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Chapter: 1 -Problem: 16 >> The following information is related to Natural Water Company and Clean Water Company for the month of December 2024.Compare the return on assets (ROA) of these two companies and suggest which company one should invest in. Transcribed Image Text: Company Natural Water Company Clean Water Company Net
Answer Preview: To compare the return on assets (ROA) of the two companies, you can use the formula for ROA: ROA = N…

, Chapter: 15 -Problem: 20 >> Martin Martini Winery’s comparative income statement follows The 2022 data are given as needed. Requirements 1. Calculate the profit margin ratio for 2024 and 2023. 2. Calculate the rate of return on total assets for 2024 and 2023. 3. Calculate the asset turnover ratio for 2024 and 2023. 4. Calculate the rate of return on common stockholders’ equity for 2024 and 2023. 5. Calculate the earnings per
Answer Preview: Given Data: For 2024: Net Sales Revenue = $54,800 Gross Profit = $29,800 Income from Operations = $17,800 Total Assets = $49,800 Common Stockholders' …

, Chapter: 1 -Problem: 23 >> Natalia Louis opened a pet shop called Natalia’s Pet Shop. Answer the following questions based on two different situations related to the pet shop. Requirements 1. Natalia’s Pet Shop began the year with total liabilities of $40,000 and total stockholders’ equity of $22,500. During the year, total assets increased by 25%. Compute the total assets at the end of the year. 2. Natalia’s Pet Shop began
Answer Preview: Situation 1: Natalias Pet Shop began the year with total liabilities of $40,000 and total stockholde…

, Chapter: 4 -Problem: 3 >> Refer to the data in Short Exercise S-F:4-1. Prepare Refreshing Salon’s unclassified balance sheet at December 31, 2024. Use the account form. Data From S-F:4-1Refreshing Salon’s adjusted trial balance follows. Prepare Refreshing Salon’s income statement for the year ended December 31, 2024. Transcribed Image Text:
Answer Preview: Refreshing Salon Unclassified Balance Sheet December …

, Chapter: 15 -Problem: 12 >> Modern Bike’s balance sheet appears as follows (amounts in thousands):Use the following ratio data to complete Modern Bike’s balance sheet. 1. Current ratio is 1.40. 2. Acid-test ratio is 0.45. Transcribed Image Text: Cash Accounts Receivable Merchandise Inventory Prepaid Expenses Total Current Asse
Answer Preview: Current ratio is 1 40. Current Ratio = Current Assets / Current Liabilities 1 40 = (Cash + Accounts …

, Chapter: 4 -Problem: 1 >> Refreshing Salon’s adjusted trial balance follows. Prepare Refreshing Salon’s income statement for the year ended December 31, 2024. Transcribed Image Text: REFRESHING SALON Adjusted Trial Balance December 31, 2024 Account Title Cash Accounts Receivable Office Supplies Prepaid Rent Furniture Accumul
Answer Preview: Refreshing Salon Income Statement For the Year Ended December 31, 2024 Revenu…

, Chapter: 1 -Problem: 5 >> Barry Lim is a 28-year old data analyst who lives in Singapore. He recently made a few decisions that affected his professional life. Identify the accounting assumptions and principles that apply to each of the following situations: a. Barry quit his job at a data analysis firm to open a café called Barry’s Café. He separated his personal assets from the assets of Barry’s Café to help him evaluate
Answer Preview: a. Barry quit his job at a data analysis firm to open a caf called Barrys Caf. He separated his personal assets from the assets of Barrys Caf to help …

, Chapter: 4 -Problem: 21 >> Use your answer from Exercise E-F:4-20 to prepare Orange Home Cleaning Service’s financial statements. Requirements 1. Complete the income statement for the month ended November 30, 2024.2. Complete the statement of retained earnings for the month ended November 30, 2024.3. Complete the classified balance sheet as of November 30, 2024. Use the report form. Data From Exercise E-F:4-20The unadjusted
Answer Preview: The financial statements for Orange Home Cleaning Service for the month ended November 30, 2024, pre…

