Question: Using the bond from Basic Exercise 11-

> Rearrange the following steps in the accounting cycle in proper sequence: a. A post-closing trial balance is prepared. b. Adjustment data are asssembled and analyzed. c. Adjusting entries are journalized and posted to the ledger. d. An adjusted trial bal

> From the list that follows, identify the accounts that should be closed at the end of the fiscal year: a. Accounts Payable b. Accumulated Depreciation—Equipment c. Depreciation Expense—Equipment d. Equipment e. Common Stock f. Dividends g. Fees Earned h.

> Which of the following accounts will usually appear in the post-closing trial balance? a. Accounts Payable b. Accumulated Depreciation c. Cash d. Common Stock e. Dividends f. Depreciation Expense g. Fees Earned h. Office Equipment i. Salaries Expense j.

> From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, identify those that would appear on the balance sheet: 1. Accounts Payable 2. Cash 3. Common Stock 4. Fees Earned 5. Land 6. Rent Expense

> Automation Services Co. offers its services to companies desiring to use technology to improve their operations. After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances were taken from the ledger of Automa

> The income statement for the month of February indicates a net income of $17,500. During the same period, $25,500 in cash dividends were paid. Would it be correct to say that the business incurred a net loss of $8,000 during the month? Discuss.

> For a recent year, Best Buy (BBY) reported sales of $39,528 million. Its gross profit was $9,191 million. What was the amount of Best Buy’s cost of goods sold?

> The following selected transactions were completed by Cota Delivery Service during July: 1. Received cash in exchange for common stock, $35,000. 2. Purchased supplies for cash, $1,100. 3. Paid rent for October, $4,500. 4. Paid advertising expense, $900.

> During the current year, merchandise is sold for $8,100,000. The cost of the goods sold is $4,698,000. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). c. Will the income statement always

> The prepaid insurance account had a beginning balance of $11,500 and was debited for $18,000 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future pe

> Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise. (a) Journalize the

> 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 stockholders’ equity, or balance sheet. 1. Accounts

> Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: a. Decrease in inventory b. Increase in accounts receivable c. Increase in accounts payabl

> Identify the type of cash flow activity for each of the following events (operating, investing, or financing): a. Net income b. Paid cash dividends c. Issued common stock d. Issued bonds e. Redeemed bonds f. Sold long-term investments g. Purchased treasu

> State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $500,000 of bonds, on which there was $4,000 of unamortized discount, for $510,000. b. Sold 20,000 shares

> On the basis of the following stockholders’ equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year.

> The board of directors declared cash dividends totaling $1,200,000 during the current year. The comparative balance sheet indicates dividends payable of $250,000 at the beginning of the year and $100,000 at the end of the year. What was the amount of cas

> The declaration, record, and payment dates in connection with a cash dividend of $1,425,000 on a corporation’s common stock are July 9, August 31, and October 1. Journalize the entries required on each date.

> On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 14,200 shares of $25 par common stock with a current market price of $34. Journalize the entry to record the transaction.

> Willey’s Grill & Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Willey’s Grill & Restaurant, which had 325,000 shares of common stock outstanding, declared a 3-for-1 stock split. a. What will be the number of

> Current assets and current liabilities for Brimstone Company follow: a. Determine the working capital and current ratio for 20Y4 and 20Y3. b. Does the change in the current ratio from 20Y3 to 20Y4 indicate a favorable or an unfavorable change? 20Υ4

> Assume that you are going to receive $50,000 in 10 years. The current market rate of interest is 4%. a. Using the present value of $1 table in Exhibit 5, determine the present value of this amount compounded annually. Exhibit 5: b. Why is the present

> Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $22,000,000 of 20-year, 4% callable bonds on May 1, 20Y5, at their face amount, with interest payable on May 1 and November 1. The fiscal year of t

> Hoover Corp., a wholesaler of music equipment, issued $20,000,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the

> Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $800,000 of 10-year, 6% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company

> On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current

> PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: a. How much of the long-term debt was disclosed as a current liabilit

> A business issued a 60-day note for $60,000 to a bank. The note was discounted at 8%. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity.

