Question: Prepare a formal income statement from the

> Jimmy Cook operates Jimmy’s Cleaning Service. As the bookkeeper, you have been requested to journalize the following transactions: The chart of accounts for Jimmy’s Cleaning Service is as follows: Chart of Acco

> The chart of accounts of Aikman’s Delivery Service is as follows: Chart of Accounts Assets ………………………………….……………………………….. Revenue Cash 111 ……………………..……………….. Delivery Fees Earned 411 Accounts Receivable 112 ……………………………………….. Expenses Office Equipment 121…

> From the trial balance of Gretchen Lyman, Attorney-at-Law, given in Figure 2.8, prepare (a) an income statement for the month of January, (b) a statement of owner’s equity for the month ended January 31, and (c) a balance sheet at Janua

> Bill Palu opened a consulting company, and the following transactions resulted. A. Bill invested $30,000 in the consulting agency. B. Bought office equipment on account, $5,000. C. Agency received cash for consulting work that it completed for a client,

> Facts: Bond issue: $150,000, 9%, 13-year bonds; selling price of bonds $129,569; market rate 11%. Use the interest method. Calculate the following: a. Carrying value at beginning of period b. Interest paid to bondholders every 6 months c. Interest expen

> John Thildore, a retired army officer, opened Thildore’s Catering Service. As his accountant, analyze the transactions listed and present them in proper form. a. The analysis of the transactions by using the expanded accounting equatio

> Jeanette Wu, owner of Wu Home Decorating Service has requested that you prepare from the following balances (a) an income statement for June 201X, (b) a statement of owner’s equity for June, and (c) a balance sheet as of June 30, 201X.

> From the following T accounts of Breck’s Cleaning Service, (a) foot and determine the ending balances, and (b) prepare a trial balance in proper form for May 31, 201X. Cash 111 Accounts Receivable 112 Office Equipment 121 (A) 15,00

> Brad Sealy is the accountant for Sealy’s Internet Service. From the following information, his task is to construct a balance sheet as of November 30, 201X, in proper form. Can you help him? Building $ 50,000 Cash 55,000 Accounts P

> The following transactions occurred in the opening and operation of Bob’s Delivery Service. A. Bob O’Brien opened the delivery service by investing $25,000 from his personal savings account. B. Purchased used delivery trucks on account, $12,000. C. Rent

> On May 1, 201X, Lexington Corporation issued $180,000 of 10%, 5-year bonds for $194,679, yielding a market rate of 8%. Interest is paid on November 1 and May 1. Lexington Corporation uses the interest method to amortize the premium. 1. Prepare an amorti

> On January 1, 201X, Fish Corporation issued $300,200 of 11%, 10-year bonds for $267,192, yielding a market rate of 13%. Interest is paid on July 1 and December 31. Fish uses the interest method to amortize the discount. 1. Prepare an amortization schedu

> On May 1, 201X, Lance Corporation issued $1,000,000 of 9%, 20-year bonds at 103. The interest is payable on November 1 and May 1. The premium is amortized by the straight-line method. Prepare an amortization schedule for the first three semiannual period

> On January 1, 201X, Lonny Corporation sold $400,000 of 10%, 10-year bonds at 97. Interest is to be paid on June 30 and December 31. The straightline method of amortizing the discount is used. Prepare (1) an amortization schedule for the first three semia

> The following is the stockholders’ equity of Pinkerton Corporation on October 1, 201X: 1. Journalize the transactions in general journal form. 2. Prepare the stockholders’ equity section of the balance sheet using th

> Journalize the following transactions: a. Issued five $10,000, 9% bonds that mature in 10 years at face value on September 1. b. Paid semiannual interest on February 28. c. Bonds retired at end of 10 years.

