Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, I have an assignment due in which I have struggled with a lot. I have attached the different questions to this and they cordinate.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Hello, I have an assignment due in which I have struggled with a lot. I have attached the different questions to this and they cordinate. 1, 2 etc while some have a few images with different parts because the entire problem could not fit on the page. Please let me know if you have any questions.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Requirements 1. Prepare the correct balance sheet and date it properly. Compute total assets, total liabilities, and stockholders1 equity. 2. Is Candace Design, Inc., in better (or worse) nancial position than the erroneous balance sheet reports? Give the reason for your answer. 3. Identify the accounts listed on the incorrect balance sheet that should not be reported on the balance sheet. State why you excluded them from the correct balance sheet you prepared for Requirement 1. On which nancial statement should these accounts appear? Which company has the I highest net income? I highest percent of net income to revenues? P1-65B. (Learning Objectives 1, 3, 4, 5: Explain accounting language; apply the accounting - I an E equation; evaluate business operations; construct a balance sheet) The manager of Candace Design, Inc., prepared the company's balance sheet as of June 30, 2016, while the accountant was ill. The balance sheet contains numerous errors. In particular, the manager knew that the balance sheet should balance, so she plugged in the stockholders' equity amount needed to achieve this balance. The stockholders' equity amount is not correct. All other amounts are accurate. Candace Design, Inc. H Balance Sheet june 30, 2016 i ll C Cash 8 500 13 000 o .-- -.- I| - n ._ ._...-. 3550 M 2200 i .. mammm Utilities ex-ense 1300 Accounts receivable 3800 i ; Advertising expense Note payable 54,500 -' Land 76 000 Total 74 500 -_::. Sala ry expense 2,500 Stockholders' Equity - - '- Stockholders' en ui 52 700 mamm Total liabilities Amy Swoboda, your best friend, is considering making an investment in Larrabee Design, Inc. Amy seeks your advice in interpreting the company's infon'nation. Specically, she asks how to use this trial balance to compute the company's total assets, total liabilities, and net income or net loss for the year. Requirement 1. Write a short note to answer Amy's questions. In your note, state the amounts of Larrabee Design's total assets, total liabilities, and net income or net loss for the year. Also show how you computed each amount. P2-65B. (Learning Objective 6: Construct and use a trial balance) The trial balance of - a Larrabee Design, Inc., follows: Larrabee Design, Inc. Trial Balance December 31, 2016 _m_m-- _-- _-- _Im-- :>-_m-ll ;:- Rentex-ense u: . . .-- - - -- - wan_- --. - - m-- Requirements 1. Analyze the effects of the preceding transactions on the accounting equation of Willis Computing, Inc. 2. Prepare the income statement of Willis Computing, Inc., for the month ended November 30, 2016. List expenses in decreasing order by amount. 3. Prepare the statement of retained earnings of Willis Computing, Inc., for the month ended November 30, 2016. 4. Prepare the balance sheet of Willis Computing, Inc., at November 30, 2016. - a E P2-67B. (Learning Objectives 4, 5: Analyze the impact of business transactions on accounts; record [journaiize and post] transactions in the books) This problem can be used in conjunction with Problem 2-66B. Refer to Problem 2-66B. Requirements 1. Journalize the transactions of Willis Computing, Inc. Explanations are not required. 2. Prepare T-accounts for each account. Insert in each T-account its October 31 balance as given (example: Cash $2,100). Then, post the November transactions to the T-accounts. 3. Compute the balance in each account. - E P3-68B. (Learning Objective 3: Adjust the accounts) Journalize the adjusting entry needed on December 31, the end of the current accounting period, for each of the following indepen- dent cases affecting Tiger Corp. Include an explanation for each entry. 3. Details of Prepaid Insurance are shown in the account: Prepaid Insurance Jan 1 1331 2,900 Mar 31 4,000 Tiger prepays insurance on March 31 each year. At December 31, $1,800 is still prepaid. 1). Tiger pays employees each Friday. The amount of the weekly payroll is $5,900 for a ve-day work week. The current accounting period ends on Thursday. Tiger has a note receivable. During the current year, Tiger has earned accrued interest revenue of $500 that it will collect next year. The beginning balance of supplies was $3,100. During the year, Tiger purchased supplies costing $6,100, and at December 31 supplies on hand total $2,300. Tiger is providing services for Dolphin Investments, and the owner of Dolphin paid Tiger $11,500 as the annual service fee. Tiger recorded this amount as Unearned Service Revenue. Tiger estimates that it has earned 70% of the total fee during the current year. Depreciation for the current year includes Ofce Furniture, $3,800, and Equipment, $6,100. Make a compound entry. Requirements 1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Spa View's closing entries at January 31, 2016. 