Exercise 7-34 (Algorithmic)
Cost of Fixed Assets
Mooney Sounds, a local stereo retailer, needed a new store because it had outgrown the leased
space it had used for several years. Mooney acquired and remodeled a former grocery store. As a
part of the acqu
501-Ch 1: Accounting and the Financial Statements
What is Accounting?
Accounting is the process of identifying, measuring, recording and communicating financial
info about a companys business activities so decision-makers can make informed decision
Acct 501. Ch 6
If beginning inventory is $40,000, purchases are $215,000, and ending inventory is $35,000, what is
cost of goods sold as determined by the cost of goods sold model?
Which of the following tra
Cornerstone Exercise 1-15 (Algorithmic)
Using the Accounting Equation
At the beginning of the year, Morgan Company had total assets of $470,000 and to
1. Which of the following statements best describes current assets?
a. The amount of claims that creditors have against the business.
b. Cash and the assets that are expected to be converted into cash
within one year or one operating cycle, whichever is l
1. Companies use a general ledger to:
a. record transactions occurring on a specific date.
b. submit the ledger to the Securities and Exchange Commission
(SEC) at the end of the period.
c. keep track of the balances of specific accounts.
d. be able to pos
Cornerstone Exercise 1-14
Using the Accounting Equation
Listed below are three independent scenarios.
Use the fundamental accounting equation to find
Cornerstone Exercise 8-22 (Algorithmic)
On May 1, Astrauckas, Inc. borrowed $45,000 from the Savings Bank of Scotville on a one-year,
6 percent note.
If the company keeps its records on a calendar year, what adjusting entry should Astrauc
Exercise 1-35 (Algorithmic)
ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of
common stock outstanding for the year. The following income statement account balances are
available for ERS at the end of
Cornerstone Exercise 6-20 (Algorithmic)
Recording Purchase Transactions
Mathis Company and Reece Company use the perpetual inventory system. The following
transactions occurred during the month of April:
a. On April 1,Mathis Company purchased merchandise
Cornerstone Exercise 9-27 Algorithmic Right
Issuance of Long-Term Debt
EWO Enterprises issues $207,000 of bonds payable.
Provide the necessary journal entry to record the issuance of the bonds assuming:
a. The bonds were issued at par.
Exercise 3-43 (Algorithmic)
Reynolds Computer Service offers data processing services to retail clothing stores. The following data have been
collected to aid in the preparation of adjusting entries for Reynolds Computer Service for 2011
501Appendix 2: Investments
*OBJECTIVE 1: Choose between and use the amortized cost, fair value, and equity methods for reporting
Overview of Accounting for Investments in Debt and Equity
*Accounting for investments in equity securities differ