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Chapter: 2 -Problem: 10 >> Dee Bell Company?s records showed the following April 30, 2020, account balances: Required 1. Using the chart of accounts numbering system, assign an account number to each account. 2. Using the information provided and the analysis performed in QS 2-9, post the May transactions into the general ledger using T-accounts. 3. Calculate the May 31 balance in each T-account and prove the accounting e
Answer Preview: 1 2 3 The account balance for each Taccount is shown above …

, Chapter: 1 -Problem: 2 >> Accounting involves designing:a. Information systems to provide useful reports to monitor and control an organization’s activitiesb. An efficient warehouse to enable free flow of goodsc. An effective transportation system to deliver products efficiently to customersd. Marketing programs to help manage customer demands and anticipate future inventory requirements
Answer Preview: a Information syste…

, Chapter: 5 -Problem: 5 >> Purchase discounts are provided by a manufacturer or wholesaler for the following reason:a. Volume of goods purchased during the periodb. Volume of goods returned during the periodc. To encourage early payment of invoicesd. To encourage payment of overdue invoices
Answer Preview: c To enc…

, Chapter: 2 -Problem: 2 >> Designer Dry Cleaning showed the following information for its first and second months just ended, March and April of 2020: Required Use the information provided to complete a statement of changes in equity and a balance sheet for each of March and April 2020. Note: Prepare the statements on a comparative13 basis similar to the statements for Spin Master and WestJet in Appendix III at the end o
Answer Preview: Designer Dry Cleaning Statement of Changes in Equity For Months Ended April 30 2020 March 31 2020 Ch…

, Chapter: 1 -Problem: 5 >> Examples of ethical issues in the world of business include:a. Properly labelling products for customers to make informed decisionsb. Selling products to customers at the lowest price possiblec. Providing a guarantee to customers that products will last for a specified amount of timed. Building products with high-quality components to ensure durability
Answer Preview: a Properly lab…

, Chapter: 9 -Problem: 28 >> Montalvo Bionics showed the following alphabetized unadjusted trial balance at April 30, 2020:Account .................................................................................. Balance Accounts payable .................................................................... $ 5,080 Accounts receivable ................................................................ 17,300 Accumulated depreciat
Answer Preview: Montalvo Bionics Balance Sheet April 30 2020 Assets Current assets Cash 10100 Accounts receivable 17…

, Chapter: 8 -Problem: 10 >> At year-end, December 31, 2020, Corolla Sales showed unadjusted balances of $394,000 in Accounts Receivable; $13,800 debit in Allowance for Doubtful Accounts; and $1,940,000 in Sales. Uncollectible accounts are estimated to be 2.5% of sales.Unadjusted balances at December 31, 2021, were Accounts Receivable, $514,000; Allowance for Doubtful Accounts, $1,000 credit; and Sales, $3,280,000. Corolla Sa
Answer Preview: 2020 Dec 31 Bad Debt Expense 48500 Allowance for Doubtful Accounts …

, Chapter: 1 -Problem: 2 >> Part A: 1. Refer to Appendix III at the end of the textbook for the December 31, 2017, balance sheet for WestJet, a Canadian airline based in Calgary. What types of assets does WestJet have?2. To what level of significance are the dollar amounts rounded on the financial statements?3. Prove the accounting equation for WestJet at December 31, 2017.4. Assume that the personal home of one of the owne
Answer Preview: Part A 1 WestJets assets are classified into four groups on the December 31 2017 balance sheet curre…

, Chapter: 4 -Problem: 7 >> Following is the adjusted trial balance, with accounts in alphabetical order, for TRN Magazine as at January 31, 2020: Required Prepare the closing entries. Transcribed Image Text: Debit Credit $ 21,400 Accounts receivable. ...... $ 12,400 Accumulated depreciation, equipment. Cash. 8,900 .... Depr
Answer Preview: 2020 Closing entries January 31 Subscription Revenues 71400 Interest Income 490 Income Summa…

, Chapter: 4 -Problem: 14 >> You are the accountant at Indigo. Refer to Appendix III for Indigo’s Consolidated Balance Sheet as at March 31, 2018. Your manager has assigned you the following tasks.a. Calculate the current ratio, quick ratio, and debt to equity ratios for 2017 and 2018. Round your answer to two decimal places.b. Comment on the ratios, the change between 2017 and 2018, and what additional information you would
Answer Preview: 2018 2017 Current ratio 487152000 230149000 212 482471000 234329000 206 Quick ratio 150256000 600000…

, Chapter: 8 -Problem: 12 >> Panda Distributors showed the following information regarding its notes receivable: Required For each note: a. Determine the maturity date. b. Calculate the days of accrued interest, if any, at July 31, 2020 (Panda Distributors? year-end). c. Calculate the amount of accrued interest, if any, at July 31, 2020.For Note 3: d. Prepare the entry to record the accrued interest at July 31, 2020. e. Pre
Answer Preview: a b c Note Date of Note Principal Interest Rate Term Maturity Date Days of Accrued Interest at July …

, Chapter: 10 -Problem: 14 >> On a sheet of notebook paper, draw a purchases journal like the one that appears in Exhibit AII.12 and journalize the following March 2020 transactions for Suttleton Company. Mar. 2 Purchased $4,800 of merchandise from Tex Company; terms 3/10, n/20. 12 $14,000 of merchandise was purchased from Littleton; terms 2/15, n/30. 13 Worsley Company sold Suttleton $9,400 of office furniture; terms 2/15, n/
Answer Preview: Suttleton Company Purchases Journal Page 1 Date Account Credited …

, Chapter: 8 -Problem: 9 >> The following information is available regarding the outstanding accounts receivable of Mufu Contracting at September 30, 2020: Mufu estimates bad debts using the following rates: Requireda. Complete a Schedule of Accounts Receivable by Age at September 30, 2020 (similar to Exhibit 8.13).b. The Allowance for Doubtful Accounts showed an unadjusted balance on September 30, 2020, of $1,900. Record th
Answer Preview: a b Customer B Axley T Holton W Nix C Percy K Willis Totals Percent …

, Chapter: 10 -Problem: 6 >> What determines the amount that must be deducted from an employee’s wages for income taxes?
Answer Preview: An employees gross earning…

, Chapter: 9 -Problem: 7 >> Which of the following depreciation methods allocates more depreciation in the early years of an asset’s life and less depreciation in later years:a. units-of-production methodb. double-declining-balance methodc. straight-line methodd. None of the above.
Answer Preview: b Doub…

