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Chapter: 8 -Problem: 6 >> Natalie has been approached by one of her friends, Curtis Lesperance. Curtis runs a coffee shop where he sells specialty coffees and prepares and sells muffins and cookies. He is very anxious to buy one of Natalie’s juicers because he would then be able to prepare and sell smoothies as well. Curtis, however, cannot afford to pay for the juicer for at least 30 days. He has asked Natalie if she woul
Answer Preview: a Answers to Natalies questions 1 Calculations you should perform on the statements are Working capital Current assets Current liabilities Current rat…

, Chapter: 9 -Problem: 14 >> Mock Orange Company and Cotoneaster Company both manufacture pruning shears. The following financial information is for three years ended December 31 (in thousands): Instructions a. Calculate the asset turnover and return on assets ratios for both companies for 2023 and 2024. Round your answers to two decimal points. b. Comment on how effective each of the companies is at using its assets to gener
Answer Preview: a b Mock Orange Company is more efficient in using its assets to generate salesits …

, Chapter: 4 -Problem: 17 >> AN Gildan Activewear Inc. is a leading manufacturer and marketer of family apparel, including T-shirts, fleece, sport shirts, socks, and shapewear. Its brands include American Apparel and Gold Toe. The following data (in thousands of U.S. dollars) were taken from Gildan’s financial statements: Instructions a. Calculate the working capital, current ratio, and acid-test ratio for each year. b. Discu
Answer Preview: a b Gildans liquidity shows continued strength with extrem…

, Chapter: 5 -Problem: 27 >> Kingsley Book Company sells $1,000 of books during the week; the books cost $650. Kingsley has a stated return policy of 15 days from the date of sale and follows IFRS. Describe how to account for this sale in a perpetual inventory system to ensure that revenue will be recorded in an amount that reflects what the seller actually expects to receive from the customer.
Answer Preview: The company needs to record a credit to Sales for 1000 when the goods ar…

, Chapter: 9 -Problem: 13 >> Rivers Mining Company has a December 31 fiscal year end. The following information relates to its Golden Grove mine: 1. Rivers purchased the Golden Grove mine on March 31, 2023, for $2.6 million cash. On the same day, modernization of the mine was completed at a cash cost of $260,000. It is estimated that this mine will yield 560,000 tonnes of ore. The mine’s estimated residual value is $200,000.
Answer Preview: a b Taking It Further Due to its nature it is expected that the estimate of the total amount of ore …

, Chapter: 1 -Problem: 9 >> Pavlov’s Home Renovations was started in 2008 by Jim Pavlov. Jim operates the business from an office in his home. Listed below, in alphabetical order, are the company’s assets and liabilities as at December 31, 2024, and the revenues, expenses, and drawings for the year ended December 31, 2024:Jim’s capital at the beginning of 2024 was $45,850. He made no investments during the year. Instructions
Answer Preview: Taking It Further In order to prepare the statement of o…

, Chapter: 7 -Problem: 12 >> South Hampton Pool Supplies’ May 31, 2021, bank balance was $7,350. The company’s cash balance at May 31 was $8,210. Other information follows:1. Outstanding cheques were #321 for $653, #371 for $238, #375 for $281, and #376 for $958. Cheque #321 was also outstanding on April 30 and was included on April’s bank reconciliation.2. Included with the statement were EFT deposits totalling $975 during M
Answer Preview: a b May 31 Cash 975 Accounts Receivable 975 To record EFT collection on account 31 Accounts Receivable 266 Accounts Payable 80 Sales 270 Bank Charges …

, Chapter: 8 -Problem: 10 >> Accounts receivable transactions are provided below for J Looney Co. Instructions a. Prepare the journal entries on December 31, 2023, March 5, 2024, and June 6, 2024. b. Post the journal entries to Allowance for Doubtful Accounts and calculate the new balance after each entry. c. Calculate the carrying amount of the accounts receivable both before and after recording the cash receipt from Wight o
Answer Preview: a b c 2023 Dec 31 Bad Debt Expense Allowance for Doubtfu…

, Chapter: 1 -Problem: 13 >> A tabular summary of the transactions for Star & Co., an accounting firm, for its first month of operations, July 2024, follows:Instructionsa. Describe each transaction that occurred in the month.b. Calculate the amount of profit for the month.c. Calculate the increase in owner’s equity for the month. Transcribed Image Tex
Answer Preview: a 1 Owner invested 18000 cash and equipment with the fair value of 6000 in t…

, Chapter: 4 -Problem: 9 >> Below is an alphabetical list of the adjusted accounts of Matrix Consulting Services at its year end, March 31, 2021. All accounts have normal balances. Additional information: 1. Of the notes payable, $15,000 becomes due on July 1, 2021, and the rest on July 1, 2023. 2. The note receivable is due on June 1, 2024. 3. On September 20, 2020, Neil Anderson, the owner, invested $3,800 cash in the bu
Answer Preview: a Although not required the closing entries would be b c March 31 2021 March 31 2020 Working Capital …

, Chapter: 8 -Problem: 8 >> At December 31, 2023, Blanda Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2024, Blanda wrote off accounts totalling $11,000. One of those accounts of $1,800 was later collected. At December 31, 2024, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $19,000. Instructions Prepare journal entries to record the 2024 transac
Answer Preview: Allowance for Doubtful Accounts Accounts Receivable Writeoff of uncollectible accou…

, Chapter: 5 -Problem: 12 >> Up North Company recently hired a new accountant whose first task was to prepare the financial statements for the year ended December 31, 2024. The following is what she produced:The owner of the company, James Prideaux, is confused by the statements and has asked you for your help. He doesn’t understand how, if his Owner’s Capital account was $90,000 at December 31, 2023, owner’s equity is now on
Answer Preview: Taking It Further The balance sheet reports the assets liabilities and owners equity at December 31 …

, Chapter: 4 -Problem: 10 >> AN Sleep Country is a Canadian specialty mattress retailer. The following information (all amounts in thousands) can be found on its recent balance sheets: Instructions a. Calculate Sleep Country?s current assets and current liabilities for each period. b. Calculate Sleep Country?s working capital, current ratio, and acid-test ratio for each period. c. What does each of the measures calculated i
Answer Preview: a Amounts in thousands Dec 31 2017 Dec 31 2016 Dec 31 2015 Cash 23620 23820 16639 Trade and other re…

, Chapter: 8 -Problem: 18 >> The financial statements of Maple Leaf Foods Inc. reported the following for the years ended December 31, 2019, 2018, and 2017.a. Calculate Maple Leaf’s receivables turnover and collection period for 2019 and 2018. b. Has the company’s liquidity improved or weakened? Transcribed Image Text: Sales Ac
Answer Preview: a b The companys receivables turnover and collection period have deterior…

