Question: The December 31, Year 1, balance sheet

> James Jones received a $90,000 cash advance on March 1, Year 1, for legal services to be performed in the future. Services were to be provided for a one year term beginning March 1, Year 1. Required: a. Record the March 1 cash receipt in T-accounts. b.

> Laura Moss started and operated a small family consulting firm in Year 1. The firm was affected by two events: (1) Moss provided $36,000 of services on account, and (2) she purchased $10,000 of supplies on account. There were $1,800 of supplies on hand a

> Complete the following table by indicating whether a debit or credit is used to increase or decrease the balance of the following accounts. The appropriate debit/credit terminology has been identified for the first account as an example. Used to Inc

> The following information was drawn from the accounting records of Earles Company as of December 31, Year 2, before the temporary accounts had been closed. The Cash balance was $6,000, and Notes Payable amounted to $3,000. The company had revenues of $7,

> Beatty Company’s accounting records show an after-closing balance of $19,400 in its Retained Earnings account on December 31, Year 2. During the Year 2 accounting cycle, Beatty earned $15,100 of revenue, incurred $9,200 of expense, and paid $1,500 of div

> In Year 1, Hall Inc. billed its customers $62,000 for services performed. The company collected $51,000 of the amount billed. Hall incurred $39,000 of other operating expenses on account. Hall paid $31,000 of the accounts payable. Hall acquired $40,000 c

> Rosewood Inc. experienced the following events in Year 1, its first year of operation: 1. Received $50,000 cash from the issue of common stock. 2. Performed services on account for $67,000. 3. Paid a $5,000 cash dividend to the stockholders. 4. Collecte

> Required Obtain the Target Corporation’s annual report at http://investors.target.com using the instructions in Appendix B, and use it to answer the following questions: a. What was Target’s debt-to-assets ratio for its fiscal year ended January 28, 2017

> Graphic Design Inc. had a beginning balance of $2,000 in its Accounts Receivable account. The ending balance of Accounts Receivable was $2,400. During the period, Graphic Design recognized $40,000 of revenue on account. The Salaries Payable account has a

> The following events apply to Parker and Moates, a public accounting firm, for the Year 1 accounting period: 1. Performed $96,000 of services for clients on account. 2. Performed $65,000 of services for cash. 3. Incurred $45,000 of other operating expens

> Talley Inc. experienced the following events in Year 1, in its first year of operation: 1. Received $20,000 cash from the issue of common stock. 2. Performed services on account for $38,000. 3. Paid the utility expense of $2,500. 4. Collected $21,000 of

> The following transactions pertain to the operations of Blair Company for Year 1: 1. Acquired $30,000 cash from the issue of common stock. 2. Performed services for $12,000 cash. 3. Paid a $7,200 cash advance for a one-year contract to rent equipment. 4.

> Patal Inc. experienced the following accounting events during its Year 1 accounting period: 1. Paid cash to settle an account payable. 2. Collected a cash advance for services that will be provided during the coming year. 3. Paid a cash dividend to the s

> Required: a. Describe a revenue recognition event that results in an increase in assets. b. Describe a revenue recognition event that results in a decrease in liabilities. c. Describe an expense recognition event that results in an increase in liabilitie

> Required: Identify each of the following events as an accrual, deferral, or neither: a. Incurred other operating expenses on account. b. Recorded expense for salaries owed to employees at the end of the accounting period. c. Paid a cash dividend to the s

> On October 1, Year 1, Stokes Company paid Eastport Rentals $4,800 for a 12-month lease on warehouse space. Required: a. Record the deferral and the related December 31, Year 1, adjustment for Stokes Company in the accounting equation. b. Record the defe

> During Year 1, Star Corporation earned $5,000 of cash revenue and accrued $3,000 of salaries expense. Required: Based on this information alone: a. Prepare the December 31, Year 1, balance sheet. b. Determine the amount of net income that Star would rep

> Warren, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Purchased $1,500 of office supplies on account. 2. Accepted $36,000 on February 1, Year 1, as a retainer for services to be performed evenly over

