Question: Finer Company uses a sales journal, purchases

> Prepare a classified balance sheet for Tucson Co. for the year ended December 31 using the following data.

> The stockholders’ equity section of TVX Company on February 4 follows. On February 5, the directors declare a 20% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s marke

> Refer to the information in Exercise 13-8. Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. After the split, (1) prepare the updated stockholders’ equity section and (2) compute the number of shares outstanding. Hi

> On June 30, Sharper Corporation’s stockholders’ equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. After the di

> For each dividend and stock split issued, determine the impact—increase, decrease, or no effect—on total assets, total liabilities, and total equity.

> Analyze each transaction from Exercise 13-4 by showing its effect on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction

> Samsung’s service and repair program competes with Apple’s AppleCare. Assumed data follow. Required 1. For both Samsung and Apple, compute time charge per hour of direct labor (in $). 2. For both Samsung and Apple, com

> Indicate which activities of Stockton Corporation violated the rights of a stockholder who owned one share of common stock. 1. Did not allow the stockholder to sell the stock to her brother. 2. Rejected the stockholder’s request to be put in charge of it

> Alex Corporation reports the following components of stockholders’ equity at December 31 of the prior year. During the current year, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchas

> Prepare a statement of stockholders’ equity for Hulu Inc. for the year ended December 31 using the following data. Beginning balances of $300 for Common Stock, $9,700 for Paid-In Capital in Excess of Par, and $20,000 for Retained Earnings. Reported net

> The following information is from Amos Company for the current year ended December 31. Prepare a statement of retained earnings for Amos Company for the current year. Retained earnings at December 31 of the prior year (before discovery of an error) was $

> Prepare a statement of retained earnings for Tidal Co. for the current year ended December 31 using the following data.

> Match each corporate characteristic 1 through 8 with the description that best relates to it. 1. Owner authority and control 2. Ease of formation 3. Transferability of ownership 4. Ability to raise large capital amounts 5. Duration of life 6. Owner liabi

> Selected accounts from the Pearson, Gomez, and Lott Partnership adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet.

> Mike and Rachel form M&R Partnership. Mike invests $40,000 cash and Rachel invests $60,000 cash. The partners agree to share income as follows: Mike gets a salary allowance of $5,000 per year and Rachel gets a salary allowance of $9,000 per year; both ge

> On March 1, Eckert and Kelley formed a partnership. Eckert contributed $82,500 cash, and Kelley contributed land valued at $60,000 and a building valued at $100,000. The partnership also took Kelley’s $92,500 long term note payable associated with the la

> Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. The partners agreed to share net income and loss by giving annual salary allowances of $50,000 to Ramer and $40,000 to Knox, 10% interest allowances on their investments,

> Google wants to develop a laptop to compete with Apple’s MacBook Pro. Google believes the price of this model must be no more than Apple’s price of $1,199 per unit to be competitive. Google expects to sell 20,000 units

> Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income is allocated under each separate plan for sharing income and l

> Steffi and Leigh form a partnership. Steffi invests $1,000 cash, $2,000 of supplies, inventory with a market value of $3,000, and machinery with a market value of $4,000. Prepare the partnership’s journal entry to record Steffi’s investment.

> Moss and Barber organize a partnership on January 1. Moss’s initial net investment is $75,000, consisting of cash ($17,500), equipment ($82,500), and a note payable reflecting a bank loan for the new business ($25,000). Barber’s initial investment is cas

> For each separate case, indicate which type of organization should be formed. a. Sharif, Henry, and Kori want to start a tech firm. They are deciding between an S corporation and a C corporation. The founders want limited liability, but they also want to

> Rugged Sports Enterprises LP is organized as a limited partnership consisting of two individual partners: Hockey LP and Football LP. Compute partner return on equity for each limited partnership (and the total) for the year using the following data from

> Assume that the Turner, Roth, and Lowe partnership of Exercise 12-13 is a limited partnership. Turner and Roth are general partners. Lowe is a limited partner, meaning any remaining deficiency in Lowe’s capital account is covered by Turner and Roth. Dete

> Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percent’s: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows to

> Biz Partnership allows partner Mandy to sell her $100,000 equity in the partnership to Brittney. Brittney pays Mandy $85,000. Record the partnership’s journal entry for the sale of Mandy’s interest to Brittney on September 30.

> Determine whether each characteristic describes a general partnership (GP), limited liability company (LLC), both, or neither. a. Must pay a business (corporate) income tax. b. When the business cannot pay its debts, creditors can take the owners’ person

> Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40-hour workweek and $15 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last

> AA 26-1 Apple invested $10,495 in the current year to expand its manufacturing capacity. Assume that these assets have a 10-year life and generate net cash flows of $3,000 per year, and that Apple requires a 7% return on its investments. (Apple $s in mil

> Riya Co. purchases a machine for $105,000 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service. Prepare ent

> Refer to the information in Exercise 9-14 to complete the following requirements. a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectible, instead of the aging o

> Warner Company’s year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600 (credit), and sales of $140,000. Uncollectible are estimated to be 1% of sales. Prepare the December 31 year-end adjusting en

> Use the following accounts with normal balances to prepare Boscov Company’s classified balance sheet as of December 31

> Using the information in Exercise 8-12, prepare any necessary journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation.