, Chapter: 4 -Problem: 5 >> The adjusted trial balance for Hercules Company is presented below. Instructions a. Prepare the closing entries. b. Prepare T accounts for the accounts affected by the closing entries. Post the closing entries. c. Prepare a post-closing trial balance at August 31, 2024. Transcribed Image Text: Cash
Answer Preview: a b c Aug 31 Service Revenue Rent Revenue Income Summary To close revenue …

, Chapter: 7 -Problem: 13 >> Sunil’s Supplies has hired a new junior accountant and has given her the task of identifying what should be reported as cash as at February 28, 2021, on the company’s balance sheet.The following information is available.1. Cash on hand in the cash registers on February 28 totals $2,339. Of this amount, $250 is kept on hand as a cash fl oat.2. The balance in the petty cash fund is $275. Actual pett
Answer Preview: a Cash and Cash Equivalents balance 1 Cash on hand 2339 2 Petty cash fund 69 3 Bank chequing account …

, Chapter: 10 -Problem: 12 >> Silver Cloud manufactures and sells computers for $2,000 each, with a two-year parts and labour warranty. Based on prior experience, the company expects, on average, to incur warranty costs equal to 5% of sales. The business reports the following sales and warranty cost information: Instructions a. Calculate the warranty expense for each year. b. Calculate the warranty liability at the end of each
Answer Preview: a b Warranty expense 2022 …

, Chapter: 8 -Problem: 13 >> Passera Supply Co. has the following transactions: Instructions Record the transactions for Passera Supply Co. Transcribed Image Text: Nov. 1 15 Dec. 1 15 Loaned $60,000 cash to A. Morgan on a one-year, 8% note. Sold goods to H. Giorgi on account for $12,000, terms n/30. The goods cost Passera $7,50
Answer Preview: Nov 1 Notes ReceivableMorgan Cash Lend cash in exchange for a note 15 Accounts ReceivableGiorgi Sale…

, Chapter: 9 -Problem: 9 >> At January 1, 2021, Jaina Company, a public company, reported the following property, plant, and equipment accounts:Accumulated depreciation—buildings ....................... $12,100,000 Accumulated depreciation—equipment ...................... 15,000,000 Buildings ........................................................................... 28,500,000 Equipment .....................................
Answer Preview: a b c 9 See T accounts that follow for balances Taking It Further Although the use of the revaluatio…

, Chapter: 1 -Problem: 3 >> The following selected data are for Carducci Importers for its first three years of operations: Instructions Determine the missing amounts. Taking It Further What information does the owner of a company need in order to decide whether he or she is able to withdraw cash from the business? Transcribed Image Text:
Answer Preview: a Total assets Jan 1 2019 40000 Total liabilities Jan 1 2019 0 Total owners …

, Chapter: 4 -Problem: 9 >> The unadjusted trial balance for Swift Creek Engineering at its year end, December 31, 2024, is as follows: Additional information: 1. Services of $10,440 were provided but unrecorded and uncollected as at December 31, 2024. 2. On June 1, the company purchased a one-year insurance policy. 3. Depreciation on the equipment for 2024 is $2,780. 4. A count on December 31, 2024, showed $1,750 of supplie
Answer Preview: a b c Dec 31 Accounts Receivable Service Revenue 10440 To record revenue for services performe…

, Chapter: 8 -Problem: 7 >> What is the carrying amount of accounts receivable? Why are accounts receivable reported at carrying amount on the balance sheet? Accounts Receivable Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-
Answer Preview: The carrying amount of accounts receivable is the collectible amount of the …

, Chapter: 8 -Problem: 15 >> At December 31, 2024, Nicholay Industries reports the following selected accounts from the unadjusted trial balance for its first year of operations: Instructions a. Prepare the journal entry to record the bad debt expense on December 31, 2024, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible. b. Prepare the current assets section of the balance sh
Answer Preview: a b c Dec 31 Bad Debt Exp…

, Chapter: 4 -Problem: 5 >> Laura Eddy opened Eddy’s Carpet Cleaners on March 1, 2024. In March, the following transactions were completed: Mar. 1 Laura invested $10,000 cash in the business.1 Purchased a used truck for $6,500, paying $1,500 cash and signing a note payable for the balance. 3 Purchased supplies for $1,200 on account.5 Paid $1,200 on a one-year insurance policy, effective March 1.12 Billed customers $4,800 for
Answer Preview: a a c and f Note items in italics are the balances used to prepare the trial balanc…

, Chapter: 9 -Problem: 1 >> In 2021, Weisman Company had the following transactions related to the purchase of a property. All transactions are for cash unless otherwise stated.Feb. 7 Purchased real estate for $575,000, paying $115,000 cash and signing a note payable for the balance. The site had an old building on it and the fair value of the land and building were $555,000 and $30,000, respectively. Weisman intends to demo
Answer Preview: a b The costs that will appear on Weismans December 31 2021 balance sheet will be Land 603500 Buildi…

, Chapter: 8 -Problem: 2 >> Rayon Co. uses the percentage of sales approach to record bad debt expense for its monthly financial statements and the percentage of receivables approach for its year-end financial statements. Rayon Co. has a May 31 fiscal year end, closes temporary accounts annually, and uses the perpetual inventory system. On March 31, 2024, after completing its month-end adjustments, it had accounts receivable
Answer Preview: a b c The bad debt expense on the income statement for the year would be 28612 19880 1914 6818 Takin…

, Chapter: 4 -Problem: 7 >> Ilana Mathers, CPA, was hired by Interactive Computer Installations to prepare its financial statements for March 2024. Using all the ledger balances in the owner’s records, Ilana put together the following trial balance: Ilana then reviewed the records and found the following items: 1. The purchase on account of equipment for $5,100 on March 1 was recorded as a debit to Supplies and a credit to A
Answer Preview: a b Taking it Further While it is true that M Huberts capital account balance reported on the balanc…

, Chapter: 8 -Problem: 10 >> Farwell Company adjusts its accounting records monthly in order to prepare monthly financial statements. On September 30, 2021, selected general ledger account balances are: Notes receivable .................. $37,000 Interest receivable ...................... 228 Notes Receivable include the following: Interest is payable on the first day of each month for notes with terms of one year or longer
Answer Preview: a Oct 31 Accounts Receivable x Fournier9136 Notes Receivable x Fournier 9000 Interest Receivable 900…

, Chapter: 3 -Problem: 1 >> The financial statements of Aritzia Inc. are presented in Appendix A at the end of this textbook. Instructions a. What title does Aritzia use for its income statement? What title does Aritzia use for its balance sheet? b. How much depreciation on its property and equipment did Aritzia record in 2020 and 2019? c. Does Aritzia report profit or does it use another term for its financial results? d. A
Answer Preview: a The title used by Aritzia for its income statement i…