> At the beginning of January 201X, the stockholders’ equity of Long View Corporation consisted of the following: 1. Record the transactions in general journal form. 2. Prepare the stockholders’ equity section at year-

> Rondo Corporation has 430,000 shares of $6 par-value common stock issued and outstanding. Record the following entries into the general journal for Rondo: 201X July 2 Declared a cash dividend of $0.70 per share. Aug. 1 Paid the $0.70 cash dividend t

> The stockholders’ equity of Franklin Company is as follows: Given a redemption value of $109 per share for the preferred stock, calculate the book value per share of preferred and common stock, assuming the following: a. No preferred

> Lynch Corporation was just issued a charter by the state of New York. This charter gives Lynch the authority to issue 350,000 shares of $6 par-value common stock. From the following transactions: 1. Prepare journal entries to record the transactions of L

> From the following partial mixed list, select the appropriate titles and prepare a stockholders’ equity section using the source-of-capital approach as shown in the Blueprint example for Argon Corporation on July 31, 201X: Office Equipment …………………………………

> Dirkson Corporation has 20,500 shares outstanding of $12 par value, 7% preferred stock, and 41,000 shares outstanding of $12 par-value common stock. In its first 5 years of operation, the company paid the following dividends: 2011, $0; 2012, $17,220; 201

> The following is the Paid-In Capital section of stockholders’ equity for the Akebono Corporation on June 1, 201X: The following transactions occurred in the months of June and July: 1. Journalize the preceding entries and update the

> The partnership of Justman, Raisor, and Sunseri is being liquidated. All gains and losses are shared in a 3:2:1 ratio. Before liquidation, their balance sheet looks as follows: Journalize the entries needed in the liquidation process under the followin

> Lee, Rapada, and Villone are partners. On July 30, 201X, the balance sheet (30 min) was as follows: The partners agree to share all losses and gains in a 2:2:1 ratio. Villone is withdrawing from the partnership. From the following independent situation

> Bob Lake and Whitney Becker are partners with capital balances of $1,400 and $700, respectively. They share all profits and losses equally. From the following independent situations, journalize the admission of the new partner, Jack Underwood: Situation

> Journalize the entries to record the stock subscription plan for Green Co. On January 1, Green received subscriptions for 1,200 shares of $27 par-value common stock at $41 per share. The buyer will pay two equal installments on March 31 and June 30.

> a. The partnership of Tammy and Mark began with the partners investing $3,900 and $2,700, respectively. At the end of the first year, the partnership earned net income of $7,900. Under each of the following independent situations, calculate how much of t

> Journalize the following transactions for the Rox Company and show all calculations: 201X 1 Sold a truck for $1,100 that cost $6,200 and had accumulated depreciation of $5,700. Jan. Feb. 10 A machine costing $3,100 with accumulated depreciation of $

> On January 1, 2014, a machine was installed at Francis Factory at a cost of $52,000. Its estimated residual value at the end of its estimated life of4 years is $24,000. The machine is expected to produce 70,000 units with the following production schedul

> Record the following transactions (all paid in cash except on March 24) in the general journal of Orange Company: 201X Feb. 5 Purchased land for $92,000. The $92,000 included attorney's fees of $5,900. 18 Orange Company decided to pave the parking l

> Over the past 4 years, the gross profit rate for Bachand Company was 25%. Last week a fire destroyed all of Bachand’s inventory. Luckily, all the records for Bachand were in a fireproof safe and indicated the following facts: Inventory (January 1, 201X)

> Mander Company uses the retail method to estimate the cost of ending inventory for its monthly interim reports. From the following facts, estimate Mander’s ending inventory at cost for the end of January. (Round the cost ratio to the nearest tenth percen

> Althea Company uses a perpetual inventory system. From the following information, prepare an inventory record form (a) assuming that the FIFO method is in use and (b) assuming that the LIFO method is in use. Assume on January 1, 201X, a beginning invento

> Sheffield Electronics, an electronics supply company, uses the perpetual inventory system with a subsidiary inventory ledger to maintain control over an inventory of thousands of electronic parts. The quantities and costs for three of the parts in invent

> The Acworth Company uses the perpetual inventory system. Record these transactions in a two-column journal. All credit sales are n/30. 201X 5 Purchased merchandise on account totaling $2,100; terms n/30. 6 Sold merchandise on account to Tommy Dorse

