31, 2017 Before After Adjustment Adjustment Dr. Cr. Dr. Cr.Cash $10,900 $10,900 Accounts Receivable 8,800 9,400 Supplies 2,500 500 Prepaid Insurance
Describe the application of the cost principle to long-term assets. LO9
Explain the concept of depreciation. LO9
Compute periodic depreciation using different methods. LO9
Describe the procedure for revising periodic depreciation. LO9
Distinguish between revenue and capital expenditures, and explain the entries for these expenditures. LO9
Explain how to account for the disposal of a long-term asset through retirement, sale, or exchange. LO9
Contrast the accounting for intangible assets with the accounting for long-term assets. LO9
The following expenditures were incurred by Shumway Hotel in purchasing land: cash price $50,000, accrued taxes $3,000, attorneys’ fees $2,500, real estate broker’s commission$2,000, and clearing and grading $3,500. What is the cost of the land? LO9
Mabasa Foods Company acquires a delivery truck at a cost of $30,000. The truck is expected to have a salvage value of $2,000 at the end of its four-year useful life. Compute annual depreciation for the first and second years using the straight-line method. LO9
On January 1, 2004, the Villaluz Mexican Foods ledger shows Equipment $32,000 and Accumulated Depreciation $9,000. The depreciation resulted from using the straight-line method with a useful life of 10 years and salvage value of $2,000. On this date, the company concludes that the equipment has a
The following expenditures relating to long-term assets were made by Kosinski Sandwiches during the first two months of 2004. LO9 1. Paid $5,000 of accrued taxes at time his restaurant site was acquired.2. Paid $200 insurance to cover possible accident loss on new kitchen equipment while the
Always-Late Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2004, at a cost of $128,000. Over its four-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000. LO9 Instructions(a) Compute the
Presented below are selected transactions at Beck’s Company for 2004. LO9 Jan. 1 Retired a piece of kitchen equipment that was purchased on January 1, 1994. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value.June 30 Sold a computer that was purchased on
Mendoza Company was organized on January 1. During the first year of operations, the following long-term asset expenditures and receipts were recorded in random order.Determine cost of plant acquisitions. LO9(SO 1)Debits 1. Cost of filling and grading the land $ 4,000 2. Full payment to building
In recent years, Waterfront Tours purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized below. LO9Salvage Useful
At the beginning of 2002, Duncan Company acquired kitchen equipment costing $60,000.It was estimated that this equipment would have a useful life of six years and a residual value of $6,000 at that time. The straight-line method of depreciation was considered the most appropriate to use with this
A company’s annual report identifies the amount of its plant assets and the depreciation method used. LO9 Address: www.reportgallery.com Steps 1. From Report Gallery homepage, choose Library of Annual Reports.2. Select a particular company.3. Choose Annual Report.4. Follow instructions
Describe the steps in determining inventory quantities. LO6
Prepare the entries for purchases and sales of inventory under a periodic inventory system. LO6
Determine cost of goods sold under a periodic inventory system. LO6
Identify the unique features of the income statement for a merchandiser using a periodic inventory system. LO6
Explain the basis of accounting for inventories, and describe the inventory cost flow methods. LO6
Explain the financial statement and tax effects of each of the inventory cost flow methods. LO6
Indicate the effects of inventory errors on financial statements. LO6
Compute and interpret inventory turnover. LO6
Define internal control. LO6
Identify the principles of internal control. LO6
Explain the applications of internal control principles to cash receipts. LO6
Explain the applications of internal control principles to cash disbursements. LO6
Indicate the control features of a bank account. LO6
Prepare a bank reconciliation. LO6
Fantasia Souvenir Company identifies the following items for possible inclusion in the taking of a physical inventory. Indicate whether each item should be included or excluded from the inventory taking. LO6(a) Goods in transit from a supplier shipped FOB destination.(b) Goods sold but being held
In its first month of operations, Manion Candies made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 300 units at $8. Assuming there are 450 units on hand, compute the cost of the ending inventory under the (a)FIFO method, (b) LIFO
At December 31, 2004, the following information was available for Sherrick Hotel: ending inventory $80,000, beginning inventory $60,000, cost of goods sold $280,000, and sales revenue$380,000. Calculate inventory turnover and days in inventory for B. Sherrick Company. LO6
Rome Restaurants, Inc. reports net income of $90,000 in 2004. However, ending inventory was understated $5,000. What is the correct net income for 2004? What effect, if any, will this error have on total assets as reported in the balance sheet at December 31, 2004? LO6
Jackie Bennett is the owner of Bennett’s Pizza. Bennett’s is operated strictly on a carryout basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. While at the counter, the customer can see other employees making the pizzas and the large ovens in which

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Hospitality Financial Accounting 1st Edition Jerry J Weygandt, Donald E Kieso, Paul D Kimmel, Agnes L DeFranco - Solutions

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