I have included all of the instruction in the attached document.

(1) Transactions made by Huddleston Co. for the month of March are shown below. 1. The company performed $23,920 of services for customers on account. 2. The company received $23,920 in cash from customers who had been billed for services [in transaction (1)]. 3. The company received a bill for $1,850 of advertising but will not pay it until a later date. 4. Huddleston Co. paid a cash dividend of $4,510. Prepare a tabular analysis that shows the effects of these transactions on the expanded accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.) Assets Liabilities Cash + Accounts Receivable = Accounts Payable + Common Stock Stockholders' Equity + Retained Earnings Revenues - Expenses - Dividends (2) Joel Blocker has just rented space in a strip mall. In this space, he will open a photography studio, to be called Picture This! A friend has advised Joel to set up a double-entry set of accounting records in which to record all of his business transactions. Indicate whether the normal balance of each account is a debit or credit. Balance Cash Supplies Notes Payable Equipment Accounts Payable Common Stock (3) Joel Blocker engaged in the following activities in establishing his photography studio, Picture This!: 1. Opened a bank account in the name of Picture This! and deposited $7,250 of his own money into this account in exchange for common stock. 2. Purchased photography supplies at a total cost of $910. The business paid $220 in cash, and the balance is on account. 3. Obtained estimates on the cost of photography equipment from three different manufacturers. In what form (type of record) should Joel record these three activities? Prepare the entries to record the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (4)Joel Blocker recorded the following transactions during the month of April. Apr. 3 Cash 4,100 Service Revenue 16 Cash 20 Cash 4,100 Rent Expense 680 680 Salaries and Wages Expense 240 240 Post these entries to the Cash account of the general ledger to determine the ending balance in cash. The beginning balance in cash on April 1 was $2,670. (Post entries in the order of journal entries presented in the question.) (5) The ledger of Columbia, Inc. on March 31, 2014, includes the following selected accounts before adjusting entries. Debit Prepaid Insurance 2,480 Supplies 3,360 Equipment Credit 27,000 Unearned Service Revenue 13,100 An analysis of the accounts shows the following. 1. Insurance expires at the rate of $310 per month. 2. Supplies on hand total $900. 3. The equipment depreciates $180 per month. 4. During March, services were performed for two-fifths of the unearned service revenue. Prepare the adjusting entries for the month of March. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (6) Kathy Gannon is the new owner of Kathy's Computer Services. At the end of July 2014, her first month of ownership, Kathy is trying to prepare monthly financial statements. She has the following information for the month. 1. At July 31, Kathy owed employees $1,550 in salaries that the company will pay in August. 2. On July 1, Kathy borrowed $18,000 from a local bank on a 12-year note. The annual interest rate is 10%. 3. Service revenue unrecorded in July totaled $3,580. Prepare the adjusting entries needed at July 31, 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (7) Indicate in which financial statement each of the following adjusted trial balance accounts would be presented. Service Revenue Notes Payable Common Stock Accounts Receivable Accumulated Depreciation Utilities Expense (8) After closing revenues and expense, Alomar Company shows the following account balances. Dividends $26,430 Retained Earnings 75,020 Income Summary 38,670 (credit balance) Prepare the remaining closing entries at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To close net income / (loss) to retained earnings) (To close dividends to retained earnings) (9) Identify which control activity is violated in each of the following situations. 1. Once a month, the sales department sends sales invoices to the accounting department to be recorded. 2. Nick Sewell orders merchandise for Silo Company; he also receives merchandise and authorizes payment for merchandise. 3. Several clerks at Guillen's Groceries use the same cash register drawer. (10) Doug Nicklas owns Doug Blankets. Doug asks you to explain how he should treat the following reconciling items when reconciling the company's bank account. 1. Outstanding checks: 2. A deposit in transit: 3. The bank charged to our account a check written by another company: 4. A debit memorandum for a bank service charge: (11) Hull Corporation's management wants to maintain a minimum monthly cash balance of $10,928. At the beginning of September, the cash balance is $16,761; expected cash receipts for September are $132,775; cash disbursements are expected to be $157,090. How much cash, if any, must Hull borrow to maintain the desired minimum monthly balance? Determine your answer by using the basic form of the cash budget. Hull CORPORATION Cash Budget For September $ Add: Less: Add: (12) Chieftain International, Inc., is an oil and natural gas exploration and production company. A recent balance sheet reported $208 million in assets with only $4.6 million in liabilities, all of which were short-term accounts payable. During the year, Chieftain expanded its holdings of oil and gas rights, drilled 37 new wells, and invested in expensive 3-D seismic technology. The company generated $19 million cash from operating activities and paid no dividends. It had a cash balance of $102 million at the end of the year. (a) Name at least two advantages to Chieftain from having no long-term debt. Can you think of disadvantages? (b) What are some of the advantages to Chieftain from having this large a cash balance? What is a disadvantage? (c) Why do you suppose Chieftain has the $4.6 million balance in accounts payable, since it appears that it could have made all its purchases for cash? (13) This activity provides information about career opportunities for CPAs. Address: www.startheregoplaces.com/why-accounting, or go to www.wiley.com/college/kimmel Steps 1. Go to the address shown above and click on Students/Educators. 