> The following data are based on information in the 2016 annual reports of H&R Block, Inc. and Intuit, Inc. Dollar amounts are in thousands. H&R Block, Inc. has subsidiaries that provide tax, investment, retail banking, accounting, and business co

> Jake Lewis received $800 in advance for tutoring fees when he agreed to help Laura Dalton with her introductory accounting course. Upon receiving the cash, Jake mentioned that he would have to record the transaction as a liability on his books. Laura ask

> Interior Design Consultants (IDC) experienced the following events in Year 1, its first year of operation: 1. On October 1, Year 1, IDC collected $24,000 for consulting services it agreed to provide during the coming year. 2. Adjusted the accounts to ref

> Forestry Services Inc. experienced the following events in Year 1, its first year of operation: 1. Performed counseling services for $18,000 cash. 2. On February 1, Year 1, paid $12,000 cash to rent office space for the coming year. 3. Adjusted the accou

> A cost can be either an asset or an expense. Required: a. Distinguish between a cost that is an asset and a cost that is an expense. b. List three costs that are assets. c. List three costs that are expenses.

> Janitorial Professionals Inc. experienced the following events in Year 1, its first year of operation: 1. Performed services for $20,000 cash. 2. Purchased $4,000 of supplies on account. 3. A physical count on December 31, Year 1, found that there were $

> Handy Andy Inc. began the Year 2 accounting period with $9,000 cash, $5,000 of common stock, and $4,000 of retained earnings. Handy Andy was affected by the following accounting events during Year 2: 1. Purchased $9,500 of operating expenses supplies on

> California Company borrowed $120,000 from the issuance of a note payable on August 1, Year 1. The note had a 7 percent annual rate of interest and a one year term to maturity. Required: a. What amount of interest expense will California recognize for th

> Carry Connelly started Connelly Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Earned $6,200 of cash revenue. 2. Borrowed $10,000 cash from the bank. 3. Adjusted the accounting records to

> On January 1, Year 1, Yallow Cab Inc. paid $29,000 cash to purchase a taxi cab. The taxi had a four-year useful life and a $5,000 salvage value. Required: a. Determine the amount of depreciation expense that would appear on the Year 1 and Year 2 income

> The following events apply to Highland Grill for the Year 1 fiscal year: 1. Started the company when it acquired $40,000 cash by issuing common stock. 2. Purchased a new stove that cost $24,000 cash. 3. Earned $21,000 in cash revenue. 4. Paid $3,500 of c

> The following data are based on information in the 2016 annual report of Buffalo Wild Wings, Inc. As of December 25, 2016, there were 1,240 Buffalo Wild Wings restaurants. The parent company owned 631 restaurants and 609 were franchised. Dollar amounts a

> An October 31, 2012, news release from Hewlett-Packard Company (HP) included the following: HP recorded a non-cash charge for the impairment of goodwill and intangible assets within its Software segment of approximately $8.8 billion in the fourth quarter

> Identify whether each of the following transactions is an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also show the effects of the events on the financial statements using the horizontal statements model. Indicate whe

> Required: a. Name an asset use transaction that will affect the income statement. b. Name an asset use transaction that will not affect the income statement. c. Name an asset exchange transaction that will not affect the statement of cash flows. d. Name

> Smith Company earned $12,000 of service revenue on account during Year 1. The company 339 collected $9,800 cash from accounts receivable during Year 1. Required: Based on this information alone, determine the following for Smith Company. (Hint: Record t

> Required: Give an example of a transaction that will a. Increase an asset and decrease another asset (asset exchange event). b. Increase an asset and increase a liability (asset source event). c. Decrease an asset and decrease a liability (asset use even

> Corrugated Boxes Inc. is a U.S. based company that develops its financial statements under GAAP. The total amount of the company’s assets shown on its balance sheet for the current year was approximately $305 million. The president of Corrugated is consi

