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Chapter Opener: Thinking Critically Fast Facts • • • • Managerial Implications: Thinking Critically Discussion Questions 1. 2. 3. 4. 5. 6. 7. 9. 10. Establish accounting policies, direct the accounting system, prepare and interpret financial statements, 11. 12. CHAPTER […]

Student Name: Class: Regular Hours Hours Regular Time Overtime Gross Employee No. Hourly Rate Worked Earnings Earnings Earnings 12.84$ 48 513.60$ 154.08$ 667.68$ 667.68$ 41.40 9.68 36.00 151.00 18.00 100.00 311.60$ Correct! Post Description Ref Debit Credit 2013 Dec. 31 […]

• In 1990, Gary Erickson lived in a garage with his dog. • In 2000, Clif Bar was nearly sold to Quaker Oats for $120 million—Erickson backed out of the deal when he experienced panic attacks about the sale. The […]

PROBLEM 10.1B 1. HOURS WORKED 48 Gross Pay $660.40 Less: Social Security Tax 40.94 2. POST. REF. 1 2013 1 2 Dec. 31 Salaries Payable 31488 2 3 Cash 3 1 4 88 3 4 Issued check for weekly payroll […]

Student Name: Class: Earnings for period: $3,500.00 TAX BASE RATE AMOUNT 3,500.00$ 6.20% 217.00$ 3,500.00 1.45% 50.75 3,500.00 0.80% 28.00 3,500.00 5.40% 189.00 Total 484.75$ Correct! Post Description Ref Debit Credit 2013 July 14 484.75 217.00 50.75 28.00 189.00 Correct! […]

•New Castle Hotels and Resorts has been in business over 25 years. •New Castle’s management services group has engineered the financial turnaround of over 60 hotels. •New Castle Hotels & Resorts’ 32-hotel portfolio of both owned and managed hotels, includes […]

PROBLEM 11.1B (continued) PAGE POST. REF. 1 2013 1 2 April 8 Payroll Taxes Expense 42600 2 GENERAL JOURNAL 28 DATE DESCRIPTION DEBIT CREDIT 408  Chapter 11 Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. 3 Social […]

Student Name: Class: Account Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit 25,010.00 25,010.00 1,340.00 1,340.00 860.00 a 280.00 580.00 9,000.00 b 1,500.00 7,500.00 1,620.00 c 135.00 1,485.00 360.00 d 90.00 270.00 12,050.00 12,050.00 e 125.00 125.00 […]

• Urban Outfitters achieved compounded annual sales growth of approximately 19% from 2005 to 2010, with sales of approximately $1.9 billion in fiscal 2010. • The first Urban Outfitters store opened 1970 near the University of Pennsylvania campus in Philadelphia. […]

PROBLEM 12.6A (continued) 28 3 8 6 00 28 3 8 6 00 1 50000 50 000 2 3 1 00 3 1 00 13 7 25 7 25 14 400000 40 0 000 15 1 0 0 00 1 […]

PROBLEM 12.5B (continued) 1 307 1 2 7 93 311 5 4 7 93 249 9 3 7 93 254 4 0 0 00 57 1 9 0 00 57 1 4 7 93 1 ADJUSTED TRIAL BALANCE INCOME STATEMENT […]

Student Name: Class: 1,665,884 17,200 1,648,684 234,000 757,000 12,800 769,800 7,440 10,160 17,600 752,200 986,200 224,000 762,200 886,484 189,600 6,100 4,800 200,500 259,200 20,500 59,330 8,800 347,830 69,600 3,000 5,200 8,290 5,520 54,000 4,600 4,800 8,000 3,000 166,010 714,340 172,144 […]

• Whole Foods operates 284 stores with an average store size of 37,000 square feet. • The stores feature over 30,000 natural and organic items. • To underscore the company’s focus on health, it recently created a new Core Company […]

PROBLEM 13.3A (continued) Vincent Arroyo, Capital, January 1, 2013 32,700.00 Current Assets Cash 28,386.00 Accounts Receivable 500.00 Prepaid Advertising 320.00 Supplies 100.00 Merchandise Inventory 12,000.00 Total Current Assets 41,306.00 Plant and Equipment: Store Equipment 25,000.00 Less Accumulated Depreciation 6,125.00 18,875.00 […]

PROBLEM 13.4B (continued) PAGE POST. REF. 1 1 2 2013 (Adjustment g) 2 3 Dec. 31 Depreciation Expense—Store Fixtures 205000 3 4 Accumulated Depreciation—Store Fixtures 205000 4 13 13 14 (Adjustment i) 14 15 31 Salaries Expense 145000 15 16 […]

MINI-PRACTICE SET 2 (continued) PAGE POST. REF. 1 2013 1 12 goods returned; original purchase made 12 13 on Invoice 3418, October 25 13 14 14 15 29 Salaries Expense 632 1080000 15 16 Salaries Payable 229 891600 16 17 […]

MINI-PRACTICE SET 2 (continued) ACCOUNT Rent Ex p ense ACCOUNT NO. ACCOUNT Salaries Expense ACCOUNT NO. 2013 Oct. 29 J16 1080000 10 80 000 31 Closing J18 1080000 ─0─ ACCOUNT Supplies Expense ACCOUNT NO. 2013 Oct. 31 Adjusting J17 231000 […]

Student Name: Class: 695,300$ 44,800$ 441,225 486,025 48,500 437,525 257,775 80,500 31,000 11,388 9,000 22,900 5,900 4,400 7,600 18,500 3,500 1,300 28,500 Total Operating Expenses 224,488 Net Income for Year 33,287$ Correct! Problem 14.03A McGraw-Hill Instructor Cost of Goods Sold […]

