Dress-for-Success, Inc. is a successful C Corporation in its sixth year of business and already has $5 million gross sales. The company sells and automatically ships gently used clothing items to online customers. It collects the monthly fixed fee at the beginning of each month and ships one item each week.
Q: Compute for the amount of unearned revenue to be presented as current liability related to these…
A: The amount of unearned revenue to be recorded related to gift certificates are the one which are not…
Q: c.Debit Unearned Subscription Revenue for $6,500 and credit Subscription Revenue for $6,500 d.Debit…
A: Unearned revenue Income : This is often the quantity earned from the operations of a business. The…
Q: Logan’s Roadhouse opened a new restaurant in November. During its first two months of operation, the…
A: Given information is: Logan’s Roadhouse opened a new restaurant in November. During its first two…
Q: Lou Reed is the primary accountant and 1 of 87 employees at The Velvet Underground, a company that…
A: Given, Profit = $150,000.
Q: Swanson Corporation provides low-cost food delivery services to senior citizens. At the end of the…
A: The financial statements of the business include the income statement and balance sheet. The income…
Q: The T.P. Jarmon Company manufactures and sells a line of exclusive sportswear. The firm’s sales were…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: Sharon Els sells security systems for Guardsman Security Co. Els has a monthly sales quota of…
A: An ethical issue refers to a situation or problem that requires an entity or a person to choose…
Q: Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the…
A: Financial Statement:-These statements are prepared to know the company's financial position during a…
Q: Grouse Company is a furniture retailer whose average annual gross receipts for the three preceding…
A: Ending Inventory means the stock of Inventory which is available for sale at the end of an…
Q: Bavarian Bar and Grill opened for business in November 2021. During its first two months of…
A: Accounting for Gift Card: - When a company sells a gift card, it is not considered revenue, instead,…
Q: Quick Cleaners, Inc. (QCI), has been in business for several years. It specializes in cleaning…
A: To Compute the net income, the revenues and expenses has to be taken on accrual basis i.e.…
Q: Logan’s Roadhouse opened a new restaurant in November. During its first two months of operation, the…
A: Journal entries means the book of prime entry incuding debit and credit item. Adjusting entry means…
Q: Grouse Company is a furniture retailer whose average annual gross receipts for the three preceding…
A: First in First out (FIFO) is one of the inventory valuation methods in which the earliest inventory…
Q: Ahlers Clocks is a retailer of wall, mantle, and grandfather clocks and is located in the EmpireMall…
A: Given information is: Ahlers Clocks is a retailer of wall, mantle, and grandfather clocks and is…
Q: Logan’s Roadhouse opened a new restaurant in November. During its first two months of operation, the…
A: Transaction General Journal Debit Credit 1 Cash $1,750 Unearned Sales revenue…
Q: Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate…
A: Introduction: Adjustment entries: Journal entries that are made at the end of the accounting period…
Q: Dress-for-Success, Inc. is a successful C Corporation in its sixth year of business and already has…
A: Introduction:- Dress-for-Success, Inc. is a successful C Corporation with total revenues of $5…
Q: Kylie Co. is a VAT-registered merchandising company. Kylie buys products from a local supplier for…
A: VAT Payable is the amount of Value added tax that is payable to the government by an individual. VAT…
Q: Dress-for-Success, Inc. is a successful C Corporation in its sixth year of business and already has…
A: The Generally Accepted Accounting Principles (GAAP or US GAAP) are a set of accounting rules and…
Q: Indicate the effects (accounts, amounts, and + or −) of each transaction on the accounting equation.