> A company reports the following income statement and balance sheet information for the current year: Net income …………………………………………………………………………… $ 424,000 Interest expense ………………………………………………………………………… 80,000 Average total assets ………………………………………………………………..

> A company reports the following: Sales ……………………………………………………………………………………………….. $6,750,000 Average total assets (excluding long-term investments) ……………………… 2,500,000 Determine the asset turnover ratio. Round to one decimal place.

> A company reports the following: Income before income tax expense ……………………………………………… $9,100,000 Interest expense ……………………………………………………………………………… 650,000 Determine the times interest earned. Round to one decimal place.

> Prepare a journal entry on June 30 for dividends of $11,500.

> The following information was taken from Charu Company’s balance sheet: Fixed assets (net) …………………………………………………………………… $910,000 Long-term liabilities ………………………………………………..………………… 260,000 Total liabilities …………………………………………………………………………… 800,000 Total stockh

> A company reports the following: Cost of goods sold ………………………………………………………………………. $500,000 Average inventory ………………………………………………………………………….. 62,500 Determine (a) the inventory turnover and (b) the number of days’ sales in inventory. Round to one decimal

> A company reports the following: Sales ……………………………………….……………………………………………. $4,560,000 Average accounts receivable (net) ………………………………………………. 380,000 Determine (a) the accounts receivable turnover and (b) the number of days’ sales in receivables. Round to

> The following items are reported on a company’s balance sheet: Cash ………………………………………………………………………………… $225,000 Marketable securities …………………………………………………………… 115,000 Accounts receivable (net) ……………………………………………………… 112,000 Inventory ………………………………………………………………

> Income statement information for Einsworth Corporation follows: Sales …………………………………………………………………………….. $1,500,000 Cost of goods sold ……………………………………………………………… 900,000 Gross profit ………………………………………………………………………… 600,000 Prepare a vertical analysis of the in

> A company reports the following: Net income …………………………………………………………………………………….. $562,000 Preferred dividends …………………………………………………………………………. $50,000 Shares of common stock outstanding ………………………………….……………… 80,000 Market price per share of common stock ……………

> A company reports the following: Net income …………………………………………………………………………….. $1,225,000 Preferred dividends ……………………………………………………………………….. 47,800 Average stockholders’ equity ……………………………………………………… 8,750,000 Average common stockholders’ equity ………………………………

> The comparative accounts payable and long-term debt balances for a company follow. Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Current Year Pr

> The cost of goods sold reported on the income statement was $185,000. The accounts payable balance increased $8,000, and the inventory balance increased by $11,100 over the year. Determine the amount of cash paid for merchandise.

> Sales reported on the income statement were $225,000. The accounts receivable balance decreased $14,300 over the year. Determine the amount of cash received from customers.

> The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned ……………………………………………………..……. $900,000 Office expense …………………………………………………….……. 300,000 Miscellaneous expense ………………………………………………… 15,000 Wages expense …

> Jones Industries received $600,000 from issuing shares of its common stock and $400,000 from issuing bonds. During the year, Jones Industries also paid dividends of $60,000. How are the effects of these transactions reported on the statement of cash flow

> Ripley Corporation’s accumulated depreciation—equipment account increased by $15,325 while $3,800 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In

> The declaration, record, and payment dates in connection with a cash dividend of $375,000 on a corporation’s common stock are October 1, November 7, and December 15. Journalize the entries required on each date.

> An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds.

> Using the bond from Basic Exercise 11-4, journalize the first interest payment and the amortization of the related bond premium. Basic Exercise 11-4: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semia

> On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual interest of $175,000 ($5,000,000 × 7% × ½), receiving cash of $5,400,000. Journalize the bond issuance.

> On the first day of the fiscal year, a company issues a $3,500,000, 6% five-year bond that pays semiannual interest of $105,000 ($3,500,000 × 6% × ½), receiving cash of $3,350,000. Journalize the bond issuance.

