Question: Enter the following column headings across the

> Journalize the following transactions of Olympic Sports, Inc., a chain of sports stores: May 4 Issued 21,000 shares of no-par common stock at $9 per share. Jul 22 Purchased 1,500 shares of treasury stock at $7 per share. Nov 22 Sold 300 shares of t

> Use the data for Amalgamated Services from E11-24B. Data from E11-24B. Additional data follows: a. Acquisition of fixed assets totaled $115,000. Of this amount, $85,000 was paid in cash and a $30,000 note payable was signed for the remainder. b. Procee

> Consider each of the following transactions separately from every other transaction: a. Issuance of 20,000 shares of $10 par common at $17 b. Purchase of 1,500 shares of treasury stock (par value $0.75) at $3 per share c. Issuance of a 15 percent stock

> Tammy was a wealthy, 20 percent stockholder of TDS Corporation. She was looking over the financial statements of the corporation and saw that TDS Corporation was in need of a large loan. Furthermore, she knew that December sales were weaker than expected

> The income statement and additional data of Amalgamated Services, Inc., follow: Additional data follows: a. Acquisition of fixed assets totaled $115,000. Of this amount, $85,000 was paid in cash and a $30,000 note payable was signed for the remainder.

> Tubbs Landing, Inc., had the following stockholders’ equity at January 31: On February 28, Tubbs Landing, Inc., split its common stock 2-for-1. Requirements 1. Make any necessary entry to record the stock split. 2. Prepare the stock

> The March accounting records of Watt’s Electrical Supply, Inc., include these accounts: Requirement 1. Compute Watt’s Electrical Supply, Inc.’s net cash provided by operating activities during Marc

> Portrait People, Inc., is authorized to issue 500,000 shares of $4 par common stock. The company issued 74,000 shares at $7 per share, and all 74,000 shares are outstanding. When the market price of common stock was $11 per share, Portrait People, Inc.,

> The accounting records of Harding & Associates, Inc. reveal: Requirements 1. Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section shown in Exhibit 11-3. 2. Evaluat

> The stockholders’ equity for Lakeside Marina, Inc., on December 31, 2015, follows: On January 31, 2016, the market price of Lakeside Marina’s common stock was $20 per share and the company distributed a 10 percent st

> Pilgrim Canopies, Inc., reported the following selected amounts in its financial statements for the year ended December 31, 2016: Requirement 1. Determine the following for Pilgrim Canopies, Inc., during 2016. a. Collections from customers b. Payments

> The following elements of stockholders’ equity are adapted from the balance sheet of Sanders Corporation. Sanders Corporation paid no preferred dividends in 2016 but paid the designated amount of cash dividends per share to preferred

> Compute the following items for the statement of cash flows: 1. The beginning and ending Accounts Receivable balances are $18,000 and $22,000, respectively. Credit sales for the period total $123,000. How much are cash collections? 2. Cost of Goods Sold

> New England Communications has the following stockholders’ equity: Requirements 1. Assume the preferred stock is cumulative. Compute the amount of dividends to preferred and common shareholders for 2016 and 2017 if total dividends ar

> What are the four basic rights of stockholders?

> The income statement and additional data of Consolidated Services, Inc., follow: Additional data follow: a. Collections from customers are $5,000 more than sales. b. Payments to suppliers are $3,000 more than the sum of cost of goods sold plus adverti

> Astro Co. recently organized. The company issued no-par common stock to an attorney in exchange for his patent with a market value of $53,000. In addition, Astro Co. received cash for 3,500 shares of its $40 par preferred stock sold at par value and for

> The accounting records of Bronson Plumbing, Inc., reveal: Requirements 1. Compute cash flows from operating activities by the direct method. 2. Evaluate the operating cash flow of Bronson Plumbing, Inc. Give the reason for your evaluation. Paymen

> Bainbridge Corp. issued 4,000 shares of no-par common stock for $9 per share. Requirements 1. Record issuance of the stock if the stock: a. is a no-par stock. b. has a stated value of $5 per share 2. Which type of stock issuance results in more total p

> Requirements Compute the following items for the statement of cash flows: 1. The beginning and ending Retained Earnings balances are $45,000 and $77,000, respectively. Net income for the period is $59,000. How much are cash dividends? 2. The beginning an

> The charter for Zelkin, Inc., authorizes the company to issue 200,000 shares of $3, no-par preferred stock and 900,000 shares of common stock with $1 par value. During its start-up phase, Zelkin, Inc., completed the following transactions: Requirements

> Use the data for Consolidated Services from E11-15A. Data from E11-15A Requirements 1. Calculate the cash conversion cycle for Consolidated Services. Round all calculations to two decimal places. Assume all sales are on credit. 2. Comment on Consolidat