2. Click on High School, then CPA101 for parts (a), (b), and (c). 3. Click College to answer part (d). Answer the following questions. (a) Where do CPAs work? (b) What skills does a CPA need? (c) What is the salary range for a CPA at a large firm during the first three years? What is the salary range for chief financial officers and treasurers at large corporations? (14) Sally Saia operates Double S Riding Academy, Inc. The academy's primary sources of revenue are riding fees and lesson fees, which are provided on a cash basis. Sally also boards horses for owners, who are billed monthly for boarding fees. In a few cases, boarders pay in advance of expected use. For its revenue transactions, the academy maintains these accounts: Cash, Accounts Receivable, Unearned Service Revenue, and Service Revenue. The academy owns 10 horses, a stable, a riding corral, riding equipment, and office equipment. These assets are accounted for in the following accounts: Horses, Buildings, and Equipment. The academy employs stable helpers and an office employee, who receive weekly salaries. At the end of each month, the mail usually brings bills for advertising, utilities, and veterinary service. Other expenses include feed for the horses and insurance. For its expenses, the academy maintains the following accounts: Supplies, Prepaid Insurance, Accounts Payable, Salaries and Wages Expense, Advertising Expense, Utilities Expense, Maintenance and Repairs Expense, Supplies Expense, and Insurance Expense. Sally Saia's sole source of personal income is dividends from the academy. Thus, the corporation declares and pays periodic dividends. To account for stockholders' equity in the business and dividends, two accounts are maintained: Common Stock and Dividends. During the first month of operations an inexperienced bookkeeper was employed. Sally Saia asks you to review the following eight entries of the 50 entries made during the month. In each case, the explanation for the entry is correct. May 1 Cash 15,000 Unearned Service Revenue 15,000 (Issued common stock in exchange for $15,000 cash) 5 Cash 250 Service Revenue 250 (Received $250 cash for lesson fees) 7 Cash 500 Service Revenue 500 (Received $500 for boarding of horses beginning June 1) 9 Supplies Expense 1,500 Cash 1,500 (Purchased estimated 5 months' supply of feed and hay for $1,500 on account) 14 Equipment 80 Cash 800 (Purchased desk and other office equipment for $800 cash) 15 Salaries and Wages Expense 400 Cash 400 (Issued check to Sally Saia for personal use) 20 Cash 145 Service Revenue 154 (Received $154 cash for riding fees) 31 Maintenance and Repairs Expense Accounts Receivable (Received bill of $75 from carpenter for repair services performed) Answer the following For each journal entry that is correct, so state. Date May May May May May May 1 5 7 9 14 15 75 75 May 20 May 31 For each journal entry that is incorrect, prepare the entry that should have been made by the bookkeeper. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date: Account Titles and Explanation Debit Credit 1. 7. 9. 14. 15 20. 31. Will the incorrect entries prevent the trial balance from balancing? Date May 1 May 7 May 9 May 14 May 15 May 20 May 31 What was the correct net income for May, assuming the bookkeeper originally reported net income of $4,500 after posting all 50 entries? Correct net income $ What was the correct cash balance at May 31, assuming the bookkeeper reported a balance of $12,475 after posting all 50 entries? Correct cash balance $ (15) Clean Sweep Company offers home cleaning service. Two recurring transactions for the company are billing customers for services performed and paying employee salaries. For example, on March 15 bills totaling $6,000 were sent to customers, and $2,000 was paid in salaries to employees. Write a memorandum to your instructor that explains and illustrates the steps in the recording process for each of the March 15 transactions. Use the format illustrated in the textbook under the heading \"The Recording Process Illustrated\". (16)Jennifer VanPelt is the assistant chief accountant at BIT Company, a manufacturer of computer chips and cellular phones. The company presently has total sales of $20 million. It is the end of the first quarter and Jennifer is hurriedly trying to prepare a trial balance so that quarterly financial statements can be prepared and released to management and the regulatory agencies. The total credits on the trial balance exceed the debits by $1,000. In order to meet the 4 P.M. deadline, Jennifer decides to force the debits and credits into balance by adding the amount of the difference to the Equipment account. She chose Equipment because it is one of the larger account balances; percentage-wise it will be the least misstated. Jennifer plugs the difference! She believes that the difference is quite small and will not affect anyone's decisions. She wishes that she had another few days to find the error but realizes that the financial statements are already late. (a) Who are the stakeholders in this situation? (b) What ethical issues are involved? (c) What are Jennifer's alternatives? (17) Laser Recording Systems, founded in 1981, produces disks for use in the home market. The following is an excerpt from Laser Recording Systems' financial statements (all dollars in thousands). LASER RECORDING SYSTEMS Management Discussion Accrued liabilities increased to $1,642 at January 31, from $138 at the end of the previous fiscal year. Compensation and related accruals increased $195 due primarily to increases in accruals for severance, vacation, commissions, and relocation expenses. Accrued professional services increased by $137 primarily as a result