Questions and Answers of Survey of Accounting 6th

The following question pertains to the information provided in Appendix D. For additional practice using Tableau, a more detailed assignment is provided in Connect.RequiredWrite a paragraph
Obtain Shake Shack, Inc.’s Form 10-K for the fiscal year ending on December 27, 2017. To obtain the Form 10-K, you can use the EDGAR system (see Appendix A at the back of this text for
Sorrento Corporation’s balance sheet indicates that the company has $500,000 invested in operating assets. During the year, Sorrento earned operating income of $50,000 on $1,000,000 of
Howard Cooper, the president of Glacier Computer Services, needs your help. He wonders about the potential effects on the firm’s net income if he changes the service rate that the firm charges its
Gletchen Cough Drops operates two divisions. The following information pertains to each division for the year.Requireda. Compute each division’s residual income.b. Which division increased the
Secor Educational Services had budgeted its training service charge at $120 per hour. The company planned to provide 30,000 hours of training services during the year. By lowering the service charge
Muskrat Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production department’s static budget and actual results for Year 3
Roanoke Company expected to sell 400,000 of its dog tracking collars during the year. It set the standard sales price for the collar at $60 each. During June, it became obvious that the company would
Dunlop Company has provided the following for the year.BudgetSales ........................................................ $400,000Variable product costs ............................ 163,000Variable
The following excerpt is from Coca-Cola Company’s 2017 annual report filed with the SEC:Management evaluates the performance of our operating segments separately to individually monitor the
According to its original plan, Topeka Consulting Services Company plans to charge its customers for service at $120 per hour. The company president expects consulting services provided to customers
Obtain the income statements for Papa John’s, Inc. for 2014, 2015, 2016, and 2017. The 2015–2017 statements are included in Papa John’s 2017 annual report and Form 10-K, and the 2014 statement
Spalding Pointers Corporation expects to begin operations on January 1, Year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in
January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, Year 1, are as follows: sales commissions, $50,000; rent, $30,000;
The annual budget of the United States is very complex, but this case requires that you analyze only a small portion of the historical tables that are presented as a part of each year’s budget. The
The following trial balance was drawn from the records of Havel Company as of October 1, Year 2.Requireda. Divide the class into groups, each with four or five students. Organize the groups into
Parliament Company, which expects to start operations on January 1, Year 2, will sell digital cameras in shopping malls. Parliament has budgeted sales as indicated in the following table. The company
Kahn Company paid $240,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in the development of a new machine that costs $300,000. The old machine
Real-world companies often seek to reduce the complexity of their operations in an attempt to increase profits. In 2012, Procter & Gamble (P&G) believed it could increase the company’s
Arrow Manufacturing Co. expects to make 50,000 chairs during the Year 1 accounting period. The company made 3,000 chairs in January. Materials and labor costs for January were $36,000 and $48,000,
Ware Manufacturing Company produced 2,000 units of inventory in January, Year 2. It expects to produce an additional 14,000 units during the remaining 11 months of the year. In other words, total
Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of the
Beasley Services Company (BSC) has 50 employees, 28 of whom are assigned to Division A and 22 to Division B. BSC incurred $450,000 of fringe benefits cost during Year 2.RequiredDetermine the amount
Estrada Corporation produced 300,000 watches that it sold for $35 each. The company determined that fixed manufacturing cost per unit was $14 per watch. The company reported a $2,700,000 gross margin
Use the 2017 Form 10-K for Stanley Black & Decker, Inc. to complete the following requirements. To obtain the Form 10-K, you can use the EDGAR system (see Appendix A at the back of this text for
Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash, $660,000; Raw Materials Inventory, $51,000; Work in Process Inventory, $18,000; Finished
Wang Company began operations on January 1, Year 1, by issuing common stock for $70,000 cash. During Year 1, Wang received $88,000 cash from revenue and incurred costs that required $65,000 of cash
The following transactions pertain to Year 1, the first-year operations of Gibson Company. All inventory was started and completed during Year 1. Assume that all transactions are cash
Stuart Manufacturing Company was started on January 1, Year 1, when it acquired $89,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing
The following information pertains to Flaxman Manufacturing Company for April. Assume actual overhead equaled applied overhead.April 1Inventory balancesRaw materials .............................
