On March 1, 2021, Stratford Lighting issued 10% bonds, dated March 1, with a face amount of $690,000. The bonds sold for $678,000 and mature on February 28, 2041 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight-line method and its fiscal year ends December 31.

Required:
Prepare the journal entries to record the issuance of the bonds by Stratford Lighting on March 1, 2021, interest on August 31, 2021, accrued interest on December 31, 2021 and interest on February 28, 2022.

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $678,000

  Discount on bonds payable Dr, $12,000

            To Bonds payable $690,000

(Being issuance of the bonds is recorded)

2. Bond interest expense $34,800

         To Discount on bonds payable $ 300 ($12,000 ÷ 40)

         To Cash $34,500 ($690,000 × 0.10 × 0.5)

(Being interest is recorded)

3. Bond interest expense Dr, $23,200

       To Discount on bonds payable $200 ($300 × 4 ÷ 6)

       To Bond interest payable $23,000 ($34,500 × 4 ÷ 6)

(Being accrue interest is recorded)

4. Bond interest payable Dr, $23,000

   Bond interest expense $11,600 ($23,200 ÷ 2)

            To Discount on bonds payable $100

           To Cash $34,500

(Being interest is recorded)

Presented below are the basic assumptions and principles underlying financial statements. a. Historical cost principle d. Going concern assumption b. Economic entity assumption e. Monetary unit assumption c. Full disclosure principle f. Periodicity assumption Identify the basic assumption or principle that is described below. 1. The economic life of a business can be divided into artificial time periods. select a letter 2. The business will continue in operation long enough to carry out its existing objectives. select a letter 3. Assets should be recorded at their cost. select a letter 4. Economic events can be identified with a particular unit of accountability. select a letter 5. Circumstances and events that make a difference to financial statement users should be disclosed. select a letter 6. Only transaction data that can be expressed in terms of money should be included in the accounting records. select a letter

Part A Smith Company experienced the following accounting events during 2018:
1. Smith Company was started on January 1 when it issued common stock for $2,000 cash.
2. During the year, the company recognized $1,500 of consulting revenue on account.
3. The company collected $1,200 cash from accounts receivable.
4. Smith accrued salary expense during the year of $900.
5. Paid $700 of the salaries payable liability
6. Paid dividends of $100 to the stockholders.
7. Paid $360 cash for an insurance policy that covered the company for one year beginning March 1, 2018.
8. On November 1, 2018, Smith collected $2,880 cash in advance for consulting services to be provided under a one-year contract.
9. Recognized insurance expense (Policy in event 7) for ten months.
10. Recognized income earned under the one-year contract at December 31, 2018.
Part B Smith Company experienced the following accounting events during 2019
1. Smith Company issued additional common stock for $3,000 cash.
2. During the period, Smith recognized $2,700 of consulting revenue eamed on account.
3. Smith collected $2,800 cash from accounts receivable.
4. Smith accrued salary expense of $1,500.
5. The company paid $1,350 of the salaries payable liability.
6. Smith paid dividends of $300 to the stockholders.
7. Paid $420 cash to renew the insurance policy for another one-year term.
8. Smith adjusted the books to reflect the insurance expense that had been incurred in 2019 (described in event 7 of 2018).
9. Smith adjusted the books to reflect the revenue earned in 2019 under the one-year consulting contract that began in 2018 (event 8 in 2018).
Required I. 2. Record the events using the horizontal financial statements model. For 2018 and 2019, prepare an income statement, a statement of retained earnings, a balance sheet, and a statement of cash flows. Assets Liabilities Equity Event Cash Accts PrepaidSalaries UnearnedCom Retained Revenue Expese Cash Flow Activity Type Recciv Insurance Stock Earnings 2014
Beg. Bal S- 0 S- S- 0 S- S- 0 S- 0 S- 0 10 End. Bal. 2015 Beg. Bal 5 S- 0 S- 0 S. S- 0 s- 0 S- 0 End. Bal.

