Lasting Summer Inc. has $2,510 in the October 1 balance of the accounts receivable account consisting of $1,060 from Champion Co. and $1,450 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 20Y5 are as follows: Oct. 3. Issued Invoice No. 622 for services provided to Palace Corp., $2,890. 5. Received cash from Champion Co., on account, for $1,060. 8. Issued Invoice No. 623 for services provided to Sunny Style Inc., $1,940. 12. Received cash from Wayfarer Co., on account, for $1,450. 18. Issued Invoice No. 624 for services provided to Amex Services Inc., $2,970. 23. Received cash from Palace Corp. for Invoice No. 622 of October 3. 28. Issued Invoice No. 625 to Wayfarer Co., on account, for $900. 30. Received cash from Rogers Co. for services provided, $120. a. Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Use the following column headings for the cash receipts journal: Fees Earned Cr., accounts receivable Cr., and Cash Dr. Place a check mark (✓) in the Post. Ref. column to indicate when the accounts receivable subsidiary ledger should be posted. b. Prepare a listing of the accounts receivable customer balances and verify that the total of the accounts receivable customer balances equals the balance of the accounts receivable controlling account on October 31, 20Y5. c. Why does Lasting Summer Inc. use a subsidiary ledger for accounts receivable?
> Use Westlaw Campus Research to answer the following questions: a. What is the New Mexico regulation that defines “base income?” b. Find the Armstrong v. Commonwealth of the Northern Mariana Islands Supreme Court action that occurred in June 2010. Was cer
> Explain how the RELATED DOCUMENTS links provide researchers with an efficient researching capability.
> Use Westlaw Campus Research to answer the following questions: a. What is the Westlaw Key Number for Gross Income under Taxation? b. Find Stewart v. U.S., 106 F.2d 405. Which court presided over this case? c. According to Westlaw’s KeyCite flag, what is
> Use Westlaw Campus Research to answer the following questions: a. Find Reg. § 1.61-11. What is the subject matter of this regulation? b. Which American Law Reports—Tax covers the theft of grain as a casualty or theft loss under IRC § 165? c. Find 169 A.L
> Use the BNA Tax Management portfolios to answer the following questions: a. What is the portfolio number (and section) that discusses the issue of a stuffing allocation to a redeeming hedge-fund partner? b. Which Sales and Use Portfolio discusses the tru
> Use the BNA Tax and Accounting Center to answer the following questions: a. Use a Go To search to find 30 T.C. 757. What is the issue in this case? b. Using a Guided Search, determine which Expert Analyses cite 30 T.C. 757. c. Using an Advanced Search, s
> Describe the Working Papers section of a BNA tax management portfolio.
> How is each BNA portfolio arranged?
> Why might some researchers find the citators in Westlaw or Shepards’ superior to those found in Checkpoint or IntelliConnect?
> Explain how the related information buttons provide researchers with an efficient researching capability.
> Using an example, describe the steps a researcher might take after using a broad keyword search to narrow the search down.
> What are KeySearch and the West Key Number System?
> Use Lexis Advance Tax to answer the following questions: a. Use the Florida Practice Insights to determine whether having a third party sell your out-of-state corporation’s gift cards in its Florida stores is likely to create nexus. b. What section of th
> Use the CCH IntelliConnect Tax Research Consultant to perform a keyword search on the topic of making an election to defer the determination of whether an activity is not engaged in for profit (hobby) until after the fourth year. Use the following terms:
> Use the CCH IntelliConnect Practice Tools database to answer the following questions: a. Using the Election and Compliance Toolkit, determine what election might need to be made to elect to expense the cost of property under IRC § 179 (not mine equipment
> Use the CCH IntelliConnect Browse function and select the Federal Tax Editorial Content heading to answer the following questions: a. Using Quick Answers Tax Rates, Tables and Credits, determine the personal exemption amounts for the previous three years
> Use the CCH IntelliConnect Browse to locate topical indexes for answering the following questions: a. What are the major headings for the letter “Y” in the current Internal Revenue Code topical index? b. What are the first and last countries listed unde
> Use the CCH IntelliConnect Federal Tax database to answer the following questions: a. What are the major Federal Tax database categories provided? b. Select 2007 in the Federal Tax Archives. What is the highest amount of taxable income a single taxpayer
> You are trying to find the current standard deduction amount for an individual. a. Using a contents search, locate Chapter 1 (Individuals), Computation of Tax Liability, in the U.S. Master Tax Guide for the most current year. What is the standard deducti
> Using CCH IntelliConnect Tax Research Consultant: a. Using the + symbols in the BROWSE window, how many subheadings for Individuals exist in the contents? b. What paragraph covers the basis allocation for charitable deductions for bargain sales to charit
> Use the CCH IntelliConnect Citator to evaluate the 2006 Gwendolyn A. Ewing case. a. What is the case’s citation, and what tax issues does the case address? b. What is the case’s direct judicial history? c. Where is the case annotated in the Standard Fede
> List the three significant editorial services provided by IntelliConnect and discuss the differences between them.
