Accounting Quiz

Carry Yoki’s Lounge consists of the following. Carry, the owner believed that people would come to hear a band play on Friday, Saturday, and Sunday evening. During the remainder of the week, she believed her customers would watch sporting events on several television sets located throughout the lounge. Carry employed two bartenders, three servers, two assistant servers, two cooks, one dishwasher and a clean-up person. She had a bar, 15 barstools, 4 tables, 40 chairs, 4 television sets, and one satellite dish. She had an oven, stove, grill, refrigerator, sinks, dishes, and glassware. Carry started this business with $50,000 of her own money, and she borrowed $150,000 from the bank. From this

Briefly summarize the key facts you noted in your study of the five components of internal control and the rationale for the conclusions you made in the audit program concerning whether each component was adequately designed and implemented.

g. On December 31, 2012, the company completed the work on a contract for an out-of-province company for $7,900 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction.

Previn Brothers Inc. purchased land at a price of $27,400. Closing costs were $2,550. An old building was removed at a cost of $10,530. What amount should be recorded as the cost of the land?

Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?

Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals, chiefly dogs and cats. At the end of 2011, the organization had the following account balances:

Student Cases with Solutions to accompany Accounting & Auditing Research: Tools & Strategies (7th edition)

Costco Wholesale is recognized as the largest wholesale club operator in the US. Over the three-year time period of 2002-2004, this company has expanded its membership base while increasing its number of warehouses both in the U.S. and internationally. In 2004 alone, net sales increased 13.1% over the prior year, driven by an increase in comparable sales of 10% and the opening of twenty new warehouses; net income increased for fiscal 2004 by 22.4%, or $1.85 per diluted share; and for the first time, the Board of Directors declared a quarterly cash dividend, with the company issuing quarterly dividends in the third and fourth quarters of $0.10 per share.

9. Discuss the concept of electing § 179 expense. Does the election allow a larger expense deduction in the year of asset acquisition?

1. Arredondo, Inc. has current assets of $2,170, net fixed assets of $9300, current liabilities

class he had missed had been devoted to a lecture and discussion of the statement of cash flows, and

In the instant case of Elegant Housing, Inc. neither has the affirmative customer acceptance been received by Caltron Computers, Inc. nor has the 6 month trial period ending on May 15, 20X2 lapsed. In light of the above circumstances and the revenue recognition provisions, it is recommended that the revenue of $400,000 should not be recognized.

There are general rules and concepts that preside over the field of accounting. These general rules, known as basic accounting principles and guidelines, shape the groundwork on which more thorough, complex, and legalistic accounting rules are based. The Financial Accounting Standards Board (FASB) uses the basic accounting principles and guidelines as a foundation for their own comprehensive and complete set of accounting rules and standards.

On 1 July 2011, Kookaburra Ltd acquired an item of plant at a cost of $200 000. The plant has an

By: Charn Gek Cheng, Chiang Soo Ling, Kummar Sokali Muthu Mogan, Lee Siew Fen Samantha