What does an income statement show?
> Maple Co. purchased merchandise costing $360,000. Calculate the cost of goods sold under the following situations: a. Beginning inventory $42,000 and no ending inventory b. Beginning inventory $49,000 and a $57,000 ending inventory c. No beginning inven
> Assuming a semiweekly depositor, from the following T accounts, record: (a) the July 3 payment for FICA (OASDI and Medicare) and federal income taxes, (b) the July 31 payment of SUTA tax, and (c) the July 31 deposit of any FUTA tax that may be required.
> If Joan’s Grocery Store downsized its operation during the second quarter of 201B and, as a result, paid only $6,119.83 in Form 941 taxes for the quarter that ended on June 30, 201B, should Joan’s Grocery Store make Form 941 tax deposits monthly or semiw
> Joan’s Grocery Store made the following Form 941 payroll tax deposits during the look-back period of July 1, 201A, through June 30, 201B: Quarter Ended …………………………. Amount Paid in 941 Taxes September 30, 201A …………………………………………. $15,784.01 December 31, 201
> Prepare a worksheet for Michaud Co. from the following information using Figure 11.10: Figure 11.10: a./b. Merchandise Inventory, ending c. Store Supplies on hand d. Depreciation on Store Equipment e. Accrued Salaries 13 3 4 MICHAUD CO. TRIAL BALA
> At the end of August 201X, the total amount of OASDI, $570, and Medicare, $230, was withheld as tax deductions from the employees of ABC, Inc. Federal income tax of $2,960 was also deducted from their paychecks. ABC is classified as a monthly depositor o
> Smith Computer Center had 360 pieces of merchandise inventory as of June 30, 201X.The inventory was purchased with prices as follows: Lot numbers represent oldest to newest. Assignment Using the FIFO, LIFO, and weighted-average methods, calculate the
> From the following accounts, journalize the closing entries (assume December 31). Mark Beckham, Capital 310 Gas Expense 510 70 140 Mark Beckham, Withdr. 312 Advertising Exp. 512 19 31 Income Summary 314 Dep. Exp., Taxi 516 57 Таxi Fees 410 1,200
> Temporary accounts could appear on a post-closing trial balance. Agree or disagree?
> Bates Co. had the following balances on December 31, 201X: The accountant for Bates has asked you to make an adjustment because $430 of janitorial services has just been performed for customers who had paid for 2 months. Construct a transaction analysi
> Based on the following payroll tax depositor classifications, determine the 941 tax deposit due date for each taxpayer: a. Monthly depositor, owing $1,850 tax for the third quarter. b. Monthly depositor, owing $4,100 tax for the month of May. c. Mon
> Taylor Company uses a special payroll account to pay employees. The gross amount of the payroll this week is $6,600; the net amount is $5,425. Journalize the transfer of funds to the payroll account and the distribution of paychecks to the employees.
> Prepare a worksheet for Mannon Co. from the following information using Figure 11.9: Figure 11.9: a./b. Merchandise Inventory, ending c. Store Supplies on hand d. Depreciation on Store Equipment e. Accrued Salaries 15 4 4 1 MANNON CO. TRIAL BALANC
> Oak Co. purchased merchandise costing $380,000. Calculate the cost of goods sold under the following situations: a. Beginning inventory $40,000 and no ending inventory b. Beginning inventory $54,000 and a $56,000 ending inventory c. No beginning invento
> Little Co. had the following balances on December 31, 201X: The accountant for Little has asked you to make an adjustment because $420 of janitorial services has just been performed for customers who had paid for 2 months. Construct a transaction analy
> Autumn Company has five salaried employees. Your task is to use the following information to prepare a payroll register to calculate net pay for each employee: Assume the following: 1. FICA OASDI is 6.2% on $117,000; FICA Medicare is 1.45% on all earni
> Go to the 2013 annual report for Kellogg’s Company at http://investor.kelloggs.com/ investor-relations/annual-reports and find the consolidated balance sheet. What is the cost of treasury stock for Kellogg’s in 2013 and 2012?
