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Number of Questions 30
Score atleast 90% easily with our EXCEL SHEET for
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mentioned Question
Exercise 129 Prepare the necessary adjusting
journal entries indicated by each item for the year
ended December 31, 2017.
Exercise 132
1. An income statement.
2. 2. A retained earnings
statement.
3. A balance sheet.
Brief Exercise 3-2Splish Repair Shop had the
following transactions during the first month of
business as a proprietorship. Journalize the
transactions
Brief Exercise 3-8 Included in Novak Company's
December 31 trial balance is a note receivable of
$12,360. The note is a 4-month, 10% note dated
October 1. Prepare Novak's December 31 adjusting
entry to record $309 of accrued interest, and the
February 1 journal entry to record receipt of
$12,772 from the borrower.
Brief Exercise 4-3 Kingbird Corporation had net
sales of $2,423,900 and interest revenue of
$39,100 during 2017. Expenses for 2017 were cost
of goods sold $1,464,800, administrative expenses
$218,000, selling expenses $283,500, and interest
expense $54,200. Kingbird's tax rate is 30%. The
corporation had 103,100 shares of common stock
authorized and 72,670 shares issued and
outstanding during 2017. Prepare a condensed
multiple-step income statement for Kingbird
Corporation.
Exercise 4-2 Presented below is information
related to Windsor Company at December 31,
3. 2017, the end of its first year of operations.
(a) Income from operations
(b) Net income
(c) Comprehensive income
(d) Retained earnings balance at
December 31, 2017
Brief Exercise 4-7 Sheffield Company has recorded
bad debt expense in the past at a rate of 1.5% of
accounts receivable, based on an aging analysis. In
2017, Sheffield decides to increase its estimate to
2%. If the new rate had been used in prior years,
cumulative bad debt expense would have been
$383,900 instead of $298,500. In 2017, bad debt
expense will be $132,400 instead of $96,720. If
Sheffield's tax rate is 29%, what amount should it
report as the cumulative effect of changing the
estimated bad debt rate? Exercise 104 Presented
below are changes in the account balances of
Wenn Company during the year, except for
retained earnings.
(a) Compute the net income for the current year.
Question 13 The Marin, Inc. sold 10,350 season
tickets at $2,040 each. By December 31, 2017, 16
of the 40 home games had been played.
4. What amount should be reported as a current
liability at December 31, 2017?
Brief Exercise 5-2 Martinez Corporation's adjusted
trial balance contained the following asset
accounts at December 31, 2017: Cash $9,750, Land
$45,600, Patents $17,100, Accounts Receivable
$94,270, Prepaid Insurance $5,640, Inventory
$39,400, Allowance for Doubtful Accounts $4,500,
and Equity Investments (trading) $11,570.Prepare
the current assets section of the
balance sheet
Brief Exercise 5-8 Included in Sunland Company's
December 31, 2017, trial balance are the following
accounts: Accounts Payable $221,400, Pension
Liability $380,600, Discount on Bonds Payable
$31,100, Unearned Rent Revenue $43,600, Bonds
Payable $406,600, Salaries and Wages Payable
$29,000, Interest Payable $13,460, and Income
Taxes Payable $30,460.
Brief Exercise 5-9 Included in Windsor Company's
December 31, 2017, trial balance are the following
accounts: Accounts Payable $249,600, Pension
Liability $376,400, Discount on Bonds Payable
$29,400, Unearned Rent Revenue $47,100, Bonds
Payable $409,200, Salaries and Wages Payable
$27,100, Interest Payable $13,990, and Income
Taxes Payable $36,700.
5. Brief Exercise 5-13 Sarasota Company reported
2017 net income of $152,800. During 2017,
accounts receivable increased by $14,580 and
accounts payable increased by $9,723.
Depreciation expense was $46,700.
Brief Exercise 5-14 Compute the net cash
provided (used) by investing activities.
Brief Exercise 5-15 Compute the net cash used
(provided) by financing activities. 7.