, Chapter: 8 -Problem: 5 >> Swiss Supplies showed the following selected adjusted balances at its December 31, 2019, year-end: During 2020, the following selected transactions occurred: a. Sales totalled $2,800,000, of which 25% were cash sales (cost of sales $1,804,000). b. Sales returns were $108,000, half regarding credit sales. The returned merchandise was scrapped. c. An account for $24,000 was recovered. d. Several a
Answer Preview: Part A 1 a Cash 700000 Accounts Receivable 2100000 Sales 2800000 To record sales 25 x 2800000 total …

, Chapter: 7 -Problem: 3 >> The accounting system used by Dartmouth Sales and Service requires that all entries be journalized in a general journal. To facilitate payments for small items, Dartmouth established a petty cash fund. The following transactions involving the petty cash fund occurred during February 2020. Required Prepare general journal entries to record the establishment of the fund on February 3 and its reple
Answer Preview: Feb 3 Petty Cash 20000 Cash 20000 To establish fund 14 Postage Expenses 1523 Repairs Expense Compute…

, Chapter: 10 -Problem: 28 >> Sharon Von Hatton is the only employee of a self-employed businessperson. She earned a monthly salary of $2,050 in February 2018, her first month of employment. In response to a citywide effort to obtain charitable contributions to the local United Way programs, Von Hatton has requested that her employer withhold 2% of her salary (after CPP, EI, and income taxes have been deducted). RequiredPrepar
Answer Preview: Monthly salary 205000 CPP deducted 8704 EI deducted 3403 Income tax withheld 12750 6275 19025 …

, Chapter: 9 -Problem: 18 >> At its December 31, 2019, year-end, Athletic Apparel had a warehouse with an adjusted book value of $292,500 and an estimated remaining useful life of 15 years and residual value of $90,000. Because of pick-up and delivery issues at the warehouse, a contractor was hired to construct a new door into the east wall during the week of January 5, 2020, for $25,500 on account. The estimated useful life
Answer Preview: Part 1 2020 Jan 5 Warehouse Door 25500 Accounts Payable 25500 To record addition …

, Chapter: 3 -Problem: 6 >> Kiss the Chef Co., a cooking school, purchased a two-year insurance policy on April 1, 2020, paying cash of $7,680. Its year-end is December 31.a. Record the journal entry on April 1, 2020.b. How many months are between April 1, 2020 and December 31, 2020? Record the adjusting entry on December 31, 2020.c. How many months are between January 1, 2021 and December 31, 2021? Record the adjusting entr
Answer Preview: Date Account Titles and Explanation Debit Credit 20…

, Chapter: 8 -Problem: 3 >> The estimated bad debt expense is recorded with the following adjusting entry at the end of the accounting period:a. Dr. Bad Debt Expense , Cr. Allowance for Doubtful Accountsb. Dr. Allowance for Doubtful Accounts, Cr. Bad Debt Expensec. Dr. Bad Debt Expense , Cr. Accounts Receivabled. Dr. Accounts Receivable , Cr. Cash Accounts Receivable Accounts receivables are debts o
Answer Preview: a Dr Bad De…

, Chapter: 1 -Problem: 17 >> Paul Sangha began Sangha Consulting on May 1, 2020 and reported the items below at May 31, 2020. Match each numbered item with the part of the balance sheet on which it should be presented. If the item does not appear on the balance sheet, choose (d) and identify on which financial statement(s) the item would appear. a. Asset b. Liability c. Equity d. Does not appear on the balance sheet
Answer Preview: d 1 Loss 2 Income statement Statement of changes in eq…

, Chapter: 4 -Problem: 14 >> Refer to the December 31, 2017, balance sheet for WestJet in Appendix III at the end of the book. What amount of WestJet’s long-term debt is coming due before December 31, 2018? Balance Sheet Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time.
Answer Preview: Longterm d…

, Chapter: 9 -Problem: 16 >> On January 1, 2020, Ultra Green Packaging purchased a used machine for $156,000. The next day, it was repaired at a cost of $4,068 and mounted on a new platform that cost $5,760. Management estimated that the machine would be used for seven years and would then have a $21,600 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year’s depreciat
Answer Preview: Part 1 2020 Jan 1 Machine 156000 Cash 156000 To record purchase of machine 2 Machine 4068 Cash 4068 …

, Chapter: 5 -Problem: 4 >> The following information is from the unadjusted trial balance for Journey?s End Company prepared at October 31, 2020, the end of the fiscal year: Rent and salaries expense are equally divided between the selling and administrative functions. Journey?s End Company uses a perpetual inventory system. Required 1. Record adjusting entries for the following information: a. Store supplies on hand at
Answer Preview: Part 1 The following work sheet is not required for the question Work sheet is presented to show the impact of the adjusting entries on the account ba…

, Chapter: 8 -Problem: 2 >> You and your friends are taking a two-week trip to Paris, France, from June 1 to 15, 2020. On May 1, 2020, you booked and prepaid for your stay at Hotel de Paris for $300 per night for 14 nights. Based on the hotel policies, the booking is non-refundable.1. What product or service is being sold? When does Hotel de Paris fulfill its performance of providing its product or service?2. Can Hotel de Pa
Answer Preview: 1 Hotel de Paris is selling the service of providing a 14 night stay at the hotel Ho…

, Chapter: 9 -Problem: 23 >> On November 3, 2020, Gamez 2 Go Media exchanged an old computer for a new computer that had a list price of $190,000. The original cost of the old computer was $150,000 and related accumulated depreciation was $65,000 up to the date of the exchange. Gamez 2 Go Media received a trade-in allowance of $100,000 and paid the balance in cash. Requireda. Record the exchange assuming the fair values are u
Answer Preview: a 2020 Nov 3 Accumulated Depreciation Computer old 65000 Computer new 1 175000 Co…

, Chapter: 9 -Problem: 14 >> Design Pro purchased on October 1, 2019, $110,000 of furniture that was put into service on November 10, 2019. The furniture will be used for five years and then donated to a charity. Complete the schedule below by calculating annual depreciation for 2019, 2020, and 2021, applying the half-year convention for partial periods. The year-end is December 31. Analysis Component: What effect would it
Answer Preview: Depreciation Year StraightLine 1 DoubleDecliningBalance 2 …

, Chapter: 3 -Problem: 7 >> Wedona Energy Consultants prepares adjusting entries monthly. Based on an analysis of the unadjusted trial balance at January 31, 2020, the following information was available for the preparation of the January 31, 2020, month-end adjusting entries:a. Equipment purchased on November 1 of this accounting period for $21,600 is estimated to have a useful life of three years. After three years of use,
Answer Preview: Date Account Titles and Explanation Debits Credits 2020 a Jan 31 Depreciation Expense Equipment 600 …