, Chapter: 8 -Problem: 4 >> The account balances of Assen Company at December 31, 2021, the end of the current year, show Accounts Receivable $180,000; Allowance for Doubtful Accounts $2,200 (credit); Sales $1,420,000; Sales Returns and Allowances $50,000; and Sales Discounts $20,000. Instructionsa. Record the adjusting entry at December 31, 2021, assuming bad debts are estimated to be (1) 10% of accounts receivable, and (
Answer Preview: a 1 Dec 31 Bad Debt Expense 1 15800 Allowance for Doubtful Accounts 15800 1 180000 x 10 2200 To reco…

, Chapter: 4 -Problem: 19 >> The unadjusted trial balance at December 31, 2024, and the year-end adjustment data for Swift Creek Engineering are presented below: Additional information: 1. Services of $10,440 were provided but unrecorded and uncollected as at December 31, 2024. 2. On June 1, the company purchased a one-year insurance policy. 3. Depreciation on the equipment for 2024 is $2,780. 4. A count on December 31, 2024,
Answer Preview: Account Titles Cash Accounts receivable Interest receivable Supplies Prepaid insurance N…

, Chapter: 7 -Problem: 11 >> In the November 30, 2021, bank reconciliation at Kiran?s Kayaks, there were two outstanding cheques: #165 for $812 and #169 for $529. There was a $1,128 deposit in transit as at November 30, 2021. The bank balance at November 30 was $7,181; the adjusted cash balance was $6,968. The December bank statement had the following selected information: The NSF cheque was originally received from a custo
Answer Preview: a Balance per Bank Statement Balance November 30 2021 7181 Add Deposits 11951 19132 Less Cheques cle…

, Chapter: 8 -Problem: 6 >> At March 31, 2024, the trial balance of Agape Company contained the following amounts before adjustment: Instructions a. Prepare the adjusting entry at March 31, 2024, to record bad debt expense, assuming that the aging schedule indicates that $14,100 of accounts receivable will be uncollectible. b. Repeat part (a) assuming that, instead of a credit balance, there is a $1,200 debit balance in Allo
Answer Preview: a b c 462000 14100 447900 d e Allowance for Doubtful Accounts is a contraasset account It is subtrac…

, Chapter: 5 -Problem: 2 >> At the beginning of the current tennis season, on April 1, 2024, Kicked-Back Tennis Shop’s inventory consisted of 50 tennis racquets at a cost of $40 each. Kicked-Back uses a perpetual inventory system and the earnings approach. The following transactions occurred in April: Apr. 2 Purchased 160 additional racquets from Roberts Inc. for $6,400, terms n/30.4 Determined that five of the racquets purc
Answer Preview: a b Taking It Further The owner will be missing the detail of the amount of sales returns This can c…

, Chapter: 8 -Problem: 1 >> At December 31, 2021, the general ledger and subsidiary ledger for Wow?s, a small beauty supply company, showed the following: Jan. 3 Hair Designs paid $8,000 on its account. 4 New Do paid $900 on its account that had previously been written off . 8 Great Looks purchased $3,000 of merchandise on account. 9 Your Spa paid cash for $2,000 of merchandise. 18 Great Looks returned $500 of merchandise
Answer Preview: a Jan 3 Cash 8000 Accounts Receivable x Hair Designs 8000 Collection on account 4 Accounts Receivable …

, Chapter: 1 -Problem: 2 >> A public company, is known around the world for its clothing and accessories. It has more than 400 stores in twelve countries. Instructionsa. Identify two internal users of lululemon’s accounting information. Write a question that each user might try to answer by using accounting information.b. Identify two external users of lululemon’s accounting information. Write a question that each user might
Answer Preview: a Chief Financial Officer X Can lululemon Athletica Inc generate enough …

, Chapter: 8 -Problem: 7 >> Milton Company’s year end is July 31. Milton prepares adjusting entries to accrue interest revenue annually. On June 30, the Notes Receivable account balance is $23,800 and the Credit Card Receivables account balance was zero. Notes receivable are as follows: Instructions a. Prepare journal entries for the July transactions and the July 31 adjusting entry for accrued interest revenue. (omit cost o
Answer Preview: a b c Taking it Further Accounts receivable are usually noninte…

, Chapter: 3 -Problem: 6 >> Jake’s Mechanics owns the following long-lived assets: Instructionsa. Prepare depreciation adjusting entries using straight-line depreciation for Jake’s Mechanics for the year ended December 31, 2024.b. For each asset, calculate its accumulated depreciation and carrying amount at December 31, 2024. Transcribed Image Text:
Answer Preview: a b Dec 31 Depreciation Expense Accumulated Depreciation Building 168000 25 2720 per …

, Chapter: 8 -Problem: 10 >> Ouellette Co. adjusts its books monthly. On June 30, 2021, notes receivable include the following: Interest is payable on the first day of each month for notes with terms of one year or longer. Interest is payable at maturity for notes with terms of less than one year. In July, the following transactions were completed: July 1 Received payment of the interest due from ALD Inc. 2 Received the int
Answer Preview: a The interest receivable at June 30 2017 is ALD Inc 6000 4 112 20 Kabam Ltd 10000 5 112 42 Best Foot Forward Shoe Co 15000 55 512 344 DNR Co 4800 875 …

, Chapter: 8 -Problem: 7 >> Minerva Company’s year end is December 31. Minerva prepares adjusting entries to accrue interest revenue annually. On November 30, the Notes Receivable account balance is $28,560 and the Credit Card Receivables account balance is zero. Notes receivable are as follows: During December, the following transactions were completed: December 5 Made sales of $5,400 on Minerva credit cards.14 Made sales o
Answer Preview: a b c Taking it Further Credit cards are widely accepted and are very popular with customers For Min…

, Chapter: 4 -Problem: 19 >> At December 31, 2024, Giselle Company had a five-month, 5%, $90,000 note receivable that was issued on October 1, 2024. Interest and principal are payable at maturity on March 1, 2025. (a) Prepare the December 31, 2024, adjusting entry for accrued interest.(b) Prepare the January 1, 2025, reversing entry.(c) Prepare the March 1, 2025, entry to record the receipt of cash at maturity for the note.
Answer Preview: a Dec 31 Interest Receivable b Jan 1 Interest Revenue To accr…

, Chapter: 8 -Problem: 7 >> Qinshan Co. uses the percentage of sales approach to record bad debt expense. It estimates that 1.5% of net credit sales will become uncollectible. Credit sales are $950,000 for the year ended April 30, 2021, sales returns and allowance are $60,000; sales discounts are $20,000; accounts receivable are $310,000; and the allowance for doubtful accounts has a credit balance of $6,000.a. Prepare the
Answer Preview: a Apr 30 Bad Debt Expense 1 13050 Allowance for Doubtful Accounts 13050 1 87000…