During Year 2, Rooney Manufacturing Company incurred $8,000,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the
Driscoll Industries recognized the annual cost of depreciation on its December 31, Year 1, financial statements.Using the following horizontal financial statements model, indicate how this event
On January 4, 2017, Macy’s Inc., faced with declining revenues and profits announced a series of actions it planned to implement to try to improve its operations. In its press release the company
Use the December 31, 2017, Form 10-K for Snap-on, Inc. to complete the following requirements. To obtain the Form 10-K, you can use the EDGAR system following the instructions in Appendix A, or it
Victor Holt, the accounting manager of Sexton, Inc., gathered the following information for Year 1. Some of it can be used to construct an income statement for Year 1. Ignore items that do not appear
Use the financial statements for Allendale Company from Problem 9-17A to calculate the following ratios for Year 4 and Year 3:a. Working capital.b. Current ratio.c. Quick ratio.d. Receivables
Selected data for Dalton Company for Year 3 and additional information on industry averages follow.Requireda. Calculate Dalton Company’s earnings per share ratio, price-earnings ratio, and return
Riley Manufacturing has a current ratio of 3:1 on December 31, Year 3. Indicate whether each of the following transactions would increase (+), decrease (−), or have no effect (NA) on Riley’s
The following percentages apply to Thornton Company for Year 3 and Year 4.RequiredAssuming that sales were $800,000 in Year 3 and $960,000 in Year 4, prepare income statements for the two years. Year
Compute the specified ratios using Duluth Company’s balance sheet for Year 3.AssetsCash .................................................................................... $ 36,000Marketable
During Year 3, Blue Ridge Corporation reported after-tax net income of $4,150,000. During the year, the number of shares of stock outstanding remained constant at 15,000 of $100 par, 9 percent
Selected data from Emporia Company follow.RequiredCompute the following and round computations to two decimal points:a. The accounts receivable turnover for Year 3.b. The inventory turnover for Year
The following data come from the financial records of Fargo Corporation for Year 3.Sales .......................................... $640,000Interest expense ............................ 6,000Income
The following ratios are for four companies in different industries. Some of these ratios have been discussed in the textbook and others have not, but their names explain how the ratio was computed.
Selected financial information for Edwards Company for Year 4 follows.Sales ..................................... $800,000Cost of goods sold ................ 500,000Merchandise inventoryBeginning of
In July 2015, H. J. Heinz Company and Kraft Foods Group completed their merger. The new company, named The Kraft Heinz Company (KHC), became the fifth largest food and beverage company in the world.
Income statements for Burch Company for Year 3 and Year 4 follow.RequiredRound all percentages to one decimal point.a. Perform a horizontal analysis, showing the percentage change in each income
Presented here is selected information from the 2016 fiscal-Year 10-K reports of four companies. The four companies, in alphabetical order, are:AT&T, Inc., a company that provides communications
The following information relates to Home Depot, Inc., and Lowe’s Companies, Inc. for their 2017 and 2016 fiscal years.Requireda. Compute the following ratios for the companies’ 2017 fiscal years
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 2, is as follows.The market value per share of the common stock is $42, and the market value per
The following information pertains to Ming Corp. at January 1, Year 2:Common stock, $10 par, 50,000 shares authorized,3,000 shares issued and outstanding .............................................
Discount Drugs (one of the three largest drug makers) just reported that its Year 2 third quarter profits are essentially the same as the Year 1 third quarter profits. In addition to this
On May 1, Year 3, Love Corporation declared a $50,000 cash dividend to be paid on May 31 to shareholders of record on May 15.RequiredRecord the events occurring on May 1 and May 31 in a horizontal
The following information pertains to JAE Corp. at January 1, Year 2:Common stock, $10 par, 20,000 shares authorized,2,000 shares issued and outstanding .................................
Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shares of 5 percent cumulative class A preferred stock. The class A stock
Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock authorized. On March 1, Year 1, S&J Iron issued 6,000 shares of the stock for $16 per share. On May 2, the company
Astro Corporation was started with the issue of 2,000 shares of $5 par stock for cash on January 1, Year 1. The stock was issued at a market price of $12 per share. During Year 1, the company earned
Using either Bed Bath & Beyond, Inc.’s most current Form 10-K or the company’s annual report, answer the following questions. To obtain the Form 10-K use either the EDGAR system following the
Obtain the Target Corporation’s annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com using the instructions in Appendix A, and use it to answer the
During Year 1 and Year 2, Kale Co. completed the following transactions relating to its bond issue. The company’s fiscal year ends on December 31.Year 1Mar. 1 Issued $200,000 of 8 year, 6 percent
Pine Land Co. was formed when it acquired cash from the issue of common stock. The company then issued bonds at a premium on January 1, Year 1. Interest is payable annually on December 31 of each
Mott Company has a line of credit with Bay Bank. Mott can borrow up to $400,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual
Elite Boat Sales uses a line of credit to help finance its inventory purchases. Elite Boat Sales sells boats and equipment and uses the line of credit to build inventory for its peak sales months,
The following transactions apply to Pecan Co. for Year 1, its first year of operations:1. Received $100,000 cash in exchange for issuance of common stock.2. Secured a $300,000 five-year installment
On January 1, Year 1, Hart Company issued bonds with a face value of $60,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of
On January 1, Year 1, Parker Company issued bonds with a face value of $80,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of
Diaz Company issued $180,000 face value of bonds on January 1, Year 1. The bonds had a 7 percent stated rate of interest and a five-year term. Interest is paid in cash annually, beginning December
Milan Company issued bonds with a face value of $200,000 on January 1, Year 1. The bonds had a 7 percent stated rate of interest and a six-year term. The bonds were issued at face value. Interest is
Boyd Company has a line of credit with State Bank. Boyd can borrow up to $400,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual
Colson Company has a line of credit with Federal Bank. Colson can borrow up to $800,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an
A partial amortization schedule for a 10-year note payable that Mabry Company issued on January 1, Year 1, is shown as follows.Requireda. What rate of interest is Mabry Company paying on the note?b.