> Pet Partners experienced the following events during its first year of operations, Year 1: 1. Acquired cash by issuing common stock. 2. Borrowed cash from a bank. 3. Signed a contract to provide services in the future. 4. Purchased land with cash. 5. Pai

> Carr Company was started on January 1, Year 1. During the month of January, Carr earned $4,600 of revenue and incurred $3,000 of expenses. During the remainder of Year 1, Carr earned $52,000 and incurred $42,000 of expenses. Carr closes its books on Dece

> Pam’s Crafts opened on January 1, Year 1. Pam’s reported the following for cash revenues and cash expenses for the years Year 1 to Year 3: Required: a. What would Pam’s Crafts report for net income

> As of December 31, Year 1, Big Horn Company had total assets of $100,000, total liabilities of $30,000, and common stock of $50,000. The company’s Year 1 income statement contained revenue of $16,000 and expenses of $11,000. The Year 1 statement of chang

> The following data are based on information in the 2016 annual report of Cracker Barrel Old Country Store. As of July 29, 2016, Cracker Barrel operated 640 restaurants and gift shops in 43 states. Dollar amounts are in thousands. Required: a. Calculate

> As of January 1, Year 2, Shundra Inc. had a balance of $4,500 in Cash, $2,500 in Common Stock, and $2,000 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, Year 2. Further analysis of the companyâ€&#1

> On January 1, Year 2, the following information was drawn from the accounting records of Zeke Company: cash of $200; land of $1,800; notes payable of $600; and common stock of $1,000. Required: a. Determine the amount of retained earnings as of January

> Brandon Baily started a personal financial planning business when he accepted $120,000 cash as advance payment for managing the financial assets of a large estate. Baily agreed to manage the estate for a one-year period beginning May 1, Year 1. Require

> Tennessee Company experienced the following events during Year 2: 1. Acquired $50,000 cash from the issue of common stock. 2. Paid $15,000 cash to purchase land. 3. Borrowed $25,000 cash. 4. Provided services for $60,000 cash. 5. Paid $12,000 cash for re

> National Service Company experienced the following accounting events during Year 1: 1. Paid $4,000 cash for salary expense. 2. Borrowed $8,000 cash from State Bank. 3. Received $30,000 cash from the issue of common stock. 4. Purchased land for $8,000 cas

> On January 1, Year 1, Palmer, a fast-food company, had a balance in its Cash account of $32,000. During the Year 1 accounting period, the company had (1) net cash inflow from operating activities of $15,600, (2) net cash outflow for investing activities

> On June 1, Year 1, Ark Corporation paid $8,400 to purchase a 24-month insurance policy. Assume that Ark records the purchase as an asset and that the books are closed on December 31. Required: a. Show the purchase of the insurance policy and the related

> Petre Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1) earned cash revenues of $14,500, (2) paid cash expenses of $9,200, and (3) paid a $500 cash dividend to its stockholders. Th

> Trip’s Business Services experienced the following events during its first year of operations: 1. Acquired $20,000 cash from the issue of common stock. 2. Borrowed $12,000 cash from First Bank. 3. Paid $5,000 cash to purchase land. 4. Received $25,000 ca

> Verizon Communications, Inc. is one of the world’s largest providers of communication services. The following information, taken from the company’s annual reports, is available for the years 2016, 2015, and 2014: Req

> a. What are the major elements of design planning? b. Define capacity. Why is it important for a manufacturing business or a service business? c. What factors should be considered when selecting a site for a new manufacturing facility? d. What is the obj

> Is operations management relevant to nonbusiness organizations such as colleges and hospitals? Why or why not?

> Do certain kinds of firms need to stress particular areas of operations management? Explain.

> How is organization height related to the span of management?

> How does a firm’s top management influence its degree of centralization?

> Describe how job rotation can be used to combat the problems caused by job specialization.

> What determines the degree of specialization within an organization?

> How do decisions concerning span of management and the use of committees affect organizational structure?

> Which kinds of firms probably would operate most effectively as centralized firms? As decentralized firms?

