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Transactions for Mehta Company for the month of May are presented below.
On July 1, 2012, Crowe Co. pays $18,475 to Zubin Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Crowe Co. journalize the entry on July 1 and the adjusting entry on December 31. (Round answers to zero decimal places, e.g. 2,555.)
Dresser Company's weekly payroll, paid on Fridays, totals $11,000. Employees work a 5-day week. Prepare Dresser's adjusting entry on Wednesday, December 31, and the journal entry to record the $11,000 cash payment on Friday, January 2. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Side Kicks has year-end account balances of Sales $905,610; Interest Revenue $15,980; Cost of Goods Sold $560,340; Operating Expenses $202,750; Income Tax Expense $36,890; and Dividends $20,275. Prepare the year-end closing entries. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Financial information exhibits the characteristic of consistency when
Starr Co. had sales revenue of $592,700 in 2012. Other items recorded during the year were:
Cost of goods sold $321,800
Wage expense 123,300
Income tax expense 27,600
Increase in value of company reputation 15,300
Other operating expenses 10,100
Unrealized gain on value of patents 22,300
On January 1, 2012, Richards Inc. had cash and common stock of $67,650. At that date the company had no other asset, liability or equity balances. On January 2, 2012, it purchased for cash $21,600 of equity securities that it classified as available-for-sale. It received cash dividends of $4,200 net of tax during the year on these securities. In addition, it has an unrealized holding gain on these securities of $5,460 net of tax. Determine the following amounts for 2012: (a) net income; (b) comprehensive income; (c) other comprehensive income; and (d) accumulated other comprehensive income (end of 2012).
Lazaro, Inc. sells goods on the installment basis and uses the installment-sales method. Due to a customer default, Lazaro repossessed merchandise that was originally sold for $830, resulting in a gross profit rate of 40%. At the time of repossession, the uncollected balance is $660, and the fair value of the repossessed merchandise is $283. Prepare Lazaro's entry to record the repossession. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Heartland Company's budgeted sales and budgeted cost of goods sold for the coming year are $140,470,000 and $35,604,000 respectively. Short-term interest rates are expected to average 10%. If Heartland can increase inventory turnover from its present level of 9 times a year to a level of 12 times per year, compute its expected cost savings for the coming year.
Ames Company reported 2012 net income of $152,940. During 2012, accounts receivable increased by $17,370 and accounts payable increased by $9,760. Depreciation expense was $47,650. Prepare the cash flows from operating activities section of the statement of cash flows.(List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. For negative numbers use either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)
(a) Prepare a statement of cash flows for 2012 for Orozco Corporation. (List multiple entries from the largest positive to the smallest positive amount followed by the most negative to the least negative amount, e.g. 15, 14, 10, -17, -5, -1. For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)
Chris Spear invested $11,166 today in a fund that earns 10% compounded annually. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 10% annual interest compounded semiannually? (Round answers to 2 decimal places, e.g. 12,250.25. Hint: Use tables in text.)