of legal expenses related to several outstanding contractual disputes. Other expenses increased $35, of which $18 was for interest payable. (a) Can you tell from the discussion whether Laser Recording Systems has prepaid its legal expenses and is now making an adjustment to the asset account Prepaid Legal Expenses, or whether the company is handling the legal expense via an accrued expense adjustment? (b) Identify each of the adjustments Laser Recording Systems is discussing as one of the four types of possible adjustments discussed in the chapter. How is net income ultimately affected by each of the adjustments? (c) What journal entry did Laser Recording make to record the accrued interest? (18)To learn about the functions of the Securities and Exchange Commission (SEC). Address: www.sec.gov/about/whatwedo.shtml, or go to www.wiley.com/college/kimmel Use the information in this site to answer the following questions. (a) What event spurred the creation of the SEC? Why was the SEC created (b)What are the five divisions of the SEC? Briefly describe the purpose of each. (c) What are the responsibilities of the chief accountant? (19) Lincoln Park was organized on April 1, 2013, by Judy Tercek. Judy is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Judy prepared the following income statement for the quarter that ended March 31, 2014. LINCOLN PARK Income Statement For the Quarter Ended March 31, 2014 Revenues Rent revenue $83,201 Operating expenses Advertising expense $4,174 Salaries and wages expense 25,603 Utilities expense 1,569 Depreciation expense 817 Maintenance and repairs expense 2,712 Total operating expenses 34,875 Net income $48,326 Judy knew that something was wrong with the statement because net income had never exceeded $22,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains these selected balances at March 31, 2014. Supplies $4,554 Prepaid Insurance 7,400 Notes Payable 23,000 You then make inquiries and discover the following. 1. Rent revenue includes advanced rentals for summer-month occupancy, $20,179. 2. There were $528 of supplies on hand at March 31. 3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2014. 4. The mail on April 1, 2014, brought the following bills: advertising for week of March 24, $106; repairs made March 10, $1,064; and utilities $298. 5. There are four employees who receive wages totaling $307 per day. At March 31, 3 days' wages have been incurred but not paid. 6. The note payable is a 3-month, 6% note dated January 1, 2014. Prepare a correct income statement for the quarter ended March 31, 2014. LINCOLN PARK Income Statement For the Quarter Ended March 31, 2014 (20) On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue because if this basis were used, it would mean that billions in unrecorded liabilities would have to be booked and the federal deficit would increase substantially. (a) What is the difference between accrual-basis accounting and cash-basis accounting? (b) Comment on why politicians prefer a cash-basis accounting system over an accrual-basis system. (c) Write a letter to your senators explaining why you think the federal government should adopt the accrual basis of accounting. (21) Eaton Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing the sale of several of Eaton's chemical pesticides. During the coming year, Eaton will have environmentally safe and competitive replacement chemicals to replace these discontinued products. Sales in the next year are expected to greatly exceed those of any prior year. Therefore, the decline in this year's sales and profits appears to be a one-year aberration. Even so, the company president believes that a large dip in the current year's profits could cause a significant drop in the market price of Eaton's stock and make it a takeover target. To avoid this possibility, he urges Mark Trane, controller, to accrue every possible revenue and to defer as many expenses as possible in making this period's year-end adjusting entries. The president says to Mark, \"We need the revenues this year, and next year we can easily absorb expenses deferred from this year. We can't let our stock price be hammered down!\" Mark didn't get around to recording the adjusting entries until January 17, but he dated the entries December 31 as if they were recorded then. Mark also made every effort to comply with the president's request. (a) Who are the stakeholders in this situation? (b) What are the ethical considerations of the president's request and Mark's dating the adjusting entries December 31? (c) Can Mark accrue revenues and defer expenses and still be ethical? (22) Natalie is struggling to keep up with the recording of her accounting transactions. She is spending a lot of time marketing and selling mixers and giving her cookie classes. Her friend John is an accounting student who runs his own accounting service. He has asked Natalie if she would like to have him do her accounting. John and Natalie meet and discuss her business. John suggests that he do the following for Natalie. 1. Hold onto cash until there is enough to be deposited. (He would keep the cash locked up in his vehicle). He would also take all of the deposits to the bank at least twice a month. 2. Write and sign all of the checks. 3. Record all of the deposits in the accounting records. 4. Record all of the checks in the accounting records. 5. Prepare the monthly bank reconciliation. 6. Transfer all of Natalie's manual accounting records to his computer accounting program. John maintains all of the accounting information that he keeps for his clients on his laptop computer. 7. Prepare monthly financial statements for Natalie to review. 8. Write himself a check every month for the work he has done for Natalie. Identify the weaknesses in internal control that you see in the system that John is recommending. (Consider the principles of internal control identified in the chapter.) Can you suggest any improvements if John is hired to do Natalie's accounting