, Chapter: 3 -Problem: 16 >> The adjusted trial balance for Haer Design Company at December 31, 2024, which is the end of its fiscal year, is as follows: Instructions Prepare Haer Design Company’s income statement, statement of owner’s equity, and balance sheet. Transcribed Image Text: Cash Accounts receivable Supplies Prepaid
Answer Preview: Revenues Service revenue Expenses HAER DESIGN COMPANY Income Statement Year Ended D…

, Chapter: 9 -Problem: 5 >> Short Track Speed Skating, a public company, purchased equipment on January 10, 2017, for $600,000. At that time, management estimated that the equipment would have a useful life of 10 years and a residual value of $25,000. Short Track uses the straight-line method of depreciation and has a December 31 year end.Short Track tested the equipment for impairment on December 31, 2021, after recording t
Answer Preview: a 1 Depreciable amount 600000 25000 575000 2 1 10 years 10 b Dec 31 Impairment Loss 3 52500 2021 Acc…

, Chapter: 9 -Problem: 14 >> Andruski Company and Brar Company both manufacture school science equipment. The following financial information is for three years ended December 31 (in thousands): Instructions a. Calculate the asset turnover and return on assets ratios for both companies for 2023 and 2024. Round your answers to two decimal points. b. Comment on how effective each of the companies is at using its assets to gener
Answer Preview: a b Brar Company is far more efficient in using its assets to generate salesits assets turnover of 1…

, Chapter: 4 -Problem: 13 >> On December 31, 2024, Big River Company had $1 million of current assets and $900,000 of current liabilities. On the same day, Small Fry Company had $200,000 of current assets and $100,000 of current liabilities. Calculate the working capital and current ratio for both companies and compare the results. Which liquidity measure is more relevant?
Answer Preview: Working capital Current assets Current liabilities Big River Working capital 1000000 90…

, Chapter: 4 -Problem: 6 >> Nazari Electrical Services has an August 31 fiscal year end. The company?s trial balance prior to adjustments follows: Additional information: 1. The equipment has an expected useful life of 12 years. The vehicles? expected useful life is eight years. 2. A physical count showed $1,500 of supplies on hand at August 31, 2021. 3. As at August 31, 2021, there was $2,500 of revenue received in advanc
Answer Preview: a b Revenues Service revenue182115 Interest 720 182835 Expenses Depreciation expense 21250 Repairs e…

, Chapter: 8 -Problem: 16 >> Ni Co. has the following notes receivable outstanding at December 31, 2024:Interest on each of the above notes is payable at maturity. Instructions a. Calculate the interest revenue that Ni Co. will report on its income statement for the year ended December 31, 2024. Indicate where this will be presented on a multiple-step income statement. (Round calculations to the nearest dollar.) b. Calculate
Answer Preview: a b All notes receivable will be reported under the current asse…

, Chapter: 5 -Problem: 4 >> Stellar Stores is a new company that started operations on March 1, 2024. The company has decided to use a perpetual inventory system. The following purchase transactions occurred in March: Mar. 1 Stellar Stores purchases $9,000 of merchandise for resale from Octagon Wholesalers, terms 2/10, n/30, FOB shipping point.2 The correct company pays $155 for the shipping charges. 3 Stellar returns $1,000
Answer Preview: a b Mar 1 Merchandise Inventory Accounts Payable Purchase on ac…

, Chapter: 8 -Problem: 3 >> In this group activity, you will prepare the year-end adjustment for bad debt expense and finalize the financial statements, using company information given to you by your instructor. You will be required to use professional judgement to determine the amount of the adjustment and explain your rationale. Your instructor will assume the role of the company’s external auditor and will judge you on th
Answer Preview: Our group has chosen to work on the yearend adjustment for bad debt expense for XYZ Company a retail …

, Chapter: 8 -Problem: 10 >> An aging analysis of Hagiwara Company’s accounts receivable at December 31, 2023 and 2024, showed the following: Additional information: 1. At December 31, 2023, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $6,600. 2. In 2024, $23,500 of accounts was written off as uncollectible and $2,200 of accounts previously written off was collected. Instructions a. Prepare an agi
Answer Preview: a b c Taking It Further Although accounts receivable has only increased 5000 or 2 2750…

, Chapter: 4 -Problem: 17 >> The accountant for Orange Line Company is almost finished preparing the work sheet for the year ended August 31, 2024. The totals of the accounts in the income statement and balance sheet columns are presented below. Calculate the profit or loss, write this in the proper columns, and calculate the final totals for these columns. Clearly indicate whether the company had a profit or loss.
Answer Preview: Totals Loss Totals Income Statement Dr 53875 …

, Chapter: 9 -Problem: 7 >> Speedy Taxi Service uses the units-of-production method in calculating depreciation on its taxicabs. Each cab is expected to be driven 550,000 km. Taxi 10 cost $38,950 and is expected to have a residual value of $4,300. Taxi 10 is driven 90,000 km in 2020, and 135,000 km in 2021. Calculate(a) The depreciable amount per kilometre (use three decimals),(b) The depreciation expense for 2020 and 2021.
Answer Preview: a Depreciable amount per unit 389…

, Chapter: 1 -Problem: 9 >> Judy Johansen operates an interior design business, Johansen Designs. Listed below, in alphabetical order, are the company’s assets and liabilities as at December 31, 2024, and the revenues, expenses, and drawings for the year ended December 31, 2024:Judy’s capital at the beginning of 2024 was $35,800. She made no investments during the year. InstructionsPrepare an income statement, statement of o
Answer Preview: Taking It Further To determine the December 31 2024 balance in the J Johansen capital account for …

, Chapter: 7 -Problem: 11 >> When the accountant of Trillo Company prepared the bank reconciliation on May 31, 2021, there were three outstanding cheques: #690 for $307, #693 for $179, and #694 for $264. There were no deposits in transit as at May 31, 2021. The bank balance at May 31 was $17,690. The balance in the Cash account on the May 31, 2021, adjusted trial balance was $16,940. The following is selected information from
Answer Preview: a Balance per Bank Statement Balance May 31 2021 17690 Add Deposits 14052 Interest 35 14087 31777 Less Cheques cleared 10748 NSF cheques 175 EFT for i…

, Chapter: 9 -Problem: 3 >> Glans Company purchased equipment on account on April 6, 2022, at an invoice price of $442,000. On April 7, 2022, it paid $4,000 for delivery of the equipment. A one-year, $3,000 insurance policy on the equipment was purchased on April 9, 2022. On April 22, 2022, Glans paid $6,000 for installation and testing of the equipment. The equipment was ready for use on May 1, 2022. Glans estimates that th
Answer Preview: a b c The straightline method provides the lowest amount of depreciation expense fo…

, Chapter: 3 -Problem: 6 >> On July 1, 2024, Majors Co. buys a three-year insurance policy for $12,750. Majors Co. has a December 31 year end.a. Journalize the purchase of the insurance policy.b. Prepare the year-end adjusting entry for the amount of insurance expired.
Answer Preview: a b July 1 Pre…

