[SOLVED] Farr Company reports net income of $90,

> The financial statements of PepsiCo are presented in Appendix A at the end of this textbook. Instructions: (a) Using the consolidated financial statements and related information, identify items that may result in adjusting entries for prepayments. (b)

> The Thayer Motel, Inc. opened for business on May 1, 2008. Its trial balance before adjustment on May 31 is as follows. In addition to those accounts listed on the trial balance, the chart of accounts for Thayer Mo- tel also contains the following acco

> Alyson Clark is a licensed incorporated CPA. During the first month of operations of the business, the following events and transactions occurred: The company uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supp

> Evergreen Campground was started on June 1 by Jolene and David Collier. The following selected events and transactions occurred during June. Evergreen uses the following accounts: Cash; Prepaid Insurance; Land; Accounts Payable; Unearned Admissions; Co

> The T accounts below summarize the ledger of Mardi Gras Catering Corporation at the end of the first month of operations: Instructions: (a) Prepare the complete general journal entries (including explanations) from which the postings to Cash were made.

> A June 1999 issue of Money magazine included an article by David Futrelle entitled “Stock Splits: How the Dumb Get Rich.” Instructions: Read the article and answer the following questions: (a) What is a stock split? (b) How do anxious traders and invest

> On June 1, Maui Travel Agency, Inc., was established. The following transactions were completed during the month. 1. Stockholders invested $40,000 cash, receiving common stock in exchange. 2. Paid $1,000 cash for June office rent. 3. Purchased office equ

> From 1 to 9, arrange the following steps of the accounting cycle in order: _____ Posting _____ Financial statements _____ Transaction analysis _____ Closing entries _____ Postclosing trial balance _____ Trial balance _____ Adjusted trial balance _____ Jo

> On March 1, 2008, Peluso Hotels had retained earnings of $690,000. During the year, Peluso had the following selected transactions: 1. Declared cash dividends $155,000. 2. Corrected understatement of 2007 net income because of inventory valuation error o

> On June 1, Meyers Hotel Corporation had 80,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $10 per share. During the year, the following occurred: Instructions: (a) Prepare the entries, if any, on each of the t

> Cocoa Beach Hotels and Resorts had the following transactions during the current period: Instructions: Please prepare the necessary journal entries for these transactions. Feb. 22 Issued 10,000 shares of $1 par value common stock to attorneys in pa

> During the first year of operations, Benjiâs Health Club had the following transactions pertaining to its common stock: Instructions: (a) Journalize the transactions, assuming that the common stock has a par value of $1 per share. (b)

> Referring back to 14-3, please prepare the partner’s capital statement for the year ended December 31, 2008, for 5-Star Gourmet Desserts if Mike withdraws $1,000 from the partnership. Referring 14-3: After Carl starts his own catering company, he reali

> At the beginning of 2008, Bellamy Seafood acquired 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

> Solo Country Club purchased a new computer system on October 1, 2008, at a cost of $96,000. The company estimated that the machine would have a salvage value of $12,000. The system is expected to be used for 10,000 working hours during its five-year life

> Waterways Tours uses the units-of-activity method in depreciating its tour boats. One boat was purchased on January 1, 2006, at a cost of $148,000. Over its four-year useful life, the boat is expected to be driven 100,000 miles. Salvage value is expected

> On March 1, 2006, Tanger Resorts acquired real estate on which it planned to coustruct a small bed-and-breakfast. The company paid $90,000 in cash. An old warehouse on the property was razed at a cost of $6,600; the salvaged materials were sold for $1,70

> Tuscany Tours uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2008, at a cost of $115,000. Over its five-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $9

> Sunny’s Noodles has the following balance sheet items. Accounts payable …………………………………………………….. Accounts receivable Insurance expense ……………………………………………………………. Taxes payable Wages expense ………………………………………………………………… Food inventory Cash Kitchen …………………………………

> W. S. Blaskowski Foodservices entered into the following transactions during May 2008. 1. Purchased kitchen equipment for $30,000 from General Appliances on account. 2. Paid $3,000 cash for May rent. 3. Received $5,000 cash from customers for services bi

> Mexico Timeshare, Inc., has the following transactions related to notes receivable during the last two months of 2008: Instructions: (a) Journalize the transactions for Mexico Timeshare, Inc. (b) Record the collection of the Hanson note at its maturity

> Presented here are two independent situations. (a) On April 2, Julie Keiser uses her Kitchen Mart Company credit card to purchase kitchen supply from a Kitchen Mart store for $1,800. On May 1, Keiser is billed for the $1,800 amount due. Keiser pays $700

> The ledger of Elburn Grill at the end of the current years shows Accounts Receivable $110,000; Sales $840,000; and Sales Returns and Allowances $28,000. Instructions: (a) If Elburn uses the direct write-off method to account for uncollectible accounts,

> Presented here are two independent situations. (a) On January 6, Bennett Catering sells food and services on account to Jackie, Inc., for $7,000, terms 2/10, n/30. On January 16, Jackie, Inc., pays the amount due. Prepare the entries on Bennett’s books t

> The following is an aging schedule for Griffin Hotel: On December 31, 2008, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000. Instructions: (a) Journalize and post the adjusting entry for bad debts at December 31, 2008.

