Question: On January 3, 2020, Hanna Corporation signed

> Following is selected financial information from General Mills, Inc., for its fiscal year ended May 27, 2018 ($ millions): REQUIRED a. Prepare an income statement, balance sheet and statement of cash flows for General Mills. Inc. b. What portion of the f

> The following table contains financial statement information for The Procter & Gamble Company ($ millions) for the fiscal years ended in June of each year: REQUIRED a. Compute the missing amounts for assets. liabilities. and equity for each year. b.

> The following table presents sales revenue, cost of goods sold, and inventory amounts for three computer/electronics companies, Samsung Electronics Co., Hewlett-Packard Company, and Apple Inc. REQUIRED a. Compute the gross profit margin (GPM ) for each o

> On January 1 of the current year, Halen Company purchased all of the common shares of Jolson Company for $575,000 cash. On this date, the stockholders' equity of Halen Company consisted of $600,000 in common stock and $310,000 in retained earnings. Jolso

> Refer to the data for Hartgraves Company in Mini Exercise 12-20. Assume that when the shares were purchased, management did not intend to sell the stock in the near future. Record the transactions and adjustments for Hartgraves Company as an available-fo

> Explain the process of posting.

> Blouin Company had the following transactions and adjustment related to a stock investment that is a trading security. 2018 Nov. 15 Purchased I 0,000 shares of Lane, Inc. 's common stock at $ 17 per share plus a brokerage commission of $1,200. Blouin exp

> Hartgraves Company had the following transactions and adjustments related to a bond investment that is a trading security. 2018 Oct 1 Purchased $500,000 face value of Skyline, Inc.'s 7% bonds at 97 plus a brokerage commission of $1,000. The bonds pay int

> DeFond Company wishes to secure a reliable supply of a key component for its production processes, and its management is considering two alternative investments. Verduzco Company produces exactly the supply that DeFond needs, so DeFond could use cash to

> Benartzi Company purchased a 90% interest in Liang Company on January I of the current year. Benartzi Company had $600,000 net income for the current year before recognizing its share of Liang Company's net income. If Liang Company had net income of $150

> Philipich Company purchases 80% of Hirst Company's common stock for $600,000 cash when Hirst Company has $300,000 of common stock and $450,000 of retained earnings, and the fair values of Hirst's assets and liabilities equal their book values. If a conso

> Kross Company purchases an equity investment in Penno Company at a purchase price of $5 million, representing 40% of the outstanding stock and book value of Penno. During the current year, Pen no reports net income of $600,000 and pays cash dividends of

> Stober Company purchases an investment in Lang Company at a purchase price of $ I million cash, representing 30% of the outstanding stock and book value of Lang. During the year, Lang reports net income of $ I 00,000 and pays cash dividends of $40,000. A

> Assume that Wasley Company purchases 6,000 common shares of Pincus Company for $ 12 cash per share. Shares of Pincus Company are actively traded. During the year, Wasley receives a cash dividend of $ 1.10 per common share from Pincus, and the year-end ma

> JetBlue Airways Corporation reports the following data in its 2016 10-K. The data relate to the corporation's computation of its earnings per share calculations. (Dollar and share data are in millions.) REQUIRED a. What is the objective behind the calcul

> At the end of 2017. Alphabet, Inc .. reported stockholders· equity of $152.502 million and total assets of $ 197.295 million. Its balance in stockholders' equity at the end of 2016 was $139,036 million. Net income in 2017 was $12,662 million. a. Calculat

> Bonner Company began business this year and immediately sold 600,000 common shares for $18.000.000 cash and paid $1,000,000 in common dividends. At midyear, the firm bought back some of its own shares. The company reports the following additional informa

> Year I: Noreen Company issues I 0,000 shares of its no-par common stock for $30/share in cash. Year 2: Noreen Company buys 1,000 shares of its no-par common stock for $28/share in cash. Year 3: Noreen Company declares but has not yet paid a dividend on i

> Merck & Co., Inc., reported net income attributable to Merck & Co., Inc., of $2,394 million for the 2017 fiscal year. Its 2017 I 0-K report contained the following information regarding its stock options. Employee stock options are granted to purchase s

