1.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
Use the information in the following adjusted trial balance for the Webb Trucking Company.<\/p>\n
Account Title<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Cash<\/p>\n
$<\/p>\n
7,300 <\/p>\n
Accounts receivable<\/p>\n
16,500 <\/p>\n
Office supplies<\/p>\n
2,000 <\/p>\n
Trucks<\/p>\n
197,000 <\/p>\n
Accumulated depreciation\u2014Trucks<\/p>\n
$<\/p>\n
40,582 <\/p>\n
Land<\/p>\n
75,000 <\/p>\n
Accounts payable<\/p>\n
11,300 <\/p>\n
Interest payable<\/p>\n
3,000 <\/p>\n
Long-term notes payable<\/p>\n
52,000 <\/p>\n
K. Webb, Capital<\/p>\n
183,638 <\/p>\n
K. Webb, Withdrawals<\/p>\n
19,000 <\/p>\n
Trucking fees earned<\/p>\n
134,500 <\/p>\n
Depreciation expense\u2014Trucks<\/p>\n
26,175 <\/p>\n
Salaries expense<\/p>\n
63,080 <\/p>\n
Office supplies expense<\/p>\n
7,398 <\/p>\n
Repairs expense\u2014Trucks<\/p>\n
11,567 <\/p>\n
Totals<\/p>\n
$<\/p>\n
425,020 <\/p>\n
$<\/p>\n
425,020 <\/p>\n
(1)<\/p>\n
Calculate the current ratio. (Assume that the industry average for the current ratio is 1.5.) (Round your answer to 2 decimal places.)<\/b><\/p>\n
Current ratio<\/p>\n
(2)<\/p>\n
Compare Webb’s current ratio with the industry average.<\/p>\n
Webb’s current ratio is above the industry average.<\/p>\n
Webb’s current ratio is below the industry average.<\/p>\n
2.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
The following adjusted trial balance of Webb Trucking Company.<\/p>\n
Account Title<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Cash<\/p>\n
$<\/p>\n
8,100 <\/p>\n
Accounts receivable<\/p>\n
16,500 <\/p>\n
Office supplies<\/p>\n
2,000 <\/p>\n
Trucks<\/p>\n
158,000 <\/p>\n
Accumulated depreciation\u2014Trucks<\/p>\n
$<\/p>\n
32,548 <\/p>\n
Land<\/p>\n
75,000 <\/p>\n
Accounts payable<\/p>\n
12,100 <\/p>\n
Interest payable<\/p>\n
3,000 <\/p>\n
Long-term notes payable<\/p>\n
52,000 <\/p>\n
K. Webb, Capital<\/p>\n
160,160 <\/p>\n
K. Webb, Withdrawals<\/p>\n
19,000 <\/p>\n
Trucking fees earned<\/p>\n
113,000 <\/p>\n
Depreciation expense\u2014Trucks<\/p>\n
20,993 <\/p>\n
Salaries expense<\/p>\n
52,997 <\/p>\n
Office supplies expense<\/p>\n
10,500 <\/p>\n
Repairs expense\u2014Trucks<\/p>\n
9,718 <\/p>\n
Totals<\/p>\n
$<\/p>\n
372,808 <\/p>\n
$<\/p>\n
372,808 <\/p>\n
The K. Webb, Capital, account balance is $160,160 at December 31, 2010.<\/p>\n
(1)<\/p>\n
Prepare the income statement for the year ended December 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.)<\/b><\/p>\n
WEBB TRUCKING COMPANY<\/p>\n
Income Statement<\/p>\n
For Year Ended December 31, 2011<\/p>\n
3.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
Account Title<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Cash<\/p>\n
$<\/p>\n
5,000 <\/p>\n
Accounts receivable<\/p>\n
29,000 <\/p>\n
Office supplies<\/p>\n
6,958 <\/p>\n
Trucks<\/p>\n
190,000 <\/p>\n
Accumulated depreciation\u2014Trucks<\/p>\n
$<\/p>\n
39,140 <\/p>\n
Land<\/p>\n
46,000 <\/p>\n
Accounts payable<\/p>\n
9,000 <\/p>\n
Interest payable<\/p>\n
20,000 <\/p>\n
Long-term notes payable<\/p>\n
61,000 <\/p>\n
K. Webb, Capital<\/p>\n
146,271 <\/p>\n
K. Webb, Withdrawals<\/p>\n
17,000 <\/p>\n
Trucking fees earned<\/p>\n
125,000 <\/p>\n
Depreciation expense\u2014Trucks<\/p>\n
25,245 <\/p>\n
Salaries expense<\/p>\n
59,329 <\/p>\n
Office supplies expense<\/p>\n
11,000 <\/p>\n
Repairs expense\u2014Trucks<\/p>\n
10,879 <\/p>\n
Totals<\/p>\n
$<\/p>\n
400,411 <\/p>\n
$<\/p>\n
400,411 <\/p>\n
Using the above adjusted trial balance to prepare Webb Trucking Company\u2019s classified balance sheet as of December 31, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Negative amounts should be indicated by a minus sign. Omit the “$” sign in your response.)<\/b><\/p>\n