• Americans drink an average of 2.6 cups of coffee per day. • Green Mountain Coffee Roasters (GMCR) maintains two business units: the Specialty Coffee Business Unit (Green Mountain Coffee® and Tully’s Coffee® brands) and the Keurig Business Unit which […]

Student Name: Class: Estimated Rate of Estimated Amount Loss Uncollectible 2,040,000$ 0.50% 10,200.00$ 548,600 1.20% 6,583.20 16,783.20$ Correct! Post Description Ref Debit Credit 2010 Dec. 31 16,783.20 16,783.20 2014 Jan. 20 830.00 830.00 Nov. 26 830.00 830.00 Accounts Receivable 392,000.00 […]

• Federal Express Corporation was founded 1971 in Little Rock, Ark. • The most popular perk for employees is called “jump seating.” This allows employees to hitch an unlimited number of free rides anywhere FedEx flies. • In 1973 on […]

Student Name: Class: Principal X Rate X Time = Interest Note 1 20,000$ 8.00% 180 800.00$ <–Correct! 360 Note 2 6,000$ 12.00% 3180.00$ <–Correct! 12 Note 3 25,000$ 9.00% 120 750.00$ <–Correct! 360 Interest Calculations SANTAS COMPANY McGraw-Hill Instructor Problem […]

• Bank of America reported net income of $14.9 billion in 2007 and $6.3 billion in 2009. • Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA […]

Student Name: Class: Number Unit Total Description of Units Cost Cost Beginning Inventory, January 1 90 $103.00 9,270.00$ Purchases: January 6 60 102.00 6,120.00 January 15 45 102.00 4,590.00 January 22 35 96.00 3,360.00 Total Merchandise Available for Sale 230 […]

• The Best Buy family of brands and partnerships collectively generates more than $45 billion in annual revenue and includes brands such as Best Buy; Audiovisions; The Carphone Warehouse; Future Shop; Geek Squad, Jiangsu Five Star; Magnolia Audio Video; Napster; […]

Student Name: Class: 4,200,000$ 4,200,000$ Correct! 2,400,000$ 16,000$ 10,000 6,000 6,400 1,850 1,150 50,400 32,000 2,497,800$ Correct! 125,000$ 125,700 250,700$ Correct! McGraw-Hill Instructor Cost of land improvements 3. Land Improvements Cost of land Permit to raze facility Inspection fees Attorney […]

• The Coca-Cola Company is the world’s largest non-alcoholic beverage company. • The Coca-Cola Company sells over 3,300 beverages including Hi-C, Fruitopia, Dasani water, Sprite, Minute Maid, and Powerade. • Coca-Cola-Zero, introduced in 2005, was one of the most successful […]

PROBLEM 18.9A (continued) PAGE POST. REF. 37 31 Impairment of Intangibles—Goodwill 3000000 37 GENERAL JOURNAL 1 DATE DESCRIPTION DEBIT CREDIT Chapter 18  637 Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. 38 Goodwill 3000000 38 39 To […]

Student Name: Class: Adjusting Entries Post Date Description Ref Debit Credit 2013 Jan. 1 40,000 116,000 365,000 75,000 7,000 60,000 529,000 «- Correct! 1 423,200 423,200 «- Correct! 463,200$ 116,000$ 7,000 109,000 365,000 75,000 1,012,200$ Correct! 55.6% Correct! CONTEMPORARY COMPUTING […]

• HVP has assisted in the development of over 80 ambulatory care centers representing over $400 million in value. • HVP has worked with over 200 hospitals nationwide. • HVP is an employee-owned company. The founders of HVP personally fund […]

PROBLEM 19.2B PAGE POST. REF. 1 2013 1 12 Deborah Simpson, Capital 11760000 12 13 To record investment of cash by Simpson 13 Cash 12660000 Accounts Receivable 900000 Allowance for Doubtful Accounts 220000 680000 Merchandise Inventory 8600000 Furniture and Fixtures […]

Student Name: Class: Cash 33,300$ Accounts payable 23,000$ Supplies 5,380 Accounts receivable 12,200 Equipment 77,000 Francisco Valdez, Capital 104,880 Total Assets 127,880$ Total Liabilities and Owner’s Eq. 127,880$ Correct! Correct! Owner’s Equity February 28, 2013 Problem 02.03A McGraw-Hill/Irwin Instructor Balance […]

Chapter Opener: Thinking Critically Fast Facts • • • Managerial Implications: Thinking Critically Discussion Questions 1. 2. 4. 5. 6. Subtract total expenses from revenue 7. 8. Balance sheet shows position at particular date; increase of operations for a period […]

Student Name: Class: Total Per Per Year Dividends Total Share Total Share 2013 4,000$ 4,000$ 2.00$ –$ –$ 2014 6,000 6,000 3.00 – – 2015 110,000 24,000 12.00 86,000 2.15 Correct! Correct! Correct! Correct! 2013 4,000$ 4,000$ 2.00$ –$ –$ […]

• ConAgra has 24,000 employees worldwide. 1. Stated value for stock is much more flexible than par value. Par value is assigned in the charter and to change the par value, the charter must be amended. However, stated value is […]

PROBLEM 20.1B Year Case A All dividends to Preferred 2013 All dividends to Preferred 2014 5% to Pref.—balance to Common 2015 Case B ($32,000 in arrears to Preferred) All dividends to Preferred 2014 ($32,000 in arrears to Preferred 5% preference […]

Student Name: Class: Debit Credit Debit Credit Debit Credit Debit Credit 46,570 46,570 149,800 149,800 2,000 2,000 100,000 a 105,000 a 100,000 105,000 100,000 100,000 300,000 300,000 37,500 b 12,500 50,000 250,000 250,000 25,000 c 25,000 50,000 105,220 105,220 19,200 […]