> Siemens AG reports the following basic and diluted earnings per share in its 2018 annual report. a. Describe the accounting definitions for basic and diluted earnings per share. b. Identify the Siemens numbers that make up both EPS computations. c. What

> Kingery Corporation began the calendar (and fiscal) year with a simple structure consisting of 38,000 shares of common stock outstanding. On May 1, 10,000 additional shares were issued, and another 1,000 shares were issued on September I. The company had

> During 2018, Park Corporation had 50,000 shares of$ 10 par value common stock and I 0,000 shares of 8%, $50 par value convertible preferred stock outstanding. Each share of preferred stock may be converted into three shares of common stock. Park Corporat

> Watts Corporation has 40,000 shares of $10 par value common stock outstanding and retained earnings of $820,000. The company declares a I 00% stock dividend. The market price at the declaration is $17 per share. a. Prepare the general journal entry for t

> Use the following data to prepare the 2019 retained earnings reconciliation for Maffett Company.

> Dechow Company has outstanding 20,000 shares of$50 par value, 6% cumulative preferred stock, and 80,000 shares of$ IO par value common stock. The company declares and pays cash dividends amounting to $160,000. a. If no arrearage on the preferred stock ex

> On September 1, Weiss Company has 250,000 shares of $15 par value ($ 165 market value) common stock that are issued and outstanding. Its balance sheet on that date shows the following account balances relating to the common stock. On September 2, Weiss s

> What is the nature and purpose of a general journal?

> Robert Smith purchased a used car for $ 14,000. To pay for his purchase, he borrowed $12,500 from a local bank at 12%. The loan requires that Robert repay the loan by making 36 monthly payments. How much will Robert have to pay each month to repay the lo

> Dutta Corp. has outstanding 70,000 shares of $5 par value common stock. At year-end, the company declares and issues a 4% common stock dividend when the market price of the stock is $21 per share. a. Using the financial statement effects template, illust

> Freid Corp. has outstanding 6,000 shares of $50 par value, 6% preferred stock, and 40,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year-end, the company declares and pays the regular $3 per share cash dividen

> Following is the stockholders' equity section from the Toyota Motor Corporation's balance sheet for the 2018 fiscal year, which ended on March 31, 2018. a. Toyota has repurchased 353,073,500 shares that comprise its March 31, 2018, treasury stock account

> Zeller Corporation began 2018 with 120,000 shares of common stock and 16,000 shares of convertible preferred stock outstanding. On March I an additional I 0,000 shares of common stock were issued. On August 1, another 16,000 shares of common stock were i

> In its second quarter 2018 10-Q, Aflac Incorporated included the following information: Stock split: On February 13, 2018, the Board of Directors of the Parent Company declared a two-for-one stock split of the Company's common stock in the form of a 100

> On January 1, 2019, Bartov Company issues 5,000 shares of $100 par value preferred stock at $250 cash per share. On March I, the company repurchases 5,000 shares of previously issued $ 1 par value common stock at $83 cash per share. a. Using the financia

> On September 1. Magliolo, Inc .. (a) issues 18.000 shares of $10 par value preferred stock at $48 cash per share and (b) issues 120.000 shares of $2 par value common stock at $37 cash per share. a. Using the financial statement effects template, illustra

> On June I. Beatty Corp. issues (a) 8.000 shares of $50 par value preferred stock at $68 cash per share and it issues (b) 12,000 shares of $1 par value common stock at $10 cash per share. a. Do these transactions increase contributed capital or earned cap

> Fisk. Inc., purchased $600.000 of construction equipment on January I, 2019. The equipment is being depreciated on a straight-line basis over six years with no expected salvage value. MACRS depreciation is being used on the firms tax returns. At December

> In 2017, Colgate-Palmolive Company reported sales revenue of $15.454 million and cost of goods sold of $6.099 million. Its net income was $2.024 million. Calculate gross profit and prepare an income statement using the format illustrated in Exhibit l.8.