The company currently has an operating cycle of 76.4 days. The company is implementing some operational changes that are expected to increase the accounts receivable period by 2.2 days, decrease the inventory period by 5.3 days, and increase the accounts payable period by 1.5 days. What is expected to be the new operating cycle

Princeton Fabrication, Inc., produced and sold 1,400 units of the company's only product in March. You have collected the following information from the accounting records:
Sales price (per unit) $137
Manufacturing costs:
Fixed overhead (for the month) 15,400
Direct labor (per unit) 8
Direct materials (per unit) 34
Variable overhead (per unit) 24
Marketing and administrative costs:
Fixed costs (for the month) 25,200
Variable costs (per unit) 5
Find the following:1. Variable manufacturing cost per unit.2. Full cost per unit.3. Variable cost per unit.4. Full absorption cost per unit.5. Prime cost per unit.6. Conversion cost per unit.7. Profit margin per unit.8. Contribution margin per unit.9. Gross margin per unit.

Life, Inc. experienced the following events in Year 1, its first year of operation:
1. Performed counseling services for $21,200 cash.
2. On February 1, Year 1, paid $14,400 cash to rent office space for the coming year.
3. Adjusted the accounts to reflect the amount of rent used during the year.
Required:
Based on this information alone:
A. Record the events in accounts under an accounting equation.
LIFE, INC.
Effect of Events on the Accounting Equation
Assets = Stockholders Equity
Event Cash Prepaid Rent = Retained Earnings
1 Performed services 28,400 28.400
2 Prepaid rent (19,800) 19.800
3 Used rent
Totals 8,600 19.800 = 28.400
B. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period.
C. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2?

Marc and Michelle are married and earned salaries this year of $71,600 and $14,850, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,450 from corporate bonds. Marc contributed $3,450 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,450. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $7,900 of expenditures that qualify as itemized deductions and they had a total of $6,710 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.)a. What is Marc and Michelle's gross income?Description AmountCorporate bond interest Marc's salary Michelle's salary Gross income b. What is Marc and Michele's adjusted gross income?

Suppose Procter & Gamble sells about 20 million bars of soap per week, but the demand is not constant and production management would like to get a better handle on how sales are distributed over the year. Let the following sales figures given in units of million bars represent the sales of bars per week over 1 year (in no particular order).

17.1 22.3 17 25.2 19.6 12.2 18.3 26.3 15.4 19.9 13.6 23.9 17.4 21.5 39.8 30.6 15 20.4 20.7 25.2 18.5 20.3 21.3 26.2 20.6 15.5 22.5 26.9 18.4 23.6 21.4 32.8 20 19.1 23.4 26.3 20.9 20.4 23.1 26.6 19.3 15.4 22.8 24.3 18.2 20.3 21.4 26.2 14.7 24.4 24 23.8

Required:
a. Construct a histogram chart to represent the data.
b. Creating a chart is not useful in and of itself unless it is properly interpreted. Write a brief analysis of the graph. What do you see in the graph that might be helpful to the production and sales people?

A Nike women’s-only store in California offers women’s running, training and sportswear products and also contains an in-store fitness studio for group and personal fitness training sessions. The store consistently earns profits in excess of $500,000 per year and is located on prime real estate in the center of town. The store owner pays $15,000 per month in rent for the building. A real estate agent approached the owner and informed her that she could add $8,000 per month to her firm’s profits by renting out the portion of her store that she uses as a fitness studio. While the prospect of acquiring this rental income was enticing, the owner believed the use of that space as a fitness studio was an important contributor to her store’s profits.
What is the opportunity cost of continuing to operate the fitness studio within the store?
$______