Brief Exercise 6-2 What amount must he invest
today if his investment earns 12% compounded
annually? What amount must he invest if his
investment earns 12% annual interest
compounded quarterly?
Brief Exercise 6-6 How much must he invest at the
end of each year, at 8% interest, to meet his
needs?
Brief Exercise 6-15 What amount will Pearl
receive when it issues the bonds?
Exercise 6-12 In which building would you
recommend that The Sheridan Inc. locate,
assuming a 12% cost of funds?
Brief Exercise 18-2 On May 10, 2017, Swifty Co.
enters into a contract to deliver a product to Greig
Inc. on June 15, 2017. Greig agrees to pay the full
contract price of $2,060 on July 15, 2017. The cost
of the goods is $1,350. Swifty delivers the product
6. to Greig on June 15, 2017, and receives payment
on July 15, 2017. Prepare the journal entries for
Swifty related to this contract. Either party may
terminate the contract without compensation until
one of the parties performs.
Brief Exercise 18-8 Presented below are three
revenue recognition situations.
(a) Groupo sells goods to MTN for
$932,000, payment due at delivery.
(b) Groupo sells goods on account to Grifols for
$753,000, payment due in 30 days.
(c) Groupo sells goods to Magnus for $537,000,
payment due in two installments, the first
installment payable in 18 months and the
second payment due 6 months later. The present
value of the future payments is $499,700. Brief
Exercise 18-10(a) Prepare the journal entries for
Kingbird on March 1, 2017.
(b) Prepare the journal entries for Kingbird on
December 31, 2017.
Brief Exercise 18-13 Prepare Carla's journal
entries to record (a) the sale on July 10, 2017, and
(b) $84,200 of returns on October 11, 2017, and on
October 31, 2017. Assume that Carla prepares
financial statement on October 31, 2017. Question
17 Classify the following items as (1) operating,
(2) investing, (3) financing, or (4)
7. significant noncash investing and financing
activities, using the direct method.
Brief Exercise 23-1 Novak Corporation is
preparing its 2017 statement of cash flows, using
the indirect method. Presented below is a list of
items that may affect the statement. Using the
code below, indicate how each item will affect
Novak's 2017 statement of cash flows.
Brief Exercise 23-7 Whispering Corporation had
January 1 and December 31 balances as follows.
Brief Exercise 23-8 In 2017, Martinez Corporation
had net cash provided by operating activities of
$511,000, net cash used by investing activities of
$992,000, and net cash provided by financing
activities of $570,000. At January 1, 2017, the cash
balance was $330,000.
Brief Exercise 23-9 Teal Corporation had the
following 2017 income statement.
(a) Prepare Teal's cash flows from operating
activities section of the statement of cash flows
using the direct method.
(b) Prepare Teal's cash flows from operating
activities section of the statement of cash flows
using the indirect method.
Brief Exercise 24-8 (a) The current ratio of a
company is 5:1 and its acid-test ratio is 1:1. If the
8. inventories and prepaid items amount to
$530,000, what is the amount of current
liabilities?
(b) A company had an average inventory last year
of $209,000 and its inventory turnover was 6. If
sales volume and unit cost remain the same this
year as last and inventory turnover is 8 this year,
what will average inventory have to be during the
current year?
(c) A company has current assets of $90,000 (of
which $44,000 is inventory and
prepaid items) and current liabilities of $44,000.
What is the current ratio? What is the acid-test
ratio? If the company borrows $14,000 cash from a
bank on a 120-day loan, what will its current ratio
be? What will the acid-test ratio be?
(d) A company has current assets of $628,000
and current liabilities of $255,000. The
board of directors declares a cash dividend of
$195,000. What is the current ratio after the
declaration but before payment? What is the
current ratio after the payment of the dividend?
Exercise 24-3 Kingbird Company is involved in
four separate industries. The following
information is available for each of the four
industries.
(a) Revenue test.