> Skyway Systems completed the following stock issuance transactions: Requirements 1. Journalize the transactions. Explanations are not required. 2. How much paid-in capital did these transactions generate for Skyway Systems? Jun 19 Issued 1,900 sh

> The income statement and additional data of Consolidated Services, Inc., follow: Additional data follows: a. Acquisition of fixed assets totaled $117,000. Of this amount, $103,000 was paid in cash and a $14,000 note payable was signed for the remainde

> Use the statement of stockholders’ equity in Exhibit 10-8 to answer the following questions: 1. Make journal entries to record the declaration and payment of cash dividends during 2016. 2. How much cash did the issuance of common stoc

> This problem continues our accounting for Fitness Equipment Doctor, Inc., from Chapter 9. Fitness Equipment Doctor, Inc., has been authorized to sell 100,000 shares of $5 par value common stock and 40,000 shares of $10 par, 15 percent preferred stock. Du

> Let’s look at Dick’s Sporting Goods (Dick’s) some more. Think about Dick’s. What liabilities might Dick’s have in order to finance its operations? Return to Dick’s Annual Report and look at Dick’s financial statements. Now answer the following questions

> A portion of the current assets section of the December 31, 2010, balance sheet for Gibbs Co. is presented here: The company’s accounting records revealed the following information for the year ended December 31, 2011: Sales (all on

> Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each acco

> Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each acco

> Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each acco

> On November 1, 2010, Wenger Co. paid its landlord $25,200 in cash as an advance rent payment on its store location. The six-month lease period ends on April 30, 2011, at which time the contract may be renewed. Required: a. Use the horizontal model or wr

> Prepare a bank reconciliation as of October 31 from the following information: a. The October 31 cash balance in the general ledger is $844. b. The October 31 balance shown on the bank statement is $373. c. Checks issued but not returned with the bank s

> a. Use the horizontal model or write the journal entry to record the payment of a one-year insurance premium of $3,000 on March 1. b. Use the horizontal model or write the adjusting entry that will be made at the end of every month to show the amount of

> The 2008 annual reports of Pearson plc and The McGraw-Hill Companies, Inc. , two publishing and information services companies, included the following selected data as at December 31, 2008, and 2007: Required: a. Do you notice anything unusual about th

> Natco, Inc., uses the FIFO inventory costflow assumption. In a year of rising costs and prices, the firm reported net income of $480,000 and average assets of $3,000,000. If Natco had used the LIFO cost-flow assumption in the same year, its cost of goods

> Write the journal entry (ies) for each of the transactions of Exercise 4.1. Exercise 4.1: The transactions relating to the formation of Blue Co. Stores, Inc., and its first month of operations follow. Prepare an answer sheet with the columns shown. Rec

> Proponents of the LIFO inventory cost-flow assumption argue that this costing method is superior to the alternatives because it results in better matching of revenue and expense. Required: a. Explain why “better matching” occurs with LIFO. b. What is th

> Moiton Co.’s assets include notes receivable from customers. During fiscal 2010, the amount of notes receivable averaged $46,250, and the interest rate of the notes averaged 6.4%. Required: a. Calculate the amount of interest income earned by Moiton Co.

> Agrico, Inc., accepted a 10-month, 13.8% (annual rate), $4,500 note from one of its customers on June 15; interest is payable with the principal at maturity. Required: a. Use the horizontal model or write the entry to record the interest earned by Agric

> Gerrard Construction Co. is an excavation contractor. The following summarized data (in thousands) are taken from the December 31, 2010, financial statements: For the Year Ended December 31, 2010: Net revenues . . . . . . . . . . . . . . . . . . . . . .

> DeBauge Realtors, Inc., is a realty firm owned by Jeff and Kristi DeBauge. The DeBauge family owns 100% of the corporation’s stock. The following summarized data (in thousands) are taken from the December 31, 2010, financial statements: For the Year End

> Annual credit sales of Nadak Co. total $340 million. The firm gives a 2% cash discount for payment within 10 days of the invoice date; 90% of Nadak’s accounts receivable are paid within the discount period. Required: a. What is the total amount of cash

> Prepare a bank reconciliation as of August 31 from the following information: a. The August 31 balance shown on the bank statement is $9,810. b. There is a deposit in transit of $1,260 at August 31. c. Outstanding checks at August 31 totaled $1,890. d.