, Chapter: 2 -Problem: 9 >> On March 10, One Eleven Music Studio purchases a new student drum kit for $1,500 and receives an invoice from Pearl to be paid within 30 days. The following entry is booked:a. Debit Equipment 1,500 and credit Accounts Payable 1,500b. Debit Supplies 1,500 and credit Accounts Payable 1,500c. Debit Asset 1,500 and credit Cash 1,500d. Credit Accounts Payable $1,500 and credit Supplies 1,500
Answer Preview: a Debit Equ…

, Chapter: 1 -Problem: 10 >> Use the facts in Exercise 1-9 to prepare a November statement of changes in equity for Extraordinary Studios, similar to Exhibit 1.9. Analysis Component: What activities caused equity to increase during the month of November 2020? Exhibit 1.9 Exercise 1-9 On November 1, 2020, Jean Higgins started a wedding planning company, Extraordinary Studios. On November 30, 2020, the company?s records show
Answer Preview: EXTRAORDINARY STUDIOS Statement of Changes in Equity For Month Ended November 30 20…

, Chapter: 10 -Problem: 22 >> Xion Supply uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occurred during the month of March 2020: RequiredOn a sheet of notebook paper, draw a multicolumn cash disbursements journal like the one that appears in Exhibit AII.13. Journalize the March transactions that should be recorded in the cash
Answer Preview: Xion Supply Cash Disbursements Journal Page 1 Date Ch No Payee Account Debited PR C…

, Chapter: 9 -Problem: 19 >> On February 3, 2020, Secure Software Group purchased the patent for a new software for cash of $220,800. The company expects the software to be sold over the next five years and uses the straight-line method to amortize intangibles. Required1. Prepare entries to record the:a. Purchase of the software patent.b. Straight-line amortization for the year ended December 31, 2020, calculated to the neare
Answer Preview: Part 1 a 2020 Feb3 Patent 220800 Cash 220800 To record purchase of patent b Dec …

, Chapter: 4 -Problem: 1 >> On January 20, 2020, Jennifer Nelson, the staff accountant for Newby Enterprises, is feeling pressure to complete the preparation of the annual financial statements. The president of the company has said he needs upto- date financial statements to share with several bankers on January 21 at a dinner meeting that has been called to discuss the possibility of Newby’s obtaining loan financing for a
Answer Preview: 1 There are several courses of action that Jennifer could have taken a Probably she should have c…

, Chapter: 2 -Problem: 8 >> The term debit means:a. Increaseb. An entry that increases asset, expense, and owner’s equity accountsc. A transaction that is recorded in a journald. An entry to transfer a journal entry to ledger accounts
Answer Preview: b An entry th…

, Chapter: 1 -Problem: 4 >> On January 1, 2020, Fireworks Fantasia entered its third year of operations. On December 31, 2020, Wes Gandalf, the owner, finalized the company?s records that showed the following items. The ending capital balance for one period is the beginning capital balance for the next period. The owner made investments of $30,000 during the year ended December 31, 2020. Required Prepare an income stateme
Answer Preview: FIREWORKS FANTASIA Income Statement For Year Ended December 31 2020 Revenues Service revenue 140000 …

, Chapter: 10 -Problem: 28 >> At the end of May 2020, the sales journal of Value-Mart Goods appeared as follows: Value-Mart had also recorded the return of merchandise with the following general journal entry: Required 1. On a sheet of notebook paper, open an accounts receivable subledger that has a T-account for each customer listed in the sales journal. Post to the customer accounts the entries in the sales journal and a
Answer Preview: Part 1 Part 2 Part 3 VALUEMART GOODS Schedule of Accounts …

, Chapter: 9 -Problem: 14 >> Refer to the balance sheet for WestJet in Appendix II. What amount did it report as goodwill at December 31, 2017? Goodwill Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
Answer Preview: WestJet did …

, Chapter: 3 -Problem: 7 >> On January 1, 2020, Taco Taqueria, a Mexican restaurant, purchased equipment for $12,000 cash. Taco Taqueria estimates that the equipment will last five years (useful life). The restaurant expects to sell the equipment for $2,000 at the end of five years. Taco Taqueria prepares financial statements on an annual basis and has a December 31 year-end. a. Record the journal entry on January 1, 2020
Answer Preview: a 2020 Jan 1 Equipment 12000 Cash 12000 To record the purchase of equipment b Cost of a…

, Chapter: 8 -Problem: 5 >> The aging of accounts receivable approach is the most reliable of the three approaches to estimate bad debt by applying:a. a lower percentage to accounts that have been outstanding the longest.b. a higher percentage write-off to account balances with higher sales for the period.c. a higher percentage to accounts that have been outstanding the longest.d. None of the above. Acco
Answer Preview: c A higher per…

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, Chapter: 4 -Problem: 23 >> The following conditions existed for Maxit Co. on October 31, 2020, the end of its fiscal year:a. Maxit rents a building for $3,200 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.b. Maxit rents space in a building it owns to a tenant for $750 per month. By prearrangement, the tenant d
Answer Preview: 1 Adjusting entries 2020 Oct 31 Rent Expense 3200 Rent Payable 3200 To record accrued rent expense 3…

, Chapter: 9 -Problem: 7 >> Papaya, a specialty greeting card company, purchased a photocopier costing $45,000 on January 1, 2020. The equipment is expected to produce a total of 4,000,000 copies over its productive life. Its residual value at the end of its useful life is estimated to be $5,000. The equipment actually produced:Fiscal Year ................................. Copies Produced 2020 ...............................
Answer Preview: Rate per copy 45000 50004000000 copies 0…

, Chapter: 4 -Problem: 3 >> The following information is from the work sheet for Pursley Company as of December 31, 2020. Using this information, determine the amount that should be reported for Alice Pursley, Capital on the December 31, 2020, balance sheet. Transcribed Image Text: Balance Sheet and Statement of Changes in Eq
Answer Preview: Alice Pursley capital for the D…

, Chapter: 2 -Problem: 13 >> Prepare journal entries for the following transactions that occurred during January 2020: Transcribed Image Text: Stan Adams opened a landscaping business by investing $60,000 cash and equipment having a $40,000 fair value. January 3 Purchased office supplies on credit for $340. Received $5,200 for
Answer Preview: General Journal Page 1 Date Account Titles and Explanation …

, Chapter: 1 -Problem: 18 >> Using the information in QS 1-17, prepare an income statement and statement of changes in equity for the month ended May 31, 2020, and a balance sheet at May 31, 2020. QS 1-17Paul Sangha began Sangha Consulting on May 1, 2020 and reported the items below at May 31, 2020. Match each numbered item with the part of the balance sheet on which it should be presented. If the item does not appear on the
Answer Preview: SANGHA CONSULTING Income Statement For Month Ended May 31 2020 Revenues Consulting revenue 1…

