On January 1, 2004, Skyline Limousine Co. purchased a limousine at an acquisition cost of $28,000. Skyline depreciated the vehicle by the straight-line method using a 4-year service life and a $4,000 salvage value. The company's fiscal year ends on December 31. Instructions: Explain what you found to be the most challengin
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In reviewing the books of Unger Retailers inc., the auditor discovered certain errors that had occurred during 2013 and 2014. No errors were corrected during 2013. The errors are summarized below. (a) Beginning merchandise inventory (January 1, 2013) was understated by $8,640. (b) Merchandise costing $2,400 was sold for
Sandusky Enterprise purchased a machine on January 3, 2011. The Machine cost $46,000 with an estimated salvage value of $2,000 and an estimated useful life of 10 years. As a result of technological improvements, a revision of the machine's useful life and estimated salvage value was made. On January 1, 2014, the equipment was es
Piniella Company has three employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours a week. Payroll data for the week ended January 31 are presented in the attached document. Prepare a payroll register for the weekly payroll. Prepare the journal entries to record the payroll an
Selected transactions for Welcome Home, an interior decorator corporation, in its first month of business, are as follows. Paid $200 cash for advertising start of the business. Received $1,100 cash from customers billed in transaction (4). Paid creditor $300 cash on account. Paid dividends of $400 cash to stockholders.
The company has 15 employees, who earn a total of $1830 in salaries each working day. They are paid each Monday for their work in the five day workweek ending on the previous Friday. Assume that December 31, 2009 is a Tuesday and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, t
On January 1, 2013, Acme Company makes the two following acquisitions. Purchases land having a fair market value of $329,000.00 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $554,384.74. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $469,000.00 (int
Acme Company purchases an oil tanker depot on January 1, 2012, at a cost of $828,000. Acme expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $96,600 to dismantle the depot and remove the tanks at the e
On December 31, 2011, Fenton Company sold equipment to Denver, Inc., accepting a $275,000 noninterest-bearing note receivable in full payment on December 31, 2014. Denver, Inc., normally pays 12% for its borrowed funds. The equipment is carried in Fenton's perpetual inventory records at 65% of its cash selling price. 1.) Pre
On September 1, Howe Office Supply had an inventory of 30 calculators at a cost of $18 each.The company uses a perpetual inventory system. During September, the following transactions occurred. Sept 6: Purchased 80 calculators at $20 each from DeVito Co. for cash. Sept 9: Paid freight of $80 on calculators purchased from DeVit
Issued 410 shares of $80 par value preferred stock at par. Issued 640 shares of $80 par value preferred stock in exchange for land that had an appraised value of $81,600. Issued 21,000 shares of $4 par value common stock for $10 per share. Purchased 5,200 shares of common stock for the treasury at $10 per share. Sold 2,100 s
1) (Entries for Stock Dividends and Stock Splits) The stockholders' equity accounts of G.K. Chesterton Company have the following balances on December 31, 2008. Common stock, $10 par, 310,000 shares issued and outstanding $3,100,000 Paid-in capital in excess of par 1,200,000 Retained earnings 5,6
On July 1, 2011, Atwater Corporation issued $2,000,000 face value, 10%, 10-year bonds at $2,271,813. This price resulted in an effective-interest rate of 8% on the bonds. Atwater uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. Prepare entries to
LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2011. In payment for the $24 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 12%. 1. Prepare the journal entry for LC
Record transactions and adjustments. Prepare an answer sheet with the column headings shown aftr the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name and amount and indicating wh
See the attached file. Max Weinberg Company discovered the following errors made in January 2008. A payment of Salaries Expense of $600 was debited to Equipment and credited to Cash, both for $600. A collection of $1,000 from a client on account was debited to Cash $100 and credited to Service Revenue $100. T
Five Study Questions: Pension liability, benefit plans, pension expense, accumulated unrecognized losses, defined benefit pension plan entries
The minimum pension liability that must be shown on the balance sheet of the plan sponsor is the: accumulated benefit obligation. excess of the accumulated benefit obligation over the plan assets at fair value. excess of the projected benefit obligation over the plan assets at fair value. projected benefit obligation.
Debate whether Wikipedia is a credible source of information; Raising and countering objections in decision to get an MBA
Identifying the concept of writing an argument Properly cite and list outside sources. Scenario If you were debating with your learning team whether Wikipedia is a credible and valid source of information or whether Wikipedia in not a credible and/or is not a valid source of information. Must have at least one peer-revi
Johnston, Inc. engaged in the following transactions involving treasury stock: Feb. 10 Purchased for cash 17,000 shares of treasurey stock at a price of $25 per share. June 4 Reissued 6,000 shares of treasurey stock at a price of $33 per share. Dec. 22 Reissued 4,000 shares of treasure stock at a price of $22 per share.
Simon issues four-year bonds with a $50,000 par value on June 1, 2011, at a price of $47,974. The annual contract rate is 7%, and interest is paid semiannually on November 30 and May 31. 1. Prepare journal entries to record the first two interest payments and to accrue interest as of December 31, 2011.
Sam Company. has delivery equipment that cost $55,000 and has been depreciated $30,000. Instructions Record journal entries for the disposal under the following assumptions. (a) It was scrapped as having no value. No money was received or paid. (b) It was sold for $27,000. (c) It was sold for $15,000.
5. Leonard Matson completed these transactions during December of the current year: Prepare general journal entries to record these transactions. 9. A company allows its customers to use bank credit cards to charge purchases. When customers use the credit cards, the net amount is deposited in the company's checking account
When a machine having a net book value of $5,000 is sold for $4,000: a. current assets increase, equipment (net) increases, and net income increases. b. current assets increase, equipment (net) decreases, and net income increases. c. current assets increase, equipment (net) decreases, and net income decreases. d. cur
Research any industry, business, or professional practice. Write an Executive Summary discussing the business entity structure (for example, the advantages and disadvantages of the structure, liability issues and risks against which the business must protect itself against). Compare and discuss the difference of the company'
This project should be completed using Excel (with formulas and linked data). The parameters of the project are below: 1. Prepare an Income Statement for the year ended 2011. This statement should be flexibly designed (formulas in cells). This should be a multi-step income statement (see video and/or exhibit 4.1 on pg. 4-5
The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct-labor cost: 70,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: 432,0
Gipson Furniture factors $400,000 of receivables to Kwik Factors, Inc. Kwik Factors assesses a 3% service charge on the amount of receivables sold. Gipson Furniture factors its receivables regularly with Kwik Factors. What journal entry does Gipson make when factoring these receivables? A) B) C) D) An ana
The following events occur for The Underwood Corporation during 2012 and 2013, its first two years of operations 12-Jun-12 Provide services to customers on account for $35,000. 17-Sep-12 Receive $20,000 from customers on account 31-Dec-12 Estimate that 40% of accounts receivable at
Bombeck Company sells a product for $1,500. When the customer buys it, Bombeck provides a one-year warranty. Bombeck sold 120 products during 2010. Based on analysis of past warranty records, Bombeck estimates that repairs will average 3% of total sales. Required: 1. Prepare a journal entry to record the estimated liabilit
What is the journal entry for this: August 31 falls on a Thursday. On Friday, September 1, the part-time employee John J. Jones was paid $250 or $50 per day for a five-day work week which ended that Friday.