, Chapter: 4 -Problem: 8 >> Tim Sasse started Sasse Roof Repairs on April 2, 2021, by investing $4,000 cash in the business. During April, the following transactions occurred:Apr. 6 Purchased supplies for $1,500 cash.15 Repaired a roof for a customer and collected $600 cash.25 Received $2,200 cash in advance from a customer for roof repairs to his house and garage.On April 30, 2021, the following information was available:1.
Answer Preview: a Apr 2Cash 4000 Tim Sasse Capital 4000 Invested cash in business 6Supplies 1500 Cash 1500 Purchased supplies for cash 15Cash 600 Service Revenue 600 …

, Chapter: 8 -Problem: 6 >> Rowen Company has accounts receivable of $241,000 at September 30, 2024. An analysis of the accounts shows the following:Credit terms are 2/10, n/30. The unadjusted balance in the Allowance for Doubtful Accounts on September 30, 2024, is $1,400 debit. The company uses an aging schedule to estimate uncollectible accounts. The company’s percentage estimates of bad debts are as follows: Instructions
Answer Preview: a b c Age of Accounts 030 days outstandin…

, Chapter: 4 -Problem: 6 >> Natalie had a very busy May. At the end of the month, after Natalie has journalized and posted her adjusting and correcting entries, she has prepared an adjusted trial balance. Instructions Using the information in the adjusted trial balance, do the following: a. Prepare an income statement for the two months ended May 31, 2024. b. Prepare a statement of owner’s equity for the two months ended May
Answer Preview: a b c d e f Ignoring the effects of depreciation ex…

, Chapter: 8 -Problem: 12 >> Describe the components of an aging schedule. How is the aging schedule used to estimate the amount of uncollectibles? Aging Schedule Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Ge
Answer Preview: An aging schedule is a summary of all accounts receivable outstanding showing a total for …

, Chapter: 8 -Problem: 3 >> Casa Garage Co. accepts the following forms of payment: Visa, Mastercard, the Casa Garage Co. credit card, and debit. Casa is charged 3.5% for all bank credit card transactions and $0.50 per transaction for all debit card transactions. Casa charges 14.25% interest on balances owing on the Casa Garage Co. credit card. In October and November 2024, the following summary transactions occurred: Oct. 1
Answer Preview: a b Oct 15 Credit Card Receivables Service Revenue …

, Chapter: 1 -Problem: 10 >> Here are incomplete financial statements for Deol Company:Instructionsa. Calculate the missing amounts (i) to (x).b. Write a memo explaining (1) the sequence for preparing the financial statements, and (2) the interrelationships between the income statement, statement of owner’s equity, and balance sheet. Taking It FurtherWhy aren’t the income statement and the statement of owner’s equity dated th
Answer Preview: a i 110000 5000 10000 45000 50000 ii 66500 59600 6900 iii 110000 66500 43500 iv Total assets 110000 …

, Chapter: 7 -Problem: 3 >> In this group activity, you will identify the strengths and weaknesses of a small coffee shop’s processes for sales or purchases and make recommendations for processes that will improve internal control.
Answer Preview: Strengths and Weaknesses of a Small Coffee Shops Processes for sales SWOT stands for Strengths Weaknesses Opportunities and Threats This is an organiz…

, Chapter: 8 -Problem: 8 >> Presented below is an aging schedule for Bravo Wholesale Food Company on December 31, 2021. Bravo sells all its goods on account with terms n/7. At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a debit of $6,500. Instructions a. Using the above aging schedule, determine the total estimated uncollectible accounts at December 31, 2021. b. Prepare the adjusting
Answer Preview: a Estimated of Days outstanding …

, Chapter: 2 -Problem: 21 >> Terry Zelinski, the owner of Royal Mountain Tours, prepared the following trial balance at March 31, 2024.A review shows that Terry made the following errors in the accounting records:1. A purchase of $400 of supplies on account was recorded as a credit to Cash. The debit entry was correct.2. A $100 credit to Accounts Receivable was posted as $1,000.3. A journal entry to record service revenue of
Answer Preview: ROYAL MOUNTAIN TOURS Trial Balance March 31 2024 Cash 12800 400 240 …

, Chapter: 2 -Problem: 8 >> Lena Kuznetsova provides coaching and mentoring services to individuals and companies. She operates the business as a proprietorship, under the name LVK Coaching Services, which has a December 31 year end. On November 30, 2021, the company?s general ledger included the following accounts (all accounts have normal balances): December transactions were as follows: Dec. 1 Paid December rent on her
Answer Preview: b a c d Taking It Further The cash balance has decreased from 3165 to 1042 or 2123 during the month …

, Chapter: 4 -Problem: 9 >> Below is an alphabetical list of the adjusted accounts of Matrix Consulting Services at its year end, March 31, 2024. All accounts have normal balances. Additional information: 1. Of the notes payable, $15,000 becomes due on July 1, 2024, and the rest on July 1, 2026. 2. The note receivable is due on June 1, 2027. 3. On September 20, 2023, Neil Anderson, the owner, invested $3,800 cash in the busi
Answer Preview: a b c d Taking It Further Working capital has turned negative in 2024 and by a significant amount …

, Chapter: 9 -Problem: 11 >> The intangible assets and goodwill section of Ghani Corporation?s balance sheet at December 31, 2020, is as follows: The copyright was acquired in January 2019 and has an estimated useful life of three years. The trademark was acquired in January 2014 and is expected to have an indefinite useful life. The following cash transactions may have affected intangible assets during 2021: Jan. 2 Paid $
Answer Preview: a b 1 Copyright Cost 36000 168000 204000 Copyright Amortization24000 19000 43000 2 Trademark 52000 …

, Chapter: 8 -Problem: 13 >> Lee Company accepts a $27,000, four-month, 6% note receivable in settlement of an account receivable on June 1, 2021. Interest is to be paid at maturity. Lee Company has a December year end and adjusts its accounts annually. (Note: Lee Company uses only one allowance account for both accounts and notes receivable.)a. Record (1) the issue of the note on June 1 and (2) the settlement of the note on
Answer Preview: a June 1 Notes Receivable 27000 Accounts Receivable 27000 Accept …

, Chapter: 1 -Problem: 19 >> In what order should the financial statements be prepared? Why?
Answer Preview: Financial statements are prepared in the following order 1 Income statement 2 Statement of own…

, Chapter: 9 -Problem: 5 >> Surkis Company acquires equipment at a cost of $42,000 on January 3, 2021. Management estimates the equipment will have a residual value of $6,000 at the end of its four-year useful life. Assume the company uses the straight-line method of depreciation. Calculate the depreciation expense for each year of the equipment’s life. Surkis has a December 31 fiscal year end.
Answer Preview: Depreciable amount is 36000 42000 6000 With a 4…

