Your answer is correct.
Vaughn Enterprises owns the following assets at
December 31, 2017.
69,000 account 17,600
due 35,600 of deposit94,570
What amount should be reported as cash?
Brief Exercise 7-7
Larkspur Family Importers sold goods to Tung
Decorators for $40,800 on November 1, 2017,
accepting Tung's $40,800, 6-month, 6% note.
Prepare Larkspur's November 1 entry, December
31 annual adjusting entry, and May 1 entry for the
collection of the note and interest.
Brief Exercise 7-14
Recent financial statements of General Mills,
Inc. report net sales of $12,442,000,000. Accounts
receivable are $912,000,000 at the beginning of the
year and $953,000,000 at the end of the year.
Brief Exercise 7-15
Indigo Company designated Jill Holland as petty cash
custodian and established a petty cash fund of $290.
The fund is reimbursed when the cash in the fund is at
$26, which it is. Petty cash receipts indicate funds
were disbursed for office supplies $92 and
miscellaneous expense $169.
Prepare journal entries for the establishment of the
fund and the reimbursement.
Brief Exercise 8-4 (Part Level Submission)
Pharoah Company uses a periodic inventory system.
For April, when the company sold 500 units, the
following information is available.
Units Unit Cost Total Cost
April 1 inventory 290 $32 $ 9,280
April 15 purchase 430 38 16,340
April 23 purchase 280 42 11,760
Brief Exercise 8-6
Your answer is correct.
Sandhill Company uses a periodic inventory
system. For April, when the company sold 600
units, the following information is available.
Units Unit Cost Total Cost
April 1 inventory 270 $30 $ 8,100
April 15 purchase 440 36 15,840
April 23 purchase 290 39 11,310
Compute the April 30 inventory and the April cost of
goods sold using the LIFO method.
Multiple Choice Question 21
Which of the following inventories carried by a
manufacturer is similar to the merchandise inventory
of a retailer?
A fire destroys all of the merchandise of Shamrock
Company on February 10, 2017. Presented below is
information compiled up to the date of the fire.
Inventory, January 1, 2017 $432,200
Sales revenue to February 10, 2017 1,935,200
Purchases to February 10, 2017 1,104,580
Freight-in to February 10, 2017 59,180
Rate of gross profit on selling price 35%
What is the approximate inventory on February
Martinez Company began operations in 2017 and
determined its ending inventory at cost and at LCNRV
at December 31, 2017, and December 31, 2018. This
information is presented below.
12/31/18 409,250 390,440
(a) Prepare the journal entries required at December
31, 2017, and December 31, 2018, assuming inventory
is recorded at LCNRV and a perpetual inventory
system using the cost-of-goods-sold method.
Brief Exercise 10-6
Waterway Inc. purchased land, building, and
equipment from Laguna Corporation for a cash
payment of $327,600. The estimated fair values of the
assets are land $62,400, building $228,800, and
equipment $83,200. At what amounts should each of
the three assets be recorded?
Brief Exercise 10-8
Pearl Corporation traded a used truck (cost $29,600,
accumulated depreciation $26,640) for a small
computer with a fair value of $4,884. Pearl also paid
$740 in the transaction.
Prepare the journal entry to record the exchange.
(The exchange has commercial substance.)
The expenditures and receipts below are related to
land, land improvements, and buildings acquired for
use in a business enterprise. The receipts are enclosed
Money borrowed to
contractor (signed a
(b) construction from 285,400
(c) Cost of land fill and 11,790
real estate taxes on
Premium on 6-
month (e) insurance
construction Refund of
1-month(f) insurance premium
Architect's fee on
Cost of real estate
purchased as a plant
site (land $209,100
Commission fee paid
to real estate agency
Installation of fences
Cost of razing and
Interest paid during
(m) construction on
money borrowed for
Cost of parking lots
Cost of trees and
Excavation costs for
Identify each item by letter and list the items in
columnar form, using the headings shown below. All
receipt amounts should be reported in parentheses.
For any amounts entered in the Other Accounts
column, also indicate the account title.
Sage Company purchased machinery for $174,300 on
January 1, 2017. It is estimated that the machinery will
have a useful life of 20 years, salvage value of $14,700,
production of 81,900 units, and working hours of
44,000. During 2017, the company uses the machinery
for 11,440 hours, and the machinery produces 9,009
units. Compute depreciation under the straight-line,
units-of-output, working hours, sum-of-the-years'-
digits, and double-declining-balance methods.
Brief Exercise 11-8
Carla Company owns equipment that cost $1,008,000
and has accumulated depreciation of $425,600. The
expected future net cash flows from the use of the
asset are expected to be $560,000. The fair value of
the equipment is $448,000.
Prepare the journal entry, if any, to record the
Brief Exercise 12-8
Concord Corporation purchased Johnson Company 3
years ago and at that time recorded goodwill of
$330,000. The Johnson Division's net assets, including
the goodwill, have a carrying amount of $700,000. The
fair value of the division is estimated to be $668,000
and the implied goodwill is $298,000.
Prepare Concord journal entry to record impairment
of the goodwill.
Joni Marin Inc. has the following amounts reported
in its general ledger at the end of the current year.
Organization costs $24,400
on bonds payable
advertising agency for
ads to promote
Excess of cost over fair
value of net
identifiable assets of
Cost of equipment
acquired for research
equipment has an
alternative future use
Costs of developing a
secret formula for a
product that is
expected to be
marketed for at least
On the basis of this information, compute the total
amount to be reported by Marin for intangible assets
on its balance sheet at year-end.
Brief Exercise 13-2
Ivanhoe Company borrowed $30,000 on November 1,
2017, by signing a $30,000, 8%, 3-month note. Prepare
Ivanhoe's November 1, 2017, entry; the December 31,
2017, annual adjusting entry; and the February 1,
Brief Exercise 13-5
Riverbed Corporation made credit sales of $19,800
which are subject to 7% sales tax. The corporation
also made cash sales which totaled $28,462 including
the 7% sales tax.
Prepare the entry to record Riverbed's credit sales.
Brief Exercise 13-10
Windsor Inc. is involved in a lawsuit at December 31,
Prepare the December 31 entry assuming it is
probable that Windsor will be liable for $862,200 as a
result of this suit.
Brief Exercise 13-13
Martinez Factory provides a 2-year warranty with one
of its products which was first sold in 2017. Martinez
sold $930,400 of products subject to the warranty.
Martinez expects $124,050 of warranty costs over the
next 2 years. In that year, Martinez spent $70,460
servicing warranty claims. Prepare Martinez's journal
entry to record the sales (ignore cost of goods sold)
and the December 31 adjusting entry, assuming the
expenditures are inventory costs.
Brief Exercise 14-3
The Skysong Company issued $260,000 of 10% bonds
on January 1, 2017. The bonds are due January 1,
2022, with interest payable each July 1 and January 1.
The bonds were issued at 98.
Prepare the journal entries for (a) January 1, (b) July
1, and (c) December 31. Assume The Skysong
Company records straight-line amortization