Some of the following accounts are real (permanent) accounts, and some are nominal
(temporary) accounts. Identify each account as real or nominal.
The CEO of newly formed Targus Company printed a copy of the company's general
ledger prior to a recent plane flight. She settled into seat 7A next to where you
were sitting. Once airborne, she removed the printed "GL" from her brief case and
Bikash Mishra recently formed a financial services and consulting firm in Nepal. He was
very busy during the first month and has not yet had an opportunity to install his
computerized accounting package. But, he did understand the need to keep tra
Review the following items and decide if each would be more appropriately classified
Neither cash nor cash equivalent
(a) Currency in the petty cash box
(b) Postage stamps in a file cabinet
(c) The balance on deposit in a
Biscay Bay Boats established a petty cash fund for minor day-to-day expenses. Following
are activities related to this fund. Prepare the necessary journal entries for petty cash.
Established a $500 petty cash fund by writing a check to "cash,"
College Bookstore is facing increased competition from online resellers and electronic
media. To combat eroding sales, management adopted new discounting policies as follows:
Students are offered a trade discount based on the number of books purch
Piven Mining Corporation holds significant limestone deposits.
One of its key
customers, Kuai Oil, produces crude oil from shale deposits. This production process
requires limestone, and Piven is seeing a large increase in order flow from Kuai and
Daniel Scott is an audit manager with the accounting firm of Nelson & Riley,
CPAs. As part of the routine audit procedures for one of the firm's clients, Daniel
instructed Wanda Mullins, a newly hired staff auditor, to obtain a bank statement
Interiors With Oohs and Aahs sells custom home dcor. Following is the corporation's
income statement. Use this statement to prepare closing entries. No dividends were
declared during the period.
INTERIORS WITH OOHS AND AAHS
Pitkin Health Care Products provides the following alphabetic list of accounts and their
respective balances. All accounts have normal balances, and income statement
account balances are for the year ending December 31, 20X4. A physical count of
Partial information follows about net sales, net purchases, cost of goods sold, gross
profit, total expenses, and net income for Slabaugh Company. Compute the missing
Sales returns and allow
Morrison Mountain Medical Clinic (MMMC) accepts credit card payments from its patients.
Following are the batched transactions for June 11.
Total charges on MasterMoney and Wisa credit cards were $21,000. These cards
are "bank cards" and MMMC
The following narratives describe transactions impacting cash, accounts receivable,
accounts payable, revenues, and selected expense accounts. Use T-accounts to
analyze this activity and determine the ending balances for accounts receivable and
Accounting "failures" occur when reported results are not presented in accordance with
generally accepted accounting principles. These failures can produce significant financial
losses to investors and creditors. Oftentimes, an accounting failure
Mohamed Bakar Alidini recently formed a business in the Republic of Yemen to process
liquefied natural gas for export to other countries. Natural gas can be converted to a
liquid by cooling it to -163 degrees Celsius. It then assumes a highly comp
Nkululeko J. Ntshanga owns a manganese ore mining business in South Africa. He is
interested in attracting additional investors to obtain financing for planned expansion.
Some potential investors have expressed a concern that money is really being
Anthony Asher's administrative assistant maintains a very simple computerized general
ledger system. This system includes intuitive routines for recording receipts, payments,
and sales on account. However, the system is not sufficiently robust to
Creative Hearing Technologies of London recently introduced a Bluetooth-enabled hearing
aid that allows hearing-disabled users to not only hear better, but also interface with
their cell phones and digital music players.
The company reports the fo
Utilize the following worksheet to prepare the income statement, statement of retained earnings, and balance sheet for
Himarios Corporation. For this problem, you do not need to prepare a classified balance sheet.
Worksheet to Pre
Stargate Publishing issues the Weekly Window. The company's primary sources of
revenue are sales of subscriptions to customers and sales of advertising in the Weekly
Window. Stargate owns its building and has excess office space that it leases to
Yorkston Corporation was formed in 1961. The company came into existence concurrent
with the beginning of construction of super highways throughout the country. It seems the
company's founders had innovated a unique process of applying high-gloss
Goudar Bloodcare is a blood donation center where eligible donors give a pint of
blood about one every other month. Assess each of the following to decide if Goudar
should record the item as an asset, a liability, a revenue, or expense.
Mo Lambert formed a corporation to provide concrete construction work. His jobs
typically involve building parking lots, drives, and foundations. Mo provided the
following information about transactions occurring during the first month of operatio
Magee Corporation provided the following summary balance sheet information:
Dec. 31, 20X1
Dec. 31, 20X2
Compute net income for the year ending December 31, 20X2, under each of
Review the following list of accounts. Indicate the debit/credit rules for the account as
well as the account's normal balance. The first one is done as an example.
Determine whether each of the following items is a(n):
Dividend to shareholders
CUE Corporation was formed at the beginning of 20X2, and presents the following incomplete
financial statements for three years. CUE has requested your help in completing the missing
values for each year. Begin by solving the unknowns in the 20X2
Chapter 4 Homework Assignment
Due Date: September 15, 2015 (by the start of class)
Be sure to show your work.
This assignment is due by the start of class on September 15. Any assignment turned in after
class begins but before class ends (e.g., if you are
Chapter 3 Homework Assignment
Due Date: September 8, 2015 (by the start of class)
Be sure to show your work.
This assignment is due by the start of class on September 8. Any assignment turned in after class
begins but before class ends (e.g., if you are l