Dan Dayle started a business by issuing an $80,000 face value note to First State Bank on January 1, Year 1. The note had an 8 percent annual rate of interest and a five-year term. Payments of
Shake Shack, Inc. began operations in 2014, and it incorporated in Delaware in Year 1. In February, 2015 it went public with its initial public offering of common stock. By December 31, 2017 it was
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail engaged in the following transactions during the year. Sales tax of 8 percent is
The following three companies issued the following bonds:1. Lot, Inc. issued $100,000 of 8 percent, five-year bonds at 102¼ on January 1, Year 1. Interest is payable annually on December 31.2. Max,
Obtain the Target Corporation’s annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com using the instructions in Appendix A, and use it to answer the
Flannery Company engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities:Jan. 1, Year 1 Purchased for
Morris Inc. recorded the following transactions over the life of a piece of equipment purchased in Year 1:Jan. 1, Year 1 Purchased equipment for $90,000 cash. The equipment was estimated to have a
The following transactions pertain to Accounting Solutions Inc. Assume the transactions for the purchase of the computer and any capital improvements occur on January 1 each year. Year 11.
Delta Machine Company purchased a computerized assembly machine for $135,000 on January 1, Year 1. Delta Machine Company estimated that the machine would have a life of four years and a $25,000
Sabel Co. purchased assembly equipment for $500,000 on January 1, Year 1. Sabel’s financial conditionimmediately prior to the purchase is shown in the following horizontal statements model.The
Listed here are the stockholders’ equity sections of three public companies for fiscal years ending in 2017 and 2016. (Note that for General Mills these data are for the fiscal years ended on May
Banger Co. purchased delivery equipment for $56,000 on January 1, Year 1. Banger estimated that the delivery equipment would have a life of five years and a $6,000 salvage value. Banger uses the
Becker Office Service purchased a new computer system on January 1, Year 1, for $40,000. It is expected to have a five-year useful life and a $5,000 salvage value. Becker Office Service expects to
Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here.New Office Equipment1. List price: $60,000; terms: 2/10, n/30; paid within
Obtain the Target Corporation’s annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com using the instructions in Appendix A, and use it to answer the
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 2:Cash .................................................. $80,100Beginning inventory
The following trial balance was prepared for Tile, Etc., Inc. on December 31, Year 1, after the closing entries were posted:Account TitleCash .....................................................
Northwest Sales had the following transactions in Year 1:1. Acquired $200,000 cash from the issue of common stock.2. Purchased $900,000 of merchandise for cash in Year 1.3. Sold merchandise that cost
The following transactions apply to Hooper Co. for Year 1, its first year of operations:1. Issued $60,000 of common stock for cash.2. Provided $90,000 of services on account.3. Collected $78,000 cash
During the first year of operation, Year 1, McGinnis Appliance recognized $275,000 of service revenue on account. At the end of Year 1, the accounts receivable balance was $55,300. Even though this
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:During the year, The Shirt Shop sold 810 T-shirts for $20 each.Requireda. Compute the amount of
Luna Company accepted credit cards in payment for $6,000 of services performed during July. The credit card company charged Luna a 4 percent service fee; it paid Luna as soon as it received the
Rainey Enterprises loaned $20,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest.RequiredShow the effects of the following transactions in a horizontal statements model like the
Roth Service Co. experienced the following transactions for Year 1, its first year of operations:1. Provided $110,000 of services on account.2. Collected $89,000 cash from accounts receivable.3. Paid
Leach Inc. experienced the following events for the first two years of its operations: Year 1:1. Issued $10,000 of common stock for cash.2. Provided $78,000 of services on account.3. Provided $36,000
During the first year of operation, Year 1, Direct Service Co. recognized $290,000 of service revenue on account. At the end of Year 1, the accounts receivable balance was $46,000. For this first
Joey’s Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During Year 1, its first year of operations,
Grover Inc. uses the allowance method to account for uncollectible accounts expense. Grover Inc. experienced the following four accounting events in Year 1:1. Recognized $92,000 of revenue on
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation:Events Affecting Year 11. Provided $45,000 of cleaning services on

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