WEBB TRUCKING COMPANY<\/p>\n
Balance Sheet<\/p>\n
December 31, 2011<\/p>\n
4<\/p>\n
4.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
The following unadjusted trial balance contains the accounts and balances of Dalton Delivery Company as of December 31, 2011, its first year of operations.<\/p>\n
a.<\/b><\/p>\n
Unrecorded depreciation on the trucks at the end of the year is $8,505.<\/p>\n
b.<\/b><\/p>\n
The total amount of accrued interest expense at year-end is $8,000.<\/p>\n
c.<\/b><\/p>\n
The cost of unused office supplies still available at the year-end is $600.<\/p>\n
(1)<\/p>\n
Use the above information about the company\u2019s adjustments to complete a 10-column work sheet.(Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)<\/b><\/p>\n
DALTON DELIVERY COMPANY<\/p>\n
Work Sheet<\/p>\n
For Year Ended December 31, 2011<\/p>\n
Unadjusted<\/p>\n
Trial Balance<\/p>\n
Adjustments<\/p>\n
Adjusted<\/p>\n
Trial Balance<\/p>\n
Income<\/p>\n
Statement<\/p>\n
Balance Sheet<\/p>\n
& Statement of<\/p>\n
Owner’s Equity<\/p>\n
<\/p>\n
Account Title<\/p>\n
Dr.<\/p>\n
Cr.<\/p>\n
Dr.<\/p>\n
Cr.<\/p>\n
Dr.<\/p>\n
Cr.<\/p>\n
Dr.<\/p>\n
Cr.<\/p>\n
Dr.<\/p>\n
Cr.<\/p>\n
<\/p>\n
Cash<\/p>\n
$<\/p>\n
15,500 <\/p>\n
$ <\/p>\n
$ <\/p>\n
$ <\/p>\n
$ <\/p>\n
$ <\/p>\n
$ <\/p>\n
$ <\/p>\n
$ <\/p>\n
<\/p>\n
Accounts receivable<\/p>\n
18,500 <\/p>\n
<\/p>\n
Office supplies<\/p>\n
1,600 <\/p>\n
<\/p>\n
Trucks<\/p>\n
290,000 <\/p>\n
<\/p>\n
Accum. Depreciation\u2013Trucks<\/p>\n
$<\/p>\n
80,000 <\/p>\n
<\/p>\n
Land<\/p>\n
170,000 <\/p>\n
<\/p>\n
Accounts payable<\/p>\n
24,335 <\/p>\n
<\/p>\n
Interest payable<\/p>\n
4,000 <\/p>\n
<\/p>\n
Long-term notes payable<\/p>\n
150,000 <\/p>\n
<\/p>\n
V. Dalton, Capital<\/p>\n
151,838 <\/p>\n
<\/p>\n
V. Dalton, Withdrawals<\/p>\n
35,000 <\/p>\n
<\/p>\n
Delivery fees earned<\/p>\n
283,495 <\/p>\n
<\/p>\n
Depreciation expense\u2014Trucks<\/p>\n
20,000 <\/p>\n
<\/p>\n
Salaries expense<\/p>\n
119,068 <\/p>\n
<\/p>\n
Office supplies expense<\/p>\n
11,000 <\/p>\n
<\/p>\n
Interest expense<\/p>\n
4,000 <\/p>\n
<\/p>\n
Repairs expense\u2014Trucks<\/p>\n
9,000 <\/p>\n
<\/p>\n
Totals<\/p>\n
$<\/p>\n
693,668 <\/p>\n
$<\/p>\n
693,668 <\/p>\n
<\/p>\n
Net Income<\/p>\n
<\/p>\n
Totals<\/p>\n
$ <\/p>\n
$ <\/p>\n
$ <\/p>\n
$ <\/p>\n
<\/p>\n
(2.1)<\/p>\n
Prepare the year-end closing entries for Dalton Delivery Company as of December 31, 2011. (Omit the “$” sign in your response.)<\/b><\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
(Click to select)Delivery fees earnedDepreciation expense-trucksRepairs expense-trucksIncome summarySalaries expenseOffice supplies expenseV. Dalton, WithdrawalsInterest expense<\/p>\n
(Click to select)V. Dalton, WithdrawalsIncome summaryOffice supplies expenseSalaries expenseRepairs expense-trucksDelivery fees earnedInterest expenseDepreciation expense-trucks<\/p>\n
(Click to select)V. Dalton, WithdrawalsRepairs expense-trucksSalaries expenseInterest expenseDepreciation expense-trucksIncome summaryDelivery fees earnedOffice supplies expense<\/p>\n
(Click to select)Repairs expense-trucksDelivery fees earnedOffice supplies expenseSalaries expenseInterest expenseV. Dalton, WithdrawalsDepreciation expense-trucksIncome summary<\/p>\n
(Click to select)V. Dalton, WithdrawalsIncome summaryDelivery fees earnedOffice supplies expenseRepairs expense-trucksSalaries expenseInterest expenseDepreciation expense-trucks<\/p>\n
(Click to select)Income summaryV. Dalton, WithdrawalsOffice supplies expenseRepairs expense-trucksInterest expenseDelivery fees earnedDepreciation expense-trucksSalaries expense<\/p>\n
(Click to select)Income summaryV. Dalton, WithdrawalsOffice supplies expenseInterest expenseDepreciation expense-trucksDelivery fees earnedSalaries expenseRepairs expense-trucks<\/p>\n