Consider two neighboring island countries called Felicidad and Bellissima. They each have 4 million labor hours available per month that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor.
Country Jeans Corn
(Pairs per hour of labor) (Bushels per hour of labor)
Felicidad 8 32
Bellissima 12 24
Initially, suppose Bellissima uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce corn while Felicidad uses 3 million hours of labor per month to produce jeans and 1 million hours per month to produce corn. Consequently, Felicidad produces 24 million pairs of jeans and 32 million bushels of corn, and Bellissima produces 12 million pairs of jeans and 72 million bushels of corn. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces.
Felicidad's opportunity cost of producing 1 pair of jeans is (1/2 bushel, 1/4 bushel, 2 bushel, 4 bushel) of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is (1/2 bushel, 1/4 bushel, 2 bushel, 4 bushel) of corn. Therefore, (Bellissima, Felicidad) has a comparative advantage in the production of jeans, and (Bellissima, Felicidad) has a comparative advantage in the production of corn.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce ______million pairs per month, and the country that produces corn will produce_________million bushels per month.
In the following table, enter each country's production decision on the third row of the table (marked "Production").
Suppose the country that produces jeans trades 26 million pairs of jeans to the other country in exchange for 78 million bushels of corn.
In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trade Action," and enter each country's final consumption of each good on the line marked "Consumption."
When the two countries did not specialize, the total production of jeans was 36 million pairs per month, and the total production of corn was 104 million bushels per month. Because of specialization, the total production of jeans has increased by________million pairs per month, and the total production of corn has increased by________million bushels per month.
Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.
Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked "Increase in consumption").

a. On July 1, Lopez Company paid $2,200 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31.
b. Zim Company has a Supplies account balance of $7,000 at the beginning of the year. During the year, it purchased $3,000 of supplies. As of December 31, a physical count of supplies shows $1,300 of supplies available.

Required:
Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31.

Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $97,500 and 3,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $99,400 and actual direct labor-hours were 2,850. The applied manufacturing overhead for the year was:________

Which career requires LESS education than an Auditor?

a) Accountant

b) Bookkeeper

c) Credit Analyst

d) Financial Manager​

Click this link to view O'NET's Work Activities section for Accountants. Note that common activities are listed toward
the top, and less common activities are listed toward the bottom. According to O*NET, what are some common work
activities performed by Accountants? Check all that apply.
evaluating information
performing general physical activities
handling and moving objects
interacting with computers
processing information
getting information

You are considering a stock investment in one of two firms (Lots of Debt, Inc. and Lots of Equity, Inc.), both of which operate in the same industry. Lots of Debt, Inc. finances its $34.25 million in assets with $32.25 million in debt and $2.00 million in equity. Lots of Equity, Inc. finances its $34.25 million in assets with $2.00 million in debt and $32.25 million in equity.
Calculate the debt ratio for each company. (Round your answers to 2 decimal places.)

WoolCorp buys sheep’s wool from farmers. The company began operations in January of this year, and is making decisions on product offerings, pricing, and vendors. The company is also examining its method of assigning overhead to products. You’ve just been hired as a production manager at WoolCorp.Currently WoolCorp makes two products: (1) raw, clean wool to be used as stuffing or insulation and (2) wool yarn for use in the textile industry.The company would like you to evaluate its costing methods for its raw wool and wool yarn.Single Plantwide RateWoolCorp is currently using the single plantwide factory overhead rate method, which uses a predetermined overhead rate based on an estimated allocation base such as direct labor hours or machine hours. The rate is computed as follows:Single Plantwide Factory Overhead Rate= (Total Budgeted Factory Overhead) ÷ (Total Budgeted Plantwide Allocation Base)WoolCorp has been using combing machine hours as its allocation base.The company would like to consider activity-based costing. In order to understand their current system better, you evaluate WoolCorp’s current method of costing for raw wool and wool yarn. The production staff has compiled the following information for you on the production of 550 pounds of either raw wool or wool yarn:Factory Overhead Type Budgeted Factory OverheadSorting $25,600Cleaning $38,400Combing $1,200Raw Wool Wool YarnHours of combing machine use required 70 30In the following table, use combing machine hours as the allocation base for assigning overhead costs to each product. When required, round your answers to the nearest dollar.Single Plantwide Factory Overhead Rate:Raw Wool Wool YarnAllocated factory overhead cost Activity-Based CostingIn order to compare WoolCorp’s current method with activity-based costing, you interview the production staff and compile the following information, which relates to the costs for raw wool and wool yarn.Type of Cost Activity Base Total CostSorting Hours of sorting $25,600Cleaning Units of cleaning machine power $38,400Combing Hours of combing machine use $1,200Raw Wool Wool YarnHours of sorting required 800 3,200Units of cleaning machine power required 1,920 4,480Hours of combing machine use required 70 30In the following table, calculate and enter the activity rate for each of the three activities. If required, round your answers to the nearest cent.Activity Activity RateSorting Cleaning Combing In the following table, allocate the costs of sorting, cleaning, and combing based on the rates of activity consumed by each product’s process. When required, round your answers to the nearest dollar.Raw Wool Wool YarnSorting cost $ $Cleaning cost Combing cost Total cost $ $Final QuestionAnswer the question below.After reviewing your work on the Traditional Costing and Activity-Based Costing panels, which of the two costing methods would you recommend to WoolCorp, and why?Traditional costing, because it is a tried-and-true method used for the entire life of the company.Since the methods both give the same costs for each product, there is no advantage to either method.The company should use whichever method is the cheapest to implement.Activity-based costing, because it recognizes differences in how each product uses factory overhead activities, yielding more accurate product costs.