> On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $3,000,000, 8%, 10 year bond that pays semiannual interest of $120,000 ($3,000,000 3 8% 3 ½ year), receiving cash of $3,000,000. Journalize the entries to record (a) the issuan

> Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $40,000 for the period. The pension formula calculated a pension cost of $222,750. Only $185,000 was contributed to the pension

> After the accounts have been adjusted at November 30, the end of the fiscal year, the following balances were taken from the ledger of Diamond Landscaping Co.: Retained Earnings …………………………………………………………….. $2,550,000 Dividends ……………………………………………..………………………

> The payroll register of Heritage Co. indicates $4,200 of social security withheld and $1,050 of Medicare tax withheld on total salaries of $70,000 for the period. Earnings of $12,000 are subject to state and federal unemployment compensation taxes at the

> The payroll register of Heritage Co. indicates $4,200 of social security withheld and $1,050 of Medicare tax withheld on total salaries of $70,000 for the period. Federal withholding for the period totaled $15,350. Retirement savings withheld from employ

> Lindsey Vater’s weekly gross earnings for the week ended March 9 were $800, and her federal income tax withholding was $128.96. Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Lindsey’s net pay?

> On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $225,000. a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%. b. Determine the proceeds of the note, assuming the

> Select financial statement data for two recent years for Davenport Company are as follows: a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an

> Equipment with a cost of $240,000 has an estimated residual value of $18,600, has an estimated useful life of 12 years, and is depreciated by the straight-line method. (a) Determine the amount of the annual depreciation. (b) Determine the book value at t

> A building acquired at the beginning of the year at a cost of $3,585,000 has an estimated residual value of $125,000 and an estimated useful life of 50 years. Determine (a) the double declining balance rate and (b) the double-declining-balance depreciati

> A truck acquired at a cost of $80,000 has an estimated residual value of $8,000, has an estimated useful life of 200,000 miles, and was driven 18,000 miles during the year. Determine (a) the depreciable cost, (b) the depreciation rate, and (c) the units-

> A building acquired at the beginning of the year at a cost of $2,200,000 has an estimated residual value of $400,000 and an estimated useful life of 20 years. Determine (a) the depreciable cost, (b) the straight-line rate, and (c) the annual straight-lin

> At the end of the current year, Accounts Receivable has a balance of $4,375,000; Allowance for Doubtful Accounts has a debit balance of $21,300; and sales for the year total $102,480,000. Using the aging method, the balance of Allowance for Doubtful Acco

> State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate its normal balance. 1. Accounts Payable 2. Cash 3. Dividends 4. Miscellaneous Expense 5. Insurance E

> At the end of the current year, Accounts Receivable has a balance of $4,375,000; Allowance for Doubtful Accounts has a debit balance of $21,300; and sales for the year total $102,480,000. Bad debt expense is estimated at ¼ of 1% of sales. Determine (a) t

> Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Mar. 17. Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible. July 29. Reinstated the account of

> Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Mar. 17. Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible. July 29. Reinstated the acco

> Financial statement data for years ending December 31 for Newton Company follow: Determine the days’ cash on hand for 20Y8 and 20Y9. Round all calculations to one decimal place. 20Y9 $25,500 20Υ8 Cash (end of year) $24,250 Short-t

> Prepare journal entries for each of the following: a. Issued a check to establish a petty cash fund of $500. b. The amount of cash in the petty cash fund is $85. Issued a check to replenish the fund, based on the following summary of petty cash receipts:

> The following data were gathered to use in reconciling the bank account of Reddan Company: Balance per bank ………………………………………………………………… $25,750 Balance per company records ………………………………………………… 19,140 Bank service charges …………………………………………………………………… 45 Depos

> During the taking of its physical inventory on December 31, 20Y3, Waterjet Bath Company incorrectly counted its inventory as $728,660 instead of the correct amount of $719,880. Indicate the effect of the misstatement on Waterjet Bath’s December 31, 20Y3,

> Beginning inventory, purchases, and sales for Item 88-HX are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on July 27 and (b) the inventory on July 31. July 1

> Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the inventory on October 31.

> Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow: a. Determine the asset turnover ratio for 20Y3 and 20Y2. b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable? 20Y3 2

> Prepare a journal entry for the purchase of office supplies on November 2 for $1,600, paying $500 cash and the remainder on account.

> Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 adjusting entries based upon the following: a. The inventory account has a balance of $1,333,150, while physical inventory indicates that $1,309,900 of merchandise is on

> Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Returns and Allowances

> Journalize the following merchandise transactions: a. Sold merchandise on account, $18,000 with terms 1/10, n/30. The cost of the goods sold was $10,800. b. Received payment less the discount. c. Refunded $600 to customer for defective merchandise that w

> Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10, n/30. Elkhorn returned merchandise with an invoice amount of $8,000 and received full credit. a. If Elkhorn Company pays the invoice within the discount per

> Noric Cruises Inc. began the month of October with the following balances: Common Stock, $150,000; Additional Paid-In Capital, $3,225,000; and Retained Earnings, $12,400,000. During June, Noric issued for cash 50,000 shares of common stock (with a stated

> On May 27, Hydro Clothing Inc. reacquired 65,000 shares of its common stock at $6 per share. On August 3, Hydro Clothing sold 48,000 of the reacquired shares at $9 per share. On November 14, Hydro Clothing sold the remaining shares at $5 per share. Journ

> Alpine Energy Corporation has 1,500,000 shares of $10 par common stock outstanding. On August 2, Alpine Energy declared a 5% stock dividend to be issued October 8 to stockholders of record on September 15. The market price of the stock was $60 per share

> On January 22, Zentric Corporation issued for cash 160,000 shares of no-par common stock at $8. On February 14, Zentric issued at par value 45,000 shares of preferred 2% stock, $50 par for cash. On August 30, Zentric issued for cash 10,000 shares of pref

> Zero Calories Company has 15,000 shares of cumulative preferred 1% stock, $50 par and 100,000 shares of $10 par common stock. The following amounts were distributed as dividends: 20Y1 ……………………………………………………………………………………….. $ 28,500 20Y2 …………………………………………………

> On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in Exhibit 10. Exhibit 10: Market Value Lower of Inventory Cost per Quantity pe

> The units of an item available for sale during the year were as follows: There are 75 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIF

> During the current year, merchandise is sold for $95,500 cash and $1,315,000 on account. The cost of the goods sold is $848,500. What is the amount of the gross profit?

> Two income statements for Paragon Company follow: Prepare a horizontal analysis of Paragon Company’s income statements. Paragon Company Income Statements For the Years Ended December 31 20Y7 20Υ6 $ 1,416,000 (1,044,000) $ 372,000

> A summary of cash flows for Paradise Travel Service for the year ended May 31, 2016, follows: Cash receipts: Cash received from customers ………………………………. $880,000 Cash received from issuing common stock …………………. 40,000 Cash payments: Cash paid for operati

> Using the following data for Paradise Travel Service as well as the statement of stockholders’ equity from Basic Exercise 1-5, prepare a balance sheet as of May 31, 2016: Accounts payable …………………………………………………………….………….. $ 18,000 Accounts receivable ……………

> Using the income statement for Paradise Travel Service from Basic Exercise 1-4, prepare a statement of stockholders’ equity for the year ended May 31, 2016. Everett McCauley invested an additional $40,000 in the business in exchange for common stock, and

> Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of goods sold on O

> Scott Lockhart owns and operates AAA Delivery Services. On January 1, 20Y7, Common Stock had a balance of $40,000, and Retained Earnings had a balance of $815,500. During the year, no additional common stock was issued, and $10,000 of dividends were paid

> Be-The-One is a motivational consulting business. At the end of its accounting period, December 31, 2012, Be-The-One has assets of $395,000 and liabilities of $97,000. Using the accounting equation, determine the following amounts: a. Stockholders’ equit

> The following three identical units of Item P401C are purchased during April: Assume that one unit is sold on April 27 for $300. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in

> Paradise Realty Co. pays weekly salaries of $25,500 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends (a) on Monday and (b) on Thursday.

> In a recent balance sheet, Microsoft Corporation (MSFT) reported Property, Plant, and Equipment of $38,156 million and Accumulated Depreciation of $19,800 million. a. What was the book value of the fixed assets? b. Would the book value of Microsoft’s fix

> The following accounts appear in an adjusted trial balance of Bridgewater Consulting. Indicate whether each account would be reported in the (a) Current assets; (b) Property, plant, and equipment; (c) Current liabilities; (d) Long-term liabilities; or

> The balance in the supplies account, before adjustment at the end of the year, is $9,000. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $1,575.  

> At the end of October, the first month of the business year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (