Charlie Brown, controller for the Kelly Corporation, is preparing the company's income
statement at year-end. He notes that the company lost a considerable sum on the sale of some
equipment it had decided to replace. Since the company has sold eq
Individual Week 1
INDIVIDUAL WEEK 1
Differentiate broadly between financial accounting and managerial accounting.
Financial accounting is a process that one goes through to prepare the financial reports for use by
both internal an
(Classifications fo Balance Sheet Accounts)
Presented below are the captions of Nikos Company's balance sheet.
Indicate by letter where each of the following items would be classified
Individual Week 3
E3-1: Transaction Analysis
(Transaction AnalysisService Company) Beverly Crusher is a licensed CPA.
During the first month of operations of her business (a sole proprietorship), the
following events and transactions occurred.
Individual Week 10
E 6-4: Computation of Future and Present Values
Using the appropriate interest table, answer the following questions. (Each case is
independent of the others).
(a) What is the future value of 20 periodic payments of $4,000 ea
Individual Week 4
E3-6 (Adjusting Entries) Karen Weller, D.D.S., opened a dental practice on January 1,
2014. During the first month of operations, the following transactions occurred.
1. Performed services for patients who had dental plan insu
Individual Week 11
E7-1: Determining Cash Balance
The controller for Clint Eastwood Co. is attempting to determine the amount of cash and
cash equivalents to be reported on its December 31, 2014, balance sheet. The following
information is prov
Individual Week 8
E5-13: Statement of cash flow classifications
The major classifications of activities reported in the statement of cash flows are operating,
investing, and financing. Classify each of the transactions listed below as:
Individual Week 5
E4-1: Computation of Net Income
Presented below are changes in all the account balances of Fritz Reiner Furniture Co.
during the current year, except for retained earnings
1. What is a compensating balance? (Points : 5)
Savings account balances.
Margin accounts held with brokers.
Temporary investments serving as collateral for outstanding loans.
Minimum deposits required to be maintained in connection with a borrowing arran
Question 1. Which of the following situations does not base an accounting measure on present
values? (Points : 5)
Question 2. What is interest? (Points : 5)
Payment for the use of money.
An equity invest
Question 1. Long-term liabilities include: (Points : 5)
obligations not expected to be liquidated within the operating cycle.
obligations payable at some date beyond the operating cycle.
deferred income taxes and most lease obligations.
all of these.
Question 1. The most significant current source of generally accepted accounting principles is
the: (Points : 5)
Question 2. The elements of financial statements include investments by owners. These are
increases in an entity?s net
A) Total Net Revenue
Less: Sales discoun
1. Differentiate broadly between financial accounting and managerial accounting. Financial accounting
is the process that culminates in the preparation of financial reports on the enterprise for use by both
internal and external parties. Managerial accoun
Transaction Analysis- Service Company
Invested Cash and Equipment in the business
Secretary at Salary
2-Apr Salary Expenses
Purchased supplies on account
Income from continuing operations before income tax
Income tax (35% x $23,650,000)
Income from continuing operations
Loss before income tax
Less: Applicable income tax (35%)
Preferred dividends declared:
E2-4 (Qualitative Characteristics) the qualitative characteristics that make accounting information useful for decision-making purposes are as follows.
Question 1. The double-entry accounting system means (Points : 5)
Each transaction is recorded with two journal entries.
Each item is recorded in a journal entry, then in a general ledger account.
The dual effect of each transaction is recorded with a deb
Question 1. For Rondelli Company, the following information is available:
Cost of goods sold $270,000
Dividend revenue 12,000
Income tax expense 27,000
Operating expenses 105,000
Sales revenue 450,000
In Rondelli's multiple-step income statement, gross pr
Issuance of capital stock
Purchase of land and building
Redemption of bonds
Sale of equipment
Depreciation of machinery
Amortization of patent
Issuance of bonds for plant assets
Payment of cash dividends
Exchange of furniture for
E-13-11 (Warranties) Selzer Equipment Company sold 500 Rollomatics during 2012 at $6,000 each. During 2012, Selzer
spent $30,000 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are a cash basis.
At December 31, 2011 Schroeder Corporation had the following stock outstanding.
8% cumulative preferred stock. $100 par, 107,500 shares
Common stock, $5 par, 4,000,000 shares
During 2012, Schroeder did not issue any additional commo
Presented below are changes in all the account balances of Jackson Furniture Co. during the current year, except for retained earnings
Accounts Receivable (net)
Prepare the adjusting entries on January 31 (Omit explanations) Account titles are Accumulated Depreciation Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Su
E3-6 Stephen King, D.D.S., opened a dental practice on January 1, 2012. During the first
month of operations, the following transactions occurred.
1. Performed services for patients who had dental plan insurance. At January 31,
$750 of such services was e