Questions and Answers of Survey of Accounting 2nd

Indicate whether each statement is true or false. If the statement is false, indicate how to correct the statement.a. GAAP is a set of rules and practices established by accounting standard-setting
The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of Under Armour, Inc. are presented in Appendix C.InstructionsBased on the information
a. What is the primary objective of financial reporting?b. Identify the characteristics of useful accounting information.
Keystone Computer Timeshare Company entered into the following transactions during May 2022.1. Purchased computers for $20,000 from Data Equipment on account.2. Paid $3,000 cash for May rent on
Presented below are three economic events. Create a table with rows (a), (b), and (c), and columns for assets, liabilities, and stockholders’ equity. In each column, indicate whether the event
Presented below are three economic events. Create a table with rows (a), (b), and (c), and columns for assets, liabilities, and stockholders’ equity. In each column, indicate whether the event
The financial statements of Apple Inc. are presented in Appendix A.Instructionsa. Using the consolidated income statement and balance sheet, identify items that may result in adjustments for
The records of Melmann Company includes the following accounts. Explain why each account may require adjustment.a. Prepaid Insurance.b. Depreciation Expense.c. Unearned Service Revenue.d. Interest
Laser Recording Systems produced disks for use in the home market. The following is an excerpt from Laser Recording Systems’ financial statements (all dollars in thousands).Instructionsa. Can you
Max Wilson, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. Wilson pays no costs in March, $2,500 in April, and $2,200 in May (incurred in April). How
Indicate in which financial statement each of the following adjusted account balances would be presented. Service Revenue Accounts Receivable Notes Payable Accumulated Depreciation Common Stock
“The historical cost principle of accounting requires adjustments.” Do you agree? Explain.
What types of accounts does a company increase or decrease in a prepaid expense adjustment?
Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjustment. For each account that requires adjustment, indicate (1) the type of adjustment
The adjusted account balances of Pepper Corp. at December 31, 2022, include the following accounts: Retained Earnings $21,000, Dividends $3,000, Service Revenue $45,000, Interest Revenue $3,100, Rent
What types of accounts are increased or decreased in an unearned revenue adjustment?
The following, listed in alphabetical order, are the adjusted accounts of Rainforest Inc. as of December 31, 2022: Accounts Payable $3,900, Accounts Receivable $1,700, Accumulated
The following lists selected accounts and their adjusted balances for Ramon Company on January 31, 2022.InstructionsAnswer these questions, assuming the year begins January 1.a. If the amount in
On January 9, a company pays $6,200 for salaries, of which $1,100 was reported as Salaries and Wages Payable on December 31. Indicate all accounts increased or decreased as well as dollar amounts
Skolnick Co. was organized on April 1, 2022. The company prepares quarterly financial statements. The following adjusted balance amounts at June 30 are in alphabetical order.a. Prepare an income
One-half of the adjustment is given below. Indicate the account title for the other half of the adjustment.a. Salaries and Wages Expense is increased.b. Depreciation Expense is increased.c. Interest
“An adjustment may affect more than one balance sheet or income statement account.” Do you agree? Why or why not?
a. What information do accrual-basis financial statements provide that cash-basis statements do not?b. What information do cash-basis financial statements provide that accrual-basis statements do not?
The financial statements of Apple Inc. are presented in Appendix A. The company’s complete annual report, including the notes to its financial statements, is available at its
A local bank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by “employee fraud.” Explain the meaning of fraud to Ray and give an
The following information pertains to Raydon Company.1. Cash balance per books, July 31, $8,768.2. $2,023 collected from a customer for Raydon Company in July by the bank through electronic funds
A new accountant at Wyne Inc. is trying to identify which of the following amounts should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April
Brandon purchased merchandise on account on April 5 for $5,100. On April 7, Brandon paid $50 of freight charges for the goods purchased on April 5. On April 8, Brandon returned goods purchased on
Raison Co. had the following transactions during October.1. On October 8, purchased merchandise on account from Baker Company for $17,000, terms 2/10, n/30.2. On October 9, paid freight costs of $500
The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of Under Armour, Inc. are presented in Appendix C.Instructionsa. Based on the information
Prepare a tabular summary to record the following transactions on Berry Company’s books using a perpetual inventory system.a. On September 3, Raven Company sold $700,000 of merchandise to Berry
On October 20, Iverson sells merchandise with a cost of $3,000 to Thom for $5,000 cash. On October 25, Iverson receives returned goods from Thom that had a selling price of $500 and a cost of $300.