> Nike, Inc., reports the following information relating to its manufacturing activities in the footnotes to its 2018 10-K report: We are supplied by 124 footwear factories located in 13 countries. The largest single footwear factory accounted for approxim

> Abercrombie & Fitch Co. discloses the following footnote relating to its retirement plans in its 2017 10-K report: 16. SAVINGS AND RETIREMENT PLANS: The Company maintains the Abercrombie & Fitch Co. Savings & Retirement Plan, a qualified plan. All U.S. a

> Bartov Corporation has a defined contribution pension plan for its employees. Each year, Bartov contributes to the plan an amount equal to 4% of the employee payroll for the year. Bartov's 2019 payroll was $400,000. Bartov also provides a life insurance

> Redo Mini-Exercise M 10-16 but now assume the payments are made on January I of each year (including the first year January I , 2020).

> On January 1, 2020, Samuels, Inc., purchased a building for $2 million to be leased. The building is expected to have a 45-year life with no salvage value. The building was leased immediately by Verdi Corp. (a calendar year-end company) for $130,000 a ye

> On January 1, 2020, Weber, Inc., entered into two lease contracts. The first lease contract was a six-year lease for computer equipment with $15,000 annual lease payments due at the end of each year. Weber took possession of the equipment on January 1, 2

> On July 1, 2020, Shroff Company leased a warehouse building under a 10-year lease agreement. The lease requires quarterly lease payments of$4,500. The first lease payment is due on September 30, 2020. The lease was reported as a finance lease using an 8%

> What are three examples of source documents that underlie business transactions’?'

> Lunar, Inc., plans to issue $900,000 of I 0% bonds that will pay interest semiannually and mature in 5 years. Assume that the effective interest rate is 12% per year compounded semiannually. Compute the selling price of the bonds. Use Tables A.2 and A.3

> On December 3 1, 2018, Thomas, Inc., borrowed $700,000 on a 12%, 15-year mortgage note pay-able. The note is to be repaid in equal semiannual installments of $50,854 (payable on June 30 and December 31 ). a. Prepare journal entries to record (1) the iss

> Indicate the proper financial statement classification for each of the following accounts:

> On December 31, 2018, Kaplan, Inc., issues $500,000 of 9% bonds that pay interest semiannually and mature in IO years (December 31, 2028). a. Using the Excel PV worksheet function, compute the issue price assuming that the bonds' market rate is 8% per ye

> Petroni Company engages in the following sequence of transactions every month: 1. Purchases $300 of inventory on credit. 2. Sells $300 of inventory for $420 on credit. 3. Pays other operating expenses of $ 110 in cash. 4. Collects $420 in cash from custo

> Bruman, Inc., issues $500,000 of zero-coupon bonds that mature in 10 years. Compute the bond issue price assuming that the bonds' market rate is: a. 8% per year compounded semiannually. b. 10% per year compounded semiannually. c. If prior to the debt iss

> Bushman, Inc., issues $500,000 of 9% bonds that pay interest semiannually and mature in IO years. Compute the bond issue price assuming that the bonds' market rate is: a. 8% per year compounded semiannually. b. 10% per year compounded semiannually.

> General Mills, Inc., reports the following information in cash flow statement for the year ended May 27, 2018: a. General Mills reported net income of $2,163.0 million in the year ended May 2018. What effect did these financing cash flows have on General

> Compute any interest accrued for each of the following notes payable owed by Penman, Inc., as of December 31, 2018 (use a 365-day year):

> Dechow, Inc., issued $250,000 of 8%, 15-year bonds at 96 on July 1, 2012. Interest is payable semiannually on December 31 and June 30. Through June 30, 2019, Dechow amortized $3,186 of the bond discount. On July I, 2019, Dechow retired the bonds at IOI.

> Colgate-Palmolive Company reports the following balances in its retained earnings. During 2017. Colgate-Palmolive reported net income of $2,024 million. a. Assume that the only changes affecting retained earnings were net income and dividends. What amoun

> Holthausen Corporation issued $400,000 of 11 %, 20-year bonds at 108 on January 1, 2013. Interest is payable semiannually on June 30 and December 31. Through January I, 2019, Holthausen amortized $4,191 of the bond premium. On January I , 2019, Holthause

> Cencosud SA is a leading Latin American retailer, with approximately US$4. I 2 billion in short and long-term debt outstanding as of December 31, 2017. ln its 20-F filing with the Securities and Exchange Commission, Cencosud reports the following: Our lo

> Indicate the proper financial statement classification (balance sheet or income statement) for each of the following accounts: a. Gain on Bond Retirement b. Discount on Bonds Payable c. Mortgage Notes Payable d. Bonds Payable e. Bond Interest Expense f.