> Use the CCH IntelliConnect Citator to answer the following questions regarding the 19th revenue procedure of 2002: a. What does this procedure address? Which code sections are involved? b. What is its current status? c. What types of pronouncements have
> What are the four criteria for imposition of state taxation set forth in Complete Auto Transit, Inc.?
> What is an advantage to using an index search to find documents of interest?
> Name at least two practice areas in Checkpoint and describe the contents briefly.
> Apple Inc.’s iTunes® provides digital products, such as music, video, and software, which can be downloaded to portable devices such as the iPhone® and iPad®. Purchases from iTunes are made with credit cards that are on file with the credit card processi
> During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it: a. An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier.
> The following account balances were taken from the adjusted trial balance for Laser Messenger Service, a delivery service firm, for the fiscal year ended April 30, 2019: Prepare an income statement. $ 8,650 Rent Expense 674,000 Salaries Expense 1,5
> New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance s
> Assume that you recently accepted a position with Five Star National Bank & Trust as an assistant loan officer. As one of your first duties, you have been assigned the responsibility of evaluating a loan request for $300,000 from West Gate Auto Co.,
> Most computerized accounting systems use electronic forms to record transaction information, such as the invoice form illustrated at the top of Exhibit 7 in this chapter. a. Identify the key input fields (spaces) in an electronic invoice form. b. What ac
> Netbooks Inc. provides accounting applications for business customers on the Internet for a monthly subscription. Netbooks customers run their accounting system on the Internet; thus, the business data and accounting software reside on the servers of Net
> The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2019, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows: Instructio
> For the past few years, your client, Omni Care, has operated a small medical practice. Omni Care’s current annual revenues are $945,000. Because the accountant has been spending more time each month recording all transactions in a two-column journal and
> Internet-based accounting software is a recent trend in business computing. Major software firms such as Oracle, SAP, and NetSuite are running their core products on the Internet using cloud computing. NetSuite is one of the most popular small-business I
> Starbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year: a. Prepare a horizontal analysis of the segment data using the prior year as the base year. Round whole percents to one decimal place. b. P
> For each of the following companies, determine what they primarily sell and whether their e-commerce strategy is primarily business-to-consumer (B2C), business-to-business (B2B), or both. Use the Internet to investigate each company’s site in conducting
> Last Chance Company offers legal consulting advice to prison inmates. Last Chance Company prepared the end-of-period spreadsheet shown below at June 30, 2019, the end of the fiscal year. Instructions 1. Prepare an income statement for the year ended Jun
> For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2019, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basi
> The following revenue transactions occurred during August: Aug. 4. Issued Invoice No. 162 to Carson Enterprises Co. for services provided on account, $255. 15. Issued Invoice No. 163 to City Electric Inc. for services provided on account, $340. 25. Issue
> AquaFresh Water Testing Service was established on April 16. AquaFresh uses field equipment and field supplies (chemicals and other supplies) to analyze water for unsafe contaminants in streams, lakes, and ponds. Transactions related to purchases and cas
> Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Land
> The following income statement data for AT&T Inc. and Verizon Communications Inc. were taken from their recent annual reports (in millions): a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal place. b. Prepare
> The debits and credits from three related transactions are presented in the following creditor’s account taken from the accounts payable ledger: Describe each transaction and identify the source of each posting. NAME ADDRESS Apex
> Apex Systems Co. offers its services to residents in the Seattle area. Selected accounts from the ledger of Apex Systems Co. for the fiscal year ended December 31, 2019, are as follows: Prepare a statement of owner’s equity for the ye
> The following cash receipts journal headings have been suggested for a small service firm. List the errors you find in the headings. CASH RECEIPTS JOURNAL Page 12 Account Credited Post. Ref. Fees Earned Cr. Accts. Rec. Cr. Cash Cr. Other Accounts Dr
> Using the following cash payments journal, identify each of the posting references, indicated by a letter, as representing (1) A posting to a general ledger account, (2) A posting to a subsidiary ledger account, or (3) That no posting is required. C
> Using the following purchases journal, identify each of the posting references, indicated by a letter, as representing (1) A posting to a general ledger account, (2) A posting to a subsidiary ledger account, or (3) That no posting is required: PURCH
> Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended June 30, 2019: Based on the preceding spreadsheet, prepare an income statement, statement of owner&ac
> How are revenues and expenses reported on the income statement under (a) The cash basis of accounting and (b) The accrual basis of accounting?
> Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows: Mar. 2. Issued Invoice No. 512 to Santorini Co., $905. 4. Received cash from CMI Inc., on account, for $205. 8. Issued Invoice No.
> At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney: Net income for August ………â€&br
> The revenue and cash receipts journals for Polaris Productions Inc. follow. The accounts receivable control account has a January 1, 20Y4, balance of $3,790 consisting of an amount due from Clear Pointe Studios Inc. Prepare a listing of the accounts re
> The following is an excerpt from a telephone conversation between Ben Simpson, president of Main Street Co., and Tami Lundgren, owner of Reliable Employment Co.: Ben: Tami, you’re going to have to do a better job of finding me a new computer programmer.
> The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account has a July 1, 20Y2, balance of $625 consisting of an amount due from Aladdin Co. There were no collections during July. a. Prepare a T account for the
> The following data are taken from recent financial statement of Nike, Inc. (in millions): a. Determine the amount of change (in millions) and percent of change in net income from Year 1 to Year 2. Round to one decimal place. b. Determine the percentage
> Horizon Consulting Company had the following transactions during the month of October: Oct. 2. Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $595. 3. Issued Invoice No. 322 to Armor Inc. for services rendered on account, $310. 1
> The debits and credits from three related transactions are presented in the following customer’s account taken from the accounts receivable subsidiary ledger: Describe each transaction and identify the source of each posting. Miss
> Assuming the use of a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal as illustrated in this chapter, indicate the journal in which each of the following transactions should be recorded: a. Payment of six months
> FedEx Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31: Prepare an income statement. $2,611 Purchased Transportation 3,720 Rentals and Landing Fees $ 8,483 Depreciation Expense Fuel Ex
> Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal as illustrated in this chapter, indicate the journal in which each of the following transactions should be recorded: a. Receipt of cash refund
> The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows: The data needed to determine year-end adjustments are as follows: a. Supplies on hand at January 31 are $2,850. b. Insurance premiums expired during
> Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Tillman Inc., which had a $590 beginning balance. In addition, there were no collections during the period. a. Set up a T acco
> The comparative segment revenues for Yum! Brands, a global quick-serve restaurant company, are as follows: a. Provide a horizontal analysis of the segment revenues using the prior year as the base year. Round whole percents to one decimal place. b. Pro
> Twenty-First Century Fox, Inc. is one of the world’s largest entertainment companies that includes Twentieth Century Fox films, Fox Broadcasting, Fox News, the FX, and various satellite properties. The company provided revenue disclosures by its major pr
> Your friend, Daniel Nat, recently began work as the lead accountant for the Asheville Company. Dan prepared the following balance sheet for December 31, 2018: Asheville Company Balance Sheet For the Year Ended December 31, 2018 Assets Land. . . . . . . .
> The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co. after the accounts had been adjusted on February 28, 2019, the end of the fiscal year: Prepare an income statement. $ 7,500 Service Reven
> After Bunker Hill Assay Services Inc. had completed all postings for March in the current year (20Y4), the sum of the balances in the following accounts payable ledger did not agree with the $36,600 balance of the controlling account in the general ledge
> Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following
> Happy Tails Inc. has a September 1, 20Y4, accounts payable balance of $620, which consists of $320 due Labradore Inc. and $300 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of Septem
> Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows: May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $345. 3. Purchased cleaning supplie
> Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services’ accounting clerk prepared the following unadjusted trial balance at July 31, 2019: The data n
> The cash payments and purchases journals for Outdoor Artisan Landscaping follow. The accounts payable control account has a June 1, 20Y1, balance of $2,230, consisting of an amount owed to Augusta Sod Co. Prepare a schedule of the accounts payable cred
> The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable account has a March 1, 20Y2, balance of $580 for an amount owed to Nicely Co. No payments were made on creditor invoices during March. a. Prepare a T account for the
> The two leading software application providers for supply chain management (SCM) and customer relationship management (CRM) software are JDA and Salesforce.com, respectively. In groups of two or three, go to the website of each company (www.jda.com and w
> Guardian Services Inc. had the following transactions during the month of April: Apr. 4. Purchased office supplies from Officemate Inc. on account, $415. 9. Purchased office equipment on account from Tek Village Inc., $2,460. 16. Purchased office supplie
> How would e-commerce improve the revenue/collection cycle?