> Record the following transactions for Amy Ice Co. in the general journal: 2008 May 1 Received a $12,000, one-year, 10 percent note on account from Rosa's Hamburger. Dec. 31 Accrued interest on the note. Dec. 31 Closed the interest revenue account. 2

> Brantley Food Supply Co. has the following transactions related to notes receivable during the last two months of the year: Instructions: Journalize the transactions for Brantley Food Supply Co. Nov. 1 Loaned $15,000 cash to Bayou Bend Restaurant o

> At December 31, 2008, Sycamore International Foods reported the following information on its balance sheet: Accounts receivable â¦â¦â¦â¦â¦â&brvbar

> Record the following transactions for Sandwich, Co., in the gereral journal: 2006 May 1 Received an $8,700, one-year, 10 percent note in exchange for Linda Anderson's out- standing accounts receivable. Dec. 31 Accrued interest on the Anderson note.

> Classify each of the following items as asset (A), liability (L), revenue (R), or expense (E). _(a) Food inventory (e) Taxes payable (b) Rooms revenue (f) Rent expense (c) Salaries and wages expense (g) Beverage revenue (d) Property management syste

> For the year ended December 31, 2010, R. Visnak Company reports the following summary payroll data: Gross earnings Administrative salaries â¦â¦â¦â¦â¦â&#

> Selected transactions for Golden Apples Catering Company are listed below. 1. Made cash investment to start business. 2. Paid monthly electricity bill. 3. Purchased food on account. 4. Received cash from customers. 5. Paid dividends. 6. Paid weekly wages

> The following payroll liability accounts are included in the ledger of Miltonâs Brewery and Grille on January 1, 2010: FICA Taxes Payable â¦â¦â¦â¦â

> Joeâs Sandwich Shop has four employees who are paid on an hourly basis plus time-and a- half for all hours worked in excess of 40 a week. Payroll data for the week ended February 15, 2010, are presented below: Leiss and Bjork are marr

> The payroll procedures used by three different companies are: 1. In Brewer Cafe, each employee is required to mark on a clock card the hours worked. At the end of each pay period, the employee must have this clock card approved by the department manager.

> Marissaâs Sushi has the following data for the weekly payroll ending January 31: Employees are paid 11â2 times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 8 percent on

> Employee earnings records for Brantley Restaurants reveal the following gross earnings for four employees through the pay period of December 15: For the pay period ending December 31, each employeeâs gross earnings is $3,000. The FICA

> Nugyenâs Vietnamese Sandwiches employs seven waitpersons with one busperson, with whom the waitpersons will share their tips. The information regarding their gross receipts, number of hours worked, and tips reported are detailed in the

> The following information relates to the Cash account in the ledger of Dick Wasson Company: The September bank statement shows a balance of $16,422 on September 30 and the following memoranda: On September 30, deposits in transit were $4,150, and out

> The following information pertains to Worthy Tours: 1. Cash balance per bank, July 31, $7,263. 2. July bank service charge not recorded by the depositor $28. 3. Cash balance per books, July 31, $7,284. 4. Deposits in transit, July 31, $1,500. 5. Bank col

> At the beginning of the year, Rita Pasta Company had total assets of $780,000 and total liabilities of $400,000. Answer the following questions. 1. If total assets increased $125,000 during the year and total liabilities decreased $50,000, what is the am

> Lisa Ceja is unable to reconcile the bank balance for her catering company on January 31. Lisa’s reconciliation is as follows: Cash balance per bank ………………………………………………………….. $3,660.20 Add: NSF check ………………………………………………………………………… 590.00 Less: Bank service

> The following control procedures are used in Morgan’s Fishing Excursions for cash disbursements: 1. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. 2. The store manager personally approves all payments

> Selected transactions from the journal of Palm Tree Travel, Inc. are presented below. Instructions: (a) Post the transactions to T accounts. (b) Prepare a trial balance at August 31, 2008. Date Account Titles and Explanation Ref. Debit Credit Aug.