, Chapter: 12 -Problem: 9 >> Simon’s Garment Company issued $150,000, 6%, 10-year bond payable. Assume that the accounting year of Simon’s Garment Company ends on December 31. Journalize the following transactions for Simon’s Garment Company.a. Issuance of the bond payable at par on July 1, 2024.b. Accrual of interest expense on December 31, 2024.c. Payment of semiannual cash interest on January 1, 2025.d. Payment of the bond
Answer Preview: a. Issuance of the bond payable at par on July 1, 2024: Date: July 1, 2024 Account Debit Credit Cas…

, Chapter: 5 -Problem: 25 >> Emerson St. Book Shop’s unadjusted Merchandise Inventory at June 30 was $5,200. The cost associated with the physical count of inventory on hand on June 30 was $4,900. In addition, Emerson St. Book Shop estimated approximately $1,000 of merchandise sold will be returned with a cost of $400. Requirements 1. Journalize the adjustment for inventory shrinkage. 2. Journalize the adjustment for estimate
Answer Preview: To journalize the adjustments for inventory shrinkage and estimated sales returns, we need to make two separate journal entries. Let's go through each …

, Chapter: 3 -Problem: 20 >> Consider the following independent situations for Tropical View: a. Tropical View had a January 1, 2024 beginning balance in its Prepaid Rent account of $1,400. During the year the company made payments for prepaid rent of $700. At the end of the year, December 31, 2024, the balance in the Prepaid Rent account was $800. What was the amount of rent expense for the year?b. Tropical View had a Januar
Answer Preview: a. In this situation, the company started with a beginning balance of $1,400 in the Prepaid Rent acc…

, Chapter: 4 -Problem: 4 >> Refer to the data in Short Exercise S-F:4-1. Prepare Refreshing Salon’s classified balance sheet at December 31, 2024. Use the report form. Data From S-F:4-1Refreshing Salon’s adjusted trial balance follows. Prepare Refreshing Salon’s income statement for the year ended December 31, 2024. Transcribed Image Text:
Answer Preview: ------------------------------------------------ Refreshing Salon Classified Balance Sheet December …

, Chapter: 7 -Problem: 14 >> Sam Mario works as an Admissions Officer at the Arts Center. Mario’s duty includes welcoming visitors and ensuring visitors pay the admission fee of $5 per person. No ticket is issued to visitors against their payment. Mario has the master key to the cash box where payments are collected. Each evening, Mario prepares the cash report that shows the number of visitors to the Arts Center and the cash
Answer Preview: Internal Control Weakness: The main internal control weakness in this situation is the lack of segregation of duties. Sam Mario, as the Admissions Off…

, Chapter: 2 -Problem: 20 >> Balinese Traditional Massage Service completed the following transactions during November 2024, its first month of operations: Requirements 1. Record the transactions in the journal of Balinese Traditional Massage Service. 2. Post the entries to the ledger, using T-accounts. Transcribed Image Text:
Answer Preview: Journal: November 1: Cash (Assets) $12,000 Common Stock (Equity) $12,000 November 3: Office Supplies …

, Chapter: 3 -Problem: 22 >> Louise’s Bookstore has been in operation since January 2024. Consider the following independent situations for the bookstore in 2024:a. The bookstore has an interest expense of $4,200 that it must be pay by January 15, 2025. b. Louise sublet his bookstore to Kate Andrew, who operates a small café inside the bookstore. On August 1, when $24,000 for rent was collected from Kate in advance, Cash was
Answer Preview: Date Account Debit Credit Dec 31, 2024 Interest Expe…

, Chapter: 3 -Problem: 27 >> Lucas Tax Consultancy gathered the following information for the adjusting entries on April 30, 2024: a. Accrued service revenue, $900. b. Earned $800 of the service revenue collected in advance. c. The unadjusted balance of the Office Supplies account is $600. Office supplies used, $200. d. Depreciation expense on equipment, $400; furniture, $250. e. Accrued expense for employee’s salary, $800. f
Answer Preview: Here are the journal entries for the adjusting entries on April 30, 2024, for Lucas Tax Consultancy: a. Accrued service revenue, $900. Adjusting Entry: Debit: Accounts Receivable (or Accrued Revenue) - $900 Credit: Service Revenue - $900 b. Earned $800 of the service revenue collected in advance. Adjusting Entry: Debit: Unearned Revenue - $800 Credit: Service Revenue - $800 c. The unadjusted balance of the Office Supplies account is $600. Office supplies used, $200. Adjusting Entry: Debit: Office Supplies Expense - $200 Credit: Office Supplies - $200 d. Depreciation expense on equipment, $400; furniture, $250. Adjusting Entry …