> Journalize the following transactions for Barry Company: 201X Received a $13,000, 90-day, 8% note from Alex Coates in payment of account past due. Apr. 18 Wrote off the Nicole Mason account as uncollectible for $570. (Barry uses the Allowance method

> Journalize the following: Jan. 12 Plank Co. sells 1,200 shares of $28 par-value common stock at $28. Oct. 21 Johnson Co. sells 300 shares of $6 par-value common stock at $24. Anton Co. sells 200 shares of no-par common stock with a stated value of $

> Journalize the following transactions for Joye Company: 201X June 18 Joye Company discounted its own $55,000, 60-day note at Newton Bank at 14%. Aug. Paid the amount due on the note of June 18. (Be sure to record interest expense from Discount on No

> On May 1, 201X, George Company received a $29,000, 70-day, 7% note from Nottingham Company dated May 1. On June 20, 201X, George discounted the note at Ashland Bank at a discount rate of 10%. 1. Calculate the following: a. Maturity value of the note b.

> Journalize the following entries for (1) the buyer and (2) the seller. Record all entries for the buyer first. Both companies use the periodic inventory method. 201X June 11 Lawton Company sold $6,500 of merchandise on account to Ritter Company. Jul

> Sherrill Company completed the following transactions: From the preceding as well as the following additional data, complete a–c: a. Journalize the transactions. The company uses the periodic method. b. Post to Allowance for Doubtfu

> T. J. Radcliff Company uses the direct write-off method for recording Bad Debts Expense. At the beginning of 2015, Accounts Receivable has a $120,000 balance. Journalize the following transactions for T. J. Radcliff: 2015 Mar. 13 Wrote off S. Rose's

> Given the information presented in Figure 13.12, do the following: a. Prepare on December 31, 2015, the adjusting journal entry for Bad Debts Expense. Balances: Cash, $26,000; Accounts Receivable, $215,000; Allowance for Doubtful Accounts, $250; Merchand

> Lambert Co. has requested that you prepare journal entries from the following (this company uses the Allowance for Doubtful Accounts method based on the income statement approach): 2015 Dec. 31 Recorded Bad Debts Expense of $11,000. 2016 Jan. 7 Wrot

> Using the ledger balances and additional data given, do the following for Cullen Lumber for the year ended December 31, 201X: 1. Prepare the worksheet. 2. Prepare the income statement, statement of owner’s equity, and balance sheet. 3.

> From the partial worksheet for Josh’s Supplies in Figure 12.15, do the following: 1. Complete the worksheet. 2. Prepare an income statement, a statement of owner’s equity, and a classified balance sheet. (Note: The amo

> Prepare a statement of owner’s equity and a classified balance sheet from the worksheet for James Company in Figure 12.14. (Note: Of the Mortgage Payable, $240 is due within 1 year.) Figure 12.14: JAMES COMPANY PARTIAL WORKSHEET F

> Complete the following using the gross profit method. Assume a normal gross profit rate of 27% of net sales. Goods Available for Sale Inventory January 1, 201X $69 Net Purchases 16 Cost of Goods Available for Sale A Less: Estimated Cost of Goods Sol

> Jackie’s Toy Shop completed the following merchandise transactions in the month of April: Jackie’s Toy Shop accounts included the following: Cash 101; Accounts Receivable 112; Merchandise Inventory 120; Store Equipme

> Abby Gray opened Abby’s Toy House. As her newly hired accountant, your tasks are to do the following: 1. Journalize the transactions for the month of December. Use the periodic method. 2. Record to subsidiary ledgers and post to the gen

> Wendy Drew operates a wholesale computer center and has hired you as her bookkeeper to record the following transactions. She would like you to (1) journalize the following transactions, (2) record to the accounts payable subsidiary ledger and post to th

> As the accountant for Riley’s Natural Food Store, (1) journalize the following transactions into the general journal (p. 2), (2) record and post as appropriate, and (3) prepare a schedule of accounts payable. If using working papers, be

> Robert Chase recently opened Robert’s Skate Shop. As the bookkeeper of the company, use the periodic method to journalize, record, and post when appropriate the following transactions (account numbers are Store Supplies 115; Store Equip

