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Question 1

The following data relate to the accounts of Edmiston Company.

Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Question 2

The adjusted trial balance of Ryan Financial Planners appears below.

Using the information from the adjusted trial balance, you are to prepare for the month ending December 31:

1. An income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

2. A retained earnings statement.

3. A balance sheet. (List Assets in order of liquidity.)

 

Question 3

Flounder Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize 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.)

 

 

Question 4

Included in Sarasota Company’s December 31 trial balance is a note receivable of $7,920. The note is a 4-month, 10% note dated October 1. Prepare Sarasota’s December 31 adjusting entry to record $198 of accrued interest, and the February 1 journal entry to record receipt of $8,184 from the borrower. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Question 5

Teal Corporation had net sales of $2,406,100 and interest revenue of $33,400 during 2017. Expenses for 2017 were cost of goods sold $1,450,300, administrative expenses $214,900, selling expenses $290,300, and interest expense $46,200. Teal’s tax rate is 30%. The corporation had 102,100 shares of common stock authorized and 70,750 shares issued and outstanding during 2017. Prepare a condensed multiple-step income statement for Teal Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Question 6

Presented below is information related to Bonita Company at December 31, 2017, the end of its first year of operations.

Compute the following:

Question 7

Grouper Company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable, based on an aging analysis. In 2017, Grouper decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $387,500 instead of $296,300. In 2017, bad debt expense will be $135,300 instead of $92,180. If Grouper’s tax rate is 28%, what amount should it report as the cumulative effect of changing the estimated bad debt rate? (Do not leave any answer field blank. Enter 0 for amounts.)

Question 8

Presented below are changes in the account balances of Wenn Company during the year, except for retained earnings.

The only entries in Retained Earnings were for net income and a dividend declaration of $17,190.

(a)

Compute the net income for the current year.

Question 9

The Carla, Inc. sold 9,180 season tickets at $2,120 each. By December 31, 2017, 16 of the 40 home games had been played. What amount should be reported as a current liability at December 31, 2017?

Question 10

Monty Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2017: Cash $8,540, Land $49,600, Patents $18,900, Accounts Receivable $97,610, Prepaid Insurance $6,160, Inventory $40,200, Allowance for Doubtful Accounts $5,690, and Equity Investments (trading) $11,840.

Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)

Question 11

Included in Skysong Company’s December 31, 2017, trial balance are the following accounts: Accounts Payable $222,200, Pension Liability $378,100, Discount on Bonds Payable $38,800, Unearned Rent Revenue $48,100, Bonds Payable $404,600, Salaries and Wages Payable $31,600, Interest Payable $16,940, and Income Taxes Payable $29,750.

Prepare the current liabilities section of the balance sheet.

Question 12

Included in Riverbed Company’s December 31, 2017, trial balance are the following accounts: Accounts Payable $246,500, Pension Liability $375,700, Discount on Bonds Payable $34,400, Unearned Rent Revenue $44,900, Bonds Payable $403,100, Salaries and Wages Payable $30,400, Interest Payable $15,320, and Income Taxes Payable $38,500.

Prepare the long-term liabilities section of the balance sheet.

Question 13

Martinez Company reported 2017 net income of $151,800. During 2017, accounts receivable increased by $15,940 and accounts payable increased by $9,764. Depreciation expense was $43,200.

Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Question 14

Sarasota Corporation engaged in the following cash transactions during 2017.

Compute the net cash provided (used) by investing activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Question 15

Marigold Corporation engaged in the following cash transactions during 2017.

Compute the net cash used (provided) by financing activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Question 16

Alan Bautista needs $25,000 in 3 years.

Click here to view factor tables

What amount must he invest today if his investment earns 8% compounded annually? What amount must he invest if his investment earns 8% annual interest compounded quarterly? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Question 17

Tony Madison needs $270,000 in 10 years.