, Chapter: 10 -Problem: 42 >> It is October 16, 2020, and you have just taken over the accounting work of China Moon Products, whose annual accounting period ends October 31. The company?s previous accountant journalized its transactions through October 15 and posted all items that required posting as individual amounts, as an examination of the journals and ledgers in the Working Papers will show. The company completed these
Answer Preview: Parts 1 2 3 SALES JOURNAL Page 3 Date Account Debited Invoice Number PR AR Dr Sales Cr Cost of Goods Sold Dr Merchandise Inventory Cr 2020 Oct 6 Marge Craig 913 6600 3600 12 Heather Flatt 914 7300 400…

, Chapter: 9 -Problem: 12 >> The December 31, 2020, adjusted trial balance of Maritime Manufacturing showed the following information:Single Machinery ...................................................................................................................... $556,800 Accumulated depreciation, machinery1 ................................................................................. 246,400 Office furniture ......
Answer Preview: 2021 Dec 31 Depreciation Expense Machinery 1 95200 Accumulated Depre…

, Chapter: 9 -Problem: 25 >> Jazzy Antiques purchased the copyright on a watercolour painting for $177,480 on January 1, 2020. The copyright legally protects its owner for 19 more years. However, Jazzy plans to market and sell prints of the original for the next 12 years only. Prepare journal entries to record the purchase of the copyright and the annual amortization of the copyright on December 31, 2020. The company uses the
Answer Preview: 2020 Jan 1 Copyrights 177480 Cash 177480 To …

, Chapter: 9 -Problem: 7 >> 1. Calculate and record depreciation for the year just ended April 30, 2021, for both the building and equipment. 2. Prepare the property, plant, and equipment section of the balance sheet at April 30, 2021. Transcribed Image Text: Big Sky Farms Partial Balance Sheet April 30, 2020 Property, plant
Answer Preview: 1 2020 Apr 30 Depreciation Expense Building 53000 Accum…

, Chapter: 4 -Problem: 1 >> The owner of Dynamo Stores has come to you for assistance because his bookkeeper has just moved to another city. The following is the only information his bookkeeper left him. 1. Balance sheets as of December 31, 2020 and 2021. 2. The owner withdrew $105,000 in 2021 for his personal use. 3. The business incurred total expenses of $168,000 for 2021, of which $126,000 was for wages and $42,000 was f
Answer Preview: Part 1 Profit 105000 147000 126000 84000 Or Total revenues 84…

, Chapter: 8 -Problem: 15 >> Using the Spin Master financial statements in Appendix III, calculate the following ratios for the years ended December 31, 2017 and December 31, 2016. At December 31, 2015, Spin Master had an accounts receivable balance of $134,618,000 and net sales of $879,406,000. Comment on the change.a. Accounts receivable turnover ratio (round to two decimal places)b. Days’ sales in inventory (round to th
Answer Preview: 2017 2016 a Accounts receivable turnover ratio 1551324000 467 times 369719000 2950680002 1154454000 …

, Chapter: 4 -Problem: 12 >> An alphabetical list of the adjusted trial balance accounts for North Country Rentals after its first year of operations ending March 31, 2020, is shown below: Required 1. Calculate the capital balance as it would appear on the March 31, 2020, balance sheet. 2. Prepare a classified balance sheet. Assume that $215,000 of the Long-Term Notes Payable will be paid during the year ended March 31, 20
Answer Preview: Part 1 Wyett North capital 415780 28000 132995 520775 OR Profit Revenues Expenses 398400 16200 25000 …

, Chapter: 9 -Problem: 5 >> Tundra Tours runs tundra buggy expeditions in northern Manitoba for tourists to catch a glimpse of the abundant caribou, polar bears, and other wildlife. Tundra purchased a tundra buggy on October 19, 2020, for cash of $145,000. Its estimated useful life is five years or 100,000 kilometres with a residual value estimated at $25,000. Tundra Tours? year-end is December 31. Required Calculate deprec
Answer Preview: Year Depreciation Method Straightline Doubledeclining balanc…

, Chapter: 10 -Problem: 44 >> Using the current year’s withholding tables for Canada Pension Plan, Employment Insurance, and income tax, update the payroll register of Exhibit A.2. In calculating income tax withholdings, state your assumption as to each employee’s personal deductions. Assume that hospital insurance deductions continue at the same amounts as in Exhibit A.2. Exhibit A.2
Answer Preview: Solution My assumption is that the employer will be taking the following Employee s personal tax cre…

, Chapter: 3 -Problem: 12 >> Yara Clothing (Yara), a retail store at the mall, hires a number of employees to work 7 days a week. Yara owes its employees wages for the period of December 27, 2020 to January 9, 2021 (14 days) for $5,600. The wages owed are equal each day and the employees will be paid on January 11, 2021. Yara prepares annual financial statements and has a December 31 year-end. a. How much does Yara owe its
Answer Preview: a 400 560014 days b 5 day Date Account Titles and Explanation Debit C…

, Chapter: 3 -Problem: 4 >> In reviewing the accounts on September 30, 2020, for the year just ended, Geek Designers discovered the following:a. The September cell phone bill for $465 was unpaid and unrecorded at September 30. It will be paid on October 5.b. Accrued wages at September 30 totalled $82,500. On October 9, the first biweekly payday of October, $115,000 was paid to employees representing the seven days accrued on
Answer Preview: Adjusting Entries Subsequent Entries a a Sept 30 Cell Phone Expense 465 Oct5 Accou…

, Chapter: 10 -Problem: 38 >> A company showed the following information in its payroll register for the week ended March 16, 2018: 1. Prepare a general journal entry to record the payroll register information. 2. Prepare a general journal entry to record the employer?s payroll expenses resulting from the payroll. 3. Prepare general journal entries to accrue employee fringe benefit costs for the week. Assume that the company
Answer Preview: Part 1 Mar16 Sales Salaries Expense 120000 Office Salaries Expense 105000 Shop Salaries Expense 3100…

, Chapter: 9 -Problem: 7 >> Jackal Energy purchased a transport truck on January 1, 2020, for $305,200 cash. Its estimated useful life is five years or 320,000 kilometres with an estimated residual value of $52,400. RequiredCalculate depreciation expense for the year ended December 31, 2020, using each of the following methods:a. Straight-lineb. Double-declining-balancec. Units-of-production (assume 30,000 kilometres were ac
Answer Preview: a 305200 524005 50560 b Rate 25 40 or 40 40 305200 12…

, Chapter: 3 -Problem: 10 >> Using the information in Problem 3-9B, complete the following:1. Set up balance column accounts for Hallmark Surveying Services and enter the balances listed in the unadjusted trial balance.2. Post the adjusting entries prepared in Problem 3-9B to the balance column accounts.3. Prepare an adjusted trial balance.4. Use the adjusted trial balance to prepare an income statement, a statement of change
Answer Preview: Parts 1 and 2 The solution to Parts 1 and 2 is also done using Taccounts and can be found immediately following the balance column format AJE A djusting J ournal E ntry After posting the December 31 2…

