Problem C - II Yount and Lance have a partnership agreement which includes the following provisions regarding sharing net income and net loss: 1. Since Yount will work only part time in the partnership, he will be allocated a salary allowance that is one half the salary allowance allocated to Lance. Lance's salary allowance
Before preparing financial statements for the current year, the chief accountant for Reynolds Company discovered the following errors in the accounts. -The declaration and payment of $50,000 cash dividend was recorded as a debit to Interest Expense $50,000 and a credit to Cash $50,000. -A 10% stock dividend (1,000 shares
Please find attached the XCEL file containing the questions. Grayson Group showed the following unadjusted account balances, each with a normal balance, at December 31, 2007: Accounts Receivable $374,000 Allowance for Doubtful Accounts $2,200 Sales (all on credit) $1,125,000 Sales Discounts
(Error Analysis; Correcting Entries) A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008. Dr. Cr. Supplies on hand $ 2,700 Accrued salaries and wages $ 1,500 Interest receivable on investments 5,100 Prepaid insurance 90,000 Unearned rent -0- Accr
(Error Analysis; Correcting Entries) A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008. Dr. Cr. Supplies on hand $ 2,700 Accrued salaries and wages $ 1,500 Interest receivable on investments 5,100 Prepaid insurance 90,000 Unearned rent -0- Accr
J8) A company inappropriately used the direct writeoff method to book bad debts expense. Accounts written off and charged to expense were 150 in 2003, 250 in 2004 and 350 in 2005. Credit sales were 10,000 in 2003, 11,000 in 2004 and 12,000 in 2005. At Dec 2005, the company realizes it should have followed the allowance method an
P17-2 (Available-for-Sale Debt Securities) On January 1, 2007, Rob Wilco Company purchased $200,000, 8% bonds of Mercury Co. for $184,557. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2012. Rob Wilco Company uses the effective-interest
Please explain the recording and posting processes fully but concisely. Thank you.
Sloane Company contracted on 4/1/03 to construct a building for $2,700,000. The project was completed in 2005. Additional data follow: 2003 2004 2005 Costs incurred to date $ 600,000 $1,200,000 $1,860,000 Estimated cost to complete 1,000,000 600,000 ? Billings to date 500,000 1,900,000 2,700,000 C
Scenario: Scenario A Emily and Richard are majority shareholders and President and Vice President respectively of Leeds Holding Company Incorporated. A holding company is set up to own other companies and provide management and expertise. Recently, Emily and Richard have invested in Faster Distribution Company Incorporated,
At the end of 2007, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2008, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off. (a) Prepare the journal entry for Aramis
For each journal entry, prepare an explanation of the business event that is being represented: a. Loan payable $35,000 Cash $7,000 Car $28,000 b. Accounts payable $13,450 Cash $13,450
Review two leading companies operating in the same industry with different entry strategies. a. Provide the circumstances under which each company chose its strategy. b. Provide information on how the two companies chosen strategies have affected performance and contributed to success or failure.
See attachment file. Common Stock Issue Based on the following data, prepare the journal entries for the issue of common stock under five scenarios: (1) Stock issued for cash at par value. (2) Stock issued for cash at stated value equal to par value. (3) Stock issued for cash with no par or stated value. (4) Stock issued i
On August 31, 2008, Devs Autoparts Company sold $8,000 worth of parts to Metro Repair Company. The terms of the sale were n/90. Devs receivable policy is to start charging interest of 9% (annually) on all balances over 90 days. Interest is accrued monthly. It is now December 31, 2008, and Metro Repair Company has not paid the
1. Josh Beach contributed land, inventory, and $24,000 cash to a partnership. The land had a book value of $65,000 and a market value of $114, 000. The inventory had a book value of $60,000 and a market value of $56,000. The partnership also assumed a $50,000 note payable owed by Beach that was used originally to purchase the la
You are a Director of Accounting and your Executive Director has asked you to put together a training handout that will help non-finance department directors understand the accounting cycle. A really good strategy to use is to explain the accounting cycle, from start to finish.
Littor Industries issued a $100,000, 4-year, 11% note at face value to Forest Hills Bank on January 1, 2005, and received $100,000 cash. The notes requires annual interest payments each December 31. Prepare Littor's journal entries to record: (a) the issuance of the note and (b) the December 31 interest payment.
S. Company exchanged 400 shares of Daily Company common stock, which Herman was holding as an investment, for equipment from West Company. The Daily Company common stock, which had been purchased by Herman for $50 per share, had a quoted market value of $58 per share at the date of exchange. The equipment had a recorded amount o
The Mars Corporation issued 2,000 shares of its $10 par value common stock for $70,000. The Mars Corporation also incurred $1,500 of costs associated with issuing the stock. Prepare The Mars Corporation's journal entry to record the issuance of the company's stock.
Tazmania Inc. had pretax financial income of $154,000 in 2007. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $14,000. Prepare Tazmania's journal entry to record 2007 taxes, assuming
When actual wage rate paid to direct labor worker exceeds the standard wage rate, the journal entry would included: 1-Debit to wages payable;credit to labor rate variance 2-Debit to work in process;credit to labor rate variance 3-Debit to wages payable;debit to labor rate variance 4-Debit to work in process; debit to labor
No Doubt Company includes one coupon in each box of soap powder that it packs and 10 coupons are redeemable for a premium (a kitchen utensil). In 2007, No Doubt Company purchased 8,800 premiums at 80 cents each an sold 110,000 boxes of soap powder at $3.30 per box. 44,000 coupons were presented for redemption in 2007. It is esti
Described below are certain transactions of Jackson Company for 2007: a. On May 10, the company purchased goods from Hickory Company for $55,000, terms 2/10, n/30. Purchases and accounts payable are recorded at gross amounts. The invoice was paid on May 18. Jackson uses the periodic method for inventory purchases. b. On Ju
Prepare the necessary general journal entries for the month of September for the Derby Company for each situation given below. Derby uses a perpetual inventory system. Oct. 5 Paid cash of $14,000 for operating expenses that were incurred and properly recorded in the previous period. 8 Purchased merchandise for $16,000
The Calvin Company uses the allowance method to account for uncollectible accounts. Prepare the appropriate journal entries to record the following transactions during 2010. You may omit journal entry explanations. May 20 The account of Larry Taylor for $950 was deemed to be uncollectible and is written off as a bad debt.
Business is booming for Dan Brown's home inspection business. He has been so busy the first month of business that he hasn't had time to keep up with his bookkeeping and has asked for your help. He has provided you with the detail regarding the following transactions: Date Transaction Dec 4 First week of inspec
Required: 1.) For direct materials: a.) Compute the direct materials price and quantity of variances. b.) Prepare journal entries to record the purchase of materials and the use of materials in production. 2.) For direct labor: a.) Compute the direct labor rate and efficiency variances.
If a company records their inventory purchases at standard cost but also records purchase price variances, what journal entry would be recorded if a purchase of 5,000 widgets were bought at $8.00 having a standard cost of $8.15? Dr Cr _________________ $ ________ _________________ $ ________ _________________ $ ________
Presented below are two independent situations. 1. Josh Car Rental leased a car to Bayfield Company for one year. Terms of the operation lease agreement call for monthly payments of $500. 2. On January 1, 2008, James Inc. entered into an agreement to lease 20 computers from Marcus Electronics. The terms of the lease agreem