• The first McDonald’s hamburger stand was located in San Bernardino, CA. • Ray Kroc convinced the McDonald brothers to expand their business and open several new restaurants so • Dividend policy, legality, and financial feasibility. 1. Income tax expense […]

PROBLEM 21.4A (continued) ACCOUNT 10% Preferred Stock, $10 Par ACCOUNT NO. ACCOUNT Paid-in Capital in Excess of Par Value—Preferred ACCOUNT NO. 2013 Jan. 1 Balance ✔800000 ACCOUNT Common Stock, No-Par, Stated Value, $50 ACCOUNT NO. 2013 Jan. 1 Balance ✔100 […]

PROBLEM 21.3B PAGE POST. REF. 1 2013 1 12 Paid dividends on preferred 12 13 13 14 Sept. 15 Retained Earnings 381 750000 14 15 Common Stock Dividend Distributable 625000 15 16 Paid-in Capital in Excess of Stated Value—Common 125000 […]

• • • 1. 2. Terms of the contract between the bond issuer and holder. 3. on the 10% bond than they could get in other investments. Long-term liability. 4. 5. 6. Allows for clear audit trail; easy bank reconciliation. […]

PROBLEM 22.5B POST. REF. 1 2016 1 2 Oct. 1 10% Bonds Payable, 2023 400 0 0 0 00 2 GENERAL JOURNAL DATE DESCRIPTION DEBIT CREDIT PAGE Chapter 22  779 Copyright © 2012 The McGraw-Hill Companies, Inc. All rights […]

MINI-PRACTICE SET 3 (continued) ACCOUNT 5% Preferred Stock ($100 par, 10,000 shares authorized) ACCOUNT NO. 2013 ACCOUNT Paid-in Capital in Excess of Par—Preferred Stock ACCOUNT NO. 2013 Jan. 1 Balance ✔1000000 5 100000 1100000 ACCOUNT Common Stock ($10 par, 100,000 […]

Student Name: Class: 2013 2012 2013 2012 Amount Percent 905,000 765,000 101.7% 101.2% 140,000 18.3% 15,000 9,000 1.7% 1.2% 6,000 66.7% 890,000 756,000 100.0% 100.0% 134,000 17.7% 84,000 80,000 9.4% 10.6% 4,000 5.0% 306,000 262,000 34.4% 34.7% 44,000 16.8% 390,000 […]

• Teva Pharmaceutical is among the top 15 pharmaceutical companies in the world and the leader in generic pharmaceuticals. • Trend analysis. Analyze net income, cost of goods sold, and gross profit. Compare the percentage of gross profit to sales […]

PROBLEM 23.1B 1. 2013 2012 PERCENT* Revenue Sales 573500 425500 100.6% 100.6% 1 4 8 0 0 0 34.8% Other Selling Expenses 24000 18000 4.2% 4.3% 6 0 0 0 33.3% Total Selling Expenses 119700 106000 21.0% 25.1% 1 3 […]

Student Name: Class: 80,000$ 18,000$ (50,000) (2,600) (17,000) (51,600) 28,400 (50,000) (50,000) 50,000 10,000 60,000 38,400 39,500 77,900$ Correct! Net cash provided by operating activities Total adjustments Decrease in accounts payable Increase in merchandise inventory Cash Flows from Operating Activities […]

• In 2009, Apple had approximately 34,300 full-time equivalent employees and an additional 2,500 full-time equivalent temporary employees and contractors. • Annual sales in fiscal year 2009 were $36.5 billion. • The company, incorporated January 3, 1977, as “Apple Computer, […]

SOLUTIONS TO BUSINESS CONNECTIONS Managerial Focus: 1. Identifies actual cash received and used to forecast additional cash outflow required if borrowing money. 3. The statement of cash flows gives specific details on actual cash receipts and payments. Income statement does […]

Student Name: Class: Department Department A B Total 536,250 288,750 825,000 4,200 2,800 7,000 532,050 285,950 818,000 45,000 15,000 60,000 200,000 115,000 315,000 500 500 1,000 200,500 115,500 316,000 1,500 500 2,000 199,000 115,000 314,000 244,000 130,000 374,000 41,000 11,000 […]

• The company is divided into three business segments: Girls, Boys, and Infant/Preschool divisions. • The company’s first products were picture frames. A side business of dollhouse furniture made from picture frame scraps led the company into the toy business. […]

Student Name: Class: 39,000 22,000 192,500 214,500 20,000 194,500 195,000 36,000 23,000 24,000 5,000 6,000 5,000 4,500 9,000 8,000 120,500 510,000 549,000 36,000 513,000 Correct! 1,000,000 5,500 994,500 35,000 513,000 548,000 30,000 518,000 476,500 120,000 12,000 8,000 DOOLEY MANUFACTURING COMPANY […]

• Ford Motor Co. has said it plans to close 14 manufacturing plants in North America and cut between 25,000 to 30,000 jobs by 2012. • Ford is the leading U.S.-based producer of hybrid-electric vehicles, with record sales that were […]

PROBLEM 26.1B Work in Process, January 1 30 0 0 0 00 Raw Materials Manufacturing Overhead Depreciation-Factory Assets 900000 Indirect Labor 36 0 0 0 00 Indirect Materials 500000 Insurance—Factory 12 0 0 0 00 Payroll Taxes—Factory 26 1 0 […]

Student Name: Class: Post Date Ref Debit Credit 2013 April 31 82,000 82,000 31 75,000 5,000 80,000 31 40,000 40,000 31 150,000 150,000 31 120,000 120,000 31 250,000 250,000 Finished Goods Inventory Finished Goods Inventory Cost of Goods Sold Cost […]