, Chapter: 8 -Problem: 4 >> On December 31, 2020, Zippy Car Company?s Allowance for Doubtful Accounts had an unadjusted credit balance of $42,000. The accountant for Zippy has prepared a schedule of the December 31, 2020, accounts receivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follo
Answer Preview: 1 Calculation of the required balance of the allowance Not due 2050000 0125 25625 1 to 30 97…

, Chapter: 10 -Problem: 27 >> Piperel Lake Resort?s four employees are paid weekly. Assume an income tax rate of 20%. Complete the payroll register above for the month ended January 31, 2018. Transcribed Image Text: Deductions Pay Distribution Gross Medical Ins. El Income ???es Total Office Salaries Guide Salaries United Employ
Answer Preview: Deductions Payment Distribution Gross Pay EI Premium Income Taxes Medical Ins CPP U…

, Chapter: 9 -Problem: 12 >> The December 31, 2020, adjusted trial balance of Biomedics Inc. showed the following information:Building ......................................................................................... $274,800 Accumulated depreciation, building1 ......................................... 134,400 Equipment ...................................................................................... 117,600 Accu
Answer Preview: 2021 Dec 31 Depreciation Expense Building 1 1620 Accumulated De…

, Chapter: 2 -Problem: 8 >> Using the trial balance prepared for HR Solutions in Part 4 of Problem 2-7A, prepare an income statement and statement of changes in equity for the month ended May 31, 2020, and a balance sheet at May 31, 2020. Problem 2-7A Elizabeth Wong has strong problem-solving skills and loves to work with people. After becoming a Certified Human Resources Professional (CHRP) and working for several compani
Answer Preview: Revenues Service revenue Operating expenses Wages expense Utilities expense T…

, Chapter: 10 -Problem: 33 >> O’Riley Company’s payroll costs and fringe benefit expenses include the normal CPP and EI contributions, retirement fund contributions of 10% of total earnings, and health insurance premiums of $120 per employee per month. Given the following list of employees’ projected 2018 annual salaries, payroll costs and fringe benefits are what percentage of salaries?Doherty ................................
Answer Preview: CPP Contribution EI Contribution Retirement Fund Co…

, Chapter: 9 -Problem: 8 >> On January 3, 2020, Xenex Innovations purchased computer equipment for $125,250. The equipment will be used in research and development activities for five years or a total of 8,500 hours and then sold for about $19,000. Prepare a schedule with headings as shown below. Calculate depreciation and book values for each year of the equipment?s life for each method of depreciation. Xenex?s year-end is
Answer Preview: StraightLine 1 DoubleDecliningBalance 2 UnitsofProduction 3 Year Depreciation Expense Book Value at …

, Chapter: 2 -Problem: 7 >> Elizabeth Wong has strong problem-solving skills and loves to work with people. After becoming a Certified Human Resources Professional (CHRP) and working for several companies, she opened her own business, HR Solutions. She completed the following transactions during May 2020: Required 1. Prepare journal entries to record the transactions. Use page 1 for the journal. 2. Set up the following acc
Answer Preview: Part 1 Assume that all entries were journalized on Page 1 of the General Journal Part 2 3 Cash Acct No 101 Date Explanation PR Debit Credit Balance 2020 May 1 G1 78000 78000 1 G1 15300 62700 6 G1 8300 …

, Chapter: 4 -Problem: 10 >> The current ratio provides information to users of financial statements regarding:a. Ability to pay for existing assets with day-to-day obligationsb. Ability to pay day-to-day obligations with existing liquid assetsc. The amount of debt outstanding compared to total equity in a businessd. The amount of cash currently available to pay for all outstanding obligations of a business
Answer Preview: b Ability to …

, Chapter: 9 -Problem: 12 >> AbeCo, a luggage manufacturing company, borrowed $75,000 from the bank to purchase a machine that was estimated to produce 120,000 suitcases; its expected residual value is $15,000. During 2020 and 2021, the machine produced 20,000 and 28,000 units, respectively. Calculate depreciation for 2020 and 2021 assuming the units-of-production method is used:a. To the nearest whole monthb. Using the half-
Answer Preview: 2020 2021 a 10000 14000 b 10000 14000 Calculations 75000 15000 60000120000 …

, Chapter: 6 -Problem: 2 >> Urban Glam Cosmetics made purchases of lipstick in the current year as follows: Urban Glam Cosmetics made sales on the following dates at a selling price of $35 per unit: Jan. 10 ..................................................................... 70 unitsMar. 15 ................................................................. 180 unitsOct. 5 ...................................................
Answer Preview: a FIFO perpetual Date Purchases Sales at cost Inventory Balance Units Unit Cost Total Cost Units Uni…

, Chapter: 8 -Problem: 6 >> Peru Industries began operations on January 1, 2020. The company plans to use the allowance method for uncollectible accounts. During the next two years, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts (assume a perpetual inventory system). These transactions are summarized as follows:2020a. Sold merchandise on credit for $2,25
Answer Preview: 2020 a Accounts Receivable 2250000 Sales 2250000 Cost of Goods Sold 1240000 Merchandise Inventory 12…

, Chapter: 10 -Problem: 18 >> Games Co. has eight employees, each of whom earns $3,500 per month. Income taxes are 20% of gross pay and the company deducts EI and CPP. Prepare the March 31, 2018, journal entry to record Games Co.’s salaries expenses for the month.
Answer Preview: Mar 31 Wages Expense 3500 x 8 2800000 CPP Payable 3500 291…

, Chapter: 9 -Problem: 10 >> At April 30, 2020, Hackney Building Products? year-end, the balance sheet showed PPE information as detailed in the schedule below. The company calculates depreciation for partial periods using the half-year convention. Required Complete the schedule. Balance Sheet Balance sheet is a statement of the financial position of a business that list all the assets, liabilities
Answer Preview: Cost Information Depreciation Description Date of Purchase Depreciation Method Cost Residual Li…

, Chapter: 4 -Problem: 1 >> The transactions of Echo Systems for October through December 2020 have been recorded in the problem segments in Chapters 2 and 3, as well as the year-end adjusting entries. Prior to closing the temporary accounts for 2020, the accounting system is modified to include the Income Summary account, which is given the number 901. Required1. Record and post the appropriate closing entries.2. Prepare a
Answer Preview: Part 1 Closing entries and general ledger accounts General Journal Page G6 Date Account Titles and Explanation PR Debit Credit 2020 Closing entries Dec 31 Computer Services Revenue 403 52200 Income Su…