> In its 2017 balance sheet, Pfizer, Inc., reports a value of $3,546 million as current portion of long term debt. In addition, Pfizer reports the following maturity schedule for its remaining $32,783 million in long-term debt outstanding: a. Why does the

> On January 1, 2019, two years before maturity, Easton Company retires $400,000 of its 8.5% bonds payable at the current market price of 102 (102% of the bond face amount, or $400,000 x 1.02 = $408,000). The bond book value on January I, 2019, is $397,000

> In January 2017, Microsoft Corporation issued $17 billion of bonds in seven parts, with maturities ranging from 2020 to 2057. The bond issue was rated Aaa by Moody's. Two of the bond offerings are described below. Amount: $4 billion; Maturity: February 6

> For each of the following situations, indicate the liability amount. if any, which is reported on the balance sheet of Hirst. Inc., at December 31. 2018. a. Hirs t owes $110,000 at year-end 2018 for its inventory purchases. b. Hirst agreed to purchase a

> Huddart Company gave a creditor a 90-day. 8% note payable for $7.200 on December 16. a. Prepare the journal entry to record the year-end December 31st accounting adjustment Huddart must make. (Round to the nearest dollar.) b. Post the journal entries fro

> Schrand Corporation purchases materials from a supplier that offers credit terms of 2/ I 5, n/60. It purchased $12,500 of merchandise inventory from that supplier on January 20, 2019. a. Assume that Schrand Corporation paid the invoice on February 15, 20

> On November 15, 2018. Shields Company purchased inventory costing $6,200 on credit. The credit terms were 2/10, n/30. a. Assume that Shields Company paid the invoice on November 23. 2018. Prepare journal entries to record the purchase of this inventory a

> What does the term fiscal year mean?

> Abbott Laboratories reports the following income statement (in partial form): a. Compute the percent of net sales that Abbott Laboratories spends on research and development (R&D). How would you assess the appropriateness of its R&D expense level

> Texas Instruments Incorporated and Intel Corporation report the following information: a. Compute the 2018 PPE turnover for both companies. Comment on any difference you observe. b. Discuss ways in which high-tech manufacturing companies like these can i

> The Nelson Oil Company estimated that the oil reserve that it acquired in 2019 would produce 4 million barrels of oil. The company extracted 300,000 barrels the first year, 500,000 barrels in 2020, and 600,000 barrels in 2021. Nelson paid $32,000,000 for

> DeFond Company purchased equipment for $50,000. For each of the following sets of assumptions, prepare a depreciation schedule (all years) for this equipment assuming that DeFond uses the double-declining-balance depreciation method.

> The following information on Siemens AG's treatment of research and development is extracted from its 2018 financial statements. Siemens AG is an integrated technology company with activities in the fields of industry, energy and healthcare. The company

> A machine costing $145,800 is purchased on May 1, 2019. The machine is expected to be obsolete after three years (36 months) and, thereafter, no longer useful to the company. The estimated salvage value is $5,400. Compute depreciation expense for both 20

> Gaver Company sold machinery that had originally cost $75,000 for $25,000 in cash. The machinery was three years old and had been depreciated using the double-declining-balance method assuming a five-year useful life and a residual value of $5,000. a. Pr

> As part of a renovation of its showroom, O' Keefe Auto Dealership sold furniture and fixtures that were eight years old for $3,500 in cash. The assets had been purchased for $40,000 and had been depreciated using the straight-line method with no residual

> Equipment costing $ 130,000 is expected to have a residual value of $10,000 at the end of its six year useful life. The equipment is metered so that the number of units processed is counted. The equipment is designed to process 1,000,000 units in its lif

> The following data refer to Froning Company's ending inventory. Determine the ending inventory amount by applying the lower of cost or net realizable value rule to (a) each item of inventory and (b) the total inventory.

> Answer the following questions. (Hint: Apply the accounting equation.) a. Intel Corporation had assets equal to $123,249 million and liabilities equal to $54,230 million for a recent year-end. What was the total equity for Inters business at year-end? b.