• Spring Air operates on tight deadlines; sometimes having to manufacture 300 beds overnight to meet an order. • Founded in 1926, The Spring Air Company is one of the world’s largest mattress manufacturing companies with more than 1,000 employees […]

Student Name: Class: 2,900 100 3,000 <–Correct! 2,900 90 2,990 <–Correct! 2,600 240 2,840 <–Correct! 2,600 240 2,840 <–Correct! 2,200 360 2,560 <–Correct! 2,200 360 2,560 <–Correct! Equivalent production for labor and overhead in completion department Work in process Labor […]

• The company was founded to transport kerosene from eastern refineries to Utah by railroad tank and sell it in bulk, making it affordable for the pioneers. • Today, the Conoco brand is owned by ConocoPhillips and Conoco Quality PROclean […]

PROBLEM 28.2B PAGE POST. REF. 1 2013 1 2 May 31 Work in Process Inventory—Fabricating Depart. 51 9 2 0 00 2 3 Work in Process—Assembly Depart. 798000 3 12 12 13 31 Work in Process Inventory—Fabricating Depart. 17 2 […]

Student Name: Class: 2,250 2,500 2,750 90% 100% 110% 2,250.00 2,500.00 2,750.00 562.50 625.00 687.50 337.50 375.00 412.50 900.00 1,000.00 1,100.00 562.50 625.00 687.50 4,612.50 5,125.00 5,637.50 1,800.00 1,800.00 1,800.00 100.00 100.00 100.00 100.00 100.00 100.00 200.00 200.00 200.00 1,200.00 […]

• Revenue for Harley-Davidson was $4.2 billion in 2009. • In 2009, the Company shipped 223,023 Harley-Davidson motorcycles worldwide, compared to 303,479 in 2008. • Harley-Davidson consistently makes Fortune magazine’s annual “100 Best Companies to Work For” list. • Every […]

Student Name: Class: 60,000 60,000 Correct! Correct! 16,000 16,000 Correct! Correct! 950 950 Correct! Correct! 16,000 16,000 Correct! Correct! 10,000 10,000 Correct! Correct! 3,000 3,000 Correct! Correct! 950 950 Correct! Correct! 4,000 4,000 Correct! Correct! Cash Cash Office Equipment Accounts […]

Chapter Opener: Thinking Critically Fast Facts • • • • Managerial Implications: Thinking Critically • • • Discussion Questions 1. 3. 4. To provide a classified list of the names and numbers of a firm’s accounts. 5. 6. Additional accounts […]

PROBLEM 3.2B 1. + 20,000 + 20,000 8. PROBLEM 3.3B 1. + 3,800 – 3,800 Rent Expense Cash Joseph Tejan, Drawing Cash 36  Chapter 3 Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. + 1,600 – 1,600 […]

Student Name: Class: 417,000$ 11,250$ 133,400$ 75,000 208,400 219,650 11,361 208,289 208,711 12,000 50,000 62,000 146,711$ 11,250$ 133,400 144,650 6,900 137,750 279,250 12,000 267,250 75,000 50,000 125,000 Correct! 417,000$ OMEGA CORPORATION Income Statement (Direct Costing) For the Year Ended December […]

• Avon Representatives collectively earn an estimated $6 billion each year • Avon’s brand has 90% awareness across the globe and the company sells four lipsticks every second of the day. • The Avon Foundation for Women is the world’s […]

Student Name: Class: Post Description Ref Debit Credit Sept. 1 1,400 1,400 Correct! 5 2,500 2,500 Correct! 6 1,350 1,350 Correct! 10 600 600 Correct! 11 840 840 Correct! 12 3,200 3,200 Correct! 15 4,200 4,200 Correct! 18 2,000 2,000 […]

• • • • • • • • 2. 3. Chain of references; prevents fraud and errors. 4. 5. Steps performed to classify, record, and summarize financial data for a business. 6. 7. Record month, day, debited account/amount, credited account/amount, […]

PROBLEM 4.1B (continued) PAGE 2 POST. REF. 1 2013 1 2 Sept. 10 Equipment Repair Expense 2 5 0 00 2 3 Cash 2 5 0 00 3 4 Paid for equipment repairs, Check 1002 4 5 5 14 14 […]

CRITICAL THINKING PROBLEM 4.1 (continued) 1830000 450000 2460000 1190000 200000 990000 3450000 Ken Oxford, Capital, April 30, 2013 Increase in Capital Less Withdrawals for April 750000 Accounts Payable 250000 350000 600000 Owner’s Equity 2000000 Ken Oxford, Capital 3450000 Building Land […]

Student Name: Class: Account Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit 104,000 104,000 104,000 20,800 20,800 20,800 38,400 a 32,000 6,400 6,400 60,000 b 10,000 50,000 50,000 108,000 108,000 – 108,000 c2,200 2,200 2,200 24,800 24,800 […]

• William Boeing founded Pacific Aero Products Company in 1916; the name was changed to Boeing in 1917. • In 1917, the company employed 28 people. In 2007, Boeing employed more than 150,000 people in 48 U.S. states and 70 […]

PROBLEM 5.2B Glenn Brantley, Attorney-at-Law Worksheet (Partial) 1 Cash 70 1 0 0 00 2 Accounts Receivable 17 0 0 0 00 3 Supplies 20 8 0 0 00 (a) 7 2 0 0 00 4 Prepaid Rent 88 4 […]

Student Name: Class: Page 3 Post Date Ref Debit Credit Adjusting Entries ### Dec. 31 517 2,400 121 2,400 Correct! 31 526 3,000 131 3,000 Correct! 31 523 2,400 142 2,400 Correct! Page 4 Post Date Ref Debit Credit Closing […]

