2. Southwest Tours Co. is a travel agency (A+)

Southwest Tours Co. is a travel agency. The nine transactions recorded by Southwest Tours during May 2012, its first month of operations, are indicated in the following T accounts:

Cash Equipment Mickey O\’Dell, Drawing

(1) 39,800 (2) 2,800 (3) 28,700 (9) 4,000

(7) 15,900 (3) 5,150

(4) 4,400

(6) 11,950

(9) 4,000

Accounts Receivable Accounts Payable Service Revenue

(5) 21,500 (7) 15,900 (6) 11,950 (3) 23,550 (5) 21,500

Supplies Mickey O\’Dell, Capital Operating Expenses

(2) 2,800 (8) 1,600 (1) 39,800 (4) 4,400

(8) 1,600

Required:

1 Prepare an unadjusted trial balance, listing the accounts in their proper order. Place the amounts in the proper columns. If an entry is not required in an amount box, leave the box blank.

2 Based upon the unadjusted trial balance, determine the net income or net loss.

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Southwest Tours Co. is a travel agency (A+)

Southwest Tours Co. is a travel agency. The nine transactions recorded by Southwest Tours during May 2012, its first month of operations, are indicated in the following T accounts:

Cash Equipment Mickey O\’Dell, Drawing

(1) 37,800 (2) 2,650 (3) 27,200 (9) 3,800

(7) 15,100 (3) 4,900

(4) 4,150

(6) 11,350

(9) 3,800

Accounts Receivable Accounts Payable Service Revenue

(5) 20,400 (7) 15,100 (6) 11,350 (3) 22,300 (5) 20,400

Supplies Mickey O\’Dell, Capital Operating Expenses

(2) 2,650 (8) 1,500 (1) 37,800 (4) 4,150

(8) 1,500

Required:

Prepare the nine journal entries from which the postings were made. If a box does not require an entry, leave it blank.

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Account Balances (A+)

Account Balances

a. During October, $93,140 was paid to creditors on account, and purchases on account were $119,220. Assuming the October 31 balance of Accounts Payable was $40,050, determine the account balance on October 1.

b. On May 1, the accounts receivable account balance was $30,700. During May, $267,100 was collected from customers on account. Assuming the May 31 balance was $35,300, determine the fees billed to customers on account during May.

c. On November 1, the cash account balance was $12,800. During November, cash receipts totaled $194,560 and the November 30 balance was $9,220. Determine the cash payments made during November.

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Transactions and T Accounts The following selected transactions were completed during August of the current year (A+)

Transactions and T Accounts

The following selected transactions were completed during August of the current year:

1. Billed customers for fees earned, $37,640.

2. Purchased supplies on account, $1,620.

3. Received cash from customers on account, $35,380.

4. Paid creditors on account, $980.

Required:

a Journalize the transactions in a two-column journal, using the appropriate number to identify the transactions.

b Post the entries prepared in (a) to the following T accounts: Cash, Supplies, Accounts Receivable, Accounts Payable, and Fees Earned. To the left of each amount posted in the accounts, select the appropriate number to identify the transactions.

c Assume that the unadjusted trial balance on August 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred?

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Equipment; Accounts Payable; Andree Freeze, Capital; Andree Freeze, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense (A+)

Equipment; Accounts Payable; Andree Freeze, Capital; Andree Freeze, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.

Mar. 1. Paid rent for the month, $3,900.

2. Paid advertising expense, $2,460.

5. Paid cash for supplies, $1,050.

6. Purchased office equipment on account, $16,100.

10. Received cash from customers on account, $5,270.

15. Paid creditor on account, $1,540.

27. Paid cash for repairs to office equipment, $670.

30. Paid telephone bill for the month, $250.

31. Fees earned and billed to customers for the month, $35,100.

31. Paid electricity bill for the month, $420.

31. Withdrew cash for personal use, $2,700.

Required:

Journalize the selected transactions for March 2012

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ACCT 2020 Condensed balance sheet and income statement data for Sievert Corporation are presented here (A+)

ACCT2020

Condensed balance sheet and income statement data for Sievert Corporation are presented here.

SIEVERT CORPORATION

Balance Sheet

December 31

Assets 2012 2011

Cash $30,009 $25,009

Receivables (net) 76,953 68,953

Other current assets 86,953 79,953

Long-term investments 75,000 60,000

Plant and equipment (net) 516,953 476,953

Total assets $785,868 $710,868

Liabilities and Stockholders\’ Equity

Current liabilities $80,009 $75,009

Long-term debt 86,953 96,953

Common stock 336,953 306,953

Retained earnings 281,953 231,953

Total liabilities and stockholders\’ equity $785,868 $710,868

SIEVERT CORPORATION

Income Statement

For the Years Ended December 31

2012 2011

Sales $785,482 $677,352

Cost of goods sold 440,000 400,000

Operating expenses (including income taxes) 240,000 220,000

Net income $105,482 $57,352

Additional information:

Cash from operating activities $91,959 $64,959

Cash used for capital expenditures $49,959 $42,959

Dividends paid $24,959 $19,959

Average number of shares outstanding 33,000 30,000

Required:

Compute these values and ratios for 2011 and 2012. 2011 2012

(a) Earnings per share.

(b) Working capital $

(c) Current ratio

(d) Debt to total assets ratio

(e) Free cash flow

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ACCT 2020 The following items are taken from the 2008 balance sheet of Wahoo!, Inc. (All dollars are in thousands.) (A+)

ACCT2020

The following items are taken from the 2008 balance sheet of Wahoo!, Inc. (All dollars are in thousands.)

Intangible assets $3,382,268

Common stock 5,300,434

Property and equipment, net 1,101,379

Accounts payable 113,686

Other assets 464,544

Long-term investments 2,832,276

Accounts receivable 935,520

Prepaid expenses and other current assets 225,668

Short-term investments 1,039,417

Retained earnings 3,872,621

Cash and cash equivalents 1,574,427

Long-term debt 757,804

Accrued expenses and other current liabilities 1,051,438

Unearned revenue-current 325,871

Other long-term liabilities 133,645

Required:

Complete the following classified balance sheet for Wahoo! Inc. as of December 31, 2008.

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ACCT 2020 The chief financial officer (CFO) of Padilla Corporation requested that the accounting department prepare a preliminary balance sheet on December 30, 2012 (A+)

ACCT2020

The chief financial officer (CFO) of Padilla Corporation requested that the accounting department prepare a preliminary balance sheet on December 30, 2012, so that the CFO could get an idea of how the company stood. He knows that certain of its debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows.

PADILLA CORP.

Balance Sheet

December 30, 2012

Current assets Current liabilities

Cash $31,722 Accounts payable $26,722

Accounts receivable 21,088 Salaries payable 16,088 $42,810

Prepaid insurance 11,190 $64,000 Long-term liabilities

Property, plant, and equipment (net) 201,558 Notes payable 81,190

Total liabilities 124,000

Stockholders\’ equity

Total assets $265,558 Common stock 100,000

Retained earnings 41,558 141,558

Total liabilities and stockholders equity$265,558

Required:

(a) Calculate the current ratio

working capital

(b) Based on the results in (a), the CFO requested that $26,722 of cash be used to pay off the balance of the accounts payable account on December 31, 2012. Calculate the new current ratio and working capital after the company takes these actions.

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ACCT 2020 The following items were taken from the December 31, 2009 assets section of the Champion Company balance sheet (A+)

ACCT2020

The following items were taken from the December 31, 2009 assets section of the Champion Company balance sheet. (All dollars are in millions.)

Inventories $8,504 Other current assets $2,977

Notes receivable—due after Property, plant, and

December 31, 2010 13,225 equipment 20,259

Notes receivable—due before Cash and cash equivalents 6,419

December 31, 2010 389 Accounts receivable 5,546

Accumulated depreciation 12,207 Other noncurrent assets 3,973

Intangible assets 4,979 Short-term investments 282

Required:

Complete the assets section of a classified balance sheet

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ACCT 2020 The following are the major balance sheet classifications (A+)

ACCT2020

The following are the major balance sheet classifications.

Current assets Current liabilities

Long-term investments Long-term liabilities

Property, plant, and equipment Common stock

Intangible assets Retained earnings

Classify each of the following accounts taken from Remington Corporation\’s balance sheet.

Accounts payable and accrued liabilities

Income taxes payable

Inventories

Accounts receivable

Investments

Accumulated depreciation

Land

Buildings

Long-term debt

Cash and short-term investments

Materials and supplies

Dividends payable

Office equipment and furniture

Goodwill

Prepaid expenses

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