1) An ________________________ requires a future outlay of cash and is relevant for
current and future decision making.
2) Explain the composition of retained earnings and identify the special items that are
reported in it.
3) Texana Inc. imports inventory from Mexico. Prepare the journal entries for Texana to
record the following transactions. Include any year-end adjustments.
4) Using the table below, indicate the impact of the following errors made during the
adjusting entry process. Use a “+” for overstatements, a “-” for understatements, and a
“0” for no effect. The first one is provided as an example
5) Halo Company provides you with following information for two of its employees.
The company is subject to the following taxes.
Compute amounts for each of these four taxes as applied to each employee’s gross
earnings for November.
6) Salvo Co. had the following transactions in the last two months of its year ended
December 31. Prepare entries for these transactions under the method that records
prepaid expenses as expenses and records unearned revenues as revenues. Also prepare
adjusting entries at the end of the year.
7) The ______________________ method of assigning costs to inventory and cost of
goods sold exactly matches the costs of items with the revenues they generate and
would be used when items can be easily traced to the purchase invoice cost.