(Click to select)Interest expenseSalaries expenseIncome summaryDepreciation expense-trucksRepairs expense-trucksV. Dalton, WithdrawalsOffice supplies expenseDelivery fees earned<\/p>\n
(Click to select)Repairs expense-trucksSalaries expenseV. Dalton, CapitalDelivery fees earnedDepreciation expense-trucksInterest expenseIncome summaryOffice supplies expense<\/p>\n
(Click to select)Interest expenseDelivery fees earnedV. Dalton, CapitalSalaries expenseDepreciation expense-trucksRepairs expense-trucksIncome summaryOffice supplies expense<\/p>\n
(Click to select)Office supplies expenseV. Dalton, WithdrawalsDepreciation expense-trucksSalaries expenseIncome summaryDelivery fees earnedV. Dalton, CapitalInterest expense<\/p>\n
(Click to select)Office supplies expenseDelivery fees earnedV. Dalton, WithdrawalsInterest expenseDepreciation expense-trucksV. Dalton, CapitalIncome summarySalaries expense<\/p>\n
(2.2)<\/p>\n
Determine the capital amount to be reported on its year-end balance sheet. (Omit the “$” sign in your response.)<\/b><\/p>\n
Ending balance<\/p>\n
$ <\/p>\n
check my workeBook LinkView Hint #1<\/p>\n
5.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
The following adjusted trial balance contains the accounts and balances of Showers Company as of December 31, 2011, the end of its fiscal year.<\/p>\n
No.<\/p>\n
Account Title<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
101<\/p>\n
Cash<\/p>\n
$<\/p>\n
18,000 <\/p>\n
126<\/p>\n
Supplies<\/p>\n
9,600 <\/p>\n
128<\/p>\n
Prepaid insurance<\/p>\n
2,000 <\/p>\n
167<\/p>\n
Equipment<\/p>\n
23,000 <\/p>\n
168<\/p>\n
Accumulated depreciation\u2014Equipment<\/p>\n
$<\/p>\n
6,500 <\/p>\n
301<\/p>\n
R. Showers, Capital<\/p>\n
42,165 <\/p>\n
302<\/p>\n
R. Showers, Withdrawals<\/p>\n
6,000 <\/p>\n
404<\/p>\n
Services revenue<\/p>\n
43,400 <\/p>\n
612<\/p>\n
Depreciation expense\u2014Equipment<\/p>\n
2,000 <\/p>\n
622<\/p>\n
Salaries expense<\/p>\n
25,302 <\/p>\n
637<\/p>\n
Insurance expense<\/p>\n
1,823 <\/p>\n
640<\/p>\n
Rent expense<\/p>\n
2,908 <\/p>\n
652<\/p>\n
Supplies expense<\/p>\n
1,432 <\/p>\n
Totals<\/p>\n
$<\/p>\n
92,065 <\/p>\n
$<\/p>\n
92,065 <\/p>\n
(1)<\/p>\n
Prepare the December 31, 2011, closing entries for Showers Company. (Omit the “$” sign in your response.)<\/b><\/p>\n
Date<\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Dec. 31<\/p>\n
(Click to select)Income summarySalaries expenseRent expenseAccounts receivableServices revenueR. Showers, WithdrawalsDepreciation expense-equipmentSupplies expense<\/p>\n
(Click to select)Accounts receivableSupplies expenseDepreciation expense-equipmentIncome summaryRent expenseR. Showers, WithdrawalsServices revenueSalaries expense<\/p>\n
(Click to select)Income summaryR. Showers, CapitalDepreciation expense-equipmentR. Showers, WithdrawalsRent expenseInsurance expenseSalaries expenseSupplies expense<\/p>\n
(Click to select)Salaries expenseR. Showers, CapitalIncome summaryInsurance expenseRent expenseDepreciation expense-equipmentR. Showers, WithdrawalsSupplies expense<\/p>\n
(Click to select)R. Showers, WithdrawalsRent expenseDepreciation expense-equipmentInsurance expenseSupplies expenseSalaries expenseIncome summaryR. Showers, Capital<\/p>\n
(Click to select)Salaries expenseIncome summaryDepreciation expense-equipmentInsurance expenseRent expenseR. Showers, WithdrawalsSupplies expenseR. Showers, Capital<\/p>\n
(Click to select)Insurance expenseRent expenseSalaries expenseDepreciation expense-equipmentIncome summaryR. Showers, CapitalR. Showers, WithdrawalsSupplies expense<\/p>\n