A: Fundamental Accounting Equation; Assets equal the sum of liabilities and shareholder's equity is the…
Q: Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company…
A: Journal entries are the initial reporting of the business transactions in the books of an entity.…
Q: Diamond Computers, which is owned and operated by Dale Diamond, manufactures and sells different…
A: Growth of business is one of the basic objective of business for which company needs more funds. To…
Q: Consider the following income statement for the first year of operations for Anna's Sandwich Shop.…
A: An accountant will only take the profit and loss ignoring the opportunity cost which occur on her…
Q: Peanut Queen and Lord of Ice are two competitors selling ice-cream. Below is the information…
A: Net profit margin = Net profit / Net sales *100 Asset turnover ratio = Net Sales / Average total…
Q: Capital, a business magazine, collected $480,000 in subscription revenue on May 31. Capital earns a…
A: Formula: Unearned revenue = Revenue collected x (Remaining months in a year / 12 months) Number of…
Q: Shawn John and his wife operate a successful snack packaging business, Healthy Snacks, in St Mary,…
A: Shawn John business's Profit from business = $4500000 Salary to his wife = $750000 Salary to his son…
Q: Suzi Nomro operates Watercraft Supply Company, an online boat parts distributorship that is in its…
A: Budgeted income statement is an estimated income statement that is prepared with the help of…
Q: Sweet Shop Co. is a chain of candy stores that has been in operation for the past ten years.…
A: Given transactions are: a. Ordered and received $12,000 worth of cotton candy machines from Candy…
Q: Quick Cleaners, Incorporated (QCI), has been in business for several years. It specializes in…
A: Account means the systematic record of various transactions entered by businesses. Income statement…
Q: Logan's Roadhouse opened a new restaurant in November. During its first two months of operation, the…
A:
Q: Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains…
A: Accounts Receivable Aging method: The ageing method accounts receivables determine the amount of the…
Q: Lori Ramos operates a small retail kiosk in a mall located in Vancouver, British Columbia. She has…
A: Quick Method :— Under the Quick method, you still charge the standard HST rate 5% on any taxable…
Q: Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the…
A: Unearned revenue: It is an advance made by the buyer before receiving the product or service. In…
Q: Mateo Inc. is a retailer of men's and women's clothing aimed at college-age customers. Listed below…
A: Financial ratios is the parameter used to evaluate the liquidity, profitability and efficiency based…
Q: At the beginning of the year, a software developer quit his job and gave up a salary of $90,000 per…
A:
Q: ew their plans for the next six months in order to comply with this requirement. The following…
A: Answer a) Particulars June July August September October November Cash Flow From Operation…
Q: Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2006 by…
A: The journal entries are a very important aspect of accounting because it is the first step in the…
Q: In November 2020, after having incorporated Cookie Creations Inc., Natalie begins operations. She…
A:
Q: Consider the following income statement for the first year of operations for Anna's Sandwich Shop.…
A: Implicit cost = Opportunity cost Which is Annual salary foregone and interest income foregone in…
Q: Bavarian Bar and Grill opened for business in November 2021. During its first two months of…
A: 1. Prepare the appropriate journal entries
Q: Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the…
A: Income Statement: The income statement reports the financial performance in terms of profit or loss…
Dress-for-Success, Inc. is a successful C Corporation in its sixth year of business and already has $5 million gross sales. The company sells and automatically ships gently used clothing items to online customers. It collects the monthly fixed fee at the beginning of each month and ships one item each week. The owner, Linda Smith, does not see any reason to follow GAAP accounting principles. The company is not publicly traded but does put the financial statements on the company’s Web page for customers to see. Research this issue and answer the following:
- Should Dress-for-Success, Inc. use GAAP? Why or why not?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Block Foods, a retail grocery store, has agreed to purchase all of its merchandise from Square Wholesalers. In return. Block receives a special discount on purchases. Over recent months, Square noticed that purchases by Block had been falling off. At first, Square simply thought that business might be down for Block and was hopeful that their purchases would pick up. When business with Block did not return to a normal level, Square requested financial statements from Block. Squares records indicate that Block purchased 300,000 worth of merchandise during 20-1, the most recent year. Selected information taken from Block's financial statements is as follows: REQUIRED Compute net purchases made by Block during 20-1. Does it appear that Block violated the agreement?Dress-for-Success, Inc. is a successful C Corporation in its sixth year of business and already has $5 million gross sales. The company sells and automatically ships gently used clothing items to online customers. It collects the monthly fixed fee at the beginning of each month and ships one item each week. The owner, Linda Smith, does not see any reason to follow GAAP accounting principles. The company is not publicly traded but does put the financial statements on the company’s Web page for customers to see. Research this issue and answer the following: Are there any ethical issues in this situation? Explain.Dress-for-Success, Inc. is a successful C Corporation in its sixth year of business and already has $5 million gross sales. The company sells and automatically ships gently used clothing items to online customers. It collects the monthly fixed fee at the beginning of each month and ships one item each week. The owner, Linda Smith, does not see any reason to follow GAAP accounting principles. The company is not publicly traded but does put the financial statements on the company’s Web page for customers to see. Research this issue and answer the following: Explain how Dress-for-Success is accounting for the transactions under the cash basis method and how she should account for them if she did follow GAAP.
- Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company’s accountant provides Wanda with the following information, before any adjustment. Accounts receivable $10,800,000 Estimated percentage uncollectible 2% Allowance for uncollectible accounts $108,000 (credit) Operating income $2,800,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $2,120,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts’ expectations will also help Wanda keep her job. Required: 1. Record the adjustment for uncollectible accounts using the accountant’s estimate of 2% of accounts receivable. (If no entry is required for a particular transaction/event, select "No Journal Entry…Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company’s accountant provides Wanda with the following information, before any adjustment. Accounts receivable $ 10,800,000 Estimated percentage uncollectible 2 % Allowance for uncollectible accounts $ 108,000 (credit) Operating income $ 2,800,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $2,120,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts’ expectations will also help Wanda keep her job. 2-a. After the adjustment is recorded in Part 1, what is the revised amount of operating income? Revised operating income Will Outlet Flooring still meet analysts’…Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company’s accountant provides Wanda with the following information, before any adjustment. Accounts receivable $ 10,800,000 Estimated percentage uncollectible 2 % Allowance for uncollectible accounts $ 108,000 (credit) Operating income $ 2,800,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $2,120,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts’ expectations will also help Wanda keep her job. 3. Wanda instructs the accountant to instead record $680,000 as bad debt expense so that operating income will exactly meet analysts’ expectations. By how much would total assets and…
- Nicole Martins is the controller at UMC Corp., a publicly traded manufacturing company. Last year, UMC had annual sales revenue of $15 million. The first quarter of this year just ended, and Nicole needs to prepare a trial balance so she can prepare the quarterly financial statements. However, the trial balance is out of balance by $750 (credits exceed debits). Nicole is running out of time aside as the report is due today! Therefore, she decides to balance by plugging the $750 into the account called depreciation expense account. She chooses this account because it is one that is adjusted during the year end. Three basic principles of accrual accounting are that revenue must be recognized in the period it is earned, expenses must be recorded in the period they support revenue and are generated, and debits equal credits. Does this violate any of these basic principles? If so, which ones? When the trial balance does not balance, what might this indicate? Explain the ethical issues…Nicole Martins is the controller at UMC Corp., a publicly-traded manufacturing company. Last year, UMC had annual sales revenue of $15 million. The first quarter of this year just ended, and Nicole needs to prepare a trial balance so she can prepare the quarterly financial statements. However, the trial balance is out of balance by $750 (credits exceed debits). Nicole is running out of time aside as the report is due today! Therefore, she decides to balance by plugging the $750 into the account called depreciation expense account. She chooses this account because it is one that is adjusted during the year-end. Three basic principles of accrual accounting are that revenue must be recognized in the period it is earned, expenses must be recorded in the period they support revenue and are generated, and debits equal credits. 1) Does this violate any of these basic principles? If so, which ones? 2) When the trial balance does not balance, what might this indicate? 3) Explain the ethical…Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company’s accountant provides Wanda with the following information, before any adjustment.Accounts receivable $11,000,000Estimated percentage uncollectible 4%Allowance for uncollectible accounts $110,000 (credit)Operating income $2,900,000Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $2,200,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts’ expectations will also help Wanda keep her job.Required:1. Record the adjustment for uncollectible accounts using the accountant’s estimate of 4% of accounts receivable.2. After the adjustment is recorded in requirement 1, what is the revised amount of operating income? Will Outlet…
- On July 01, 2020, Maria initially invested P200,000 cash into Maria Merchandising. On the same date, she paid P45,000 for six months rent on the store space, P10,000 for business licenses and permits, and P50,000 for various store furniture. She also bought P60,000 worth of office supplies on account with the intention to sell them at a higher price. However, the next day, the business received a P1,500 credit memo for allowance granted on the purchased merchandise. The supplies were bought from 123 Supplies Store on terms n/60. On July 6, the business bought from 45 Supplies Shop P5,000 worth of supplies to be used in the store on terms 50% downpayment, balance n/30. Francisco, a part time employee, was able to sell on July 12 some of the store's merchandise to Mr. Sam for P16,000 on terms 50% downpayment, balance 2/10, n/30. On July 24, the business sold to Mrs. Aslani merchandise for P12,000 on terms 2/10, n/30. On July 30, Mr. Boom paid the business P42,000 for merchandise bought…Smith & Sons is a CPA firm that provides proprietary software to its clients. One of its software packages sells for $150 and contains pre-programmed tutorials on basic accounting concepts. Another product sells for $3,000 and contains Smith & Sons’ archive of accounting standards and articles, which Smith & Sons updates on a weekly basis and downloads to archive users for the two years following purchase of the product. If a customer purchases both software packages on June 1, 2021, how much revenue should Smith & Sons recognize for the year?Diamond Computers, which is owned and operated by Dale Diamond, manufactures and sells different types of computers. The company has reported profits every year since its inception in 2002 and has applied for a bank loan near the end of 2021 to upgrade manufacturing facilities. These upgrades should significantly boost future productivity and profitability. In preparing the financial statements for the year, the chief accountant, Sandy Walters, mentions to Dale that approximately $80,000 of computer inventory has become obsolete and a write-down of inventory should be recorded in 2021. Dale understands that the write-down would result in a net loss being reported for company operations in 2021. This could jeopardize the company’s application for the bank loan, which would lead to employee layoffs. Dale is a very kind, older gentleman who cares little for his personal wealth but who is deeply devoted to his employees’ well-being. He truly believes the loan is necessary for the company’s…