• • • • • 2. 3. Transfer results of operations to the owner’s capital account; Reduce balances of revenue, expense, 4. 5. Journalize and post adjusting entries; Journalize and postclosing entries; Prepare a postclosing trial 6. Balances of revenue […]

PROBLEM 6.3A (continued) ACCOUNT Utilities Expense ACCOUNT NO. 2013 POST. REF. GENERAL LEDGER 523 CREDIT BALANCE DEBIT CREDIT DEBITDATE DESCRIPTION Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6  151 Dec. 31 Balance √672000 31 Closing […]

PROBLEM 6.4B (continued) 31 9 5 0 00 31 9 5 0 00 1 11 3 4 0 00 11 3 4 0 00 2 13 0 5 0 00 13 0 5 0 00 3 67 9 5 0 […]

PAGE POST. REF. 1 2014 1 2 Jan. 2 121 4 0 0 0 00 2 3 Cash 101 4 0 0 0 00 3 4 Bought supplies for cash, Check 1015 4 20 Cash 101 280000 20 21 Paid […]

• Once an order is generated, indi creates a customized garment and ships it to the customer for free within 4 weeks. • All orders come with a Perfect Fit Promise and Worry-Free Shopping Guarantee, which promises fit adjustments until […]

PROBLEM 7.1B (continued) ACCOUNT Accounts Receivable ACCOUNT NO. 2013 ACCOUNT Sales Tax Payable ACCOUNT NO. 2013 June 30 S8 6 8 0 00 6 8 0 00 ACCOUNT Sales ACCOUNT NO. 2013 June 30 S8 850000 850000 CREDIT CREDIT 401 […]

1. Audit trail. 3. Documentation of credit issued. 5. Documentation of returned merchandise. 7. The Accounts Payable account is the control account; summarizes the balances of the creditor accounts. 9. Helps pay bills promptly and maintain a good credit reputation. […]

PROBLEM 8.4A (continued) Purchases $34,116 Freight In 596 Delivered Cost of Purchases $34,712 Less Purchases Returns and Allowances 1,480 Net Delivered Cost of Purchases $33,232 Chapter 8  261 Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. PROBLEM […]

PROBLEM 8.4B (continued) ACCOUNT Accounts Payable ACCOUNT NO. 2013 ACCOUNT Purchases ACCOUNT NO. 2013 Feb. 28 P4 1178000 1178000 ACCOUNT Freight In ACCOUNT NO. 2013 Feb. 28 P4 2 7 0 00 2 7 0 00 ACCOUNT Purchases Returns and […]

Student Name: Class: 3,639 200 3,839 18 15 33 3,806 <–Correct! 3,972 160 6 166 3,806 <–Correct! Post Description Ref Debit Credit April 30 160 160 <–Correct! 30 6 6 <–Correct! McGraw-Hill/Irwin Instructor VACATION PARADISE Bank Reconciliation Statement April 30, […]

1. Access to checkbook is restricted; use of prenumbered check forms; checks examined by someone who 3. Outstanding checks, deposits in transit, service charges. 5. To reconcile any difference between depositor’s checkbook, Cash account, and bank statement. 7. Date, amount, […]

PROBLEM 9.3A (continued) PAGE GENERAL JOURNAL 17 DATE DEBIT CREDIT POST. REF.DESCRIPTION 1 2013 1 2 April 15 Sales Returns and Allowances 8 0 0 00 2 33 4 Accepted a return of damaged merchandise, 4 5 Credit Memo 105, […]

PROBLEM 9.2B (continued) ACCOUNT Accounts Payable ACCOUNT NO. 2013 ACCOUNT Sales Tax Payable ACCOUNT NO. 2013 Sept. 1 Balance ✔134400 1 CP12 134400 –0– ACCOUNT Fred Lynn, Drawing ACCOUNT NO. 2013 Sept. 28 CP12 150000 150000 30 CP12 1 0 […]

CRITICAL THINKING PROBLEM 9.1 (continued) PAGE PURCHASED FROM INVOICE NUMBER INVOICE DATE TERMS POST. REF. 2013 Sept. 6 Reed Millings Company 827 9/3 2/10, n/30 ✔445000 445000 PURCHASES JOURNAL 12 DATE ACCOUNTS PAYABLE PURCHASES DEBIT FREIGHT-IN DEBIT 352  Chapter […]

Chapter 01 – Accounting: The Language of Business Chapter 01 Accounting: The Language of Business True / False Questions 1. The purpose of accounting is to provide financial information about an economic or social entity. TRUE AACSB: Analytic AICPA BB: […]

Chapter 01 – Accounting: The Language of Business 46. The area of accounting that involves the preparation of internal reports for a firm’s executives and the analysis of the data in these reports to aid in decision making is known […]

Chapter 10 – Payroll Computations, Records, and Payment Chapter 10 Payroll Computations, Records, and Payment True / False Questions 1. The Medicare tax is levied to provide medical care for the employee and the employee’s spouse after they reach age […]

Chapter 10 – Payroll Computations, Records, and Payment 58. The Payroll Tax Expense account is used to record which of the following taxes? A. Federal unemployment compensation tax B. Federal Income Tax C. State Income Taxes D. Sales Taxes AACSB: […]

Chapter 11 – Payroll Taxes, Deposits, and Reports Chapter 11 Payroll Taxes, Deposits, and Reports True / False Questions 1. The frequency of deposits of federal income taxes withheld and social security and Medicare taxes is determined by the amount […]

Chapter 11 – Payroll Taxes, Deposits, and Reports 57. Rick O’Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of January, his federal income taxes withheld are $180, […]

Chapter 12 – Accruals, Deferrals, and the Worksheet Chapter 12 Accruals, Deferrals, and the Worksheet True / False Questions 1. When the accrual basis of accounting is used, expenses are recognized only in the period during which they are paid. […]