> Karysa Co. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus tax bills for 2010 are issued in May 2011 and are payable in July 2011. Required: a. Explain how the amount of tax expense for calen

> At March 31, 2010, the end of the first year of operations at Jaryd, Inc., the firm’s accountant neglected to accrue payroll taxes of $4,800 that were applicable to payrolls for the year then ended. Required: a. Use the horizontal model (or write the jo

> On August 1, 2010, Colombo Co.’s treasurer signed a note promising to pay $240,000 on December 31, 2010. The proceeds of the note were $232,000. Required: a. Calculate the discount rate used by the lender. b. Calculate the effective interest rate (APR)

> On April 15, 2010, Powell, Inc., obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $300,000. The interest rate charged by the bank was 9%. The bank made the loan on a discount basis. Require

> Enter the following column headings across the top of a sheet of paper: Enter the transaction/adjustment letter in the first column and show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income b

> Enter the following column headings across the top of a sheet of paper: Enter the transaction/adjustment letter in the first column, and show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on th

> Enter the following column headings across the top of a sheet of paper: Enter the transaction/adjustment letter in the first column and show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the

> The difference between the amounts of book and tax depreciation expense, as well as the desire to report income tax expense that is related to book income before taxes, causes a long-term deferred income tax liability to be reported on the balance sheet.

> Atom Endeavour Co. issued $250 million face amount of 9% bonds when market interest rates were 8.92% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? b. Were the bonds issued at a

> On January 1, 2010, the balance in Kubera Co.’s Allowance for Bad Debts account was $9,720. During the year, a total of $23,900 of delinquent accounts receivable was written off as bad debts. The balance in the Allowance for Bad Debts account at December

> On February 1, 2010, the balance of the retained earnings account of Blue Power Corporation was $630,000. Revenues for February totaled $123,000, of which $115,000 was collected in cash. Expenses for February totaled $131,000, of which $108,000 was paid

> Reynolds Co. issued $40 million face amount of 11% bonds when market interest rates were 11.14% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? b. Were the bonds issued at a premi

> On March 1, 2005, Matt purchased $63,000 of Lawson Co.’s 8%, 20-year bonds at face value. Lawson Co. has paid the annual interest due on the bonds regularly. On March 1, 2010, market interest rates had risen to 12%, and Matt is considering selling the bo

> On August 1, 2002, Bonnie purchased $15,000 of Huber Co.’s 10%, 20-year bonds at face value. Huber Co. has paid the semiannual interest due on the bonds regularly. On August 1, 2010, market rates of interest had fallen to 8%, and Bonnie is considering se

> Coley Co. issued $30 million face amount of 9%, 10-year bonds on June 1, 2010. The bonds pay interest on an annual basis on May 31 each year. Required: a. Assume that the market interest rates were slightly higher than 9% when the bonds were sold. Would

> Kaye Co. issued $1 million face amount of 11%, 20-year bonds on April 1, 2010. The bonds pay interest on an annual basis on March 31 each year. Required: a. Assume that market interest rates were slightly lower than 11% when the bonds were sold. Would t

> Kirkland Theater sells season tickets for six events at a price of $252. For the 2010 season, 1,200 season tickets were sold. Required: a. Use the horizontal model (or write the journal entry) to show the effect of the sale of the season tickets. b. Use

> Cool froth Brewing Company distributes its products in an aluminum keg. Customers are charged a deposit of $50 per keg; deposits are recorded in the Keg Deposits account. Required: a. Where on the balance sheet will the Keg Deposits account be found? Ex

> A review of the accounting records at Corless Co. revealed the following information concerning the company’s liabilities that were outstanding at December 31, 2011, and 2010, respectively: Required: a. Corless Co. has not yet made an

> Assume that Home and Office City, Inc., provided the following comparative data concerning long-term debt in the notes to its 2011 annual report (amounts in millions): Required: a. As indicated, Home and Office City’s 31â&

> On January 1, 2010, the balance in Tabor Co.’s Allowance for Bad Debts account was $13,400. During the first 11 months of the year, bad debts expense of $21,462 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2010, was

> Porter, Inc., acquired a machine that cost $720,000 on October 1, 2010. The machine is expected to have a four-year useful life and an estimated salvage value of $80,000 at the end of its life. Porter, Inc., uses the calendar year for financial reporting

> a. Calculate the approximate annual rate of return on investment of the following cash discount terms: 1. 1/15, n30. 2. 2/10, n60. 3. 1/10, n90. b. Which of these terms, if any, is not likely to be a significant incentive to the customer to pay promptly?

> Freedom Co. purchased a new machine on July 2, 2010, at a total installed cost of $44,000. The machine has an estimated life of five years and an estimated salvage value of $6,000. Required: a. Calculate the depreciation expense for each year of the ass

> Early in January 2010, Tellco, Inc. acquired a new machine and incurred $100,000 of interest, installation, and overhead costs that should have been capitalized but were expensed. The company earned net operating income of $1,000,000 on average total ass

> During the first month of its current fiscal year, Green Co. incurred repair costs of $20,000 on a machine that had five years of remaining depreciable life. The repair cost was inappropriately capitalized. Green Co. reported operating income of $160,000

> Renter Co. acquired the use of a machine by agreeing to pay the manufacturer of the machine $900 per year for 10 years. At the time the lease was signed, the interest rate for a 10-year loan was 12%. Required: a. Use the appropriate factor from Table 6-