> Repair a table with the following headings for a monthly bank reconciliation dated September 30. Indicate whether each item should be added to or subtracted from the book or bank balance and whether it should or should not appear on the September 30 reco

> Smith Auto uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize its transactions that should be recorded in the general journal. For those not recorded in the general journal, identify the

> Refer to Exercise 7-7 and for each of the transactions identify the journal in which it would be recorded. Assume the company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal.

> Marx Supply uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Prepare a cash payments journal like the one in Exhibit 7.11. Journalize the following transactions that should be recorded in the cas

> Gomez Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Prepare a purchases journal like the one in Exhibit 7.9. Journalize the following transactions that should be recorded in the purcha

> Your friend, Wendy Geiger, owns a small retail store that sells candies and nuts. Geiger acquires her goods from a few select vendors. She generally makes purchase orders by phone and on credit. Sales are primarily for cash. Geiger keeps her own manual a

> Following is information from Jasper Company for its first month of business. 1. Identify the balances listed in the accounts payable subsidiary ledger. 2. Identify the Accounts Payable balance listed in the general ledger at month’s en

> Refer to Exercise 7-3 and for each of the transactions identify the journal in which it would be recorded. Assume the company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal.

> Ali Co. uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Prepare a cash receipts journal like the one in Exhibit 7.7. Journalize the following transactions that should be recorded in the cash rec

> Refer to Exercise 7-1 and for each of the transactions identify the journal in which it would be recorded. Assume the company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal.

> The following companies are competitors in the same industry and have many of the same suppliers. (a) Calculate days’ payable outstanding for each of the following companies (round to one decimal). (b) Assuming each company has positive

> Following is a cash receipts journal and a partial chart of accounts for a company. For each posting reference a through k, enter (1) an x for an amount not individually posted, (2) a ✓ for individual posting to the customerâ&#128

> At the end of May, the sales journal of Mountain View appears as follows. Mountain View also recorded an allowance (price reduction) given to Anna Page with the following entry. Required 1. Open an accounts receivable subsidiary ledger that has a T-accou

> Post Pharmacy uses the following journals: sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. The following two transactions were processed. June 5 Post Pharmacy purchased merchandise priced at $14,000, s

> A company that records credit purchases in a purchases journal and records purchases returns in a general journal made the following errors. Enter A, B, or C indicating when each error should be discovered. A. When preparing the schedule of accounts pay

> Refer to Apple’s financial statements in Appendix A. Assume that the owners, sometime during their first five years of business, desire to expand their computer product services to meet business demand regarding computing services. They eventually decide

> Refer to Exercise 5-10 and prepare journal entries to record each of the merchandising transactions assuming that the perpetual inventory system and the net method are used by both the buyer and the seller.

> Refer to Exercise 5-10 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system and the gross method are used by both the buyer and the seller.

> Refer to Exercise 5-9 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system and the gross method are used by both the buyer and the seller.

> Refer to Exercise 5-3 and prepare journal entries to record each of the merchandising transactions assuming that the buyer uses the periodic inventory system and the gross method.

> Adams Co. reports the following balance sheet accounts as of December 31. Prepare a classified balance sheet.

> Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Prepare a multiple-step income statement that includes separate categories for net sales; cost of goods sold; selling expenses; general and administrative

> Prepare journal entries for the following merchandising transactions of Powell Company assuming it uses a perpetual inventory system and the gross method. May 1 Powell purchased merchandise with a price of $875 and credit terms of n∕30. 12 Powell returne

> Refer to Exercise 5-6 and prepare journal entries for Macy Co. to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system; it purchases these units for resale.

> Analyze each transaction in Exercise 5-6 by indicating its effects on the income statement—specifically, identify the accounts and amounts (including + or −) for each transaction.

> Trey Co. entered into the following two transactions. Trey prepares financial statements annually at December 31. a. Trey rents a building for $2,800 per month beginning December 1. By agreement, Trey paid cash for both December and January rent on Janua

> Assume you are preparing for a class presentation on the accounting for factory overhead. Prepare a set of notes to guide a presentation that addresses the questions below. Required 1. Describe the four-step overhead process. 2. How are applied and act

> Hawk Company used the following information to prepare adjusting entries at its December 31 year-end. Prepare any necessary reversing entries for accounting adjustments a through e assuming that the company uses reversing entries. a. The company earned $

> (a) Calculate the current ratio for each of the following competing companies. (b) Which competitor is in the best position to pay its short-term obligations?

> (a) Use the information in the adjusted trial balance reported in Exercise 4-11 to compute the current ratio for Wilson Trucking. (b) Assuming Spalding (a competitor) has a current ratio of 1.5, which company is better able to pay its short-term obligati

> Use the following selected accounts and amounts with normal balances from Andrea Co. to prepare its classified balance sheet at December 31.

> Using Wilson Trucking Company’s adjusted trial balance from E 4-10, prepare its December 31 closing entries.

> Use the information in the adjusted trial balance reported in Exercise 4-10 to prepare Wilson Trucking Company’s classified balance sheet as of December 31.