Chapter 12 – Accruals, Deferrals, and the Worksheet 62. Stan Still Stationery Store’s employees are paid every Friday for a five day work week and are paid a total of $1,250 per day. If December 31, 2013, is on a […]

Chapter 12 – Accruals, Deferrals, and the Worksheet 12–32 © 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]

Chapter 13 – Financial Statements and Closing Procedures Chapter 13 Financial Statements and Closing Procedures True / False Questions 1. The total of the operating expenses for the period is deducted from the gross profit on sales to determine the […]

Chapter 13 – Financial Statements and Closing Procedures 60. Which of the following is not a section on a Classified Balance Sheet? A. Current Assets B. Long-Term Liabilities C. Selling Expenses D. Plant and Equipment AACSB: Analytic AICPA BB: Critical […]

Chapter 13 – Financial Statements and Closing Procedures AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Create Learning Objective: 13-03 Prepare a classified balance sheet from the worksheet. Level: Hard Topic: Preparing the Financial Statements 76. Brianna Graham is the owner […]

Chapter 14 – Accounting Principles and Reporting Standards Chapter 14 Accounting Principles and Reporting Standards True / False Questions 1. The Financial Accounting Standards Board is an agency of the federal government. FALSE AACSB: Analytic AICPA BB: Legal Bloom’s: Remember […]

Chapter 14 – Accounting Principles and Reporting Standards 59. Paige Turner Publishing paid cash in advance for a one year insurance policy. According to the matching principle, Paige Turner Publishing should recognize the policy as insurance expense A. at the […]

Chapter 14 – Accounting Principles and Reporting Standards 14–33 © 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]

Chapter 15 – Accounts Receivable and Uncollectible Accounts Chapter 15 Accounts Receivable and Uncollectible Accounts True / False Questions 1. When the estimate of the losses from uncollectible accounts is based on the aging method, the primary concern is proper […]

Chapter 15 – Accounts Receivable and Uncollectible Accounts 58. On December 31, 2014, prior to adjustments, Accounts Receivable has a debit balance of $356,000 and the Allowance for Doubtful Accounts has a debit balance of $1,200. The firm estimates its […]

Chapter 15 – Accounts Receivable and Uncollectible Accounts 77. At the end of the current year, the trial balance of Johannes’ Sporting Goods Shop included the accounts and balances shown below. Credit sales were $180,000. Returns and allowances on these […]

Chapter 16 – Notes Payable and Notes Receivable Chapter 16 Notes Payable and Notes Receivable True / False Questions 1. The interest on a $5,000 face value, 3-month note bearing interest at 9 percent a year would be $1,350. FALSE […]

Chapter 16 – Notes Payable and Notes Receivable 56. The Jiminez Company accepted an interest-bearing note to settle a past-due account originating from a sale of merchandise. When the note is collected, the interest earned should be credited to A. […]

Chapter 17 – Merchandise Inventory Chapter 17 Merchandise Inventory True / False Questions 1. In a period of rising prices, the LIFO method of inventory valuation results in a lower reported net income than the FIFO method. TRUE AACSB: Analytic […]

Chapter 17 – Merchandise Inventory 54. The retail method is a means of estimating A. selling price. B. beginning inventory cost. C. retail price of inventory. D. ending inventory cost. AACSB: Analytic AICPA BB: Industry Bloom’s: Remember Learning Objective: 17-05 […]

Chapter 18 – Property, Plant, and Equipment Chapter 18 Property, Plant, and Equipment True / False Questions 1. Land purchased for a future building site or as an investment would not be shown in the Property, Plant, and Equipment section […]

Chapter 18 – Property, Plant, and Equipment 58. Financial accounting rules (GAAP) and federal income tax rules differ for handling depreciation on the trade-in of an asset. Which of the following is correct? A. Option A. B. Option B. C. […]

Chapter 18 – Property, Plant, and Equipment 18–35 77. DJG Corporation purchased land in order to build new corporate headquarters for a purchase price of $758,000. The lawyers charged $2,500 to handle the legal aspects of the purchase. Closing costs […]

Chapter 19 – Accounting for Partnerships Chapter 19 Accounting for Partnerships True / False Questions 1. A partnership has a limited life. It ends with the death or withdrawal of a partner. TRUE AACSB: Analytic AICPA BB: Legal Bloom’s: Remember […]

Chapter 19 – Accounting for Partnerships 55. Kara Johnson and Tyler Jones are partners, and each has a capital balance of $100,000. To gain admission to the partnership, Raiden Nash pays $60,000 directly to Johnson for one-half of her equity. […]

Chapter 19 – Accounting for Partnerships 69. Lenik and Olsen are partners who share profits and losses in the ratio of 60 and 40 percent, respectively. The partnership agreement provides that each will be paid a yearly salary of $19,000. […]

Chapter 02 – Analyzing Business Transactions Chapter 02 Analyzing Business Transactions True / False Questions 1. The entire process of analyzing, recording, and reporting business transactions is based on the fundamental accounting equation. TRUE AACSB: Analytic AICPA FN: Decision Making […]

Chapter 02 – Analyzing Business Transactions 58. The financial statement that is prepared first is A. up to the accountant. B. the income statement. C. the balance sheet. D. the statement of owner’s equity. AACSB: Analytic AICPA BB: Critical Thinking […]

Chapter 20 – Corporations: Formation and Capital Stock Transactions Chapter 20 Corporations: Formation and Capital Stock Transactions True / False Questions 1. The stockholders of a corporation are agents of the corporation empowered to act for the firm. FALSE AACSB: […]

Chapter 20 – Corporations: Formation and Capital Stock Transactions Short Answer Questions 60. Santorini Corporation has outstanding 300,000 shares of $70 par-value preferred stock, issued at an average price of $84 a share. The preferred stock is convertible into common […]

