E1-16 Lindy Rig, the new controller of Bellingham Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2002. Her findings are as follows. Useful Life Accumulated in Years Salvage Value Type of Date Depreciation Asset Acquired Cost 1/1/02 Old Proposed Old Pro
1. Chris Rock believes a current liability is a debt that can be expected to be paid in one year. Is Chris correct? Explain.
1. Does your employer pay taxes on your behalf? Explain your answer.
Crystal Images is a manufacturer of collectible statues. The price per statue at which x statues can be sold in a month is given by p(x)= 655 - 10x dollars. The monthly cost of producing x statues is C(x) = 4800 + 100x dollars. Assume that 0<- x <- 50. (**the <- sign is the greater than or equals to sign, Im not sure how
The number of workers paying into social security for each retiree receiving social security benefits is: a. fixed by law. b. increasing c. Decreasing d. Relatively constant
Eric's credit card charges Eric 16% interest. His bank is offering him 5% interest on a savings account. The first thing Eric should do with any extra money he may have is to: a. Invest in the stock market b. open a savings account c. pre-pay for necessities, like rent and utilities d. pay off the credit card balance.
The $1,000 face value bonds issued by the Springfield Fabrication Corporation are perceived by investors as being less attractive than other bonds sold by other businesses ate the same time. The most likely selling price for these bonds in the market would be: a. $1,000 b. $1.200 c. $875 d. $1,100
Businesses benefit from securities markets primarily by: a. having a convenient place to invest in stocks and bonds b. obtaining the capital they need to finance their operations c. securing memberships on the various exchanges d. participating in the mutual funds of investment bankers.
The purpose fo the cuttent ratio is to evaluate the firm's ability to: a. generate sales with a given level of current assets b. utilize current assets profitably c. pay its bills in the short run d. effectively use borrowed funds
Which of the following projects would be best accomplished using spreadsheet software? a. publishing a four page newsletter complete with charts, graphs, and photographs b. maintaining a list of customer names and addresses that can be easily sorted and edited c. setting up a worksheet to compute monthly car payments for v
Record the following transactions on the books of Essex Co. (a) On July 1, Essex Co. sold merchandise on account to Harrard Inc. for $16,000, terms 2/10, n/30. (b) On July 8, Harrard Inc. returned merchandise worth $3,800 to Essex Co. (c) On July 11, Harrard Inc. paid for the merchandise.
2. What are some common types of receivables other than accounts receivable and notes receivable?
Match the items below by entering the appropriate letter in the space. 1. Partnership 2. Liabilities 3. Revenues 4. General ledger 5. Matching principle 6. Unearned revenues 7. Income summary 8. Intangible assets 9. Freight-out 10. Sales returns an
Adjusting Entries The following information for Marx Company is available on June 30, 2000, the end of a monthly accounting period. You are to prepare the necessary adjusting journal entries for Marx Company for the month of June for each situation given. Appropriate adjusting entries had been recorded in previous months.
Closing Entries The end of the period account balances after adjustments of the Falcon Cleaners and Laundry are as follows: Account Balances (After Adjustments) Cash $ 10,000 Cleaning Supplies 3,500 Prepaid Rent 3,600 Equipment 128,000 Accumulated Depreciation-Equipment 20,000 Accounts Payable 8,500 Common St
Journal Entries Prepare the necessary general journal entries for the month of October for the Dolan Company for each situation given below. Dolan uses a perpetual inventory system. Oct. 5 Paid cash of $12,000 for operating expenses that were incurred and properly recorded in the previous period. Oct. 8 Purchased mercha
Correcting Entries: The following errors were made in journalizing and posting transactions in May in the Unruh Company. 1. An $800 payment for repairs incurred on account and properly recorded in April was debited to Repair Expense $800 and credited to Cash $800. 2. A collection of $2,000 on account from a customer was r
Periodic Inventories Olsen Company uses the periodic inventory method and had the following inventory information available for the month of November. Date Transaction Units Unit Cost 11/1 Beginning inventory 400 $3 11/5 Purchase No. 1 600 $5 11/12 Sale No. 1 (300) 11/18 Purchase No. 2 400 $6 11/25 Sale No. 2 (600)
What principles of internal control apply to most businesses?
How can you use what you have learned in this course in your daily work? Can you help improve what goes on in your company or could have helped in a prior company?
What internal control procedures would you establish regarding incoming merchandise and the related bills from the suppliers?
In your company (present or prior) how did you get reimbursed for company expenses you incurred in the course of your work? Did you have to submit expense reports and wait for a check or did you go to petty cash and get your money back immediately? Please describe the procedure used in either case and do you think there was su
How does income measurement differ between a manufacturing business and a chain of retail stores?
2 - Consider the LIFO and FIFO inventory accounting methods. If the business was in a period of increasing costs for its inventory which method would you recommend to management and why? Would your recommendation be different if the company were privately owned or publicly traded? When answering this question do not confuse
Journalize and post the July transactions. Prepare a trial balance. Enter the following adjustments on the work sheet and complete the work sheet. Prepare the income statement and a retained earnings statement for July and a classified balance sheet at July 31. Prepare and post-closing trial balance at July 31.
Terry Duffy opened Terry's Window Washing Inc. on July 1, 2002. During July the following transactions were completed. July 1 Issued $9,000 of stock for $9,000 cash. 1 Purchased used truck for $6,000 paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $900 on account.
Please see attached Word document.
Karen Tong, D.D.S., opened a dental practice on January 1, 2002. During the first month of operations the following transactions occured. 1. Performed services for patients who had dental plan insurance. At January 31, $875 of such services was earned but not yet billed to the insurance companies. 2. Utility expenses incurrr
Financial Accounting 362 Part (I)> Diane Torres reviewed the records and found the following errors: (a) Prepare an analysis of each error showing (1) the incorrect entry (2) the correct entry, and (3) the correcting entry. (b) Prepare a correct trial balance.
P4-6A Diane Torres, CPA was retained by Doneright TV Repair Inc. to prepare financial statements for April 2002. Torres accumulated all the ledger balances per Doneright's records and found the following. DoneRight TV Repair Inc. Trial Balance April 30, 2002 Debi
A review of the ledger of Greenberg Company at December 31, 2002, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries Payable $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of $750 each per week, and
An island is inhabited by five men and a pet monkey. One afternoon the men gathered a large pile of coconuts which they proposed to divide equally among themselves the next morning. During the night one of the men awoke and decided to help himself to his share of the nuts. In dividing them into five equal parts he found that the