> Go to the 2013 annual report for Kellogg’s Company at http://investor.kelloggs .com/investor-relations/annual-reports and explain why Kellogg’s is not classified as a partnership.
> Go to the 2013 annual report for Kellogg’s Company at http://investor.kelloggs.com/ investor-relations/annual-reports and find out how inventories are valued. How much inventory did Kellogg’s have in 2013?
> Amy Jak is the National Sales Manager of Land.com. To get sales up to the projection for the old year, Amy asked the accountant to put the first 2 weeks’ sales in January back into December. Amy told the accountant that this secret would only be between
> Several banks have offered loans to Smith Computer Center for its expansion. However, Feldman wants to weigh each option to determine the best financial situation for the company. Currently, Smith Computer Center is trying to collect from its customers t
> Go to http://investor.kelloggs.com/investor-relations/annual-reports to access the Kellogg’s 2013 Annual Report. See Note 17 supplemental financial statement data and find the balance in Allowance for Doubtful Accounts for 2012 and 2013.
> Go to http://investor.kelloggs.com/investor-relations/annual-reports to access the Kellogg’s 2013 Annual Report and find the Consolidated Statement of Income. What is the cost of goods sold in 2013?
> Go to http://investor.kelloggs.com/investor-relations/annual-reports to access the Kellogg’s 2013 Annual Report and see how Kellogg’s records revenue. You will find this information in Note 1.
> Go to http://investor.kelloggs.com/investor-relations/annual-reports to access the Kellogg’s 2013 Annual Report. Go to Notes to Consolidated Financial Statements and find Note 8: Pension Benefits. How much did Kellogg’s spend to fund the 401(k) plans and
> Go to http://investor.kelloggs.com/investor-relations/annual-reports/ to access the Kellogg’s 2013 Annual Report and find out what the fiscal year is for Kellogg’s Company.
> When you look at the 2013 annual report for Kellogg’s Company at http://investor .kelloggs.com/investor-relations/annual-reports, do you think Kellogg’s uses a voucher system?
> Go to the 2013 annual report for Kellogg’s Company at http://investor.kelloggs.com/ investor-relations/annual-reports and find the Statement of Cash Flows for Kellogg’s. What is net cash provided by operations in 2013?
> Go to the annual 2013 report for Kellogg’s Company at http://investor.kelloggs .com/investor-relations/annual-reports under Financing Activities, Note 6. What is Kellogg’s scheduled repayment of long-term debt for principal in 2013 to 2017 (in millions)?
> Go to http://investor.kelloggs.com/investor-relations/annual-reports/ to access the Kellogg’s 2013 Annual Report, and look at how Kellogg’s depreciates its equipment. How is the equipment recorded?
> Why journalize adjusting entries after the formal reports in a manual system have been prepared?
> What is a contra-cost?
> Revenue is an asset. True or false? Please explain.
> Using the worksheet in Chapter 11 for Smith Computer Center, journalize and post the adjusting entries and prepare the financial statements.
> A balance sheet tells a company where it is going and how well it performs. True or false? Please explain.
> The total of the left-hand side of the accounting equation must equal the total of the right-hand side. True or false? Please explain.
> Define capital.
> List the three elements of the basic accounting equation.
> How has technology affected the role of the bookkeeper?
> How are businesses classified?
> Define, compare, and contrast sole proprietorships, partnerships, and corporations.
> What is the end product of the accounting process?
> What is an operating cycle?
> Footings are used in balancing all accounts. True or false? Please explain.
> Why is the left-hand side of an account called a debit?
> The first 6 months of the year have concluded for Smith Computer Center, and Thad wants to make the necessary adjustments to his accounts to prepare accurate financial statements. Assignment To prepare these adjustments, use the trial balance in Figure
> Compare the financial statements prepared from the expanded accounting equation with those prepared from a trial balance.