> Chevy Canton opened Chevy’s Cosmetic Market on May 1. A 16% sales tax is calculated and added to all cosmetic sales. Chevy offers no sales discounts. The following transactions occurred in May: Required: 1. Journalize, record, and pos

> Jared Payne owns Payne’s Sneaker Shop. (Balances as of March 1 are provided for the accounts receivable and general ledger accounts as follows: Durant, $250 Dr.; Lanham, $550 Dr.; Pry, $800 Dr.; Zamara, $550 Dr.; Cash, $15,500 Dr.; Acco

> The following transactions of Jeff’s Auto Supply occurred in February (Balances as of February 1 are given for general ledger and accounts receivable ledger accounts: Dick, $1,100 Dr.; Metcalf, $200 Dr.; Black, $100 Dr.; Accounts Receiv

> Kate Collins has opened Fontina and Stuff, a wholesale grocery and cheese company. The following transactions occurred in February: Required: 1. Journalize the transactions. 2. Record to the accounts receivable subsidiary ledger and post to the general

> Porter Morse returned $275 (selling price) of merchandise to Labrie Co. The cost of the merchandise to Labrie Co. is $100. What would be the journal entry on the books of both the buyer and seller?

> The following is the monthly payroll for the last three months of the year for Allen’s Sporting Goods Shop, 2 Boat Road, Lynn, Massachusetts 01945. The shop is a sole proprietorship owned and operated by Bill Allen. The EIN for Allen&ac

> The following is the monthly payroll of White Company, owned by Dana White. Employees are paid on the last day of each month. White Company is located at 2 Square Street, Marblehead, Massachusetts 01945. Its EIN is 29-3458822. The FICA tax rate for S

> You gathered the following data from time cards and individual employee earnings records. Your tasks are as follows: 1. On December 5, 201X, prepare a payroll register for this biweekly payroll. 2. Calculate the employer taxes of FICA OASDI, FICA Medicar

> From the following, record the transactions in Rochester’s auxiliary petty cash record and general journal as needed: 201X A check was drawn (no. 444) payable to Harold Hauer, petty cashier, to establish a $210 petty cash fund. Oct

> The following transactions occurred in April for Exultant Co.: Your tasks are to do the following: a. Record the appropriate entries in the general journal as well as the auxiliary petty cash record as needed. b. Replenish the petty cash fund on April

> From the following bank statement, please (1) complete the bank reconciliation for Josh’s Deli found on the reverse of the following bank statement and (2) journalize the appropriate entries as needed. a. A deposit of $2,400 is in tran

> Denim.com received a bank statement from Waldorf Bank indicating a bank balance of $7,900. Based on Denim.com’s check stubs, the ending checkbook balance was $8,974. Your task is to prepare a bank reconciliation for Denim.com as of July 31, 201X, from th

> Enter the beginning balance in each account in your working papers from the Trial Balance columns of the worksheet (Figure 5.24). From that worksheet, (1) journalize and post adjusting and closing entries and (2) prepare from the ledger a post-closing tr

> Consider the data in Figure 5.23 for Drew’s Dance Studio: Figure 5.23: Adjustment Data a. Insurance expired, $400. b. Dance supplies on hand, $800. c. Depreciation on dance equipment, $1,500. d. Salaries earned by employees but not t

> Journalize the following transactions: a. Issued credit memo no. 2, $43, to Lenny Co. b. Cash sales, $183. c. Received check from Dolly Co., $45, less 2% discount. d. Bought merchandise on account from Joseph Co., $31, invoice no. 20; terms 3/10, n/30.

> Post the following adjusting entries that came from the adjustments section of the following worksheet to the T accounts and be sure to cross-reference back to the journal. (See Figure 5.20) Figure 5.20: LEDGER ACCOUNTS BEFORE ADJUSTING ENTRIES PO

> Using the 80-20 principle, how can a retailer make certain it has enough inventory of fast-selling merchandise and a minimal amount of slow-selling merchandise?