Tyare Corporation had the following inventory balances at the beginning and end of May:

May 1 May 30
Raw materials $35,500 $50,000
Finished Goods $85,000 $86,000
Work in Process $23,500 $18,040

During May, $68,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 500 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $8,050 of direct materials cost. The Corporation incurred $45,000 of actual manufacturing overhead cost during the month and applied $45,600 in manufacturing overhead cost. The raw materials purchased during May totaled:__________

On the last day of December 2021, Coaster Trucks entered into a transaction that resulted in a receipt of $300,000 cash in advance related to services that will be provided during January 2022. During December of 2021, the company also performed $165,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company’s trial balance showed service revenue of $1,425,790 at December 31, 2021. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected.1. If Camrey's trucks makes the appropirate adjusting entry, how much will service revenue will be reflected on the december 31, 2021 income statement?
2. If Camrey's Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2021 Balance sheet as unearned revenue?
3. If Camrey's turcks make the appropriate adjusting entry, how much will be reported on the December 31, 2022 Balance sheet as accounts receivable?

what contributes to an empolyee's self worth which in turn increases productivity and reduces absenteeism

The accounts in the ledger of Hickory Furniture Company as of December 31, 2019, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Accounts Payable $34,000 Accounts Receivable 68,000 Cash ? Elaine Wells, Capital 158,650 Elaine Wells, Drawing 37,000 Fees Earned 566,600 Insurance Expense 10,750 Land 155,250 Miscellaneous Expense 15,850 Notes Payable 74,000 Prepaid Insurance 5,100 Rent Expense 107,700 Supplies 3,400 Supplies Expense 14,150 Unearned Rent 16,400 Utilities Expense 75,900 Wages Expense 317,300 Miscellaneous Expense 9,500
The accounts in the ledger of Hickory Furniture Company as of December 31, 2016, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted.
Accounts Payable $ 42,770 Notes Payable $ 50,000
Accounts Receivable 116,900 Prepaid Insurance 21,600
Cash ? Rent Expense 48,000
Elaine Wells, Capital 75,000 Supplies 4,275
Elaine Wells, Drawing 24,000 Supplies Expense 6,255
Fees Earned 745,230 Unearned Rent 12,000
Insurance Expense 3,600 Utilities Expense 26,850
Land 50,000 Wages Expense 580,700
Miscellaneous Expense 9,500
Prepare an unadjusted trial balance, listing the accounts in their normal order and inserting the missing figure for cash.
X
Unadjusted Trial Balance
Prepare an unadjusted trial balance, listing the accounts in their normal order and inserting the missing figure for cash.
Hickory Furniture Company
UNADJUSTED TRIAL BALANCE
December 31, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash
2 Accounts Receivable
3 Supplies
4 Prepaid insurance
5 Land
6 Accounts Payable
7 Unearned Rent
8 Notes Payable
9 Elaine Wells, Capital
10 Elaine Wells, Drawing
11 Fees Earned
12 Wages Expense
13 Rent Expense
14 Utilities Expense
15 Supplies Expense
16 Insurance Expense
17 Miscellaneous Expense
18 Totals

There is a 3% defect rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be detected and eliminated. The inspector would cost $8 per hour and could inspect units in the process at the current production rate of 30 per hour. If no inspector is hired and defects are allowed to pass this point, there is a cost of $10 per defective unit to correct the defects later on.
Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not.
A. If an inspector is hired, what will be the inspection cost per unit?
B. If an inspector is not hired, what will be the defective cost per unit?
C. Should an inspector be hired based on costs alone?