, Chapter: 4 -Problem: 12 >> The unadjusted trial balance and adjustment data for Silver Ridge Plumbing are provided. Additional information: 1. The equipment has an expected useful life of 10 years. The vehicles’ expected useful life is eight years.2. A physical count showed $2,000 of supplies on hand at October 31, 2024. 3. Accrued salaries payable at October 31, 2024, were $2,550. 4. Interest on the 5.5% note payable is pa
Answer Preview: Taking It Further The preparation of the work sheet is optional because it is not part of the compan…

, Chapter: 8 -Problem: 21 >> Canadian Worldwide Communications Co.’s receivables turnover was 6.5 times in 2020 and 5.9 times in 2021. Has the company’s receivables management improved or worsened?
Answer Preview: When a companys receivable turnover is slower …

, Chapter: 8 -Problem: 14 >> Norlandia Saga Company’s general ledger included the following selected accounts (in thousands) at November 30, 2024: Additional information: 1. On November 30, 2023, Accounts Receivable was $271.7 thousand and the Allowance for Doubtful Accounts was $13.6 thousand. 2. The receivables turnover was 9.1 the previous year. Instructions a. Prepare the assets section of the balance sheet. b. Calculate
Answer Preview: a b Norlandias receivables turnover ratio was higher in 2024 which means that Norlandia was more eff…

, Chapter: 4 -Problem: 4 >> An alphabetical list of the adjusted account balances (all accounts have normal balances) at August 31, 2024, for Alpine Bowling Lanes is as follows: Instructions Prepare the closing entries at August 31, 2024. Transcribed Image Text: Accounts payable Accounts receivable Accumulated depreciation-equ
Answer Preview: Aug 31 Service Revenue Income Summary To close revenue account 31 Income S…

, Chapter: 9 -Problem: 4 >> Rainbow Company purchased land, a building, and equipment on January 2, 2021, for $850,000. The company paid $170,000 cash and signed a mortgage note payable for the remainder. Management’s best estimate of the value of the land was $352,000; of the building, $396,000; and of the equipment, $132,000. Record the purchase. Do not round intermediate calculations for the percentage allocation between
Answer Preview: Jan 2 Land 850000 352000 880000 340000 Building 850000 396000 8…

, Chapter: 10 -Problem: 11 >> The following selected account balances are from LightHouse Distributors’ adjusted trial balance at September 30, 2024: Additional information: 1. On September 30, 2024, the unused operating line of credit is $75,000. 2. Warranties and gift cards are expected to be redeemed within one year. Unearned revenues relate to gift cards sold but not yet redeemed. 3. Of the mortgage, $10,000 is due each ye
Answer Preview: a b c LightHouse Distributors did not show any cash on the trial balance because the bank account is …

, Chapter: 3 -Problem: 4 >> Grant’s Graphics has a December 31 year end. Grant’s Graphics records adjusting entries on an annual basis. The following information is available. 1. At the end of the year, the unadjusted balance in the Prepaid Insurance account was $3,200. Based on an analysis of the insurance policies, $2,800 had expired by year end. 2. At the end of the year, the unadjusted balance in the Unearned Revenue acc
Answer Preview: 1 2 3 4 5 6 Insurance Expense Prepaid Insurance To record insura…

, Chapter: 4 -Problem: 9 >> The unadjusted trial balance for Swift Creek Engineering at its year end, December 31, 2021, is as follows: Additional information: 1. Services of $10,440 were provided but unrecorded and uncollected as at December 31, 2021. 2. On June 1, the company purchased a one-year insurance policy. 3. Depreciation on the equipment for 2021 is $2,780. 4. A count on December 31, 2021, showed $1,750 of suppl
Answer Preview: a Dec 31 Accounts Receivable 10440 Service Revenue 10440 To record revenue for services performed 31 …

, Chapter: 8 -Problem: 12 >> Data on four promissory notes accepted by Dryer Interiors during 2024 follow. Instructions Determine the missing amounts. Transcribed Image Text: Note # 1234 3 Principal (a) $30,000 $60,000 $45,000 Annual Interest Rate 9% 10% (b) 8% Time 4 months 6 months 5 months 4 months Total Interest $450 (c) $1
Answer Preview: Using the equation Intere…

, Chapter: 4 -Problem: 14 >> The unadjusted trial balance for Veda’s Video Arcade at its fiscal year end of May 31, 2024, is as follows: Additional information: 1. On May 31, 2024, Veda’s Video Arcade had provided services but not collected or recorded $750 of revenue. On June 19, 2024, it collected this amount plus an additional $1,150 for revenue to be recognized in June. 2. There was $765 of supplies on hand on May 31, 202
Answer Preview: a b c d Taking It Further Reversing entries should only be used for adjust…

, Chapter: 8 -Problem: 13 >> At December 31, 2021, Nicholay Industries reports the following selected accounts from the unadjusted trial balance for its fi rst year of operations: Instructions a. Prepare the journal entry to record the bad debt expense on December 31, 2021, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible. b. Prepare the current assets section of the balance
Answer Preview: a Dec 31 Bad Debt Expense 1 28000 Allowance for Doubtful Accounts 28000 1 …

, Chapter: 1 -Problem: 15 >> Atlantic Cruise Co. is owned by Irina Temelkova. The following information is an alphabetical listing of financial statement accounts for the company for the year ended May 31, 2024: Instructions Prepare an income statement and a statement of owner’s equity for the year. Transcribed Image Text: Acco
Answer Preview: Revenue Expenses ATLANTIC CRUISE CO Income Statement Year Ended May 31 2024 Salaries expense Mainten…

, Chapter: 4 -Problem: 7 >> Casey Hartwig, CPA, was retained by Global Cable to prepare financial statements for the year ended April 30, 2021. Hartwig accumulated all the ledger balances per Global?s records and found the following. Casey Hartwig reviewed the records and found the following errors. 1. Cash received from a customer on account was recorded as $950 instead of $590. 2. A payment of $75 for advertising expens
Answer Preview: a b Taking It Further If error 4 was not detected the Supplies account would initially be overstated …

, Chapter: 9 -Problem: 1 >> In 2024, Weisman Company had the following transactions related to the purchase of a property. All transactions are for cash unless otherwise stated. Feb. 7 Purchased real estate for $575,000, paying $115,000 cash and signing a note payable for the balance. The site had an old building on it and the fair value of the land and building were $555,000 and $30,000, respectively. Weisman intends to dem
Answer Preview: a b Taking It Further Companies should start to record depreciation when the asset is ready for use …

, Chapter: 4 -Problem: 4 >> The following is Edge Sports Repair Shop’s trial balance at September 30, 2024, the company’s fiscal year end: Additional information: 1. Services of $5,350 were provided but not recorded at September 30, 2024. 2. The 12-month insurance policy was purchased on February 1, 2024. 3. A physical count of supplies shows $560 on hand on September 30, 2024. 4. The building has an estimated useful life of
Answer Preview: a b c d Taking It Further The main reason that Ralph had to invest 4000 cash into the business in N…