Click here to view factor tables

How much must he invest at the end of each year, at 11% interest, to meet his needs? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

 

Question 18

Pronghorn Inc. issues $2,099,400 of 11% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 12%.

Click here to view factor tables

What amount will Pronghorn receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Question 19

The Indigo Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Indigo has decided to locate a new factory in the Panama City area. Indigo will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs.

Building A: Purchase for a cash price of $614,400, useful life 27 years.

Building B: Lease for 27 years with annual lease payments of $71,660 being made at the beginning of the year.

Building C: Purchase for $651,400 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,980. Rental payments will be received at the end of each year. The Indigo Inc. has no aversion to being a landlord.

Click here to view factor tables

In which building would you recommend that The Indigo Inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

 

Question 20

On May 10, 2017, Buffalo Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2017. Greig agrees to pay the full contract price of $1,880 on July 15, 2017. The cost of the goods is $1,230. Buffalo delivers the product to Greig on June 15, 2017, and receives payment on July 15, 2017. Prepare the journal entries for Buffalo related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Question 21

Presented below are three revenue recognition situations.

Indicate the transaction price for each of these situations and when revenue will be recognized.

 

Question 22

On March 1, 2017, Splish Company sold goods to Goosen Inc. for $726,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,169,230 (an inputed rate of 10%). The goods have an inventory cost on Splish’s books of $389,000.

(a) Prepare the journal entries for Splish on March 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

(b) Prepare the journal entries for Splish on December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Question 23

On July 10, 2017, Windsor Music sold CDs to retailers on account and recorded sales revenue of $749,000 (cost $584,220). Windsor grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2017, retailers returned CDs to Windsor and were granted credit of $78,300.

Prepare Windsor’s journal entries to record (a) the sale on July 10, 2017, and (b) $78,300 of returns on October 11, 2017, and on October 31, 2017. Assume that Windsor prepares financial statement on October 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Question 24

Classify the following items as (1) operating, (2) investing, (3) financing, or (4) significant noncash investing and financing activities, using the direct method.

Question 25

Novak Corporation is preparing its 2017 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2017 statement of cash flows.

 

 

Question 26

Cheyenne Corporation had January 1 and December 31 balances as follows.

For 2017, cost of goods sold was $486,000.

Compute Cheyenne’s 2017 cash payments to suppliers.

Question 27

In 2017, Cheyenne Corporation had net cash provided by operating activities of $486,000, net cash used by investing activities of $932,000, and net cash provided by financing activities of $559,000. At January 1, 2017, the cash balance was $300,000.

Compute December 31, 2017, cash.

Question 28

Grouper Corporation had the following 2017 income statement.

In 2017, Grouper had the following activity in selected accounts.

(a) Prepare Grouper’s cash flows from operating activities section of the statement of cash flows using the direct method.

(b) Prepare Grouper’s cash flows from operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Question 29

Answer each of the questions in the following unrelated situations.

(a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $485,000, what is the amount of current liabilities?

(b) A company had an average inventory last year of $212,000 and its inventory turnover was 5. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? (Round answer to 0 decimal places, e.g. 125.)

(c) A company has current assets of $91,000 (of which $44,000 is inventory and prepaid items) and current liabilities of $44,000. What is the current ratio? What is the acid-test ratio? If the company borrows $16,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.)

(d) A company has current assets of $612,000 and current liabilities of $217,000. The board of directors declares a cash dividend of $163,000. What is the current ratio after the declaration but before payment? What is the current ratio after the payment of the dividend? (Round answers to 2 decimal places, e.g. 2.50.)

Question 30

Cullumber Company is involved in four separate industries. The following information is available for each of the four industries.

Determine which of the operating segments are reportable based on the:

 

 

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Status NEW Posted 12 Jul 2017 02:07 PM My Price 40.00

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file 1516011206-Edmiston Company.docx preview (1 words )

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file 1516011211-CH-11072017-1.xlsx preview (503 words )

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