Question: In its annual report, ConocoPhillips reported that

> How is earnings per share computed and interpreted?

> For each of the transactions in Mini Exercise 4, indicate the amounts and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate + for increase, −

> What is a contra-asset? Give an example of one.

> Explain the difference between sales revenue and net sales.

> What is the purpose of recording adjusting entries?

> Papa John’s International Inc. operates and franchises pizza delivery and carryout restaurants worldwide. The following is an alphabetical list of accounts and amounts reported in a recent year’s set of financial state

> Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Data not

> Following are the concepts of accounting covered in Chapters 2 through 5. Match each transaction or definition with its related concept by entering the appropriate letter in the space provided. Use one letter for each blank. Concepts Transactions/Def

> Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjusting entries. Required: 1. Compare the amounts in the

> Refer to Exercise 15. Data from Exercise 15: Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand by opening a retail sales shop. They have decided to form the business as a corp

> Newell Rubbermaid Inc. manufactures and markets a broad array of office products, tools and hardware, and home products under a variety of brand names, including Sharpie, Paper Mate, Rolodex, Rubbermaid, Levolor, and others. The items reported on its inc

> Mateo Inc. is a retailer of men’s and women’s clothing aimed at college-age customers. Listed below are additional transactions that Mateo was considering at the end of the accounting period. Required: Listed below ar

> Creative Technology, a computer hardware company based in Singapore, developed the modern standard for computer sound cards in the early 1990s. Recently, Creative has released a line of portable audio products to directly compete with Appleâ€&

> Jordan Sales Company (organized as a corporation on April 1, 2014) has completed the accounting cycle for the second year, ended March 31, 2016. Jordan also has completed a correct trial balance as follows: Required: Complete the financial statements as

> Peet’s Coffee & Tea, Inc., is a specialty coffee roaster and marketer of branded fresh-roasted whole bean coffee. It recently disclosed the following information concerning the Allowance for Doubtful Accounts on its Form 10-K Annual

> Aeropostale, Inc., is a mall-based specialty retailer of casual apparel and accessories. The company concept is to provide the customer with a focused selection of high-quality, active-oriented fashions at compelling values. The items reported on its inc

> At the end of the prior annual reporting period, Barnard Corporation’s balance sheet showed the following: BARNARD CORPORATION Balance Sheet At December 31, Prior Year Stockholders’ Equity Contributed capital Common stock (par $15; 5,500 shares)………………………

> Exquisite Jewelers is developing its annual financial statements for the current year. The following amounts were correct at December 31, current year: cash, $58,000; accounts receivable, $71,000; merchandise inventory, $154,000; prepaid insurance, $1,50

> Following are terms related to the balance sheet that were discussed in Chapters 2 through 5. Match each definition with its related term by entering the appropriate letter in the space provided. Terms Definitions (1) Capital in excess of par A. Near

> Net income was $850,000. Beginning and ending assets were $8,500,000 and $9,600,000, respectively. What was the return on assets (ROA)? a. 9.39% b. 10.59% c. 9.94% d. 10.41%

> When a company issues stock with a par value, what columns are typically presented in the statement of stockholders’ equity? a. Common Stock; Additional Paid-In Capital; and Property, Plant, and Equipment, Net. b. Cash; and Property, Plant, and Equipment

> Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand by opening a retail sales shop. They have decided to form the business as a corporation called Traveling Gourmet, Inc. The fol

> Refer to the information regarding Martin Towing Company in Problem 3. Data given in Problem 3: Martin Towing Company is at the end of its accounting year ending December 31. The following data that must be considered were developed from the company&aci

> The classified balance sheet format allows one to ascertain quickly which of the following? a. The most valuable asset of the company. b. The specific due date for all liabilities of the company. c. What liabilities must be paid within the upcoming year.