> In what way do organization charts create a picture of an organization?

> Circle the letter before the most accurate answer. 6. A manufacturing process that combines raw materials or components to create a finished product is referred to as a (n) a. synthetic process. b. technological process. c. analytical process. d. manufac

> What are the major benefits of a total quality management program?

> Why are there so much government regulation involving social responsibility issues? Should there be less?

> To what extent should the blame for vehicular air pollution be shared by manufacturers, consumers, and government?

> According to this chapter, the leadership style that is most effective depends on interaction among the employees, characteristics of the work situation, and the manager’s personality. Do you agree or disagree? Explain your answer.

> Do you think that people are really as important to an organization as this chapter seems to indicate?

> How can an employee take an ethical stand regarding a business decision when his or her superior already has taken a different position?

> Define the word manager without using the word management in your definition.

> Do average citizens benefit from the activities of the SBA, or is the SBA just another way to spend our tax money?

> Are the so-called advantages of small business really advantages? Wouldn’t every small-business owner like his or her business to grow into a large firm?

> Is growth a good thing for all firms? How does management know when a firm is ready to grow?

> Circle the letter before the most accurate answer. 6. The line of authority extending from the top to the bottom of the organization is known as a(n) a. informal organization. b. line structure. c. line-and-staff structure. d. chain of command. e. matrix

> Discuss the following statement: “Corporations are not really run by their owners.”

> If you were to start a business, which ownership form would you choose? What factors might affect your choice?

> When should a firm consider expanding from strictly domestic trade to international trade? When should it consider becoming further involved in international trade? What factors might affect the firm’s decisions in each case?

> Should imports to the United States be curtailed by, say, 20 percent to eliminate our trade deficit? What might happen if this were done?

> What effects might the devaluation of a nation’s currency have on its business firms, its consumers, and the debts it owes to other nations?

> The United States restricts imports but, at the same time, supports the WTO and international banks whose objective is to enhance world trade. As a member of Congress, how would you justify this contradiction to your constituents?

> Discuss this statement: “Business competition encourages improved product quality and increased customer satisfaction.”

> Is gross domestic product a reliable indicator of a nation’s economic health? What might be a better indicator?

> Does an individual consumer really have a voice in answering the basic four economic questions described on page 14?

> What factors caused American business to develop into a mixed economic system rather than some other type of economic system?

> Circle the letter before the most accurate answer. 6. Tangible, physical resources that a manufacturer uses in carrying out its business are known as what type of resource? a. Human b. Inventory c. Material d. Financial e. Informational 7. Specific state

> a. Why is selecting a supplier important? What factors should be considered when selecting a supplier? b. What costs must be balanced and minimized through inventory control? c. Explain in what sense scheduling is a control function of operations manager

> a. How might productivity be measured in a restaurant? In a department store? In a public school system? b. How can robotics, computer manufacturing systems, and flexible manufacturing systems help a manufacturer to produce products?

> a. Describe the four forms of organizational structure. b. Give an example of each form.

> How are the four areas of operations control interrelated?

> Is it really necessary for service firms to engage in research and development? In planning for production and operations control?

> What steps have U.S. firms taken to regain a competitive edge in the global marketplace?

> Why would Rubbermaid—a successful U.S. company—need to expand and sell its products to customers in foreign countries?

> How does the corporate culture of a local Best Buy store compare to that of a local McDonald’s?

> Contrast line-and-staff and matrix forms of organizational structure.

> What three steps are involved in delegation? Explain each.

> Circle the letter before the most accurate answer. 6. A government agency that was created to assist, counsel, and protect the interests of small businesses in the United States is called a. Small Business Institutes. b. Small Business Investment Compani

> Why do most firms employ a combination of departmentalization bases?

> Why should business take on the task of training the hard-core unemployed?

> Overall, would it be more profitable for a business to follow the economic model or the socioeconomic model of social responsibility?

> Compare and contrast the major styles of leadership.

> When a company acts in an ethically questionable manner, what types of problems are caused for the organization and its customers?