Indicate whether a debit will increase (I) or decrease (D) each of the following accounts:
Increase (I) or Decrease (D) I 1. I 2. D 3. I 4. D 5. D 6. D 7. I 8. I 9. I 10. I 11. 12. 13. 14. 15. 16.
D I I D D
Account Inventory Depreciation expense Accounts
E 2-13 External transactions and adjusting entries LO2 LO4 LO5 The following transactions occurred during 2006 for the Beehive Honey Corporation:
Feb. 1 Borrowed $20,500 from a bank and signed a note. Principal and interest at 9% will be paid on January 3
Problem 3-45 Job-Order Costing; Journal Entries (LO 2, 5) Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,500) and job no. 65 ($53,000). The following information is available:
E 23 T-accounts and trial balance LO3 Post the journal entries prepared below to T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances.
1. Issued 35,000 shares of common stoc
E 1-6 Concepts; terminology; conceptual framework LO6 Listed below are several terms and phrases associated with the FASBs conceptual framework. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it
E 2-7 Transaction analysis; debits and credits LO2 Some of the ledger accounts for the Sanderson Hardware Company are numbered and listed below. For each of the October 2006 transactions numbered 1 through 12 below, indicate by account which accounts shou
Problem 3-44 Manufacturing Cost Flows; Analysis of T-Accounts (LO 2, 5) Perfecto Pizza Company produces microwavable pizzas. The following accounts appeared in Perfecto's ledger as of December 31.
Raw-Materials Inventory Accounts Payable Bal.1/1 20,500
Exercise 2-29 Schedules of Cost of Goods Manufactured and Sold; Income Statement (LO 1, 3, 6) Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1. Inventory Classificat
E 13-1 Bank loan; accrued interest LO2 LO3 On November 1, 2006, Quantum Technology, a geothermal energy supplier, borrowed $ 8,186,000 cash to fund a geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line of credit ar
E 1-9 Basic assumptions and principles LO6 through LO8 Listed below are several statements that relate to financial accounting and reporting. Identify the basic assumption, broad accounting principle, or pervasive constraint that applies to each statement
Exercise 3-27 Job-Order Costing Basics (LO 2, 6) Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January.
January 1 January 31
Exercise 3-28 Cost Relationships; Normal Costing System (LO 2, 6) Herget, Inc. employs a normal costing system. The following information pertains to the year just ended.
Total manufacturing costs were $2,500,000. Cost of goods manufactured was $2,250,00
Exercise 3-30 Schedule of Cost of Goods Manufactured (LO 2, 6) Crunchem Cereal Company incurred the following actual costs during 20x1.
Direct material used $ 298,000 Direct labor 129,000 Manufacturing overhead 277,350
The firm's predetermined overhead ra
Exercise 3-25 Job-Order Costing Basics (LO 5) Finley Educational Products started and finished job number B67 during June. The job required $4,750 of direct material and 42 hours of direct labor at $19 per hour. The predetermined overhead rate is $5 per d
Problem 2-41 Incomplete Data; Manufacturing Costs (LO 2, 5) Determine the missing amounts in each of the following independent cases. (Omit the "$" sign in your response.)
Case A Case B Case C Beginning inventory, raw material $
$ 20,000 $ 15,000 E
E 13-12 Warranties LO5 LO6 Cupola Awning Corporation introduced a new line of commercial awnings in 2006 that carry a two-year warranty against manufacturer's defects. Based on their experience with previous product introductions, warranty costs are expec
E 13-2 Determining accrued interest in various situations LO2 LO3 On July 1, 2006, Ross-Livermore Industries issued nine-month notes in the amount of $200 million. Interest is payable at maturity.
Required: Determine the amount of interest expense that sh
E 2-11 Closing entries LO7 American Chip Corporations fiscal year-end is December 31. The following is a partial adjusted trial balance as of December 31, 2006.
Account Title Retained earnings Sales revenue Interest revenue Cost of goods sold Salaries exp
E 2-10 Financial statements and closing entries LO6 LO7 The December 31, 2006, adjusted trial balance for the Blueboy Cheese Corporation is presented below.
Account Title Cash Accounts receivable Allowance for uncollectible accounts Prepaid rent Inventory
P 2-5 Adjusting entries LO4 LO5 The Whitlow Manufacturing Corporation's fiscal year-end is December 31. Below are the unadjusted and adjusted trial balances for December 31, 2006.
Account Title Cash Accounts receivable Allowance for uncollectible accounts
E 13-8 Customer deposits LO3 Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's
E 13-3 Multiple choice; CPA exam; current liabilities LO3 LO4 The following questions dealing with current liabilities are adapted from questions that appeared on past CPA examinations. Determine the response that best answers the question, and enter the
E 2-14 Accrual accounting income determination LO4 LO8 During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2006, you discover the following:
a. An insurance policy covering three years
E 2-9 Adjusting entries LO4 LO5 Prepare the necessary adjusting entries at December 31, 2006, for the Microchip Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were r
P2-2 Accounting cycle through unadjusted trial balance LO2 LO3 The following is the post-closing trial balance for the Whitlow Manufaruring Corporation as of December 31, 2005. Account Title Debit Credit Cash $5,000 Accounts receivable 2,000 Inventory 5,0
E 1-8 Basic assumptions, principles, and constraints LO6 through LO8 Listed below are several terms and phrases associated with basic assumptions, underlying principles, and constraints. Pair each item from List A (by letter) with the item from List B tha
Assets 1. 2. 3. 4. 5. 6. 7. 8. 9.
NA NA + + NA NA NA NA NA NA NA NA
Paidin Capita l
0 0 30,000 90,000 0 0 0 0 0 70000 0 0 0
+ NA NA NA NA NA NA NA NA NA NA NA NA
300,000 0 0 0 0 0 0 0 0 0 0 0 0 NA NA NA NA + NA NA NA N