Barney Company uses the perpetual inventory system (A+)

Barney Company uses the perpetual inventory system. The company purfchased 4000 of merchandising from Bittiker Company under the terms n/30. Barney also paid 150 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for 9000 cash. 1) What is the amount of gross margin?

Click here for the SOLUTION

Posted in Homework Help | Comments Off

Longoria Company purchased merchandise inventory on account with a list price of 5000 and credit terms of 1/10, n/30 (A+)

Longoria Company purchased merchandise inventory on account with a list price of 5000 and credit terms of 1/10, n/30. What was the net cash cost for the merchandise?

Click here for the SOLUTION

Posted in Homework Help | Comments Off

2. Assume Beta Company uses the perpetual inventory method and engaged in the following transactions (A+)

Assume Beta Company uses the perpetual inventory method and engaged in the following transactions: – Purchased $5000 of merchandise on account under terms 2/10, n/30 – Returned $600 (list price) of merchandise to the supplier before payment was made. – Paid the account payable within the discount period. -Sold the merchandise for $6500 cash. 1) What effect does the return of merchandise to the supplier have on the acounting equation? A. Assets and quity are reduced by 600 B. Liabilities and assets are reduced by 600 C. Assets and Liabilites are reduced by 588 D. Liabilites and equity are reduced by 600 2) What is the amount of gross margin? 3) What is the net cash flow from operating activities as the result of 4 transactions?

Click here for the SOLUTION

Posted in Homework Help | Comments Off

Schmacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2012 (A+)

Schmacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2012: – Started the business by issuing common stock for $7500 cash -Paid cash to purchase 5000 of inventory – Sold inventory that cost $3000 for 7250 cash -Incurred and paid operating expenses, 250 Schumacher Company engaged in the following transactions during 2013: – Paid cash to purchase 5800 of inventory -Sold inventory that cost 7000 for 15150 -Incurred and paid operating expenses, $500 1) What is the gross margin for the year 2012? 2) What is the balance in the merchandise inventory account at Dec 21, 2012? 3) What is the amount of Retained earnings at Dec 31, 2012? 4) What is the gross margin for 2013? 5) What is the balance in the Merchandise Inventory account at Dec 31, 2013? 6) What is the amount of Retained earnings at Dec 31, 2013?

Click here for the SOLUTION

Posted in Homework Help | Comments Off

Ralph’s Inc. has an Inventory Turnover ratio of 56.00x (A+)

Ralph’s Inc. has an Inventory Turnover ratio of 56.00x. What is Ralph’s Days’ Sales in Inventory?

(Answer should be twodecimal places; i.e. 0.13.)

2- iStuff, Inc. has an ROA of 0.15, a total debt ratio of 0.25, and a Total Asset Turnover of 2.5x. What is the Zone’s Net Profit Margin?

(Answer should be four decimal places; i.e. 0.1350.)

3- What is Joe’s Pool Room, Inc’s. Debt to Equity Ratio?

Total Asset Turnover (TATO):1.3x

Return on Assets (ROA):0.05

Return of Equity (ROE):0.10

Current Ratio2.0

(Answer should be four decimal places; i.e. 0.1350.)

4- Ralph’s Inc. has an Inventory Turnover ratio of 96.00x. What is Ralph’s Days’ Sales in Inventory?

(Answer should be twodecimal places; i.e. 0.13.)

5- iStuff, Inc. has an ROA of 0.16, a total debt ratio of 0.30, and a Total Asset Turnover of 1.5x. What is the Zone’s Net Profit Margin?

(Answer should be four decimal places; i.e. 0.1350.)

Click here for the SOLUTION

Posted in Homework Help | Comments Off

The adjusted trial balance for Callahay Company as of December 31, 2011, follows (A+)

The adjusted trial balance for Callahay Company as of December 31, 2011, follows.

Debit Credit

Cash $64,400

Accounts receivable 55,000

Interest receivable 21,000

Notes receivable (due in 90 days) 171,500

Office supplies 16,000

Automobiles 170,000

Accumulated depreciation—Automobiles $85,000

Equipment 136,000

Accumulated depreciation—Equipment 26,000

Land 78,000

Accounts payable 92,000

Interest payable 55,000

Salaries payable 24,000

Unearned fees 32,000

Long-term notes payable 150,000

J. Callahay, Capital 245,800

J. Callahay, Withdrawals 48,000

Fees earned 464,000

Interest earned 26,000

Depreciation expense—Automobiles 28,000

Depreciation expense—Equipment 20,500

Salaries expense 191,000

Wages expense 38,000

Interest expense 37,600

Office supplies expense 34,400

Advertising expense 60,000

Repairs expense—Automobiles 30,400

Totals $1,199,800 $1,199,800

Required:

1(a) Prepare the income statement for the year ended December 31, 2011.

1(b) Prepare the statement of owner\’s equity for the year ended December 31, 2011.

1(c) Prepare Callahay Company\’s balance sheet as of December 31, 2011.

Click here for the SOLUTION

Posted in Homework Help | Comments Off

Depreciation on the company\’s equipment for 2011 is computed to be $12,000 (A+)

a. Depreciation on the company\’s equipment for 2011 is computed to be $12,000.

b. The Prepaid Insurance account had a $7,000 debit balance at December 31, 2011, before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $960 of unexpired insurance coverage remains.

c. The Office Supplies account had a $290 debit balance on December 31, 2010; and $2,680 of office supplies were purchased during the year. The December 31, 2011, physical count showed $342 of supplies available.

d. One-third of the work related to $15,000 of cash received in advance was performed this period.

e. The Prepaid Insurance account had a $5,700 debit balance at December 31, 2011, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,740 of coverage had expired.

f. Wage expenses of $2,000 have been incurred but are not paid as of December 31, 2011.

Required:

Prepare adjusting journal entries for the year ended (date of) December 31, 2011, for each of the above separate situations. Assume that prepaid expenses are initially recorded in asset accounts. Also assume that fees collected in advance of work are initially recorded as liabilities.

Click here for the SOLUTION

Posted in Homework Help | Comments Off

Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR), accrued expenses (AE), or accrued revenues (AR) (A+)

Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR), accrued expenses (AE), or accrued revenues (AR).

a. To record revenue earned that was previously received as cash in advance.

b. To record annual depreciation expense.

c. To record wages expense incurred but not yet paid (nor recorded).

d. To record revenue earned but not yet billed (nor recorded).

e. To record expiration of prepaid insurance.

Click here for the SOLUTION

Posted in Homework Help | Comments Off

The following is selected financial information for Affiliated Company as of December 31, 2011 (A+)

The following is selected financial information for Affiliated Company as of December 31, 2011: liabilities, $68,378; equity, $110,622; assets, $179,000.

Required:

Prepare the balance sheet for Affiliated Company as of December 31, 2011.

Click here for the SOLUTION

Posted in Homework Help | Comments Off

The following is selected financial information for Sun Energy Company for the year ended December 31, 2011 (A+)

The following is selected financial information for Sun Energy Company for the year ended December 31, 2011: revenues, $115,000; expenses, $89,470; net income, $25,530.

Required:

Prepare the 2011 calendar-year income statement for Sun Energy Company.

Click here for the SOLUTION

Posted in Homework Help | Comments Off