Rita Company buys merchandise on account from Linus Company for $590. Rita sells the goods to Ellis for $900 cash. Use a tabular summary to record the transactions for Rita Company using a perpetual
The following information is available for Berlin Corp. for the year ended December 31, 2022:Prepare a multiple-step income statement for Berlin Corp. The company has a tax rate of 20%.Compute and
Use a tabular summary to record the following transactions for Borst Company using a perpetual inventory system.a. On March 2, Borst Company sold $800,000 of merchandise to McLeena Company on
The adjusted account balances of Doqe Company show these data pertaining to sales at the end of its fiscal year, October 31, 2022:Sales
The following is information for Lieu Co. for the month of January 2022.InstructionsPrepare an income statement using the format presented in Illustration 6.4.Prepare a multiple-step income
The following events are presented in chronological order.1. Aikan decides to buy a surfboard.2. He calls Surfing Hawaii Co. to inquire about their surfboards.3. Two days later, he requests that
In its income statement for the year ended December 31, 2022, Laine Inc. reported the following condensed data.InstructionsPrepare a multiple-step income statement. Operating $ Interest revenue $
The accounting records of Ohm Electronics show the following data.Beginning inventory 3,000 units at $5Purchases 7,000 units at $7Sales 8,400 units at $10Determine cost of goods sold during the
What is just-in-time inventory management? What are its potential advantages?
Mantle Company has been in business several years. At the end of the current year, the unadjusted balances show:Accounts Receivable.........................$ 310,000Sales
Credit card usage in the United States is substantial. Many startup companies use credit cards as a way to help meet short-term financial needs. The most common forms of debt for startups are use of
The following are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet.a. Advanced $10,000
At the beginning of the current period, Rose Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000. During the period, it had net credit sales of
At December 31, 2022, the records of Malone Company contained the following amounts before adjustment. Accounts Receivable $180,000 Allowance for Doubtful Accounts 1,500Instructionsa. What amount of
Use a tabular summary to record the following transactions for Jarvis Co. (Omit recording cost of goods sold.)a. On July 1, Jarvis Co. sold merchandise on account to Stacey Inc. for $23,000.b. On
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022.Instructionsa. Calculate the inventory turnover for 2020, 2021, and 2022. (Round to one decimal place.)b. Calculate
The financial statements of Apple Inc. are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company’s
Peete Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.Expenditures1. Excavation costs for
The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of Under Armour, Inc. are presented in Appendix C. The complete annual reports, including the
A company’s annual report identifies the amount of its plant assets and the depreciation method used.InstructionsSelect a particular company, search for the investor relations site for the company,
What are the similarities and differences between depreciation and amortization?
Smiley Corporation issues $300,000 of bonds for $315,000.(a) Prepare a tabular summary to record the issuance of the bonds(b) Show how the bonds would be reported on the balance sheet at the date of
On January 1, 2022, Vahsholtz Corporation purchased 5,000 shares of treasury stock. Other information regarding Vahsholtz Corporation is provided as follows.(a) Compute return on common
Arroyo Company issued $600,000, 10-year, 6% bonds at 103.Instructionsa. Prepare a tabular summary to record the sale of these bonds on January 1, 2022.b. Suppose the remaining Premium on Bonds
a. What are long-term liabilities? Give two examples.b. What is a bond?
Mobbe Company issued $500,000, 15-year, 7% bonds at 96.Instructionsa. Prepare a tabular summary to record the sale of these bonds on January 1, 2022.b. Suppose the remaining Discount on Bonds Payable
Presented here are long-term liability items for Stevens Inc. at December 31, 2022. Prepare the long-term liabilities section of the balance sheet for Stevens Inc. Bonds payable (due 2026) $700,000
Kale Company issued $350,000 of 8%, 20-year bonds on January 1, 2022, at face value. Interest is payable annually on January 1.InstructionsPrepare a tabular summary to record the following events.a.
Sagan Co. had these transactions during the current period.InstructionsPrepare a tabular summary to record the Sagan Co. transactions.Record preferred stock transactions and indicate statement
The following accounts appear in the records of Paisan Inc. at December 31, 2022.InstructionsPrepare the stockholders’ equity section at December 31.Calculate ratios to evaluate dividend and
An inexperienced accountant for Silva Corporation showed the following in the income statement: net income $337,500 and unrealized gain on available-for-sale securities (before taxes) $70,000. The
Summary financial information for Gandaulf Company is as follows.Compute the amount and percentage changes in 2022 using horizontal analysis, assuming 2021 is the base year. Dec. 31, 2022 Dec. 31,
In alphabetical order here are current asset items for Roland Company’s balance sheet at December 31, 2022. Prepare the current assets section (including a complete heading).Accounts
Trayer Corporation has income from continuing operations of $290,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes).1. An unrealized loss of
The condensed financial statements of Murawski Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.)Compute the following ratios for 2022 and 2021.a. Current ratio.b.