> Use the following adjusted trial balance at December 31 of Wilson Trucking Company to prepare the (1) income statement and (2) statement of owner’s equity, for the year ended December 31. The K. Wilson, Capital account balance was $170,

> The following data are taken from the unadjusted trial balance of the Westcott Company at December 31. 1. Use the following information to complete the Adjustments columns of the work sheet. a. Depreciation on equipment, $3 d. Supplies available at Decem

> Ricardo Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare jo

> Use the following information to compute profit margin for each separate company a through e. Which of the five companies is the most profitable according to the profit margin ratio? Interpret the profit margin ratio for company c.

> Write a one-page memorandum to a prospective college student about salary expectations for graduates in business. Compare and contrast the expected salaries for accounting (including different subfields such as public, corporate, tax, audit, and so forth

> Use the adjusted accounts for Stark Company from Exercise 3-16 to prepare the (1) income statement and (2) statement of owner’s equity for the year ended December 31 and (3) balance sheet at December 31. The Stark, Capital account balance was $24,800 on

> Analyze each adjusting entry in Exercise 3-11 by showing its effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction or event.

> Determine the missing amounts in each of these four separate situations a through d.

> For journal entries 1 through 6, identify the explanation that most closely describes it. A. To record this period’s depreciation expense. D. To record accrued interest revenue. B. To record accrued salaries expense. E. To record accrue

> For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis accounting). a. On December 7, Oklahoma City Thunder sold a $90 ticket to a basketball game to be played in March. b. Tesla sold and

> On March 1, Year 1, a company paid an $18,000 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table.

> Analyze each transaction in Exercise 2-9 by showing its effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction.

> Open a ledger account for Cash in balance column format. Post general journal entries that impact cash from Exercise 2-9 to the ledger account for Cash, and enter the balance after each posting.

> Prepare general journal entries for the following transactions of Sustain Company. June 1 T. James, owner, invested $11,000 cash in Sustain Company. 2 The company purchased $4,000 of furniture made from reclaimed wood on credit. 3 The company paid $600 c

> Gore Co. bills a client $62,000 for services provided and agrees to accept the following three items in full payment: (1) $10,000 cash, (2) $80,000 of equipment, and (3) $28,000 note payable owed on the equipment. For this transaction, (a) analyze the tr

> Assume that you are Jolie Company’s accountant. Company owner Mary Jolie has reviewed the 2021 financial statements you prepared and questions the $6,000 loss reported on the sale of its investment in Kemper Co. common stock. Jolie acquired 50,000 shares

> For each of the following, (1) identify the account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit or credit to identify the kind of entry that would increase the account balance.

> Identify the item that best completes each of the descriptions below. 1. Chart 2. General ledger 3. Journal 4. Account 5. Source document a. A (n) of accounts is a list of all accounts a company uses, not including account balances. b. The is a record co

> Identify the item that best completes each of the descriptions below. 1. Asset 2. Equity 3. Account 4. Liability 5. Three a. Balance sheet accounts are arranged into general categories. b. The owner’s claim on a company’s assets is called. c. Accounts Pa

> Identify the source document for NDX Company in each of the following accounting processes. a. A customer purchases merchandise with a credit card. NDX uses the electronic sales receipt to record transaction details in its accounting system. b. NDX purch

> a. Compute the debt ratio for each of the three companies. b. Which company has the most financial leverage?

> Compute the missing amount for each of the following separate companies in columns B through E.

> Use the information in Exercise 2-25 to prepare a December 31 balance sheet for Help Today. Hint: The ending C. Camry, Capital account balance as of December 31 is $106,470.

> A company had the following assets and liabilities at the beginning and end of this year. Determine net income or net loss for the business during the year for each of the following separate cases. a. Owner made no investments in the business, and no wit

> Prepare a December 31 trial balance for Jindal Co. using the following information and fill in the missing amount for Equipment (assume all data are correct).

> Use the T-accounts in Exercise 2-19 from Chase Company’s first month of operations to prepare its December 31 trial balance.

> Ellis Island Tropical Tea manufactures and sells tea. Founder Nailah Ellis-Brown stresses the importance of planning and budgeting for business success. Required 1. How can budgeting help Nailah efficiently develop and operate her business? 2. Nailah ho

> Chase Company posted transactions (a through f) in the following T-accounts in December, its first month of operations. Prepare the six journal entries from which the postings were made.

> Use information from Exercise 2-17 to prepare the general journal entries for Belle Co.’s first seven transactions.

> Fill in each of the following T-accounts for Belle Co.’s seven transactions listed here. The T-accounts represent Belle Co.’s general ledger. Code each entry with transaction numbers 1 through 7 (in order) for referenc

> Skull Co. makes snowboards and uses the total cost method in setting product price. Its costs for producing 10,000 units follow. The company targets a 12.5% markup on total cost. 1. Compute the total cost per unit if 10,000 units are produced. 2. Compute

> Lopez Co. is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $52,000. Variable manufacturing costs are $36,000 per year for this ol

> Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $300,000 of its fixed costs are avoidable. (a) Compute the income increase or decrease from e