ADVANCED ACCOUNTING
14th Edition
ISBN: 9781260361681
Author: Hoyle
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 17P
To determine
Identify the appropriate answer for the given statement from the given choices.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following data were abstracted from the records of Ballistic Corporation for the year:
Sales .................................................
$900,000
Bond interest expense .................................
50,000
Income taxes ..........................................
200,000
Net income ............................................
300,000
How many times was bond interest earned?
a.
18.0
b.
15.0
c.
11.0
d.
10.0
could you please show me how to calculate
Following are data from the statements of two companies selling comparable products:
Current Year-End Balance Sheets
SunCompany
ZengCompany
Cash.........................................................................................
119.00
180.00
Notes receivable.......................................................................
77.00
32.00
Accounts receivable, net...........................................................
420.00
640.00
Merchandise inventory..............................................................
588.00
877.00
Prepaid expenses......................................................................
16.00
55.00
Plant and equipment, net...........................................................
2,321.00
2,744.00
Total assets...............................................................................…
Roswell Corporation reported the following data:Dividends.................. $ 5,000Purchase returns........ 6,000Sales revenue ............. 440,000Ending inventory....... 45,000Freight in..................... $ 22,000Purchases .................... 206,000Beginning inventory .... 51,000Purchase discounts...... 4,500Roswell’s gross profit percentage isa. 49.2.b. 50.8.c. 56.0.d. 48.2.
Chapter 4 Solutions
ADVANCED ACCOUNTING
Knowledge Booster
Similar questions
- The following information came from a recent balance sheet of Apple Computer, Inc.:End of Year Beginning of YearAssets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53.9 billion $39.6 billionLiabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26.0 billion ?Owners’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? $21.0 billiona. Determine the amount of total liabilities reported in Apple Computer ’s balance sheet at thebeginning of the year.b. Determine the amount of total owners’ equity reported in Apple Computer ’s balance sheet atthe end of the year.c. Retained earnings was reported in Apple Computer ’s year-end balance sheet at $19.5 billion.If retained earnings was $13.8 billion at the beginning of the year, determine net income forthe year if no dividends were declared.arrow_forwardThe comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:Dec. 31, 20Y2 Dec. 31, 20Y1AssetsCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 918,000 $ 964,800Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828,900 761,940Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,268,460 1,162,980Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,340 35,100Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,900 479,700Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,462,500 900,900Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . . . . . . .…arrow_forwardThe data (in thousands of dollars) were extracted from Larop Corporation's financial reports for the previous fiscal year.Sales ........................................................................................ $870 Purchases of raw materials..................................................... $190 Direct labor.............................................................................. $200 Manufacturing overhead ........................................................ $230 Administrative expenses......................................................... $150 Selling expenses...................................................................... $140 Raw materials inventory, beginning ....................................... $10 Raw materials inventory, ending ............................................ $40 Work in process inventory, beginning .................................... $20 Work in process inventory, ending ......................................... $50 Finished goods…arrow_forward
- Norsk Optronics, ALS, of Bergen, Norway, had a current ratio of 2.5 on June 30 of the current year. Onthat date, the company’s assets were:Cash ..................................................... Kr 90,000Accounts receivable, net ...................... 260,000Inventory ............................................... 490,000Prepaid expenses ................................. 10,000Plant and equipment, net ...................... 800,000Total assets .......................................... Kr1,650,000The Norwegian currency is the krone, denoted here by the symbol Kr.Required:1. What was the company’s working capital on June 30?2. What was the company’s acid-test ratio on June 30?3. The company paid an account payable of Kr40,000 immediately after June 30.a. What effect did this transaction have on working capital? Show computations.b. What effect did this transaction have on the current ratio? Show computations.arrow_forwardThe following annual income statement and statement of retained earnings are prepared for Diaz Corporation. Diaz CORPORATION Profit Statement December 31, 2010 Sales income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $123,000 Service income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,000 Cost of sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 Gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,000 Costs Salaries, wages, etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $35,000 Depreciation and write‑offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 Taxes, property . . . . . . . . . . .