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.
See attached file for proper format. Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2007). Intermediate accounting, (12th ed.). Hoboken, NJ: John Wiley & Sons. Please explain how you got your answers. Problem 1: The KYO Company's common stock information includes: Current market price per share: $190 Current bo
1. A company had a normal balance of $10,000 in its Accounts Receivable account, and a normal balance of $500 in its Allowance for Doubtful Accounts account. During the year it had $500,000 in sales. At the end of the year it determined that 3.5% of sales would be uncollectible. Required: a. Prepare the adjusting entry t
E12-13 AS A LONG-TERM INVESTMENT AT THE BEGINNING OF THE FISCAL YEAR, FLORISTS INTERNATIONAL PURCHASED 30 % OF NURSERY SUPPLIES INC.'S 8 MILLION SHARES FOR $56 MILLION. THE FAIR VALUE AND BOOK VALUE WERE THE SAME AT THAT TIME. DURING THE YEAR, NURSERY SUPPLIES EARNED NET INCOME OF $40 MILLION AND DISTRIBUTED CASH DIVIDENDS OF
10-12 Cisco System reported the following information in its 2009 financial statements ($ in millions): 2009 2008 Balance sheets $4,043 $4,151 Property, plant, and equipment (net) Income statement $36,117 Net sales for 2009 Required 1. Calculate Cisco's 2009 fixed-asset turnover ratio 2. How woul
Problem 4-1 Parent Company Entries, Three Methods On Jan 1,2004, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long term investment. The purchase price of $4,972,000 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following:
P2-1 Consolidation Phillips Solina Current Assets $180,000.00 $85,000.00 Plant & equipment (net) $450,000.00 $140,000.00 Total Assets $630,000.00 $225,000.00 Total Liabilities $95,000 $35,000 Common Stock, $10 par value
(Error Analysis; Correcting Entries) A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008. Supplies on hand 2,700 Dr. Accrued salaries and wages 1,500 Cr. Interest receivable on investments 5,100 Dr. Prepaid insurance 90,000 Dr. Unearned rent -0-
On January 1, 2010, Carolinas Corporation had the following stockholders' equity accounts. Common Stock ($20 par value, 60,000 shares issued and outstanding) - $1,200,000 Paid-in Capital in Excess of Par Value - $200,000 Retained Earnings - $600,000 During the year, the following transactions occurred. Feb. 1 - Declar
E10-10 Beka Company owns equipment that cost $50,000 when purchased on January 1, 2005. It has been depreciated using the straight-line method based on an estimated salvage value of $5,000 and an estimated useful life of 5 years. Instructions: Prepare Beka Company's journal entries for the sale of the equipment in these
Record the adjusting entries at December 31, using T-accounts. DeCort Company had these adjusting entry situations at the end of December: 1. May 1-paid $960 for a two -year insurance policy. The policy was for the period May 1-April 30(for 2yrs). This is the first year of the policy-Transaction was recorded as insurance e
Can you help me with this assignment? During 2010, Lakeview Co. completed the following two transactions. The annual accounting period ends Dec. 31. a. On Dec 31, 2010, calculated the payroll, which indicates gross earnings for wages ($82,000), payroll deductions for income tax ($8,000), payroll deductions for FICA( $6,000
(Dividend Entries) The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2007. Current Assets $540,000 Investments $624,000 Common Stock (par value $10) $500,000 Paid in Capital in excess of par $150,000 Retained Earnings $840,000 Instructions Prepare the required jou
Information: On January 1,2010 IN Inc., issued $200,000 in bonds at face value. The bonds have a stated rate of 6%. The bonds mature in 10 years and pay interest once per year on Dec. 31. Question: If the bonds were retired immediately after the first interest payment at a quoted price of 102, how would I prepare the journal
Do you think that online data gathered via survey is of a better or worse quality than data gathered from more traditional methods?
Depletion Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine was estimated to contain 2.5 million tons of ore and to have a residual value of $1 million. During the first year of mining operations at the Northern Tier Mine, 50,000 tons of ore were mined, of which 40,000 tons were sold. 1.
Westy Company manufactures cribs. Each crib passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Westy Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materi
Pinehollow and Stonebriar Scenario Pinehollow acquired all of the outstanding stock of Stonebriar by issuing 100,000 shares of its $1 par value stock. The shares have a fair value of $15 per share. Pinehollow also paid $25,000 in direct acquisition costs. Prior to the transaction, the companies have the following balance shee
Describe what an annotated bibliography looks like and provide different examples.
Clemson company prepares its budgets on the basis of standard costs.A resposibility report is prepared monthly showing the differences between master budget and actual results. Variances are analysed and reported separately. There are no materials inventories. The following information relates to the current peri
Reese and Janet share partnership profits and losses at 70% and 30%, respectively. The partners agree to admit Smith into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Smith are: Reese (70%) $ 400,000 Janet (30%) $ 300,000 Total $ 700,000
Berman Company sold equipment on June 30, 2005 for $40,000. The equipment had cost $105,000 and had $60,000 of accumulated depreciation as of January 1, 2005. Depreciation for the first 6 months of 2005 was $6,000. Prepare the journal entry to record the sale of the equipment. Account Title Debit Credit
1. Candlestick Corporation purchased raw material used for manufacturing candles from a supplier on June 1. The total amount of the purchase was $10,500 of which $3,000 was paid on the day of purchase. The remaining amount owed is due to the suppler within 15 days. Prepare the journal entry for Candlestick Corporation to record
1. Chester Lome drills well for residential and commercial lots. In April 2008. Chester decided to scrap his well drilling truck, purchased in 1984 for $25,000 and fully depreciated Prepare the journal entry recording the scrapping of the truck. 2. Alik Amal is a bar in Panama City, Florida, in April 2008, rowdy spring bre
Wertz Corporation decided at the beginning of 2010 to change from the completed-contract method to the percentage-of-completion method for financial reporting purposes. The company will continue to use completed-contract method for tax purposes. For years prior to 2010, pre-tax income under the two methods was as follows: percen
Before preparing financial statements for the current year, the chief accountant for Springer Company discovered the following errors in the company accounts: 1. The declaration and payment of a $50,000 cash dividend was recorded as a debut to Interest Expense $50,000, and a credit to Cash $50,000. 2. A 10% stock dividend
Piniella Company company has the following data for the weekly payroll ending January 31. Hours Hourly Federal Income Tax Health M T W T F S Rate Withholding Insurance Employees M. Hindi 8 8 9 8 10 3 $11 $34 $10 E. Benson 8 8 8 8 8 2 $13 $37 $15 K. Estes 9 10 8 8 9 0 $14 $58 $15