> As the athletic shoe buyer for Dick’s Sporting Goods, how would you go about forecasting sales for a new Nike running shoe?

> The fine jewelry department in a department store has the same GMROI as the small appliances department, even though characteristics of the merchandise are quite different. Explain this situation.

> Variety, assortment, and product availability are the cornerstones of the merchandise planning process. Provide examples of retailers that have done an outstanding job of positioning their stores based on one or more of these issues.

> A buyer at Old Navy has received a number of customer complaints that he has been out of stock on some sizes of men’s T-shirts. The buyer subsequently decides to increase this category’s product availability from 80 percent to 90 percent. What will be th

> Assume you are the grocery buyer for canned fruits and vegetables at a five-store supermarket chain. Del Monte has told you and your boss that it would be responsible for making all inventory decisions for those merchandise categories. It would determi

> Simply speaking, increasing inventory turnover is an important goal for a retail manager. What are the consequences of turnover that’s too low? Too high?

> A buyer is trying to decide from which vendor to buy a certain item. Using the following information, determine from which vendor the buyer should buy. VENDOR PERFORMANCE Importance Weight Issues Vendor A Vendor B Reputation for collaboration 8 9 8 S

> A buyer at a sporting goods store in Denver receives a shipment of 400 ski parkas on October 1 and expects to sell out by 31. On November 1, the buyer still has 350 parkas left. What issues should the buyer consider in evaluating the selling season’s p

> How and why would you expect variety and assortment to differ between JCPenney’s store and Internet site?

> At many optical stores you can get your eyes checked and purchase glasses or contact lenses. How is the shopping experience different for the service as compared to the product? Design a strategy designed to get customers to purchase both the service a

> A CRM program focuses on building relationships with a retailer's better customers. Some customers who do not receive the same benefits as the retailer's best customers may be upset because they are treated differently. What can retailers do to minimiz

> What are the different approaches retailers can use to identify customers by their transactions? What are the advantages and disadvantages of each approach?

> Develop a CRM program for a local store that sells apparel and gifts with your college’s or university's logo. What type of information would you collect about your customers, and how would you use this information to increase the sales and profits of t

> Which of the following types of retailers do you think would benefit most from instituting a CRM program: (a) supermarkets, (b) banks, (c) automobile dealers, or (d) consumer electronic retailers? Why?

> Why are most frequent-shopper programs ineffective in terms of building loyalty? What can be done to make them more effective?

> Why do customers have privacy concerns about the frequent-shopper programs that supermarkets offer, and what can supermarkets do to minimize these concerns?

> Why do retailers want to determine the lifetime value of their customers? How does past customer behavior help retailers anticipate future customer retention?

> Think of one of your favorite places to shop. How does this retailer create customer loyalty and satisfaction, encourage repeat visits, establish an emotional bond between the customer and the retailer, know the customer’s preferences, and provide person

> What is a customer relationship management (CRM) program? Describe one CRM program that you have participated in as a customer.

> What is a universal product code (UPC)? How does this code enable manufacturers, distributors and retailers to track merchandise throughout the supply chain?

> An entrepreneur approaches you about how to sell her new writing pens to consumers. The pens have a unique benefit-they are more comfortable to use than traditional pens. The entrepreneur is concerned the retailers she has approached want to buy the p

> Abandoned purchases as a result of stockouts can mean millions of dollars a year in lost sales. How are retailers and manufacturers using technology to reduce stockouts and improve sales?

> Consumers have five key reactions to stakeouts: buy the item at another store, substitute a different brand, substitute the same brand, delay the purchase, or do not purchase the item. Consider your own purchasing behavior, and describe how various categ

> Explain the differences between pull and push supply chains.

> Why haven't more fashion retailers adopted an integrated supply chain system similar to Zara's?

> What type of merchandise is most likely to be cross-docked at retailers’ DCs? Why is this often the case?

> This chapter presents some trends in supply chain and information systems that benefit retailers. How do vendors benefit from these trends?

> Explain how an efficient supply chain system can increase a retailer's level of product availability and decrease its inventory investment.

> Why are some retailers switching from UPC codes to RFID?