> Penno Company reported ending inventories of $23,560,000 in 2020 and $25,790,000 in 2019. Cost of goods sold totaled $142,790,000 in 2020. a. Prepare the journal entry to record cost of goods sold. b. Set up a T-account for inventory and post the cost of

> Wal-Mart Stores, Inc., and Target Corporation reported the following in their financial reports: a. Compute the 2017 and 2016 inventory turnovers for each of these two retailers. b. Discuss any changes that are evident in inventory turnover across years

> Bartov Corporation reports the following beginning inventory and purchases for 2020: Bartov sells 600 of these units in 2020. Compute its cost of goods sold for 2020 and the ending inventory reported on its 2020 balance sheet under each of the following

> Geiger Corporation, a retail company, reported inventories of $ 1,320,000 in 2019 and $ 1,460,000 in 2020. The 2020 income statement reported cost of goods sold of $6,980,000. a. Compute the amount of inventory purchased during 2020. b. Prepare journal e

> Assume that Gode Company reports the following initial balance and subsequent purchase of inventory: Assume that 1,700 units are sold during 2020. Compute the cost of goods sold for 2020 and the balance reported as ending inventory on its 2020 balance sh

> An acquaintance has proposed the following business plan to you. A local company requires a consistent quantity of a commodity and is looking for a reliable supplier. You could become that reliable supplier. The cost of the commodity is expected to rise

> For each of the following scenarios, determine the effect of the error on income in the current period and in the subsequent period. To answer these questions, rely on the inventory equation: Beginning inventory + Purchases - Cost of goods sold = Ending

> Johnson & Johnson reported the following revenue and cost of goods sold information in its 10-K report for 2017, 2016, and 20 IS. Compute Johnson & Johnson's gross profit margin for each year.

> Ybarra Products began operations in 2020. During its first year, the company purchased raw materials costing $84,000 and used $63,000 of those materials in the production of its products. The company's manufacturing operations also incurred labor costs o

> Schrand Inc., a merchandiser, is requesting help in determining what costs ought to be considered as costs when incurred or treated as inventory costs, which are expensed as COGS. The costs include: sales persons wages, utilities such as heat and light i

> A building was acquired on January I, 2011, at a cost of $4.000.000, and its depreciation is calculated using the straight-line method. At the end of 2015. the accumulated depreciation contra asset for the building is $800.000. What will be the balance i

> Shields Company has purchased inventories incurring the following costs: (a) the invoice amount of $500, (b) shipping charges of $30, (c) interest of $ 10 on the $500 borrowed to finance the purchase, and (d) $5 for the cost of moving the inventory t

> Verdi Co. builds and sells PC computers to customers. The company sells most of its products for immediate payment but also extends credit to some customers. The industry is competitive and in the most recent year many competitors showed declines in reve

> Commtech, Inc., designs and sells cellular phones. The company creates the technical specifications and the software for its products, though it outsources the production of the phones to an overseas contract manufacturer. Commtech has arrangements to se

> Finn Publishing Corp. produces a monthly publication aimed at competitive swimmers, with articles profiling current stars of the sport, advice from coaches, and advertising by swimwear companies, training organizations, and others. The magazine is distri

> In 2019, Grant Corporation recorded credit sales of $3,200,000 and bad debts expense of $42,000. Write-offs of uncollectible accounts totaled $39,000 and one account, worth$ I 2,000, that had been written off in an earlier year was collected in 2019. a.

> The Procter & Gamble Company and Colgate-Palmolive Company report the following sales and accounts receivable balances ($ millions): a. Compute' accounts receivable turnover and average collection period for both companies. b. Identify and discuss a

> The comparative balance sheets of Sloan Company reveal that accounts receivable (before deducting allowances) increased by $15,000 in 2019. During the same to me period, the allowance for uncollectible accounts increased by $2.100. If sales revenue was $

> Following is the current asset section from the Ralph Lauren Corporation balance sheet: a. Compute the gross amount of accounts receivable for both 2018 and 2017. Compute the percentage of the allowance for uncollectible accounts relative to the gross am

> At a recent board of directors meeting of Ascot. Inc., one of the directors expressed concern over the allowance for uncollectible accounts appearing in the company's balance sheet. "I don't understand this account.'' he said. "Why don't we just show acc

> Mohan Company estimate its uncollectible accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. Mohan computes a total of $2.100 in estimated losses as of December 31. 2019. Its Accounts Receivable has