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $530,000; March 31, $630,000; June 30, $430,000; October 30, $690,000. To help finance construction, the company arranged a 10% construction loan on January 1 for $760,000. The company’s other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 13% and 6%, respectively.

Required:
Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year.

Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 20Y8, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows:
Foxy Investigative Services
End-of-Period Spreadsheet
For the Year Ended November 30, 20Y8
~ Adjusted Trial Balance
Account Title ~ Dr. Cr.
~
Cash ~ 22,000
Accounts Receivable ~ 68,400
Supplies ~ 4,400
Prepaid Insurance ~ 2,500
Building ~ 433,500
Accumulated Depreciation-Building ~ 42,800
Accounts Payable ~ 11,400
Salaries Payable ~ 4,000
Unearned Rent ~ 2,000
Common Stock ~ 80,000
Retained Earnings ~ 293,400
Dividends ~ 11,700
Service Fees ~ 707,300
Rent Revenue ~ 11,700
Salaries Expense ~ 525,900
Rent Expense ~ 46,800
Supplies Expense ~ 11,000
Depreciation Expense-Building 7,600
Utilities Expense ~ 7,600
Repairs Expense ~ 3,000
Insurance Expense ~ 2,000
Miscellaneous Expense ~6,200
~ 1,152,600 1,152,600
Required:
1.
A. Prepare an income statement for the year ended November 30, 20Y8. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. Refer to the Chart of Accounts for exact wording of account titles.
B. Prepare a statement of stockholders’ equity for the year ended November 30, 20Y8. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names.
C. Prepare a balance sheet as of November 30, 20Y8. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2. Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
3. If Retained Earnings had instead decreased $33,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss? If required, use a minus sign to indicate a net loss.
CHART OF ACCOUNTS
Foxy Investigative Services
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
17 Building
18 Accumulated Depreciation-Building
LIABILITIES
21 Accounts Payable
22 Salaries Payable
23 Unearned Rent
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Service Fees
42 Rent Revenue
EXPENSES
51 Salaries Expense
52 Rent Expense
53 Supplies Expense
54 Depreciation Expense-Building
55 Utilities Expense
56 Repairs Expense
57 Insurance Expense
59 Miscellaneous Expense
Labels
Current assets
Current liabilities
Expenses
For the Year Ended November 30, 20Y8
November 30, 20Y8
Property, plant, and equipment
Revenues
Amount Descriptions
Balances, December 1, 20Y7
Balances, November 30, 20Y8
Dividends
Net income
Net loss
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and stockholders’ equity
Total property, plant, and equipment
Total revenues
Total stockholders’ equity

What happened to assets, earnings, dividends, and cash flows during the financial year?
Accounting practice in the United States follows the generally accepted accounting principles (GAAP) developed by the Financial Accounting Standards Board (FASB), which is a nongovernmental, professional standards body that monitors accounting practices and evaluates controversial issues. The Securities and Exchange Commission (SEC) requires all publicly traded companies to periodically report their financial information.
A publicly held corporation must publish an annual report that contains the balance sheet, income statement, statement of cash flows, statement of stockholders’ equity, and other financial information for analysis.
The following table lists descriptions of the major financial statements and reports that a firm publishes. Identify the correct statement or report for each description.
Description
Statement or Report
Explains the changes in a company’s stockholders’ equity over the accounting year. Balance Sheet, Statement of Stockholders equity ,income statement,Statement of cashflows, anual report
Provides details about the flow of funds from operating, investing, and financing activities. statement of cashflows,balance sheet,income statement, anual report,stockholders equity
Is issued once a year by a corporation and contains basic financial statements and an analysis of past performance and future prospects. Statement of CashFlows, Balance sheet, Income Statement, Anual Report, Statment of Stockholders equity
Has three segments that when analyzed together give an idea of what the company owns and what it owes. Same drop-down choices as previous question above!
Gives details about the firm’s sales, costs, and profits for the past accounting period. Same drop-down choices as above from previosus question
Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table:
Balance Sheet
Statement of Cash Flows
Does the firm generate enough internal funds to support anticipated investment, or does additional outside capital need to be raised?
Can the firm meet all its short-term obligations using its current assets?
The annual report is very important for investors, because the information contained in the annual report:
A: Helps investors forecast expected earnings and dividends.
B: Shows the prices at which each investor purchased the company’s stocks and bonds.