(Click to select)Rent expenseR. Showers, WithdrawalsInsurance expenseR. Showers, CapitalSupplies expenseSalaries expenseIncome summaryDepreciation expense-equipment<\/p>\n
(Click to select)Supplies expenseSalaries expenseAccounts receivableServices revenueR. Showers, CapitalDepreciation expense-equipmentIncome summaryRent expense<\/p>\n
(Click to select)Salaries expenseAccounts receivableIncome summaryR. Showers, CapitalRent expenseDepreciation expense-equipmentServices revenueSupplies expense<\/p>\n
(Click to select)R. Showers, CapitalDepreciation expense-equipmentRent expenseSupplies expenseR. Showers, WithdrawalsIncome summarySalaries expenseServices revenue<\/p>\n
(Click to select)R. Showers, CapitalServices revenueRent expenseDepreciation expense-equipmentIncome summaryR. Showers, WithdrawalsSupplies expenseSalaries expense<\/p>\n
(2)<\/p>\n
Prepare the December 31, 2011, post-closing trial balance for Showers Company. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities and Equity. Be sure to list the asset in order of liquidity. Omit the “$” sign in your response.)<\/b><\/p>\n
SHOWERS COMPANY<\/p>\n
Post-Closing Trial Balance<\/p>\n
December 31, 2011<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
<\/p>\n
(Click to select)Accumulated depreciation-equipmentEquipmentSuppliesCashPrepaid insurance<\/p>\n
$ <\/p>\n
<\/p>\n
(Click to select)Prepaid insuranceSuppliesAccumulated depreciation-equipmentCashEquipment<\/p>\n
<\/p>\n
(Click to select)Prepaid insuranceCashSuppliesAccumulated depreciation-equipmentEquipment<\/p>\n
<\/p>\n
(Click to select)SuppliesPrepaid insuranceEquipmentAccumulated depreciation-equipmentCash<\/p>\n
<\/p>\n
(Click to select)EquipmentSuppliesCashAccumulated depreciation-equipmentPrepaid insurance<\/p>\n
$ <\/p>\n
<\/p>\n
(Click to select)Prepaid insuranceSuppliesEquipmentR. Showers, CapitalCash<\/p>\n
<\/p>\n
Totals<\/p>\n
$ <\/p>\n
$ <\/p>\n
<\/p>\n
5<\/p>\n
6.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
The following two events occurred for Tanger Co. on October 31, 2011, the end of its fiscal year.<\/p>\n
a.<\/b><\/p>\n
Tanger rents a building from its owner for $3,300 per month. By a prearrangement, the company delayed paying October’s rent until November 5. On this date, the company paid the rent for both October and November.<\/p>\n
b.<\/b><\/p>\n
Tanger rents space in a building it owns to a tenant for $700 per month. By prearrangement, the tenant delayed paying the October rent until November 8. On this date, the tenant paid the rent for both October and November.<\/p>\n
Required:<\/b><\/p>\n
1.<\/b><\/p>\n
Prepare adjusting entries that the company must record for these events as of October 31. (Omit the “$” sign in your response.)<\/b><\/p>\n
Date<\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Oct. 31 <\/p>\n
(Click to select)Salaries payableSalaries expenseAccounts receivablePrepaid insuranceRent expenseRent payableAccounts payableCash<\/p>\n
(Click to select)Accounts receivablePrepaid insuranceSalaries payableRent payableRent expenseSalaries expenseAccounts payableCash<\/p>\n
(Click to select)Salaries expensePrepaid insuranceRent receivableCashAccounts receivableSalaries payableAccounts payableRent earned<\/p>\n
(Click to select)Accounts payableCashRent earnedRent receivableAccounts receivablePrepaid insuranceSalaries expenseSalaries payable<\/p>\n
2.<\/b><\/p>\n
Assuming Tanger does not use reversing entries, prepare journal entries to record Tanger’s payment of rent on November 5 and the collection of rent on November 8 from Tanger’s tenant. (Omit the “$” sign in your response.)<\/b><\/p>\n
Date<\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Nov. 5 <\/p>\n
(Click to select)CashRent earnedAccounts receivable Rent payableAccounts payableRent expenseSalaries payablePrepaid insurance<\/p>\n