, Chapter: 8 -Problem: 10 >> Assume the same information as in BE8.9. Tokarik Inc.’s financial difficulties are over. On June 4, 2021, Perry Co. receives a payment in full of $5,500 from Tokarik Inc. Record this transaction. BE8.9At the end of 2020, Perry Co. has an allowance for doubtful accounts of $28,000. On January 31, 2021, when it has accounts receivable of $575,000, Perry Co. learns that its $5,500 receivable from To
Answer Preview: June 4 Accounts Receivable 5500 Allowance for D…

, Chapter: 5 -Problem: 1 >> What is the difference between determining profit for a merchandising company and determining profit for a service company?
Answer Preview: Profit for a merchandising company is determined principally by the gross profit created by the …

, Chapter: 7 -Problem: 18 >> Howel Company, when preparing its bank reconciliation, notes the following reconciling items:(a) Bank service charge of $50,(b) NSF cheque of $440,(c) A recording error where a cheque issued for supplies was recorded in the books as $500 but it was actually for $50. Prepare the adjusting journal entries for Howel Company on August 31.
Answer Preview: a Bank Charges Expense 50 Cash 50 To record bank s…

, Chapter: 4 -Problem: 11 >> The unadjusted trial balance and adjustment data for Elbow Cycle Repair Shop are provided. Additional information: 1. The 12-month insurance policy was purchased on June 1, 2023. 2. A physical count of supplies shows $1,310 on hand on January 31, 2024. 3. The building has an estimated useful life of 50 years. The equipment has an estimated useful life of nine years. 4. The mortgage payable has a 5
Answer Preview: Taking It Further Adjusting entries must be recorded in a journal and poste…

, Chapter: 5 -Problem: 1 >> Refer to the financial statements and the notes to consolidated financial statements for Aritzia Inc. for the year ended February 25, 2018, which are reproduced in Appendix A. InstructionsUse these statements to answer the following questions.a. Refer to Note 1 of Aritzia’s financial statements and describe the company’s operations. Is Aritzia a service company or a merchandiser?b. Aritzia does no
Answer Preview: Below are the answers to the questions asked a By referring to Note 1 of Aritizias financial statements it can be concluded that Aritzia Inc is a merchandiser They design apparel and accessories for i…

, Chapter: 8 -Problem: 9 >> At the end of 2020, Perry Co. has an allowance for doubtful accounts of $28,000. On January 31, 2021, when it has accounts receivable of $575,000, Perry Co. learns that its $5,500 receivable from Tokarik Inc. is not collectible. Management authorizes a write off .a. Record the write off .b. What is the carrying amount of the accounts receivable (1) before the write off , and (2) after the write
Answer Preview: a Jan 31 Allowance for Doubtful Accounts 5500 Accounts Receivable 5500 To record write off o…

, Chapter: 4 -Problem: 14 >> The unadjusted trial balance for Laurie’s Laser Games at its fiscal year end of April 30, 2024, is as follows: Additional information: 1. On April 30, 2024, Laurie’s Laser Games had not collected or recorded $1,550 of revenues for games provided. On May 21, 2024, Laurie’s Laser Games collected this amount plus an additional $2,750 of service revenue for games provided. 2. There was $880 of supplie
Answer Preview: a b c d Taking It Further Reversing entries should only be used for adjust…

, Chapter: 2 -Problem: 8 >> Aduke Zhawaki is a talented musician who runs a business teaching music and playing in gigs with a variety of other musicians. Her business is operated as a proprietorship, under the name A to Z Music, which has a December 31 year end. On November 30, 2021, the company?s general ledger included the following accounts (all accounts have normal balances): December transactions were as follows: Dec
Answer Preview: b a c d Taking It Further The cash balance has decreased from 2965 to 485 during the month of Decemb…

, Chapter: 9 -Problem: 6 >> SE Parts Supply Company purchased an industrial robot on July 1, 2019, for $395,000. It paid $100,000 in cash and signed a 5% note payable for the balance. The industrial robot was estimated to have a 20-year useful life with a $15,000 residual value. The company has a December 31 year end and prepares adjusting entries annually. It uses the double diminishing-balance method of depreciation to the
Answer Preview: a Carrying value of equipment 337725 395000 1975037525 Impairment loss 62725 337725 275000 8 Equipment 395000 Less Accumulated depreciation 126875 Carrying amount 268125 Proceeds 240000 Loss on dispos…

, Chapter: 4 -Problem: 12 >> The following items were taken from the financial statements of J. Parra Company on December 31, 2024. (All amounts are in thousands.) Instructions Prepare a classified balance sheet in good form as at December 31, 2024. Transcribed Image Text: Long-term debt Prepaid insurance Equipment Long-term in
Answer Preview: Current assets Cash Shortterm investments Accounts receivable Merch…

, Chapter: 4 -Problem: 9 >> The December 31, 2021, adjusted trial balance of Darius Company includes the following accounts: a. Determine which accounts are current assets and prepare the current assets section of the balance sheet as at December 31, 2021, with the accounts in order of decreasing liquidity. b. For each account that is not classified as a current asset, indicate how it would be classified on the balance sh
Answer Preview: DARIUS COMPANY Balance Sheet December 31 2021 a Current assets Cash 16400 Shortterm investments …

, Chapter: 4 -Problem: 7 >> The unadjusted trial balance for Garden Designs at its year end, April 30, 2024, is as follows: Additional information: 1. $500 of the unearned revenue is to be recognized because the related gardening services have been provided by April 30, 2024. 2. The equipment has an estimated useful life of eight years. 3. Interest on the note payable is due on the first day of each month for the previous mo
Answer Preview: a b c Apr 30 Unearned Revenue Service Revenue To record rev…

, Chapter: 8 -Problem: 14 >> The following information (in millions) was taken from the December 31 financial statements of Canadian National Railway Company: Instructions a. Calculate the 2017 and 2016 current ratios. b. Calculate the receivables turnover and average collection period for 2017 and 2016. c. Comment on any improvement or weakening in CN?s liquidity and its management of accounts receivable.
Answer Preview: a Current Ratio 2017 2190 3983 055 2016 2107 3008 070 b Receivables …

, Chapter: 4 -Problem: 16 >> The financial statement items for Carter Bowling Alley at year end December 31, 2024, contain the following accounts: Instructions a. Prepare a classified balance sheet in good form as at December 31, 2024; assume that $30,000 of the note payable will be paid in 2025. b. Comment on the company’s liquidity. Transcribed Imag
Answer Preview: a b Current liabilities exceed current assets by 8860 37240 46100 The current ratio is 081 which mea…