…arrow_forwardThe following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just completed year. Sales ................................................................................ $870 Purchases of raw materials ............................................. $190 Direct labor ..................................................................... $200 Manufacturing overhead ................................................. $230 Administrative expenses ................................................. $150 Selling expenses .............................................................. $140 Raw materials inventory, beginning ............................... $10 Raw materials inventory, ending .................................... $40 Work in process inventory, beginning ............................ $20 Work in process inventory, ending ................................. $50 Finished goods inventory, beginning .............................. $90…arrow_forward
- The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just completed year. Sales ................................................................................ $870 Purchases of raw materials ............................................. $190 Direct labor ..................................................................... $200 Manufacturing overhead ................................................. $230 Administrative expenses ................................................. $150 Selling expenses .............................................................. $140 Raw materials inventory, beginning ............................... $10 Raw materials inventory, ending .................................... $40 Work in process inventory, beginning ............................ $20 Work in process inventory, ending ................................. $50 Finished goods inventory, beginning .............................. $90…arrow_forwardThe comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is asfollows:Dec. 31, 20Y2 Dec. 31, 20Y1AssetsCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,600 $ 337,800Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704,400 609,600Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918,600 865,800Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,600 26,400Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 990,000 1,386,000 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,980,000 $ 990,000Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . (397,200) (366,000)Equipment . . . . . . . . . . . . . . . . . . .…arrow_forwardThe following data were taken from the financial statements of Howard Corporation for the year ended December 31, 2014: Net sales .................................................... $120,000Net income ..................................................... 30,000Total assets, January 1, 2014 ..................... 400,000Total assets, December 31, 2014 .............. 600,000 What was Howard's rate of return on assets for 2014? Group of answer choices 6 percent 20 percent 5 percent 24 percentarrow_forward
- The following information appeared in a company’s income statement:Sales . . . . . . . . . . . . . . . . . . . . . . . . $300,000Sales returns . . . . . . . . . . . . . . . . . . . 15,000Sales discounts . . . . . . . . . . . . . . . . . 4,500Beginning inventory . . . . . . . . . . . . . 25,000Purchases . . . . . . . . . . . . . . . . . . . . . 180,000Purchases returns and allowances . . . . 6,000Purchases discounts . . . . . . . . . . . . . 3,600Transportation-in . . . . . . . . . . . . . . . 11,000Gross profit from sales . . . . . . . . . . . 105,000Net income . . . . . . . . . . . . . . . . . . . 55,000 RequiredCalculate the (a) total operating expenses, (b) cost of goods sold, and (c) ending inventory.arrow_forwardThe following nominal accounts apply to a primary beneficiary company and a VIE: Primary Company VIE Company Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(800,000) (240,000) Service fees . . . . . . . . . . . . . . . . . . . . . . . (150,000) Interest revenue . . . . . . . . . . . . . . . . . . . (90,000) Interest expense. . . . . . . . . . . . . . . . . . . . 50,000 Operating expenses . . . . . . . . . . . . . . . 550,000 230,000 Depreciation expense . . . . . . . . . . . . . 100,000 40,000 The fair value of the VIE assets had a fair value $100,000 higher than book value on the date control was achieved. The asset adjusted had a 5 year life. The VIE agrees to distribute a share of its income to the primary beneficiary equal to 10% of sales revenue and service fees. Prepare income distribution…arrow_forwardMondesto Company has the following debts: Unsecured creditors . . . . . . . $230,000Liabilities with priority . . . . . 110,000Secured liabilities:Debt 1, $210,000; value of pledged asset . . . . . . . . . . . . . . . . . . . . 180,000Debt 2, $170,000; value of pledged asset . . . . . . . . . . . . . . . . . . . . 100,000Debt 3, $120,000; value of pledged asset . . . . . . . . . . . . . . . . . . . . 140,000 The company also has a number of other assets that are not pledged in any way. The creditors holding Debt 2 want to receive at least $142,000. For how much do these free assets have to be sold so that the creditors associated with Debt 2 will receive exactly $142,000?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education