> Ambrose Co. has the option of purchasing a new delivery truck for $28,200 in cash or leasing the truck for $6,100 per year, payable at the end of each year for six years. The truck also has a useful life of six years and will be depreciated on a straight

> On January 1, 2010, Carey, Inc., entered into a No cancellable lease agreement, agreeing to pay $3,500 at the end of each year for four years to acquire a new computer system having a market value of $10,200. The expected useful life of the computer syst

> The balance sheets of HiROE, Inc., showed the following at December 31, 2011, and 2010: Required: a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the

> The balance sheets of Tully Corp. showed the following at December 31, 2011, and 2010: Required: a. If there have not been any purchases, sales, or other transactions affecting this machine account since the machine was first acquired, what is the amou

> Write the journal entry (ies) for each of the transactions of Exercise 4.2. Exercise 4.2: The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations. Prepare an answer sheet with th

> Moyle Co. acquired a machine on January 1, 2010, at a cost of $320,000. The machine is expected to have a five-year useful life, with a salvage value of $20,000. The machine is capable of producing 300,000 units of product in its lifetime. Actual product

> Grove Co. acquired a production machine on January 1, 2010, at a cost of $240,000. The machine is expected to have a four year useful life, with a salvage value of $40,000. The machine is capable of producing 50,000 units of product in its lifetime. Actu

> Enter the following column headings across the top of a sheet of paper: Enter the transaction / situation letter in the first column and show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or o

> Alpha, Inc., and Beta Co. are sheet metal processors that supply component parts for consumer product manufacturers. Alpha, Inc., has been in business since 1980 and is operating in its original plant facilities. Much of its equipment was acquired in the

> For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a. $400 for repairing damage that resulted from the careless unloading of a new machine. b. $14,00

> For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a. $15,000 annual cost of routine repair and maintenance expenditures for a fleet of delivery vehi

> Crow Co. purchased some of the machinery of Hare, Inc., a bankrupt competitor, at a liquidation sale for a total cost of $33,600. Crow’s cost of moving and installing the machinery totaled $3,200. The following data are available: Req

> Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $90,000. The appraised value of the land is $20,000, and the appraised value of the building is $80,000. Required: a. Assuming that the buildin

> Prepare an answer sheet with the following column headings. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the accou

> Prepare an answer sheet with the column headings that follow. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the acc

> a. Show the reconciling items in a horizontal model or write the adjusting journal entry (or entries) that should be prepared to reflect the reconciling items of Exercise 5.2. b. What is the amount of cash to be included in the August 31 balance sheet fo

> Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair market value. Suppose that Target Co. had operating income of $90,000 and net assets with a fair market value of $300,000. Ta

> Assume that fast-food restaurants generally provide an ROI of 15%, but that such a restaurant near a college campus has an ROI of 18% because its relatively large volume of business generates an above-average turnover (sales ∕ assets). The replacement v

> Using a present value table, your calculator, or a computer program present value function, verify that the present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610. Calculate the present value of

> Prepare an answer sheet with the column headings shown after the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the a

> Using a present value table, your calculator, or a computer program present value function, calculate the present value of a. A car down payment of $3,000 that will be required in two years, assuming an interest rate of 10%. b. A lottery prize of $6 mil

> Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $26,000 and has an estimated useful life of four years and an estimated salvage value of $4,000. Required: a. Calculate depreciation expense for each y

> Millco, Inc., acquired a machine that cost $240,000 early in 2010. The machine is expected to last for eight years, and its estimated salvage value at the end of its life is $24,000. Required: a. Using straight-line depreciation, calculate the depreciat

> Assume that a company chooses an accelerated method of calculating depreciation expense for financial statement reporting purposes for an asset with a five-year life. Required: State the effect (higher, lower, no effect) of accelerated depreciation rela

> Answer the following questions using data from the Intel Corporation annual report in the appendix: Required: a. Find the discussion of depreciation methods used by Intel on page 695. Explain why the particular method is used for the purpose described.

> You have been approached by Gary Gerrard, President and CEO of Gerrard Construction Co., who would like your advice on a number of business and accounting related matters. Your conversation with Mr. Gerrard, which took place in February 2011, proceeded a

> a. Show the reconciling items in a horizontal model or write the adjusting journal entry (or entries) that should be prepared to reflect the reconciling items of Exercise 5.1. b. What is the amount of cash to be included in the October 31 balance sheet f

> A portion of the current assets section of the December 31, 2011, balance sheet for Carr Co. is presented here: The company’s accounting records revealed the following information for the year ended December 31, 2011: Sales (all on a

> The following is a portion of the current asset section of the balance sheets of HiROE Co., at December 31, 2011 and 2010: Required: a. Describe how the allowance amount at December 31, 2011, was most likely determined. b. If bad debts expense for 2011