> The following control procedures are used at Sandwich Company for over-the-counter cash receipts. 1. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank. 2. All

> Sue Ernesto is the owner of Ernesto’s Pizza. Ernesto’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

> The cash records of Sugar Land Country Club (SLCC) show the following four situations: 1. The June 30 bank reconciliation indicated that deposits in transit total $920. During July the general ledger account Cash shows deposits of $15,750, but the bank s

> Sherpers carries a special French wine that is popular with wine enthusiasts. Below is information relating to Sherperâs purchases of this wine during September. During the same month, 124 bottles were sold. Sherpers uses a periodic inv

> Abbottâs Liquor Store uses a perpetual inventory system. Data for the Texas Chardonnay include the following purchases: On June 1, Abbottâs sold 30 bottles, and on August 27, 35 more bottles. Prepare the perpetual in

> The management of Muni Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will: (a) provide the

> Given the accounting equation, answer each of the following questions. 1. The liabilities of Frank’s Smoothies are $120,000, and the stockholders’ equity is $325,000. What is the amount of Frank’s total assets? 2. The total assets of Gina Pizza are $360,

> In its first month of operations Rusch BBQ made three purchases of sausages in the following sequence: (1) 300 pounds at $6, (2) 400 pounds at $7, and (3) 200 pounds at $8. Assuming there are 450 pounds on hand, compute the cost of the ending inventor

> Zambia Pastry uses a periodic inventory system. Its records show the following for the month of May, in which 70 units were sold. Instructions: Compute the ending inventory at May 31 using the FIFO and the LIFO methods. Prove the amount allocated to co

> J. Ackbar, a former professional tennis star, operates Ackbarâs Tennis Shop at the Miller Lake Resort. At the beginning of the current season, the ledger of Ackbarâs Tennis Shop showed Cash $2,500; Merchandise Inventor

> An inexperienced bookkeeper prepared the following trial balance that does not balance. Prepare a correct trial balance, assuming all account balances are normal. ELIZABETH BAKERY Trial Balance December 31, 2008 Debit Credit Cash $33,600 Prepaid Ins

> Presented below is financial information for two different companies. Instructions: Determine the missing amounts. Lee Company Chan Company $90,000 (a) 81,000 56,000 Sales (d) $ 5,000 95,000 (e) 41,500 (f) 15,000 Sales returns Net sales Cost of goo

> An inexperienced accountant for Gulliver Company made the following errors in recording merchandising transactions. 1. A $175 refund to a customer for faulty merchandise was debited to Sales $175 and credited to Cash $175. 2. A $160 credit purchase of su

> Presented is information related to Taylor Memories, Inc., for the month of January 2006. Instructions: (a) Prepare the necessary adjusting entry for inventory. (b) Prepare the necessary closing entries. Ending inventory per perpetual records Endin

> The adjusted trial balance of Schinzer Gourmet Deli shows the following data pertaining to sales at the end of its fiscal year October 31, 2006: Sales $800,000; Freight-out $16,000; Sales Returns and Allowances $20,000; and Sales Discounts $15,000. Inst

> Presented below are transactions related to Rebecca Company. 1. On December 3, Rebecca Company sold $480 of merchandise to Simonis Putt Putt Golf, terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350. 2. On December 8, Simonis

> On June 10, Lippizan Crab Shack purchased $6,000 of merchandise from Bristol Company FOB shipping point, terms 2/10, n/30. Lippizan pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Bristol for credit on June 12. The

> Presented below is the basic accounting equation. Determine the missing amounts. Assets Liabilities + Stockholders' Equity (a) $120,000 $50,000 ? (b) ? $45,000 $126,000 (c) $100,000 ? $58,000

> On September 1, Eden County Club had an inventory of 30 golf shirts at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Instructions: Journalize the September transactions. Se

> Information related to Giberto Pizza and Games is presented below. 1. On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $900 on merchandise purchased from Allman

> The following data are from the income statements of Ellen Noodles Company: (a) Compute for each year (1) the inventory turnover and (2) the average days to sell the inventory. (b)What conclusions concerning the management of the inventory can be dra

> The following data are taken from the financial statements of Mercado Decorations: (a) Compute for each year (1) the receivables turnover and (2) the average collection period. At the end of 2007, accounts receivable (net) was $490,000. (b) What conc

> The ledger of Taqueria San Juan includes the following accounts. Explain why each account may require adjustment. (a) Prepaid Insurance (b) Depreciation Expense (c) Unearned Revenue (d) Interest Payable

> Selected condensed data taken from a recent balance sheet of Kutenai Luau, Inc., are as follows: What are the (a) working capital, (b) current ratio, and (c) acid-test ratio? KUTENAI LUAU, INC. Balance Sheet (partial) Cash $ 8,041,000 Short-term in