, Chapter: 3 -Problem: 4 >> Envirocan Resources prepares adjusting entries monthly. In reviewing the accounts on March 31, Envirocan Resources discovered the following:a. Interest of $1,080 had accrued on the note payable as at March 31. It is to be paid on April 2.b. Unpaid and unrecorded salaries at March 31 totalled $33,150. The $33,150 plus salaries of $22,200 for the first four days of April were paid on April 4.c. The
Answer Preview: Adjusting Entries Subsequent Entries a a Mar 31 Interest Expense 1080 Apr2 Interest Payable …

, Chapter: 9 -Problem: 22 >> On October 6, 2020, Western Farms Co. traded in an old tractor for a new one, receiving a $68,000 trade-in allowance and paying the remaining $170,000 in cash. The old tractor cost $202,000, and straight-line depreciation of $111,000 had been recorded as of October 6, 2020. Assume the fair value of the new tractor was equal to the trade-in allowance of the old tractor plus the cash paid. Requireda
Answer Preview: a 202000 111000 91000 book value b Book value of the assets given up 91000 170000 …

, Chapter: 9 -Problem: 5 >> West Coast Tours runs boat tours along the West Coast of British Columbia. On March 5, 2020, it purchased, with cash, a cruising boat for $828,000, having a useful life of 10 years or 13,250 hours, with a residual value of $192,000. The company?s year-end is December 31. Required Calculate depreciation expense for the fiscal years 2020, 2021, and 2022 by completing a schedule with the following h
Answer Preview: Year Depreciation Method 1 Straightline Doubledeclining balance Unitsofproduction 2 2020 828000 1920…

, Chapter: 8 -Problem: 19 >> The following information was taken from the December 31, 2020, annual report of WestCon Developments. Required 1. Calculate accounts receivable turnover and days? sales uncollected for the year 2020. (Round the answer to two decimal places.) 2. Compare your calculations in (1) to the industry average and comment on WestCon?s relative performance as F (Favourable) or U (Unfavourable). Round the
Answer Preview: Part 1 Part 2 WestCon is not collecting its receivables as quickl…

, Chapter: 4 -Problem: 13 >> On July 1, 2020, Amy Young created a new self-storage business called Young Co. These events occurred during the company?s first month: The company?s chart of accounts included these accounts: Required 1. Set up each of the listed accounts. Note: Your instructor will tell you to use either the balance column format or T-accounts. 2. Prepare journal entries to record the transactions for July a
Answer Preview: Part 2 The general ledger accounts are shown at the end of the solution in both balance column and Taccount format as they would appear after all entries have been posted The account numbers in the PR …

, Chapter: 9 -Problem: 14 >> La Mancha Enterprises completed all of its March 31, 2020, adjustments in preparation for compiling its financial statements, which resulted in the following trial balance.Account ............................................................................... Balance Accounts payable ................................................................ $ 14,750 Accounts receivable .....................
Answer Preview: Part 1 2020 Mar 31 Impairment Loss 26000 Computer Equipment 26000 To record impairment loss on compu…

, Chapter: 2 -Problem: 6 >> Profit is adjusted to owner’s capital accounts only after:a. The fiscal year-end financial statements have been auditedb. The financial statements have been prepared and the closing process has begunc. The closing process has been completed and the balance sheet has been preparedd. The total revenue for the accounting period exceeds the total cost of goods sold Financial Sta
Answer Preview: b The financial …

, Chapter: 10 -Problem: 40 >> The payroll records of Wailee Company provided the following information for the weekly pay period ended March 23, 2018: Required 1. Enter the relevant information in the proper columns of a payroll register and complete the register; calculate CPP and EI deductions. Charge the wages of Auleen Carson to Office Wages Expense and the wages of the remaining employees to Service Wages Expense. Calcu
Answer Preview: Part 1 Week Ended March 23 2018 Office Service Employment Income Hospital Union Total Net Wages Wage…

, Chapter: 9 -Problem: 10 >> Equipment with an estimated life of 10 years and no expected residual value was purchased on account for $60,000 on March 6, 2020. Assuming a year-end of December 31, calculate depreciation for 2020 and 2021 using the straight-line method:a. To the nearest whole monthb. Using the half-year convention
Answer Preview: 2020 2021 a 5000 6000 …

, Chapter: 2 -Problem: 7 >> The primary purpose of recording journal entries is:a. To list all accounts in a general ledgerb. To see the increases and decreases in a specific accountc. To determine the overall financial performance of the company by having detailed financial records and enable the production of financial reportsd. To identify the source of recorded transactions
Answer Preview: c To determine the overall fi…

, Chapter: 4 -Problem: 15 >> The unadjusted trial balance for Lewis Fitness Centre as of December 31, 2020, follows: Information necessary to prepare adjusting entries is as follows: a. As of December 31, employees have earned $1,600 of unpaid and unrecorded wages. The next payday is January 8, and the total wages to be paid will be $2,400. b. The cost of supplies on hand at December 31 is $3,600. c. The note payable requir
Answer Preview: Part 1 2020 Adjusting entries a Dec 31 Salaries Expense 1600 Salaries Payable 1600 To record accrued …

, Chapter: 9 -Problem: 3 >> On April 12, 2020, Prism Ltd., a camera lens manufacturer, paid cash of $552,375 for real estate plus $29,400 cash in closing costs. The real estate included land appraised at $249,480; land improvements appraised at $83,160; and a building appraised at $261,360. Prepare a calculation similar to the table below showing the allocation of the total cost among the three purchased assets and present t
Answer Preview: Allocation of total cost a b c PPE Asset Appraised Valu…

, Chapter: 8 -Problem: 8 >> The following is information regarding adjusted account balances for Leonardo Painters at September 30, 2020: Part 1 During October, Leonardo Painters recorded $1,746,000 in total revenues, all on credit. Collections during October were $1,532,000. Included in the $1,532,000 collections was the recovery of $6,100 from a customer account written off in September. Total receivables identified as b
Answer Preview: Part 1 Oct 31 Bad Debt Expense 8730 Allowance For Doubtful Accounts 8730 To record estimated uncolle…

, Chapter: 9 -Problem: 24 >> On January 2, 2020, Direct Shoes Inc. disposed of a machine that cost $96,000 and had been depreciated $50,450. Present the journal entries to record the disposal under each of the following unrelated assumptions:a. The machine was sold for $44,500 cash.b. The machine was traded in on new tools having a $141,000 cash price. A $52,000 trade-in allowance was received, and the balance was paid in cas
Answer Preview: a Jan2 Accumulated Depreciation Machine 50450 Cash 44500 Loss on Dis…