, Chapter: 3 -Problem: 9 >> Online Gaming collects cash from subscribers in advance and then provides online games to subscribers over a one-year period. Requirements 1. Record the journal entry to record the original receipt of $180,000 cash. 2. Record the adjusting entry that Online Gaming makes to record earning $8,000 in subscription revenue that was collected in advance. 3. Using T-accounts, post the journal entry and a
Answer Preview: Initial Balances: Account Debit ($) Credit ($) Cash $180,000 Unearned Subscription Rev…

, Chapter: 4 -Problem: 2 >> Refer to the data in Short Exercise S-F:4-1. Prepare Refreshing Salon’s statement of retained earnings for the year ended December 31, 2024. Data From S-F:4-1Refreshing Salon’s adjusted trial balance follows. Prepare Refreshing Salon’s income statement for the year ended December 31, 2024. Transcribed Image Text:
Answer Preview: Calculate Net Income: Net Income = Total Revenue - Total Expenses Net Income = Servic…

, Chapter: 7 -Problem: 21 >> Stay Fit Gym’s checkbook lists the following:Stay Fit’s June bank statement shows the following: Requirements 1. Prepare Stay Fit Gym’s bank reconciliation at June 30, 2024. 2. How much cash does Stay Fit actually have on June 30, 2024. 3. Journalize any transactions required from the bank reconciliation. Transcribed Image
Answer Preview: 1. Bank Reconciliation at June 30, 2024: Bank Statement Balance (June 30) $1,590 Add: Deposits in Tr…

, Chapter: 13 -Problem: 21 >> What is a prior-period adjustment?
Answer Preview: A prior-period adjustment, in accounting and financial reporting, refers to a correction made to the financial statements of a company for errors or i…

, Chapter: 4 -Problem: 20 >> The unadjusted trial balance of Orange Home Cleaning Service at November 30, 2024, follows:Additional information at November 30, 2024: a. The unadjusted prepaid rent of $1,200 relates to rent period November 2024 through January 2025. b. Office Supplies used, $950. c. Accrued service revenue, $1,100. d. The furniture’s expected useful life is five years with no residual value. e. Accrued Salaries
Answer Preview: To complete Orange Home Cleaning Service's worksheet for the month ended November 30, 2024, we need to make adjustments based on the additional inform…

, Chapter: 5 -Problem: 21 >> Describe the multi-step income statement.
Answer Preview: The multi-step income statement is a type of financial statement used in accounting to present a company's revenues, expenses, and ultimately its net income over a specific period of time, typically a …

, Chapter: 3 -Problem: 18 >> During 2024, Fun Tuition Center, which provides creative tuition services for kids, earned revenues of $400,000, but only collected $380,000. Expenses incurred during the year totaled $280,000 and the business only paid $190,000.Answer the following questions about the correct way to account for revenue using either the cash basis or the accrual basis of accounting system as required: a. Under acc
Answer Preview: a. Under accrual basis, Fun Tuition Center should report revenue based on when it is earned, regardl…

, Chapter: 7 -Problem: 8 >> The manager of Creative Hair Salon has just received the May 31, 2024, bank statement for the salon from Park Cities Bank. The statement shows an ending balance of $1,755. Listed on the statement are an EFT rent collection of $990, an EFT utilities payment of $30, a bank service charge of $24, and an NSF check totaling $405. In reviewing Creative Hair Salon’s cash records, the manager identified o
Answer Preview: To determine the actual cash balance of Creative Hair Salon as of May 31, 2024, we n…

, Chapter: 13 -Problem: 2 >> Mercia Corporation is authorized to issue 100,000 shares of common stock and 8,000 shares of preferred stock. During the first year ended 31 December 2024, Mercia Corporation completed the following stock issuance transactions: Requirement Journalize the above transactions for Mercia Corporation. Transcribed Image Text:
Answer Preview: here are the journal entries for the stock issuance transactions …

, Chapter: 5 -Problem: 20 >> Describe the single-step income statement.
Answer Preview: The single-step income statement is a simplified format of presenting a company's financial performa…

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