What amount did Apple report as “Other comprehensive earnings” in its consolidated statement of comprehensive income ending September 29, 2018? By what percentage did Apple’s “Comprehensive
Using these data from the comparative balance sheet of Rollaird Company, perform horizontal analysis.Prepare vertical analysis. December 31, 2022 December 31, 2021 Accounts receivable $ 460,000 $
Using these data from the comparative balance sheet of Rollaird Company, perform vertical analysis.Calculate percentage of change. December 31, 2022 December 31, 2021 Accounts receivable $ 460,000 $
Hypothetical comparative condensed balance sheets of Nike, Inc. are presented here.Instructionsa. Prepare a horizontal analysis of the balance sheet data for Nike, using 2021 as a base. (Show the
Net income was $500,000 in 2020, $485,000 in 2021, and $518,400 in 2022. What is the percentage of change(a) From 2020 to 2021(b) From 2021 to 2022? Is the change an increase or a decrease?Calculate
Here are the comparative condensed income statements of Delaney Corporation.Instructionsa. Prepare a horizontal analysis of the income statement data for Delaney Corporation, using 2021 as a base.
The following data are taken from the financial statements of Colby Company.Compute for each year(a) The accounts receivable turnover(b) The average collection period. What conclusions about the
Hollie Company has stockholders’ equity of $400,000 and net income of $72,000. It has a payout ratio of 18% and a return on assets of 20%. How much did Hollie pay in cash dividends, and what were
Indicate whether the following statements are true or false. If false, indicate how to correct the statement.1. The board of directors has primary responsibility for daily management functions.2.
Determine whether each of the following costs should be classified as direct materials (DM), direct labor (DL), or manufacturing overhead (MO).a. __________ Frames and tires used in manufacturing
Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials, direct labor, or manufacturing overhead.a. __________ Windshield.b. __________
National Express reports the following costs and expenses in June 2022 for its delivery service.Determine the total amount of(a) Delivery service (product) costs and(b) Period costs.Compute cost of
Incomplete manufacturing cost data for Horizon Company for 2022 are presented as follows for four different situations.Instructionsa. Indicate the missing amount for each letter.b. Prepare a
Cepeda Corporation has the following cost records for June 2022.Instructionsa. Prepare a cost of goods manufactured schedule for June 2022.b. Prepare an income statement through gross profit for June
An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2022.Costs incurred: raw materials purchases $54,000, direct labor $47,000,
McQueen Motor Company manufactures automobiles. During September 2022, the company purchased 5,000 head lamps at a cost of $15 per lamp. Fifty of these lamps were used to replace the head lamps in
Dieker Company begins operations on January 1. Because all work is done to customer specifications, the company decides to use a job order cost system. Prepare a chart of a typical job order cost
During the current month, Wacholz Company incurs the following manufacturing costs.a. Purchased raw materials of $18,000 on account.b. Incurred factory labor of $40,000.c. Factory utilities of $3,100
Greetings Inc., a nationally recognized retailer of greeting cards and small gift items, decides to employ Internet technology to expand its sales opportunities. For this case, you will employ
During January, its first month of operations, Dieker Company accumulated the following manufacturing costs: raw materials purchased $4,000 on account, factory labor $6,000, and utilities payable
During January, its first month of operations, Dieker Company accumulated the following manufacturing costs: raw materials purchased $4,000 on account, factory labor $6,000, and utilities payable
The Institute of Management Accountants (IMA) sponsors a certification for management accountants, allowing them to obtain the title of Certified Management Accountant.InstructionsGo to the IMA
During the current month, Standard Corporation completed Job 310 and Job 312. Job 310 cost $70,000 and Job 312 cost $50,000. Job 312 was sold. Using the format shown in Illustration 12.24, record the
For Eckstein Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Eckstein incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000
“Updates to Manufacturing Overhead normally are made daily.” Do you agree? Explain.
In March, Stinson Company completes its only two jobs in process, Jobs 10 and 11. Job 10 cost $20,000 and Job 11 $30,000. On March 31, Job 10 is sold. Using the format shown in Illustration 12.24,
At December 31, balances in Manufacturing Overhead are Shimeca Company— $1,200 positive, Garcia Company—$900 negative. Assuming the December 31 adjustment is made to cost of goods sold, indicate
The law firm of Colaw Associates uses a job order cost system. Cost data for the month of March follow.1. Purchased supplies on account $1,800.2. Issued supplies $1,200 (60% direct and 40%
“At the end of the year, under or overapplied overhead is eliminated by adjusting cost sheets.” Is this correct? If not, indicate the customary treatment of this amount.
a. What is cost behavior analysis?b. Why is cost behavior analysis important to management?
The condensed income statement for the Peri and Paul partnership for 2022 is as follows.A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 40% of the selling
Contrast the effects of changes in the activity level on total fixed costs and on unit fixed costs.
Russell Inc. had sales of $2,200,000 for the first quarter of 2022. In making the sales, the company incurred the following costs and expenses.Prepare a CVP income statement for the quarter ended

Showing 200 - 300 of 338