> Vertical analysis (common size) percentages for Osborne Hot Dogsâ sales, cost of goods sold, and expenses are as follows: Did Osborneâs net income as a percent of sales increase, decrease, or remain unchanged over th

> Wolfe Hospitality Consulting had the following transactions occur involving current assets and current liabilities during February 2008: Additional information: 1. As of February 1, 2008, current assets were $140,000, and current liabilities were $50,0

> The comparative income statements of Accra Pies are shown below. Instructions: (a) Prepare a horizontal analysis of the income statement data for Accra using 2008 as a base. (Show the amounts of increase or decrease.) (b) Prepare a vertical analysis of

> Kishwaukee Catering Company provides catering services for banquets, events, and other catering functions within a university community. The work is fairly steady throughout the year but peaks significantly in December and May as a result of holiday part

> All organizations should have systems of internal control. Universities are no exception. This site discusses the basics of internal control in a university setting. Address: www.bc.edu/offices/audit/controls Steps: Go to the bc.edu site. Instructions:

> This exercise will familiarize you with skill requirements, job descriptions, and salaries for accounting careers. Address: www.careers-in-accounting.com Instructions: Go to the site shown above. Answer the following questions: (a) What are the three br

> The Financial Accounting Standards Board (FASB) is a private organization established to improve accounting standards and financial reporting. The FASB conducts extensive research before issuing a “Statement of Financial Accounting Standards,” which repr

> Kiki’s Famous Desserts Corporation was formed on July 1, 2007. On July 31, the balance sheet showed Cash $7,000,Accounts Receivable $2,000, Supplies $500, Office Equipment $5,000, Accounts Payable $5,500, Common Stock $7,500, and Retained Earnings $1,500

> For each of the following accounts indicate (a) the effect of a debit or a credit on the account and (b) the normal balance. 1. Rooms Revenue 2. Rent Expense 3. Salary Payable 4. Capital 5. Food Revenue 6. Cash

> Numerous companies have established home pages on the Internet, for example, Hyatt Corporation (www.hyatt.com/corporate) and Four Seasons Hotels and Resorts (www. fourseasons.com).You may have noticed company Internet addresses in television commercials

> Which of the substances in each of the following sets would be expected to have the highest boiling point? Explain why. a. Ga, KBr, O2 b. Hg, NaCl, He c. H2, O2, H2O

> Given the densities and conditions of ice, liquid water, and steam listed in Table 14.1, calculate the volume of 1.0 g of water under each of these circumstances. From table 14.1 Density (g/cm) State solid (0 °C, 1 atm) liquid (25 °C, 1 atm) gas (10

> For Exercises 51–60 choose one of the following terms to match the definition or description given. a. alloy b. specific heat c. crystalline solid d. dipole–dipole attraction e. equilibrium vapor pressure f. intermolecular g. intramolecular h. io

> Sketch a heating/cooling curve for water, starting out at -20 °C and going up to 120 °C, applying heat to the sample at a constant rate. Mark on your sketch the portions of the curve that represent the melting of the solid and the boiling of the liquid.

> What is a dipole moment? Give four examples of molecules that possess dipole moments, and draw the direction of the dipole as shown in Section 12.3.

> For Exercises 51–60 choose one of the following terms to match the definition or description given. a. alloy b. specific heat c. crystalline solid d. dipole–dipole attraction e. equilibrium vapor pressure f. intermolecular g. intramolecular h. io

> The “Chemistry in Focus” segment Metal with a Memory discusses Nitinol, an alloy that “remembers” a shape originally impressed in it. Which elements comprise Nitinol, and why is it classified as an alloy?

> For each of the following sets of pressure/volume data, calculate the missing quantity. Assume that the temperature and the amount of gas remain constant. a. V = 53.2 mL at 785 mm Hg; V = ? mL at 700. mm Hg b. V = 2.25 L at 1.67 atm; V = 2.00 L at ? at

> How are the three states of matter similar, and how do they differ?

> Ionic solids do not conduct electricity in the solid state, but are strong conductors in the liquid state and when dissolved in water. Explain.

> What types of forces exist between the individual particles in an ionic solid? Are these forces relatively strong or relatively weak?

> The enthalpy (∆H) of vaporization of water is about seven times larger than water’s enthalpy of fusion (41 kJ/mol vs. 6 kJ/mol). What does this tell us about the relative similarities among the solid, liquid, and gaseous states of water?

> What are crystalline solids? What kind of microscopic structure do such solids have? How is this microscopic structure reflected in the macroscopic appearance of such solids?

> Although water and ammonia differ in molar mass by only one unit, the boiling point of water is over 100 °C higher than that of ammonia. What forces in liquid water that do not exist in liquid ammonia could account for this observation?

Question: Farr Company reports net income of $90,