, Chapter: 9 -Problem: 3 >> In this learning activity, you will improve your understanding of depreciation by working in small groups to analyze and categorize, on a grid, information about the three methods of depreciation.
Answer Preview: While a companys financial reportsthe the the and the statement of owners represent the companys fin…

, Chapter: 8 -Problem: 14 >> Jensen Company’s general ledger included the following selected accounts (in thousands) at December 31, 2024: Additional information: 1. On December 31, 2023, Accounts Receivable was $611.1 thousand and the Allowance for Doubtful Accounts was $36.6 thousand. 2. The receivables turnover was 8.3 the previous year. Instructions a. Prepare the assets section of the balance sheet. b. Calculate the rece
Answer Preview: a b Taking It Further When analyzing the accounts receivable turnover and collection period consider…

, Chapter: 4 -Problem: 18 >> The unadjusted trial balance at April 30, 2024, and adjustment data for the month of April 2024 for Garden Designs are presented below: Additional information: 1. $500 of the unearned revenue is to be recognized because the related gardening services have been provided by April 30, 2024. 2. The equipment has an estimated useful life of eight years. 3. Interest on the note payable is due on the fir
Answer Preview: Account Titles Cash Accounts receivable Prepaid rent Equipment Accumdeprecequip …

, Chapter: 8 -Problem: 12 >> Ni Co. has the following notes receivable outstanding at December 31, 2021: Interest on each of the above notes is payable at maturity. Instructions a. Calculate the interest revenue that Ni Co. will report on its income statement for the year ended December 31, 2021. Indicate where this will be presented on a multiple-step income statement. (Round calculations to the nearest dollar.) b. Calcul
Answer Preview: a Total interest revenue for the year ended December 31 2021 144…

, Chapter: 8 -Problem: 1 >> At December 31, 2024, the general ledger and subsidiary ledger for Albert’s, a small auto parts store, showed the following: Instructions a. Record the above transactions. Ignore credit card fees and any entries to merchandise inventory and cost of goods sold for the purposes of this question. b. Set up T accounts for the Accounts Receivable general ledger (control) account, the Allowance for Doub
Answer Preview: a b c d Taking It Further While discontinuing to offer credit to customers and insisting that custom…

, Chapter: 9 -Problem: 9 >> At January 1, 2021, Hamsmith Corporation, a public company, reported the following property, plant, and equipment accounts:Accumulated depreciation—buildings ................. $31,100,000 Accumulated depreciation—equipment ................ 27,000,000 Buildings .................................................................... 48,700,000 Equipment .................................................
Answer Preview: a b c 1 See T accounts that follow for balances Taking It Further Although the use of the revaluatio…

, Chapter: 7 -Problem: 15 >> On August 31, 2021, Claresview Company had a cash balance per its books of $26,030. The bank statement on that date showed a balance of $17,100. A comparison of the bank statement with the Cash account revealed the following.1. The August 31 deposit of $17,050 was not included on the August bank statement.2. The bank statement shows that Claresview received EFT deposits from customers on account t
Answer Preview: a b Aug31 Cash 2050 Accounts Receivable 2050 To record EFT collecti…

, Chapter: 4 -Problem: 6 >> Silver Ridge Plumbing?s year end is October 31. The company?s trial balance prior to adjustments follows: Additional information: 1. The equipment has an expected useful life of 10 years. The vehicles? expected useful life is eight years. 2. A physical count showed $2,000 of supplies on hand at October 31, 2021. 3. Accrued salaries payable at October 31, 2021, were $2,550. 4. Interest on the 5.5
Answer Preview: a b Revenues Service revenue 200525 Expenses Depreciation expense 27750 Repairs expense 28038 Insura…

, Chapter: 9 -Problem: 7 >> On January 3, 2020, Ajax Argyle purchased a piece of equipment for $125,000. The equipment’s estimated useful life is either three years or 12,000 units, with a residual value of $18,000. The company has a December 31 fiscal year end and normally uses straight-line depreciation. Management is considering the merits of using the units-of-production or diminishing-balance method of depreciation inst
Answer Preview: a 1 STRAIGHTLINE DEPRECIATION 1 125000 18000 107000 2 1 3 years 33333 3 Required additional 2 for ro…

, Chapter: 8 -Problem: 4 >> Information for Jager Company in 2021 follows:Total net credit sales ................................................... $3,300,000 Accounts receivable at December 31 .......................... 1,250,000 Accounts receivable written off ......................................... 48,000 Amount collected on accounts previously written off (after write off but before year end)                          
Answer Preview: a 62000 52000 30000 48000 8000 b 49750 52000 42250 48000 8000 c 3300000 x 15 49500 d The write off of an uncollectible account does not affect the cur…

, Chapter: 3 -Problem: 3 >> Pierce Dussault, a lawyer, accepts a legal engagement in March, does the work in April, and is paid in May. If Dussault’s law firm prepares monthly financial statements, when should it recognize revenue from this engagement? Why?
Answer Preview: The law firm should recognize the …

, Chapter: 9 -Problem: 1 >> In 2021, Kadlec Company had the following transactions related to the purchase of a property. All transactions were for cash unless otherwise stated.Jan. 12 Purchased real estate for a future plant site for $420,000, paying $95,000 cash and signing a note payable for the balance. On the site, there was an old building. The fair values of the land and building were $400,000 and $40,000, respectivel
Answer Preview: a Jan 12 Land420000 Cash 95000 Notes Payable 325000 To record purchase of land in exchange for cash and a note payable 16 Land 8500 Cash 8500 Paid leg…

, Chapter: 10 -Problem: 9 >> Satterfield publishes a monthly sports magazine, Hockey Hits. Subscriptions to the magazine cost $18 per year. During November 2021, Satterfield sells 15,000 subscriptions beginning with the December issue. Satterfield prepares financial statements quarterly and recognizes revenue for magazines sold at the end of the quarter. The company uses the accounts Unearned Revenue and Revenue. Instruction
Answer Preview: a 2021 Nov Cash 1 270000 Unearned Revenue 270000 1 15000 18 Received cash in advance fr…

, Chapter: 8 -Problem: 16 >> The financial statements of Maple Leaf Foods Inc. reported the following for the years ended December 31, 2017, 2016, and 2015. a. Calculate Maple Leaf?s receivables turnover and collection period for 2017 and 2016. b. Has the company?s liquidity improved or weakened? Financial Statements Financial statements are the standardized formats to present the financial informa
Answer Preview: a Receivables turnover X 2017 3522226 123968 127749 2 2799 times Collection period X 2017 …

, Chapter: 4 -Problem: 2 >> Selected T accounts for Victoire Esthetics on August 31, 2024, are as follows: Instructions a. Prepare a statement of owner’s equity for the month ended August 2024. b. Prepare entries to close the Income Summary and drawings accounts. Post these entries. Transcribed Image Text

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7 Reviews for Accounting Principles Volume 1 Textbook Questions And Answers