(Click to select)Rent earnedCashAccounts payablePrepaid insurance Rent payableRent expenseAccounts receivableSalaries payable<\/p>\n
(Click to select)Accounts receivableRent earnedPrepaid insuranceAccounts payableCashRent expenseRent payableSalaries payable<\/p>\n
8 <\/p>\n
(Click to select)Rent expenseRent receivablePrepaid insuranceCashAccounts receivableRent earnedRent payableAccounts payable<\/p>\n
(Click to select)Accounts receivableAccounts payableRent receivableRent expensePrepaid insuranceRent earnedRent payableCash<\/p>\n
(Click to select)Rent receivableCashRent payablePrepaid insuranceAccounts receivableRent earnedAccounts payableRent expense<\/p>\n
3.<\/b><\/p>\n
Assuming that the company uses reversing entries, prepare reversing entries on November 1 and the journal entries to record Tanger’s payment of rent on November 5 and the collection of rent on November 8 from Tanger’s tenant. (Omit the “$” sign in your response.)<\/b><\/p>\n
Date<\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Nov. 1 <\/p>\n
(Click to select)Accounts payableRent payableSalaries expenseAccounts receivableCashPrepaid insuranceRent expenseSalaries payable<\/p>\n
(Click to select)Prepaid insuranceRent expenseRent payableCashSalaries expenseSalaries payableAccounts receivableAccounts payable<\/p>\n
(Click to select)Rent earnedSalaries expenseCashRent receivablePrepaid insuranceAccounts receivableSalaries payableAccounts payable<\/p>\n
(Click to select)Rent earnedAccounts payableSalaries expenseCashAccounts receivableRent receivablePrepaid insuranceSalaries payable<\/p>\n
5 <\/p>\n
(Click to select)Accounts receivableRent expensePrepaid insuranceRent payableAccounts payableCashRent earnedSalaries payable<\/p>\n
(Click to select)Rent earnedAccounts payablePrepaid insuranceAccounts receivableSalaries payableCashRent expenseRent payable<\/p>\n
8 <\/p>\n
(Click to select)Rent earnedRent expenseCashRent payableSalaries payablePrepaid insuranceAccounts payableAccounts receivable<\/p>\n
(Click to select)Rent earnedRent expenseSalaries payableCashRent payableAccounts payablePrepaid insuranceAccounts receivable<\/p>\n
check my workeBook LinkView Hint #1references<\/p>\n
7.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
Case A<\/p>\n
Case B<\/p>\n
Case C<\/p>\n
Cash<\/p>\n
$<\/p>\n
760<\/p>\n
$<\/p>\n
865<\/p>\n
$<\/p>\n
1,060 <\/p>\n
Short-term investments<\/p>\n
0<\/p>\n
0<\/p>\n
500 <\/p>\n
Current receivables<\/p>\n
0<\/p>\n
945<\/p>\n
660 <\/p>\n
Inventory<\/p>\n
1,900<\/p>\n
955<\/p>\n
3,800 <\/p>\n
Prepaid expenses<\/p>\n
1,200<\/p>\n
562<\/p>\n
900 <\/p>\n
Total current assets<\/p>\n
$<\/p>\n
3,860<\/p>\n
$<\/p>\n
3,327<\/p>\n
$<\/p>\n
6,920 <\/p>\n
Current liabilities<\/p>\n
$<\/p>\n
2,239<\/p>\n
$<\/p>\n
1,120<\/p>\n
$<\/p>\n
1,730 <\/p>\n
Compute the current ratio and acid-test ratio for each of the above separate cases. (Round your answers to 2 decimal places.)<\/b><\/p>\n
Case A<\/p>\n
Case B<\/p>\n
Case C<\/p>\n
Current ratio<\/p>\n
Acid-test ratio<\/p>\n
Which company case is in the best position to meet short-term obligations?<\/p>\n
Case A<\/p>\n
Case B<\/p>\n
Case C<\/p>\n
8.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
Using your accounting knowledge, find the missing amounts in the following separate income statements athrough e. (Amounts in parentheses do not require a minus sign in front of them. Input all amounts as positive values. Omit the “$” sign in your response.)<\/b><\/p>\n
a<\/p>\n
b<\/p>\n
c<\/p>\n
d<\/p>\n
e<\/p>\n
Sales<\/p>\n
$<\/p>\n
51,200 <\/p>\n
$<\/p>\n
36,250<\/p>\n
$<\/p>\n
33,280<\/p>\n
$<\/p>\n
$<\/p>\n
20,122 <\/p>\n
Cost of goods sold<\/p>\n
Merchandise inventory (beginning)<\/p>\n