> Which of the following is not a normal function of a financial analyst? a. Issue earnings forecasts. b. Examine the records underlying the financial statements to certify their conformance with GAAP. c. Make buy, hold, and sell recommendations on compani

> Match each definition with its related term by entering the appropriate letter in the space provided. Definition Term A. Accrued expense B. Deferred expense C. Accrued revenue (1) At year-end, service revenue of $1,000 was collected in cash but was n

> Which of the following would normally not be found in the notes to the financial statements? a. Accounting rules applied in the company’s financial statements. b. Additional detail supporting numbers reported in the company’s financial statements. c. Rel

> Which of the following reports is filed annually with the SEC? a. Form 10-Q b. Form 10-K c. Form 8-K d. Press release

> Which of the following is one of the possible nonrecurring items that must be shown in a separate line item below the Income from Continuing Operations subtotal in the income statement? a. Gains and losses from the sale of fixed assets. b. Discontinued o

> If a company reported the following items on its income statement (cost of goods sold $6,000, income tax expense $2,000, interest expense $500, operating expenses $3,500, sales revenue $14,000), what amount would be reported for the subtotal “income from

> If a company plans to differentiate its products by offering low prices and discounts for items packaged in bulk (like a discount retailer that requires memberships for its customers), which component in the ROA profit driver analysis is the company atte

> If average total assets increase, but net income, net sales, and average stockholders’ equity remain the same, what is the impact on the return on assets ratio? a. Increases. b. Decreases. c. Remains the same. d. Cannot be determined without additional i

> Which of the following is false regarding a perpetual inventory system? a. Physical counts are not needed since records are maintained on a transaction-by-transaction basis. b. The balance in the inventory account is updated with each inventory purchase

> Refer to Exercise 13. Data from Exercise 13: At January 1 (beginning of its fiscal year), Conover, Inc., a financial services consulting firm, reported the following account balances (in thousands of dollars, except number of shares and par value per sh

> Which inventory method provides a better matching of current costs with sales revenue on the income statement and outdated values for inventory on the balance sheet? a. FIFO b. Average cost c. LIFO d. Specific identification

> Refer to the information regarding Zimmerman Company in Problem 2. Data from Problem 2: All of the current year’s entries for Zimmerman Company have been made, except the following adjusting entries. The company’s ann

> The following data were selected from the records of Sykes Company for the year ended December 31, current year. Balances January 1, current year Accounts receivable (various customers) ……&acir

> Which of the following regarding the lower of cost or market rule for inventory are true? (1) The lower of cost or market rule is an example of the historical cost principle. (2) When the net realizable value of inventory drops below the cost shown in th

> If the ending balance in accounts payable decreases from one period to the next, which of the following is true? a. Cash payments to suppliers exceeded current period purchases. b. Cash payments to suppliers were less than current period purchases. c. Ca

> An increasing inventory turnover ratio a. Indicates a longer time span between the ordering and receiving of inventory. b. Indicates a shorter time span between the ordering and receiving of inventory. c. Indicates a shorter time span between the purchas

> Consider the following information: beginning inventory, 10 units @ $20 per unit; first purchase, 35 units @ $22 per unit; second purchase, 40 units @ $24 per unit; 50 units were sold. What is cost of goods sold using the LIFO method of inventory costing

> Consider the following information: beginning inventory, 10 units @ $20 per unit; first purchase, 35 units @ $22 per unit; second purchase, 40 units @ $24 per unit; 50 units were sold. What is cost of goods sold using the FIFO method of inventory costing

> Which of the following is not a component of the cost of inventory? a. Administrative overhead b. Direct labor c. Raw materials d. Factory overhead

> The inventory costing method selected by a company will affect a. The balance sheet. b. The income statement. c. The statement of retained earnings. d. All of the above.

> Consider the following information: ending inventory, $24,000; sales, $250,000; beginning inventory, $30,000; selling and administrative expenses, $70,000; and purchases, $90,000. What is cost of goods sold? a. $86,000 b. $94,000 c. $96,000 d. $84,000

> Scott’s Cycles sells merchandise on credit terms of 2/15, n/30. A sale invoiced at $1,500 (cost of sales $975) was made to Shannon Allen on February 1. The company uses the gross method of recording sales discounts. Required: 1. Give the journal entry t

> Use the data presented in Problem 1, which were selected from the records of Sykes Company for the year ended December 31, current year. Data from Problem 1: The following data were selected from the records of Sykes Company for the year ended December

> Assume that a retailer’s beginning inventory and purchases of a popular item during January included: (1) 300 units at $7 in beginning inventory on January 1, (2) 450 units at $8 purchased on January 8, and (3) 750 units at $9 purchased on January 29.