2. Set up a Taccount for Retained Earnings and post to that account. Then compute Spa View's net income for the year ended January 31, 2016. What is the ending balance of Retained Earnings? 3. Did Retained Earnings increase or decrease during the 2016 scal year? What caused the increase or decrease? - E P3-72B. (Learning Objective 5: Close the books, evaluate retained earnings) The accounts of Spa View Service, Inc., at January 31, 2016, are listed in alphabetical order. Accounts payable $ 12,700 Interest expense................ $ 800 Accounts receivable ................ 16,600 Note payable, longterm... 15,900 Accumulated depreciation, Other assets, long-term 13,500 equipment 6,500 Prepaid expenses 5,800 Advertising expense ................ 10,800 Retained earnings, Cash ....................................... 17,500 January 31, 2015 13,700 Common stock....................... 8,900 Salary expense.................. 27,700 Current portion of long term Salary payable .................. 3,400 note payable ....................... 1,000 Service revenue................. 94,100 Depreciation expenseequipment 1,700 Supplies ............................ 3,300 Dividends declared ................. 15,000 Supplies expense ............... 4,200 Equipment................. 43,000 Unearned service revenue 3,700 Group B P4-50B. (Learning Objectives 1, 4: Describe fraud and its impact; evaluate internal controls over cash receipts and cash payments) Swedish Imports is an importer of silver, brass, and furniture items from Sweden. Sandra Gustafson is the general manager of Swedish Imports. Gustafson employs two other people in the business. Mandy Martin serves as the buyer for Swedish Imports. In her work, Martin travels throughout Sweden to nd interesting new products. When Martin nds a new product, she arranges for Swedish Imports to purchase and pay for the item. She helps the artisans prepare their invoices and then faxes the invoices to Gustafson in the company ofce. Gustafson operates out of an ofce in Brooklyn, New York. The oice is managed by Sandra Moore, who handles the mail, keeps the accounting records, makes bank deposits, and prepares the monthly bank reconciliation. Virtually all of Swedish Imports' cash receipts arrive by mailfrom sales made to Target, Crate and Barrel, and Williams-Sonoma. Moore also prepares checks for payment based on invoices that come in from the suppliers who have been contacted by Martin. To maintain control over cash payments, Gustafson examines the paperwork and signs all checks. Requirement 1. Identify all the major internal control weaknesses in Swedish Imports' system and how the resulting action could hurt Swedish Imports. Also state how to correct each weakness. E A Bank Statement for ul 2016 '-J 3.. Deosits and other additions: 800 EH" 1 693 890 409 1 275 BC '-J ,E . Checks and other deductions: 1 532 430 U 1 615 U1 351 E 790 II 10 SC 6275 9 652 _ __ -m- __ _ _ _ Additional data for the bank reconciliation include the following: a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment. b. The unauthorized signature check was received from a customer and returned by the bank unpaid. Interns c. The correct amount of check number 3115, a payment on account, is $1,380. (Duffy Automotive's accountant mistakenly recorded the check as $1,830.) d. The bank collected a note receivable for Duffy Automotive. Requirements 1. Prepare the Duffy Automotive bank reconciliation at July 31, 2016. 2. Prepare the journal entries required at July 31, 2016. 3. Describe how a bank account and the bank reconciliation help the general manager control Duffy Automotive's cash. P4-52B. (Learning Objective 3: Design and use a bank reconciliation) The cash data of Duffy Automotive for July 2016 follow: Cash Account No. 101 Date Item Jrnl. Ref. Debit Credit Balance July 1 Balance 7,450 31 CR 6 9,693 17,143 31 CP 11 9,885 7,258 Cash Receipts (CR) Cash Payments (CP) Date Cash Debit Check No. Cash Credit July 2 $ 2,850 3113 $ 1,532 8 560 3114 1,615 10 1,693 3115 1,830 16 890 3116 70 22 409 3117 790 29 915 31 1 8 97 30 2,376 3119 477 Total $9,693 3120 990 3121 183 3122 2,301 Total $9,885 Duffy Automotive received the following bank statement on July 31, 2016

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Decision Making and Control

Authors: Jerold Zimmerman

9th edition

125956455X, 978-1259564550

More Books

Students also viewed these Accounting questions

Question

What is an XBRL instance document?

Answered: 1 week ago

Question

Purpose: What do we seek to achieve with our behaviour?

Answered: 1 week ago

Question

An action plan is prepared.

Answered: 1 week ago