> Define a ledger.
> The statement of owner’s equity only calculates ending withdrawals. True or false? Please explain.
> As expenses increase they cause owner’s equity to increase. Defend or reject.
> A withdrawal is a business expense. True or false? Please explain.
> Owner’s equity is subdivided into what categories?
> What is the difference between current assets and plant and equipment?
> What are the functions of accounting?
> Explain how overhead may be applied.
> What is the purpose of a bill of lading?
> The following is an updated schedule of accounts payable as of January 31, 201X. Schedule of Accounts Payable The Staple Store ………………
> What tickets become the basis for transferring costs between departments to finished goods inventory?
> Explain the purpose of receiving reports as well as materials requisitions.
> What are the three major inventories of a manufacturing firm?
> Direct labor includes the wages of those personnel whose efforts indirectly change the quality or characteristics of the product. Agree or disagree? Please explain.
> Dot Lovet works in the receiving department of a leading publishing company. She has become good friends with many of the suppliers. At 4:00 p.m., Joe Andrews delivered a truckload of art supplies. Joe was in a hurry and asked Dot to accept the order. He
> Compare and contrast the structure of a worksheet for a merchandise company and a manufacturing company.
> Explain how operating expenses can be broken down into different categories.
> Into what three elements can manufacturing costs be broken?
> Explain why a company might prepare an income statement showing each department’s contribution margin.
> An income statement showing departmental income before tax does not list individual operating expenses for each department. Agree or disagree? Please explain.
> Square footage is often used to allocate indirect costs to various departments within a company. Agree or disagree?
> To assist you in recording these transactions for the month of January, at the end of this problem is the schedule of accounts receivable as of December 31 and an updated chart of accounts with the current balance listed for each account. Assignment 1.
> Explain how advertising expense could be both a direct cost and an indirect cost for a company.
> Compare and contrast indirect expenses and direct expenses.
> Special journals are not used in departmental accounting. Agree or disagree? Please explain.
> Explain how gross profit is calculated.
> What is the difference between a cost center and a profit center?
> Explain the components of cost of goods sold.
> Explain how partial payments would be recorded in the voucher register.
> Once a voucher is recorded, it cannot be canceled. Agree or disagree? Why?
> Why is an accounts payable ledger eliminated in the voucher system?
> Posting to a voucher register is quite different from posting to other special journals. Agree or disagree? Why?
> Why are vouchers filed by due dates?
> In preparing for next year, on December 1, Thad Feldman hired two hourly employees to assist with some troubleshooting and repair work. More information: a. The following accounts have been added to the chart of accounts: Wages Payable #2010, FICA OASD
> Compare a voucher register to a purchases journal.
> What source documents are attached to a voucher?
> List the five components of a voucher system.
> What is the structure of a voucher?
> Which columns of the worksheet aid in the preparation of the income statement?
> What could a low accounts receivable turnover rate indicate?
> What current asset accounts are deleted in the calculation of the acid test ratio? Why?
> Explain the following types of ratios: a. Liquidity b. Asset management c. Debt management d. Profitability
> How can ratios be expressed?
> Why is a base year chosen in trend analysis?
> Common-size statements use horizontal analysis. Agree or disagree? Please explain.
> During the month of November, the following transactions occurred. Assignment 1. Record the following transactions in the general journal and post them to the general ledger. 2. Prepare a trial balance as of November 30, 201X. Assume the following transa
> What is meant by vertical analysis?
> Horizontal analysis cannot be presented on comparative financial statements. Agree or disagree? Please explain.
> Rate of return on assets is affected by return on sales and asset turnover. Agree or disagree?
> Why do many Unearned Revenue accounts have to be adjusted?
> What does possible liquidation have to do with the ratio of debt to total assets?
> Stockouts could easily result if inventory is higher than it should be. Agree or disagree? Please explain.
> Compare and contrast the needs of investors, creditors, and management as they relate to financial statement analysis.