Neil Webster is the sole proprietor of Prestigious Pugs, a business specializing in the sale of high-end pet gifts and accessories. Prestigious Pugs' sales totaled $1,105,000 during the most recent year. During the year, the company spent $55,000 on expenses relating to website maintenance, $30,500 on marketing, and $29,500 on wrapping, boxing, and shipping the goods to customers. Prestigious Pugs also spent $638,000 on inventory purchases and an additional $19,500 on freight-in charges. The company started the year with $16,250 of inventory on hand and ended the year with $16,000 of inventory. Prepare Prestigious Pugs' income statement for the most recent year.

This company reports only total factory overhead on the schedule of cost of goods manufactured and attaches a separate schedule listing individual overhead costs. For each of the following account balances for a manufacturing company, select yes in the appropriate column indicating that it appears on the balance sheet, the income statement, the schedule of cost of goods manufactured, and/or a detailed listing of factory overhead costs. Assume that the income statement shows the calculation of the cost of goods sold and the schedule of the cost of goods manufacturers shows only the total amount of factory overhead.
Account Balance Sheet Income Statement Schedule of COGM Overhead Report
Accounts receivable
Computer supplies used (office)
Beginning finished goods inventory
Beginning work in process inventory
Cash
Depreciation expense - Factory building
Depreciation expense - Office building
Direct Labor
Ending work in process inventory
Ending raw materials inventory
Factory maintenance wages
Income taxes
Insurance on factory building
Property taxes on factory building
Raw materials purchases
Sales

Happy Selling's had the following accounts at year end: Cash-250,000, Accounts Payable-70,000,
Prepaid Expense-15,000. Compute for the company's current assets.​

This information relates to Monty Real Estate Agency.
Oct. 1 Stockholders invest $34,040 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $32,880.
3 Buys office furniture for $4,110, on account.
6 Sells a house and lot for E.C. Roads; commissions due from Roads, $10,780 (not paid by Roads at this time).
10 Receives cash of $165 as commission for acting as rental agent renting an apartment.
27 Pays $690 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $2,740 in salary for October
Journalize the transactions. (If no entry is required, select "No entry for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Performed $20,000 of services on account.
Collected $17,400 cash on accounts receivable.
Paid $4,900 cash in advance for an insurance policy.
Paid $990 on accounts payable.
Recorded the adjusting entry to recognize $3,900 of insurance expense.
Received $7,700 cash for services to be performed at a later date.
Purchased land for $1,420 cash.
Purchased supplies for $1,200 c
Required
Record each of the above transactions in general journal form and then show the effect of the transaction in a horizontal statements model.
The first transaction is shown as an example.
Transaction Account Titles Debit Credit
Accounts receivable 8,200
Service revenue 8,200

Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:

1. Opened a bank account in the name of SnapShot! and deposited $7,590 of his own money into this account in exchange for common stock.
2. Purchased photography supplies at a total cost of $920. The business paid $290 in cash, and the balance is on account.
3. Obtained estimates on the cost of photography equipment from three different manufacturers.

In what form (type of record) should Joel record these three activities? Prepare the entries to record the transactions.

Read the following scenario and answer the question in 5 sentences at least.You have started a successful business and are now ready to buy some property as your storefront location. You find one piece of property on a prime corner lot downtown. The owner of that property is willing to sell it to you with a quitclaim deed. The property has been in his family for multiple generations and he is not sure if any cousins have a legitimate claim to the property. You find another piece of property of similar size that is in a slightly less ideal location, but the owner is willing to sell it to you with a warranty deed. Based on your knowledge of the types of deeds, briefly discuss the risks involved in buying each property, which one might cost you more, and who has the burden of cost if a claim comes against the title of the property after the purchase.