> Martin Towing Company is at the end of its accounting year ending December 31. The following data that must be considered were developed from the company’s records and related documents: a. On January 1 of the current year, the company purchased a new ha

> In its recent annual report, PepsiCo included the following information in its balance sheets (dollars in millions): Required: Explain the effects of the changes in inventory and accounts payable on cash flow from operating activities for the current ye

> Several years ago, the financial statements of Gibson Greeting Cards, now part of American Greetings, contained the following note: On July 1, the Company announced that it had determined that the inventory . . . had been overstated. . . . The overstatem

> Snyder’s-Lance is a leading snack-food company. The following note was contained in its recent annual report: Required: 1. What amount of ending inventory would have been reported in the current year if Snyder’s-Lance

> The following note was contained in a recent Ford Motor Company annual report: Required: 1. What amount of ending inventory would have been reported in the current year if Ford had used only FIFO? 2. The cost of goods sold reported by Ford for the curre

> The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 19 Units @ $16 = $304 Beginning Inventory at LIFO: 19 Units @ $12 = $228 Required: Compute th

> Define goods available for sale. How does it differ from cost of goods sold?

> The August current year bank statement for Allison Company and the August current year ledger account for cash follow: Outstanding checks at the end of July were for $270, $430, and $320. No deposits were in transit at the end of July. Required: 1. Comp

> Dell Inc. is the leading manufacturer of personal computers. In a recent year, it reported the following in dollars in millions: Net sales revenue…………………………...$62,071 Cost of sales……………………………………...48,260 Beginning inventory………………………….…..1,301 Ending inve

> Parson Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: Required: 1. Compute t

> Jones Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: Required: Compute the valuation that should be used for the curre

> All of the current year’s entries for Zimmerman Company have been made, except the following adjusting entries. The company’s annual accounting year ends on December 31. a. On September 1 of the current year, Zimmerman collected six months’ rent of $8,40

> Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,000 units at $38; purchases, 8,000 units at $40; expenses (excluding income taxes), $194,500; ending

> Following is partial information for the income statement of Arturo Technologies Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and

> Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and aver

> Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Required: 1. Prepare a separate income statement through pr

> Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Required: 1. Prepare a separate income statement th

> Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Required: Compute ending inventory and cost of goods

> The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, “I don’t have time.” You have been asked to prepare a reconciliation and review the procedures

> Refer to Exercise 10. Data from Exercise 10: Stacey’s Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances wer

> Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Required: Compute ending inventory and cost of goods sol

> Supply the missing dollar amounts for the income statement for each of the following independent cases: Pretax Ending Cases Revenue Inventory Purchases Available Inventory Goods Sold Profit Expenses (Loss) Sales Beginning Total Cost of Gross Income A

> Supply the missing dollar amounts for the income statement for each of the following independent cases. Case A Case B Case C Net sales revenue $7,500 $ ? $5,000 Beginning inventory $11,200 $ 7,000 $ 4,000 Purchases 4,500 ? 9,500 Goods available for s

> Based on its physical count of inventory in its warehouse at year-end, December 31 of the current year, Madison Company planned to report inventory of $34,500. During the audit, the independent CPA developed the following additional information: a. Goods

> Stacey’s Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Required: 1. Create T-accounts f

> Blaine Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February: February 1 Paid $275 for rent of hangar space in February. February 2 Purchased fuel costing $490 on account for the next flight

> Vail Resorts, Inc., owns and operates five premier year-round ski resort properties (Vail Mountain, Beaver Creek Resort, Breckenridge Mountain, and Keystone Resort, all located in the Colorado Rocky Mountains, and Heavenly Valley Mountain Resort, located