> The unadjusted trial balance of La Mesa Laundry at August 31, 2019, the end of the fiscal year, follows: The data needed to determine year-end adjustments are as follows: a. Wages accrued but not paid at August 31 are $2,200. b. Depreciation of equipme
> What is an electronic form, and how is it used in a computerized accounting system?
> The unadjusted trial balance of PS Music as of July 31, 2019, along with the adjustment data for the two months ended July 31, 2019, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared: Instructions
> Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-of-period spreadsheet at December 31, 2019, the end of the fiscal year: Instructions 1.
> For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time ba
> Bamboo Consulting is a consulting firm owned and operated by Lisa Gooch. The following end-of-period spreadsheet was prepared for the year ended July 31, 2019: Based on the preceding spreadsheet, prepare an income statement, statement of ownerâ&#
> Balances for each of the following accounts appear in an adjusted trial balance. Identify each as (a) Asset, (b) Liability, (c) Revenue, or (d) Expense. 1. Accounts Receivable 2. Equipment 3. Fees Earned 4. Insurance Expense 5. Land 6. Prepaid Rent 7. Re
> The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement of owner’s equity, or balance sheet. 1. Accounts Payabl
> Portions of the salaries expense account of a business follow: a. Indicate the nature of the entry (payment, adjusting, closing, reversing) from which each numbered posting was made. b. Journalize the complete entry from which each numbered posting was
> Portions of the wages expense account of a business follow: a. Indicate the nature of the entry (payment, adjusting, closing, reversing) from which each numbered posting was made. b. Journalize the complete entry from which each numbered posting was ma
> The unadjusted trial balance of Lakota Freight Co. at March 31, 2019, the end of the year, follows: The data needed to determine year-end adjustments are as follows: a. Supplies on hand at March 31 are $7,500. b. Insurance premiums expired during the y
> On the basis of the following data, (a) Journalize the adjusting entries at June 30, the end of the current fiscal year, and (b) Journalize the reversing entries on July 1, the first day of the following year: 1. Wages are $13,200 per day for a five-day
> Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon’s income statements through income from operations for two recent years are as follows (in millions): a. Prepare a vertical analysis of the two operating i
> On the basis of the following data, (a) Journalize the adjusting entries at December 31, the end of the current fiscal year, and (b) Journalize the reversing entries on January 1, the first day of the following year: 1. Sales salaries are $2,350 per day
> The following adjusting entry for accrued wages was recorded on December 31: a. Journalize the reversing entry that would be made on January 1 of the next period. b. Assume that the first paid period of the following year ends on January 6 and that wag
> Based on the data in Exercise 4-25, prepare the two closing entries for Alert Security Services Co. In Exercise 4-25 Alert Security Services Co. End-of-Period Spreadsheet For the Year Ended October 31, 2019 Adjusted Trial Balance Income Statement Ba
> Based on the data in Exercise 4-24, prepare the adjusting entries for Alert Security Services Co. In Exercise 4-24 Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepa
> The following conversation took place between Durable Construction Co.’s bookkeeper, Kyle Byers, and the accounting supervisor, Sarah Nelson: Sarah: Kyle, I’m thinking about bringing in a new computerized accounting system to replace our manual system. I
> Based on the data in Exercise 4-25, prepare an income statement, statement of owner’s equity, and balance sheet for Alert Security Services Co. In Exercise 4-25 Alert Security Services Co. End-of-Period Spreadsheet For the Year End
> Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co.: Alert Security Services Co. End-of-Period Spreadsheet For the Year Ended October 31, 2019 Adj
> Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the following end-of-period spreadsheet for the year ended October 31, 2019: The data for year-end adjustme
> List (a) through (j) in the order they would be performed in preparing and completing an end-of-period spreadsheet. a. Add the Debit and Credit columns of the Unadjusted Trial Balance columns of the spreadsheet to verify that the totals are equal. b. Add
