Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 10DQ
Recent fiscal years for several well-known companies are as follows:
| Company | Fiscal Year Ending |
| J. C. Penney Company, Inc. | January 27 |
| L Brands, Inc. | January 27 |
| Sears Holdings Corporation | January 27 |
| Target Corporation | January 27 |
| The Home Depot, Inc. | January 28 |
| Tiffany & Co. | January 30 |
What general characteristic shared by these companies explains why they do not have fiscal years ending December 31?
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One Product Corporation (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were:
Cash
$ 19,500
Accounts Receivable
8,250
Allowance for Doubtful Accounts
885
Inventory
12,060
Prepaid Rent
1,600
Equipment
25,000
Accumulated Depreciation
2,400
Accounts Payable
0
Sales Tax Payable
500
FICA Payable
600
Withheld Income Taxes Payable
500
Salaries and Wages Payable
1,600
Unemployment Tax Payable
300
Deferred Revenue
4,500
Interest Payable
495
Notes Payable (long-term)
22,000
Common Stock
13,300
Additional Paid-In Capital, Common
19,210
Retained Earnings
4,120
Treasury Stock
4,000
The following information is relevant to the first month of operations in the following year:
OPC sells its inventory at $150 per unit, plus sales tax of 6 percent. OPC’s January 1…
MyBnB started a home rental company on January 1. As of November 30, MyBnB reported the following balances. The company does not yet have a balance in Retained Earnings because this is its first year of operations so no net income has been reported in prior years.
Accounts Payable
$ 750
Equipment
$ 6,000
Cash
2,500
Repairs Expense
500
Cleaning Expense
2,250
Service Revenue
5,000
Common Stock
7,500
Wages Expense
2,000
Based on the financial statements prepared in requirement 5, determine whether the owner met her 10 percent net profit margin goal as of December 31. (Round your answer to 1 decimal place.)
Which of the following is true regarding a fiscal year?
Group of answer choices
A. Companies can choose to end their fiscal year on any date they feel is most relevant, most likely coinciding with the natural business cycle.
B. Companies must end their fiscal year on March 31, June 30, September 30 or December 31.
C. Companies can select any date except a holiday to end their fiscal year.
D. Companies must end their fiscal year on December 31.
Chapter 4 Solutions
Corporate Financial Accounting
Ch. 4 - Prob. 1DQCh. 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 - Prob. 6DQCh. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - What is the natural business year?Ch. 4 - Recent fiscal years for several well-known...
Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Retained earnings statement Blake Knudson owns and...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Prob. 4.4BECh. 4 - Accounting cycle From the following list of steps...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Classifying accounts Balances for each of the...Ch. 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 - Income statement; net loss The following revenue...Ch. 4 - Income statement FedEx Corporation had the...Ch. 4 - Retained earnings statement Climate Control...Ch. 4 - Retained earnings statement; net loss Selected...Ch. 4 - Classifying assets Identify each of the following...Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Dynamic Weight Loss Co. offers...Ch. 4 - Prob. 4.13EXCh. 4 - Identifying accounts to be closed From the list...Ch. 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 Rainbow Services Co....Ch. 4 - Identifying permanent accounts Which of the...Ch. 4 - Post-closing trial balance An accountant prepared...Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Prob. 4.22EXCh. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Prob. 4.24EXCh. 4 - Prob. 4.25EXCh. 4 - Prob. 4.26EXCh. 4 - Appendix 2 Reversing entry The following adjusting...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Financial statements and closing entries Lamp...Ch. 4 - Financial statements and closing entries Foxy...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 - Prob. 4.3BPRCh. 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 - Continuing Company Analysis- Amazon: Working...Ch. 4 - Under Armour: Current ratio The following year-end...Ch. 4 - Prob. 4.3ADMCh. 4 - Google and Microsoft: Current ratio Google, Inc....Ch. 4 - Prob. 4.1TIFCh. 4 - Communication Your friend, Daniel Nat, recently...
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