4,864 <\/p>\n
2,936<\/p>\n
6,989<\/p>\n
6,124<\/p>\n
2,073 <\/p>\n
Total cost of merchandise purchases<\/p>\n
29,184 <\/p>\n
27,987<\/p>\n
7,256 <\/p>\n
Merchandise inventory (ending)<\/p>\n
() <\/p>\n
(3,736<\/p>\n
)<\/p>\n
(8,489<\/p>\n
)<\/p>\n
(5,749<\/p>\n
)<\/p>\n
() <\/p>\n
Cost of goods sold<\/p>\n
<\/p>\n
28,684 <\/p>\n
<\/p>\n
11,241<\/p>\n
<\/p>\n
7,056 <\/p>\n
Gross profit<\/p>\n
5,826<\/p>\n
38,198<\/p>\n
Expenses<\/p>\n
9,000 <\/p>\n
10,650<\/p>\n
13,050<\/p>\n
2,600<\/p>\n
6,100 <\/p>\n
Net income (loss)<\/p>\n
$<\/p>\n
$<\/p>\n
14,359<\/p>\n
$<\/p>\n
(7,224<\/p>\n
)<\/p>\n
$<\/p>\n
35,598<\/p>\n
$<\/p>\n
check my workeBook Links (2)View Hint #1references<\/p>\n
9.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
Taos Company purchased merchandise for resale from Tuscon Company with an invoice price of $16,300 and credit terms of 3\/10, n\/60. The merchandise had cost Tuscon $11,117. Taos paid within the discount period. Assume that both buyer and seller use a perpetual inventory system.<\/p>\n
1<\/b>(a)<\/p>\n
Prepare entries that the buyer should record for the purchase. (Omit the “$” sign in your response.)<\/b><\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
(Click to select)Salaries payableCost of goods soldCashAccounts receivableSalesAccounts payableMerchandise inventorySales discounts<\/p>\n
(Click to select)Merchandise inventorySales discountsAccounts receivableSalaries payableSalesCashCost of goods soldAccounts payable<\/p>\n
1<\/b>(b)<\/p>\n
Prepare entries that the buyer should record for the cash payment. (Omit the “$” sign in your response.)<\/b><\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
(Click to select)SuppliesAccounts payableAccounts receivableCashSales discountsMerchandise inventoryCost of goods soldSalaries payable<\/p>\n
(Click to select)Accounts payableSales discountsSalaries payableMerchandise inventoryCashAccounts receivableSuppliesCost of goods sold<\/p>\n
(Click to select)CashMerchandise inventorySales discountsSalaries payableAccounts payableCost of goods soldSuppliesAccounts receivable<\/p>\n
2<\/b>(a)<\/p>\n
Prepare entries that the seller should record for the sale. (Omit the “$” sign in your response.)<\/b><\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
(Click to select)CashSalesAccounts receivableSales discountsSalaries payableMerchandise inventoryAccounts payableSelling expenses<\/p>\n
(Click to select)Salaries payableSales discountsMerchandise inventorySalesCashSelling expensesAccounts payableAccounts receivable<\/p>\n
(Click to select)Merchandise inventorySalesCost of goods soldSales returns and allowancesAccounts payableAccounts receivableCashSales discounts<\/p>\n
(Click to select)Sales returns and allowancesMerchandise inventoryAccounts receivableAccounts payableCost of goods soldCashSales discountsSales<\/p>\n
2<\/b>(b)<\/p>\n
Prepare entries that the seller should record for the cash collection. (Omit the “$” sign in your response.)<\/b><\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
(Click to select)CashMerchandise inventorySales allowanceUnearned revenueSalaries payableAccounts payableAccounts receivableSales discounts<\/p>\n
(Click to select)Accounts payableSales allowanceSalaries payableCashSales discountsAccounts receivableUnearned revenueMerchandise inventory<\/p>\n
(Click to select)Accounts payableMerchandise inventorySales allowanceAccounts receivableSales discountsUnearned revenueCashSalaries payable<\/p>\n
3.<\/b><\/p>\n
Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 11% and paid it back on the last day of the credit period. Compute how much the buyer saved by following this strategy. (Use 365 days a year. Round your intermediate calculations and final answer to 2 decimal places. Omit the “$” sign in your response.)<\/b><\/p>\n