> Sysco, formed in 1969, is North America’s largest marketer and distributor of food service products, serving approximately 425,000 restaurants, hotels, schools, hospitals, and other institutions. The following summarized transactions are typical of those

> Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Stride Rite, and Bates, to a global market. The following transactions o

> Tungsten Company, Inc., sells heavy construction equipment. There are 10,000 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed trial balance was taken from the general ledger on December 31, curren

> Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars in millions): a. Issued stock for $6 cash (example). b. Purchased equ

> Pool Corporation, Inc., is the world’s largest wholesale distributor of swimming pool supplies and equipment. Required: 1. Pool Corp. reported the following information related to bad debt estimates and write-offs for the current year. Prepare journal e

> Revenues are normally recognized when a company transfers promised goods or services to customers in the amount the company expects to receive. Expense recognition is guided by an attempt to match the costs associated with the generation of those revenue

> Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to receive. The amount recorded is the cash-equivalent sales price. The following transactions occurred in September: a. A popular sk

> What are the general guidelines for deciding which items should be included in inventory?

> Payson Sports, Inc., sells sports equipment to customers. Its fiscal year ends on December 31. The following transactions occurred in the current year: a. Purchased $250,000 of new sports equipment inventory; paid $90,000 in cash and owed the rest on acc

> Match each definition with its related term by entering the appropriate letter in the space provided. There should be only one definition per term (that is, there are more definitions than terms). Answer: TERM K (1) Expenses E (2) Gains G (3) Rev

> Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each accounting year. Credit sales occur frequently on terms n/60. The balance of each account receivable is aged on the basis of three time periods as follow

> Refer to Exercise 20. Data from Exercise 20: Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. Other data not ye

> Refer to Exercise 20. Data from Exercise 2o: Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. Other data not ye

> Match each player with the related definition by entering the appropriate letter in the space provided. Players Definitions (1) Independent auditor A. Adviser who analyzes financial and other economic (2) CEO and CFO information to form forecasts and

> Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. Other data not yet recorded at December 31 include: a. Insuranc

> The following amounts were selected from the annual financial statements for Genesis Corporation at December 31, 2015 (end of the third year of operations): From the 2015 income statement: Sales revenue…………………….……………………………$275,000 Cost of goods sold………….

> Jay, Inc., a party rental business, completed its first year of operations on December 31. Because this is the end of the annual accounting period, the company bookkeeper prepared the following tentative income statement: You are an independent CPA hired

> On December 31, the bookkeeper for Grillo Company prepared the following income statement and balance sheet summarized here but neglected to consider three adjusting entries. Data on the three adjusting entries follow: a. Rent revenue of $2,500 earned in

> On December 31, Fawzi Company prepared an income statement and balance sheet and failed to take into account four adjusting entries. The income statement, prepared on this incorrect basis, reflected pretax income of $65,000. The balance sheet (before the

> Cohen & Boyd, Inc., publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end (December 31): a. Did not accrue $1,400 owed to the company by another company renting part of the building as a storage fa

> Select Apparel purchased 90 new shirts and recorded a total cost of $2,258 determined as follows: Invoice cost ……………………………………………….………………………..$1,800 Shipping charges…………………………………..………………………………….185 Import taxes and duties……….……………………………………………………165 Intere

> Deere & Company is the world’s leading producer of agricultural equipment; a leading supplier of a broad range of industrial equipment for construction, forestry, and public works; a producer and marketer of a broad line of lawn and

> Note 1: On April 1, 2017, Warren Corporation received a $30,000, 10 percent note from a customer in settlement of a $30,000 open account receivable. According to the terms, the principal of the note and interest are payable at the end of 12 months. The a

> Daniel Company started operations on January 1 of the current year. It is now December 31, the end of the current annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions: a. During the year, the comp

> At the beginning of the current year, Donna Company had $1,000 of supplies on hand. During the current year, the company purchased supplies amounting to $6,400 (paid for in cash and debited to Supplies). At the end of the current year, a count of supplie