Larry M. Walther and Christopher J. Skousen
Alberto Condor has an eye for quality. He recently formed an art gallery where he allows artists to display their artwork for sale. Customers buy the artwork through the gallery, but payments are actually made payable directly to the originating artist. Artists, in turn, pay Albert a 20% commission that is appropriately reflected as revenue of the gallery. Following is Albert’s trial balance after the first year of operation. This trial balance does not reflect the adjustments that are necessary, as described by the additional information………
Wolfgang Schnitzer is in charge of financial management for Over-Head-Eye Corp. Over-Head-Eye utilizes satellite technology and sophisticated mapping software to alert its customers to trespassing, illegal dumping, and other encroachments on property these customers own around the globe. Customers typically purchase one-year contracts for this service, and the pricing depends on the number and size of sites monitored. Mr. Schnitzer desires to review financial reports – an income statement, statement of retained earnings, and balance sheet. Prepare these reports from the following adjusted trial balance. Mr. Schnitzer needs this information for internal review purposes, and does not require a classified balance sheet. The operating data relate to the full year, and the blank worksheet already includes partial data……
Beaver Lodge prepared the following adjusted trial balance on December 31, 20X7. The company has completed preparation of financial statements and is now ready to prepare closing entries…..
Elements is an upscale university housing complex providing all the amenities of private townhouse living, and a full service 24-hour cafeteria for busy students. Prior to recording any adjusting entries for 20X8, Elements has incurred and recorded total salary expense of $2,625,000 and total rental revenue of $14,400,000. As of December 31, 20X8, the company owes $45,000 of additional salaries to employees, and accrued rent due from residents amounts to $300,000. On January 10, 20X9, Traditions paid salaries of $120,000 covering the amount due as of December 31, as well as additional amounts relating to 20X9. On January 15, 20X9, Traditions received rental payments for $750,0000 covering the rents due as due of December 31, 20X8, and additional amounts relating to the first half of January, 20X9…….
Dingane Ndubizu owns a diamond 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 sought to address liquidity problems being faced by Dingane’s company. To alleviate this concern Dingane provided the following complete list of assets and liabilities of the company. The currency unit is the South African Rand. Use this information to determine the company’s current assets, current liabilities, working capital, current ratio, and quick ratio. Based on your calculations, does it appear that the company is experiencing liquidity problems?……
McComick Corporation prepared the following preliminary trial balance. The trial balance and other information was evaluated by Darren Anderson, CPA. Darren has returned a list of proposed adjustments that are necessary to facilitate preparation of correct financial statements for the year ending December 31, 20X8……
Accounting Cycle (Exercises IV)
Larry M. Walther and Christopher J. Skousen
- Basics of Accounting &... — Free extension & plugin for easy view of books and videos in browser Your goals for this “welcoming” chapter are to learn about: • The nature of financial and managerial accounting information. • The accounting profession and accounting careers. • The fundamental accounting equation: Assets = Liabilities + Owners’ Equity. • How transactions impact the [...]
- Analytics for Managerial De... — Free extension & plugin for easy view of books and videos in browser Part 4 Analytics for Managerial Decision Making Cost Characteristics and Decision-Making Ramifications Sunk Costs VS. Relevant Costs A Basic Illustration of Relevant Cost/Benefit Analysis Complicating Factors Business Decision Logic Outsourcing Outsourcing Illustration Capacity Considerations in Outsourcing Illustration of Capacity Considerations Qualitative Issues [...]
- An Introduction to Accounti... — Free extension & plugin for easy view of books and videos in browser LEARNING OUTCOMES After completing this book, the reader will be able to explain why accounts are the way they are, to evaluate the competing theories of why accounting is the way it is, to understand the main alternative accounting treatments of items [...]
- The Accounting Cycle — Free extension & plugin for easy view of books and videos in browser Accounting Information You likely have a general concept of what accountants do. They capture information about the transactions and events of a business, and summarize that activity in reports that are used by persons interested in the entity. But, you likely do [...]
- Accounting Cycle (Exercises... — Free extension & plugin for easy view of books and videos in browser Larry M. Walther & Christopher J. Skousen Problem 2 TOP Corporation was formed at the beginning of 20X2, and presents the following incomplete financial statements for three years. TOP has requested your help in completing the missing values for each year. Hint: [...]