Bundle: Accounting, Loose-Leaf Version, 26th + CengageNOWv2, 2 term Printed Access Card
26th Edition
ISBN: 9781305617063
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 4, Problem 10DQ
To determine
Fiscal year: It refers to a financial year having a period of 12 consecutive months. This means that, it starts with the first day of the month chosen by the company and ends on the last day of the twelfth month other than December 31.
To Explain: The general characteristic shared by these companies
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Required information
Use the following information for the Problems below. (Algo)
[The following information applies to the questions displayed below.]
Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and
prior years follow.
LANSING COMPANY
Income Statement
For Current Year Ended December 31
Sales revenue
Expenses
Cost of goods sold
Depreciation expense
Salaries expense
Rent expense
Insurance expense
Interest expense
Utilities expense
Net income
$ 124,200
At December 31
Accounts receivable
Inventory
Accounts payable
Salaries payable
Utilities payable
Prepaid insurance
Prepaid rent
51,000
16,500
27,000
9,900
4,700
4,500
3,700
$ 6,900
LANSING COMPANY
Selected Balance Sheet Accounts
Current Year
$ 6,500
2,880
5,300
1,060
400
350
400
Prior Year
$ 7,600
1,990
6,400
790
250
460
270
The general merchandise retail industry has a number of segments represented by the following companies:
For a recent year, the following cost of goods sold and beginning and ending inventories arc provided from corporate annual reports (in millions) for these three companies:
a. Determine the inventory turnover ratio for all three companies. Round all calculations to one decimal place.b. Determine the number of days' sales in inventory for all three companies. Use 365 days and round all calculations to one decimal place.
c.Interpret these results based on each company's merchandising concept.
The following data were provided by the accountants of the Home Office and Branch for the
year ended December 31, 2016:
Home Office Book
Branch Book
Net sales to outside customer
1,000,000
800,000
300,000
140,000
250,000
Beginning Inventory
Net purchases from outside supplier
Shipment to branch
Shipment from Home Office
Ending Inventory
Operating expenses
800,000
400,000
500,000
100,000
200,000
200,000
100,000
The current corporate income tax rate is 30%.
It is the policy of the company to use specific identification for inventory.
For the year ended December 31, 2015, the Home Office bills its branch with a gross
profit rate of 40% based on cost.
Half of the beginning inventory of the branch was acquired from outside suppliers.
The ending inventory of the branch is broken down as follows:
60% from outside suppliers
26% from 2016 shipment from home office
14% from 2015 shipment from home office
13. What is the net income of the branch in its books for the year end December 31, 2016?
а.…
Chapter 4 Solutions
Bundle: Accounting, Loose-Leaf Version, 26th + CengageNOWv2, 2 term Printed Access Card
Ch. 4 - Why do some accountants prepare an end-of-period...Ch. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Why are closing entries required at the end of an...Ch. 4 - What is the difference between adjusting entries...Ch. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - What is the natural business year?Ch. 4 - Prob. 10DQ
Ch. 4 - Prob. 4.1APECh. 4 - Flow of accounts into financial statements The...Ch. 4 - Statement of owner's equity Marcie Davies owns and...Ch. 4 - Statement of owners equity Blake Knudson owns and...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Prob. 4.3BPECh. 4 - Closing entries After the accounts have been...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Prob. 4.6APECh. 4 - Prob. 4.6BPECh. 4 - Flow of accounts into financial statements The...Ch. 4 - Prob. 4.2EXCh. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Prob. 4.6EXCh. 4 - Prob. 4.7EXCh. 4 - Statement of owner's equity Apex Systems Co....Ch. 4 - Statement of owners equity; net loss Selected...Ch. 4 - Prob. 4.10EXCh. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Optimum Weight Loss Co. offers...Ch. 4 - Prob. 4.13EXCh. 4 - Prob. 4.14EXCh. 4 - Closing entries Prior to its closing, Income...Ch. 4 - Closing entries with net income After all revenue...Ch. 4 - Closing entries with net loss Mira Services Co....Ch. 4 - Prob. 4.18EXCh. 4 - Prob. 4.19EXCh. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Prob. 4.21EXCh. 4 - Prob. 4.22EXCh. 4 - Completing an end-of-period spreadsheet List (a)...Ch. 4 - Prob. 4.24EXCh. 4 - Prob. 4.25EXCh. 4 - Appendix Completing an end-of-period spreadsheet...Ch. 4 - Appendix Adjustment data on an end-of-period...Ch. 4 - Appendix Completing an end-of-period spreadsheet...Ch. 4 - Prob. 4.1APRCh. 4 - Financial statements and closing entries Finders...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - The unadjusted trial balance of PS Music as of...Ch. 4 - Kelly Pitney began her consulting business, Kelly...Ch. 4 - Prob. 4.1CPCh. 4 - Financial statements The following is an excerpt...Ch. 4 - Financial statements Assume that you recently...
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