, Chapter: 4 -Problem: 2 >> The June 30, 2020, unadjusted trial balance for Trenton Consulting after its first year of operations follows: Required 1. Enter the unadjusted trial balance onto a work sheet. 2. Using the following additional information, enter the adjustments onto the work sheet: a. Annual depreciation on the equipment is $1,500. b. The balance in the Prepaid Rent account is for six months of rent commencing
Answer Preview: Parts 1 2 and 3 Trenton Consulting Work Sheet For Year Ended June 30 2020 Account Unadjusted Trial B…

, Chapter: 2 -Problem: 14 >> Using the trial balance provided above, prepare an income statement and a statement of changes in equity for the first three months ended July 31, 2020, and a balance sheet at July 31, 2020. Analysis Component: Analyze the balance sheet and calculate what percentage of the assets is financed by (a) debt and (b) equity. Balance Sheet Balance sheet is a statement of the f
Answer Preview: Analysis component a Assets financed by debt 98300120670 x 100 815 b Assets financed by equity 22370…

, Chapter: 4 -Problem: 5 >> Using the information from Problem 4-4A, prepare an income statement and a statement of changes in equity for the year ended December 31, 2020, and a classified balance sheet at December 31, 2020. There were no investments by the owner during the year. Analysis Component: MY Autobody experienced a loss during 2020. If you were one of the business?s creditors, should this loss cause you to be conc
Answer Preview: MY AUTOBODY Income Statement For Year Ended December 31 2020 Revenue Repair revenue 157630 Operating …

, Chapter: 9 -Problem: 6 >> On January 2, 2018, Archer Company, a skateboard manufacturer, installed a computerized machine in its factory at a cost of $150,200. The machine?s useful life was estimated at four years or a total of 186,000 units with a $20,000 trade-in value. Archer Company?s year-end is December 31. Calculate depreciation for each year of the machine?s estimated useful life under each of the following methods
Answer Preview: Year a StraightLine b DoubleDecliningBalance c UnitsofProduction 2018 32550 7510…

, Chapter: 4 -Problem: 1 >> The March 31, 2020, unadjusted trial balance for Silva Rentals after its first year of operations is shown below: Required 1. Enter the unadjusted trial balance onto a work sheet. 2. Using the following additional information, enter the adjustments into the work sheet (the Chart of Accounts in Appendix IV may be useful when additional accounts are required): a. It was determined that the balance
Answer Preview: Silva Rentals Work Sheet For Year Ended March 31 2020 Account Number Account Unadjusted Trial Balanc…

, Chapter: 8 -Problem: 2 >> On December 31, 2020, Corotel Company?s year-end, the unadjusted trial balance included the following items: Required 1. Prepare the adjusting entry needed in Corotel?s books to recognize bad debts under each of the following independent assumptions: a. Bad debts are estimated to be 2% of credit sales. b. An analysis suggests that 5% of outstanding accounts receivable on December 31, 2020, will
Answer Preview: Part 1 a Expense is 2 of credit sales Dec 31 Bad Debt Expense 171000 Allowance for Doubtful Accounts …

, Chapter: 5 -Problem: 8 >> The Sk8 Shop sold 10 skateboards to a local summer adventure camp for $135 each at a cost of $95. After five days, the summer camp decided to return two of the unused skateboards and limit the class size to eight students. The Sk8 Shop uses a perpetual inventory system. Which of the following journal entries is correct to record the customer’s return:a. Dr. Sales Returns and Allowances $135 Cr. Ac
Answer Preview: b Dr Sales R…

, Chapter: 4 -Problem: 14 >> Sunshine Sushi, a Japanese restaurant, has the following adjusted trial balance with accounts listed in alphabetical order. Using the template provided, prepare a classified balance sheet for the year ended December 31, 2020. For the bank loan, $60,550 is due in 2021. For Notes receivable, $41,500 will be collected in 2021.
Answer Preview: Sunshine Sushi Balance Sheet December 31 2020 Assets Current assets Cash 1…

, Chapter: 9 -Problem: 4 >> On January 1, 2020, Bona Vista Co. purchased land, a building, equipment, and tools for a total price of $4,320,000, paying cash of $1,104,000 and borrowing the balance from the bank. The bank appraiser valued the assets as follows: $1,152,000 for the land; $1,344,000 for the building; $998,400 for the equipment; and $345,600 for the tools. Complete a table similar to above and prepare the entry t
Answer Preview: 2020 Jan1 Land 1296000 Building 1512000 Equipment 1123200 Too…

, Chapter: 3 -Problem: 11 >> Rise and Shine Ice Cream prepares annual financial statements and has a December 31 year-end. As of March 1, 2020, Rise and Shine Ice Cream took out a bank loan for $12,000 with an interest rate of 8%. Interest is incurred on a monthly basis and needs to be paid on December 31, 2021.a. What is the formula to calculate interest expense?b. How many months of interest expense have been incurred at D
Answer Preview: a Interest expense Principal x interest rate x num…

, Chapter: 2 -Problem: 1 >> Travis McAllister operates a surveying company. For the first few months of the company?s life (through April), the accounting records were maintained by an outside bookkeeping service. According to those records, McAllister?s equity balance was $75,000 as of April 30. To save on expenses, McAllister decided to keep the records himself. He managed to record May?s transactions properly, but was a b
Answer Preview: McALLISTER SURVEYING Income Statement For Month Ended May 31 2020 Revenue Surveying fees earned 1800…

, Chapter: 7 -Problem: 10 >> Presented below is information related to Scuba Dive Company. The balance according to the books at October 31, 2020, was $99,657.29; cash receipts recorded during November were $64,805.69; and cash disbursements recorded for November were $76,850.30. The balance according to the bank statement on November 30, 2020, was $82,370.68. The following cheques were outstanding at November 30:Cheque .....
Answer Preview: a SCUBA dive COMPANY Bank Reconciliation November 30 2020 Bank statement balance 8237068 Book bal…

, Chapter: 5 -Problem: 2 >> Answer the following questions. a. Based on a review of the income statement for Spin Master in Appendix III at the end of the textbook, determine if Spin Master sells products or services. Explain your answer. b. Based on a review of WestJet?s income statement in Appendix III at the end of the textbook, determine if WestJet sells products or services. Explain your answer. c. The income statement
Answer Preview: a Spin Master sells products because the income statement includes Cost of sales another term u…

, Chapter: 9 -Problem: 8 >> Refer to the statements of cash flows for Spin Master in Appendix II. What was the amount of depreciation and amortization for 2016 and 2017? Where will you look to find the explanation of the increase?
Answer Preview: Spin Master had Depreciation and amortizatio…

, Chapter: 6 -Problem: 5 >> Car Armour sells car wash cleaners. Car Armour uses a perpetual inventory system and made purchases and sales of a particular product in 2020 as follows: Required 1. Calculate the total goods available for sale (in units and cost). 2. Calculate the number of units sold and units remaining in ending inventory. 3. Determine the share of the cost of goods available for sale calculated in Part 1 tha
Answer Preview: Total goods available for sale Beginning inventory 15 units x 40 600 Purchase on Mar 3 60 units x 45 …