Chapter 20 – Corporations: Formation and Capital Stock Transactions 75. McDougall Corporation issued 40,000 shares of its $2 par-value common stock for cash at $20 a share. Record the issuance of the stock on page 1 of a general journal. […]

Chapter 21 – Corporate Earnings and Capital Transactions Chapter 21 Corporate Earnings and Capital Transactions True / False Questions 1. A corporation may report net income for federal income tax purposes at an amount different from the amount reported for […]

Chapter 21 – Corporate Earnings and Capital Transactions 59. After all revenue and expense accounts, other than Income Tax Expense, have been extended to the Income Statement section of the worksheet of Carlton Corporation, the net income is determined to […]

Chapter 21 – Corporate Earnings and Capital Transactions 21–36 AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Apply Learning Objective: 21-01 Estimate the federal corporate income tax and prepare related journal entries. Learning Objective: 21-03 Record corporate adjusting and closing entries. […]

Chapter 22 – Long-Term Bonds Chapter 22 Long-Term Bonds True / False Questions 1. The Bonds Payable account would be credited for $104,000 to record the issuance of $100,000 par value, 10 percent bonds at a market price of 104. […]

Chapter 22 – Long-Term Bonds 62. Retained earnings are often appropriated while the bonds are outstanding. Which of the following is a reason for the appropriation? A. Corporation management wants to protect the bondholders. B. The bond contract or the […]

Chapter 23 – Financial Statement Analysis Chapter 23 Financial Statement Analysis True / False Questions 1. In horizontal analysis, the base year is the most recent year. FALSE AACSB: Analytic AICPA FN: Reporting Bloom’s: Remember Learning Objective: 23-02 Use horizontal […]

Chapter 23 – Financial Statement Analysis 64. Using the comparative income statement given below, prepare a horizontal analysis of all items. Carry all calculations to two decimal places and then round to one decimal place. 1. $42,500; 13.2%; 2. $13,250; […]

Chapter 23 – Financial Statement Analysis 81. The following financial information was taken from a firm’s accounting records on December 31, 2013. Use this information to determine the items below. (1) Rate of return on net sales. (2) Rate of […]

Chapter 24 – The Statement of Cash Flows Chapter 24 The Statement of Cash Flows True / False Questions 1. Usually, there is a difference between the net income reported on the income statement and the net cash from operating […]

Chapter 24 – The Statement of Cash Flows 61. Cannon Manufacturing Co. sold equipment that cost $18,000 for $6,000. A loss on sale of $1,000 was recorded. How is the Cash Flows from Investing Activities affected? A. A cash inflow […]

Chapter 24 – The Statement of Cash Flows 78. Why are depreciation expense and amortization expense added to Net Income under the indirect method? They are both adjusting entries and do not affect cash. The Statement of Cash Flows is […]

Chapter 25 – Departmentalized Profit and Cost Centers Chapter 25 Departmentalized Profit and Cost Centers True / False Questions 1. For accounting purposes, both revenue and cost data are accumulated for a profit center. TRUE AACSB: Analytic AICPA FN: Reporting […]

Chapter 25 – Departmentalized Profit and Cost Centers 63. Semidirect and indirect expenses are treated the same for accounting purposes. At the end of the accounting period they are A. recorded by the department they relate to. B. allocated. C. […]

Chapter 25 – Departmentalized Profit and Cost Centers 25–37 Chapter 25 – Departmentalized Profit and Cost Centers 25–38 AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Apply Learning Objective: 25-05 Prepare a departmental income statement showing the contribution margin and operating […]

Chapter 26 – Accounting for Manufacturing Activities Chapter 26 Accounting for Manufacturing Activities True / False Questions 1. Raw Materials Used is not an element of manufacturing overhead. TRUE AACSB: Analytic AICPA FN: Decision Making Bloom’s: Remember Learning Objective: 26-02 […]

Chapter 26 – Accounting for Manufacturing Activities 62. The following information appears on the income statement of the Richer Company at the end of the year. Gross Profit on Sales was: A. $140,000. B. $160,000. C. $200,000. D. $220,000. Cost […]

Chapter 26 – Accounting for Manufacturing Activities 26–41 77. Define the term manufacturing overhead and give three examples of manufacturing overhead for a bakery. AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Apply Learning Objective: 26-02 Explain the basic components of […]

Chapter 27 – Job Order Cost Accounting Chapter 27 Job Order Cost Accounting True / False Questions 1. There is no need to take a physical count of inventory periodically when the perpetual inventory system is used. FALSE AACSB: Analytic […]

Chapter 27 – Job Order Cost Accounting 58. Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $240,000, and direct labor cost to be $300,000. Actual direct labor cost […]

Chapter 27 – Job Order Cost Accounting 75. Morion Hat Manufacturing made the following charge purchases on February 4 of the current year. Felt $5,687; Ribbon $1,234; Straw $6,723; Dye (for the straw) $39; Thread $47; Various plastic fruits, flowers, […]

Chapter 28 – Process Cost Accounting Chapter 28 Process Cost Accounting True / False Questions 1. In a process cost accounting system, the average unit cost of a product is determined by dividing the total manufacturing cost incurred by the […]

Chapter 28 – Process Cost Accounting 53. During the month, 2,700 units of a product were completed and 800 units were 60% complete with respect to labor and still in process. The total equivalent units of production for labor for […]

Chapter 28 – Process Cost Accounting AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Apply Learning Objective: 28-05 Compute equivalent production and prepare a cost of production report with a beginning work in process inventory. Level: Medium Topic: Work in Process […]