Buyer’s net savings<\/p>\n
$ <\/p>\n
10.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2011, unadjusted trial balance of Deacon Co., a business owned by Julie Deacon. Use these account balances along with the additional information to journalize (a) adjusting entries and (b) closing entries. Deacon Co. uses a perpetual inventory system.<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Merchandise inventory<\/p>\n
$<\/p>\n
32,800 <\/p>\n
Prepaid selling expenses<\/p>\n
6,000 <\/p>\n
J.Deacon, Withdrawals<\/p>\n
2,400 <\/p>\n
Sales<\/p>\n
$<\/p>\n
590,400 <\/p>\n
Sales returns and allowances<\/p>\n
22,435 <\/p>\n
Sales discounts<\/p>\n
6,282 <\/p>\n
Cost of goods sold<\/p>\n
290,477 <\/p>\n
Sales salaries expense<\/p>\n
64,944 <\/p>\n
Utilities expense<\/p>\n
18,893 <\/p>\n
Selling expenses<\/p>\n
50,774 <\/p>\n
Administrative expenses<\/p>\n
130,478 <\/p>\n
Additional Information<\/b><\/p>\n
Accrued sales salaries amount to $1,700. Prepaid selling expenses of $2,400 have expired. A physical count of year-end merchandise inventory shows $32,177 of goods still available.<\/p>\n
Deacon Co. uses a perpetual inventory system.<\/p>\n
Using the above account balances and the additional information prepare adjusting entries. (Omit the “$” sign in your response.)<\/b><\/p>\n
Date<\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Dec. 31<\/p>\n
(Click to select)Salaries payablePrepaid expensesSales allowanceSelling expensesMerchandise inventorySales salaries expenseIncome summaryUtilities expenseCost of goods sold<\/p>\n
(Click to select)Sales allowanceSelling expensesMerchandise inventorySalaries payableUtilities expenseIncome summarySales salaries expenseCost of goods soldPrepaid expenses<\/p>\n
(Click to select)Selling expensesSales salaries expenseMerchandise inventoryCost of goods soldAccrued salariesUtilities expenseIncome summaryPrepaid selling expensesSales allowance<\/p>\n
(Click to select)Merchandise inventoryCost of goods soldUtilities expenseAccrued salariesIncome summarySales allowanceSales salaries expensePrepaid selling expensesSelling expenses<\/p>\n
(Click to select)Prepaid selling expensesSelling expensesSales salaries expenseUtilities expenseCost of goods soldSuppliesSalaries payableCashMerchandise inventory<\/p>\n
(Click to select)Selling expensesCost of goods soldPrepaid selling expensesUtilities expenseSalaries payableSales salaries expenseMerchandise inventoryCashSupplies<\/p>\n
Using the above account balances and the additional information prepare closing entries. (Omit the “$” sign in your response.)<\/b><\/p>\n
Date<\/p>\n
General Journal<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
Dec. 31<\/p>\n
(Click to select)Utilities expenseSalaries expensesSelling expensesSales discountsIncome summarySalesCost of goods soldCommon stockDividends<\/p>\n
(Click to select)DividendsSelling expensesCommon stockCost of goods soldSales discountsSalaries expensesUtilities expenseIncome summarySales<\/p>\n
(Click to select)Cost of goods soldUtilities expenseSelling expensesIncome summaryAdministrative expensesCashSales returns and allowancesSales salaries expenseSales discounts<\/p>\n
(Click to select)Income summarySales salaries expenseCost of goods soldSales discountsSelling expensesSales returns and allowancesUtilities expenseCashAdministrative expenses<\/p>\n
(Click to select)Sales salaries expenseIncome summaryCashCost of goods soldAdministrative expensesUtilities expenseSales discountsSelling expensesSales returns and allowances<\/p>\n
(Click to select)Sales discountsSelling expensesIncome summarySales returns and allowancesCost of goods soldAdministrative expensesSales salaries expenseUtilities expenseCash<\/p>\n