, Chapter: 3 -Problem: 5 >> Splish Splash Art is a centre that offers children’s music and dance lessons. Splish Splash prepares annual financial statements and has a December 31, 2020, year-end.a. On September 1, Splish Spash Art collects $15,000 cash for dance lessons running from September 1, 2020 to December 31, 2020.b. On October 1, Splish Splash Art collects $5,000 cash in advance from the Music Box Inc. ($2,500 per m
Answer Preview: Date Account Titles and Explanation Debit Credit a 2020 Sept 1 Cash 1…

, Chapter: 8 -Problem: 15 >> Using the Indigo financial statements in Appendix III, calculate the following ratios for the years ended April 1, 2017, and March 31, 2018. Comment on the change.a. Accounts receivable turnover ratio (round to two decimal places)b. Days’ sales uncollected (round to the nearest day) Financial Statements Financial statements are the standardized formats to present the fin
Answer Preview: March 31 2018 April 1 2017 a Accounts receivable turnover ratio 10794…

, Chapter: 7 -Problem: 5 >> Separation of duties involves separating the following duties:a. Custody, authorization, and attitude of employeesb. Custody, authorization, and recording of assetsc. Control, access, and recording of assetsd. Control, authorization, and receipt of assets
Answer Preview: b Custody …

, Chapter: 10 -Problem: 40 >> Duncan Industries completed these transactions during July 2020. The terms of all credit sales are 2/10, n/30. Required 1. Set up accounts receivable subledger accounts for Kelly Grody, Karen Harden, and Paul Kane. 2. Set up accounts payable subledger accounts for Beech Company, Blackwater Inc., Poppe?s Supply, and Sprague Company. 3. Journalize the transactions of Duncan Industries into the a
Answer Preview: Since posting to the General Ledger was not a requirement in this problem posting references are shown for values posted to the subledgers only Part 3 …

, Chapter: 9 -Problem: 19 >> Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at December 31, 2020: Required 1. Record any impairment losses at December 31, 2020. Assume Kane Biotech has recorded no impairment losses in previous years. 2. Record depreciation for each asset at Dece
Answer Preview: Part 1 2020 Dec 31 Impairment Loss 13500 Equipment 12000 Office Building 1500 To record impairment l…

, Chapter: 8 -Problem: 8 >> Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of $50,000, the bad debt expense account had a balance of $0, and the allowance for doubtful accounts had a credit balance of $5,000. Journalize the remaining journal entries for the 2020 year. Required 1. Prepare journal entries to record the transactions. Note: write-off of uncollectibl
Answer Preview: Part 1 Date 2020 Account Titles and Explanation Debit Credit Dec 2 Accounts Receivable …

, Chapter: 7 -Problem: 12 >> Kesler Co. deposits all receipts intact on the day received and makes all payments by cheque. On July 31, 2020, after all posting was completed, its Cash account showed a $10,932 debit balance. However, Kesler’s July 31 bank statement showed only $10,077 on deposit in the bank on that day along with the following information.a. Outstanding cheques, $2,756.b. Included with the July cancelled cheque
Answer Preview: a KESLER CO Bank Reconciliation July 31 2020 Bank statement balance 10077 Book balance of ca…

, Chapter: 4 -Problem: 8 >> Warden Repairs showed the following adjusted account balances on October 31, 2020. Prepare and post the closing entries. Transcribed Image Text: Liabilities Capital Assets 250 110 200 Withdrawals Revenue Expenses 20 100 140 Income Summary
Answer Preview: 2020 1 Oct 31 Revenue 100 Income Summary 100 To clo…

, Chapter: 9 -Problem: 12 >> Refer to the balance sheet for WestJet in Appendix II. What amount did it report as intangible assets at December 31, 2017? Intangible Assets An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples ar
Answer Preview: WestJet repor…

, Chapter: 4 -Problem: 1 >> Which of the following statements is true about work sheets:a. They are required and must be prepared by all companies that produce financial statementsb. They are optional working papers that can simplify the accountant’s efforts in producing financial statementsc. They are produced without the use of a computerd. They do not show the adjustments made to produce the adjusted trial balance
Answer Preview: b They are optional wo…

, Chapter: 6 -Problem: 10 >> Fireplace Company reported the following amounts in its financial statements: In making the physical counts of inventory, the following errors were made: ? Inventory on December 31, 2020: overstated $8,100 ? Inventory on December 31, 2021: understated $10,800 Required For each of the preceding financial statement items?(a), (b), (c), and (d)?prepare a schedule similar to the following and show
Answer Preview: Analysis Component These errors are selfcorrecting in the year following the error Each ov…

, Chapter: 9 -Problem: 20 >> Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow: Copper?s year-end is December 31 and it uses the straight-line method for all mining assets including intangibles. Required 1. Record amortization and depreciation at December 31, 2020, on the mining assets, includ
Answer Preview: Part 1 2020 Dec 31 Amortization Expense Mineral Rights …

, Chapter: 9 -Problem: 11 >> What are two types of intangible assets? Intangible Assets An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...
Answer Preview: Types of intangibl…

, Chapter: 8 -Problem: 7 >> The direct write-off method is permitted:a. When the percentage of uncollectible accounts is determined to be unrelated to sales volume.b. Only in circumstances where the total reported accounts receivable balance is insignificant to the financial statements as a whole.c. If the CFO determines that the aging schedule does not impact expected future collections of outstanding A/R balances.d. Und
Answer Preview: b Only in circumstances wh…

, Chapter: 7 -Problem: 7 >> The following procedures represent a basic guideline for handling cash:a. Separate handling and recordkeeping of cashb. Deposit cash receipts promptly in the bankc. Make cash disbursements by chequed. All of the above.
Answer Preview: d A…

, Chapter: 10 -Problem: 34 >> Milly’s Drive-In’s 12 employees earn a gross pay of $2,050 each per month. Milly’s Drive-In contributes 8% of gross pay to a retirement program for employees and pays an extended medical insurance premium of $50 per month per employee. RequiredPrepare the entries to record the employer’s payroll costs for the month of March 2018. Use the payroll tables to determine CPP, EI, and income tax deductio
Answer Preview: Mar 31 Salaries Expense 2050 12 2460000 EI Payable 3403 12 40836 CPP Payable 8704 …

, Chapter: 9 -Problem: 6 >> What is the difference in profit between a repairs and maintenance expense and a betterment, and how is each recorded?
Answer Preview: Repairs are made to keep a plant and equipment asset in normal good

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16 Reviews for Fundamental Accounting Principles Volume I Textbook Questions And Answers