Chapter 29 – Controlling Manufacturing Costs: Standard Costs Chapter 29 Controlling Manufacturing Costs: Standard Costs True / False Questions 1. If the standard cost for an item exceeds the actual cost, the variance is favorable. TRUE AACSB: Analytic AICPA FN: […]

Chapter 29 – Controlling Manufacturing Costs: Standard Costs 63. One element that is NOT part of the standard cost is A. shipping. B. labor. C. materials. D. machine maintenance. AACSB: Analytic AICPA FN: Measurement Bloom’s: Remember Learning Objective: 29-05 Develop […]

Chapter 29 – Controlling Manufacturing Costs: Standard Costs 80. Complete the flexible budget of manufacturing costs for Lansome Industries for September 2013. Overhead is based on direct labor hours. 29–37 Chapter 29 – Controlling Manufacturing Costs: Standard Costs 29–38 AACSB: […]

Chapter 03 – Analyzing Business Transactions Using T Accounts Chapter 03 Analyzing Business Transactions Using T Accounts True / False Questions 1. When preparing the trial balance, the total debits should equal the total credits. TRUE AACSB: Analytic AICPA BB: […]

Chapter 03 – Analyzing Business Transactions Using T Accounts 70. Which of the following accounts is not a permanent account? A. Cash B. Accounts Payable C. Salaries Expense D. Thomas Bernard, Capital AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Understand […]

Chapter 03 – Analyzing Business Transactions Using T Accounts 3-37 © 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, […]

Chapter 30 – Cost-Revenue Analysis for Decision Making Chapter 30 Cost-Revenue Analysis for Decision Making True / False Questions 1. Opportunity costs are earnings or potential benefits foregone because a certain course of action is taken. TRUE AACSB: Analytic AICPA […]

Chapter 30 – Cost-Revenue Analysis for Decision Making 61. Using direct costing, the value of ending inventory of finished goods is: A. $100,000 B. $120,000 C. $140,000 D. $220,000 AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Apply Learning Objective: 30-02 […]

Chapter 30 – Cost-Revenue Analysis for Decision Making 79. The following information relates to a one-time special order from a flood relief organization for 200 of its book bags at $8.50. Current manufacturing costs are as follows. Fixed manufacturing overhead […]

Chapter 04 – The General Journal and the General Ledger Chapter 04 The General Journal and the General Ledger True / False Questions 1. When transactions are entered in a general journal, the asset accounts are listed first, followed by […]

Chapter 04 – The General Journal and the General Ledger 64. Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry […]

Chapter 04 – The General Journal and the General Ledger 4-36 © 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, […]

Chapter 05 – Adjustments and the Worksheet Chapter 05 Adjustments and the Worksheet True / False Questions 1. All changes in account balances are caused by transactions between the business and another business or individual. FALSE AACSB: Analytic AICPA BB: […]

Chapter 05 – Adjustments and the Worksheet 65. The adjustments made on the worksheet A. are posted to the ledger but are not recorded in the journal. B. are recorded in the journal but are not posted to the ledger. […]

Chapter 05 – Adjustments and the Worksheet 5-40 © 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, […]

Chapter 06 – Closing Entries and the Postclosing Trial Balance Chapter 06 Closing Entries and the Postclosing Trial Balance True / False Questions 1. One of the purposes of closing entries is to transfer net income or net loss for […]

Chapter 06 – Closing Entries and the Postclosing Trial Balance Short Answer Questions 66. The partial worksheet for the Jamison Company showed the following data on October 31, 2013. Record the closing entries on page 6 of a general journal. […]

Chapter 06 – Closing Entries and the Postclosing Trial Balance 77. From the following list identify the accounts that will appear on the postclosing trial balance by placing an X before those accounts. ___ A. Accounts Payable ___ B. Accounts […]

Chapter 07 – Accounting for Sales and Accounts Receivable Chapter 07 Accounting for Sales and Accounts Receivable 1. A merchandising business sells goods that it produces. FALSE AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Remember Learning Objective: 07-01 Record credit […]

Chapter 07 – Accounting for Sales and Accounts Receivable 61. Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for […]

Chapter 07 – Accounting for Sales and Accounts Receivable AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Apply Learning Objective: 07-01 Record credit sales in a sales journal. Learning Objective: 07-04 Record sales returns and allowances in the general journal. Level: […]

Chapter 08 – Accounting for Purchases and Accounts Payable Chapter 08 Accounting for Purchases and Accounts Payable True / False Questions 1. The use of a purchases journal strengthens the audit trail. TRUE AACSB: Analytic AICPA FN: Reporting Bloom’s: Understand […]

Chapter 08 – Accounting for Purchases and Accounts Payable 62. A creditor’s account in the accounts payable ledger has a balance of $10,560 as of April 1. After a transaction of $12,800 is posted from the purchases journal and a […]

Chapter 08 – Accounting for Purchases and Accounts Payable 76. At the end of February 2013 and before the purchases journal was posted, selected general ledger account balances for Volter Repair Services were as follows (each account had a normal […]

Chapter 09 – Cash Receipts, Cash Payments, and Banking Procedures Chapter 09 Cash Receipts, Cash Payments, and Banking Procedures True / False Questions 1. Cash Short or Over is an expense account when it has a debit balance. TRUE AACSB: […]

Chapter 09 – Cash Receipts, Cash Payments, and Banking Procedures 60. A check written by Bosley Co. for $168 was mistakenly recorded in the company records as $186. A. Option A. B. Option B. C. Option C. D. Option D. […]

Chapter 09 – Cash Receipts, Cash Payments, and Banking Procedures AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Apply Learning Objective: 09-04 Record cash payments in a cash payments journal. Level: Hard Topic: Cash Payments 9-37 © 2012 by McGraw-Hill Education. […]