(Click to select)CashSelling expensesSales salaries expenseSales returns and allowancesCost of goods soldAdministrative expensesIncome summarySales discountsUtilities expense<\/p>\n
(Click to select)Selling expensesSales salaries expenseCashSales returns and allowancesUtilities expenseSales discountsCost of goods soldIncome summaryAdministrative expenses<\/p>\n
(Click to select)Sales salaries expenseCashSales discountsUtilities expenseIncome summarySales returns and allowancesSelling expensesCost of goods soldAdministrative expenses<\/p>\n
(Click to select)Sales salaries expenseCost of goods soldAdministrative expensesIncome summarySales discountsSales returns and allowancesSelling expensesUtilities expenseCash<\/p>\n
(Click to select)Income summarySalaries expensesSalaries payablePrepaid selling expensesCommon stockDividendsSuppliesCashJ. Deacon, Capital<\/p>\n
(Click to select)J. Deacon, CapitalIncome summaryDividendsPrepaid selling expensesCashSalaries expensesSuppliesSalaries payableCommon stock<\/p>\n
(Click to select)DividendsJ. Deacon, CapitalSuppliesJ. Deacon, WithdrawalsAccounts payableSalaries expensesSalaries payableCommon stockPrepaid selling expenses<\/p>\n
(Click to select)SuppliesJ. Deacon, CapitalSalaries payableAccounts payablePrepaid selling expensesJ. Deacon, WithdrawalsSalaries expensesCommon stockDividends<\/p>\n
11.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
A company reports the following sales related information: Sales (gross) of $109,000; Sales discounts of $2,800; Sales returns and allowances of $8,000; Sales salaries expense of $5,100.<\/p>\n
Prepare the net sales portion of the company\u2019s multiple-step income statement. (Input all amounts as positive values. Omit the “$” sign in your response.)<\/b><\/p>\n
Multiple-Step Income Statement<\/p>\n
(Click to select)Cost of salesSalesSales returns and allowancesOther expenseSales discounts<\/p>\n
$ <\/p>\n
(Click to select)Less: Sales returns and allowancesLess: Sales discountsAdd: Sales returns and allowancesAdd: Sales discountsSales<\/p>\n
$ <\/p>\n
(Click to select)Less: Sales discountsAdd: Sales discountsLess: Sales returns and allowancesSalesAdd: Sales returns and allowances<\/p>\n
Net sales<\/p>\n
12.<\/p>\n
value:<\/p>\n
2.35 points<\/b><\/p>\n
Chess Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes.<\/p>\n
2011<\/p>\n
2010<\/p>\n
LIFO inventory<\/p>\n
$<\/p>\n
290 <\/p>\n
$<\/p>\n
240 <\/p>\n
LIFO cost of goods sold<\/p>\n
870 <\/p>\n
810 <\/p>\n
FIFO inventory<\/p>\n
360 <\/p>\n
265 <\/p>\n
FIFO cost of goods sold<\/p>\n
825 <\/p>\n
\u2014 <\/p>\n
Current assets (using LIFO)<\/p>\n
350 <\/p>\n
320 <\/p>\n
Current liabilities<\/p>\n
170 <\/p>\n
150 <\/p>\n
1.<\/b><\/p>\n
Compute its current ratio, inventory turnover, and days’ sales in inventory for 2011 using (a) LIFO numbers and (b) FIFO numbers. (Use 365 days a year. Do not round intermediate calculatio<\/p>\n","protected":false},"excerpt":{"rendered":"
1. value: 2.35 points Use the information in the following adjusted trial balance for the Webb Trucking Company. Account Title Debit Credit Cash $ 7,300 Accounts receivable 16,500 Office supplies 2,000 Trucks 197,000 Accumulated depreciation\u2014Trucks $ Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-49864","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=49864"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49864\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=49864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=49864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=49864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}