Reference no: EM13858846
Problem 1: Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earning per Share:
Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trail balance as of the end of the annual accounting period, December 31, 2014:
|
Account Titles
|
Debit
|
Credit
|
|
Cash
|
42,000
|
|
|
Accounts receivable
|
11,600
|
|
|
Supplies
|
900
|
|
|
Prepaid insurance
|
800
|
|
|
Service trucks
|
19,000
|
|
|
Accumulated depreciation
|
|
9,200
|
|
Other assets
|
8,300
|
|
|
Accounts payable
|
|
3,000
|
|
Wages payable
|
|
|
|
Income taxes payable
|
|
|
|
Note payable (3 years, 10% interest due each December 31)
|
|
17,000
|
|
Common stock (5,000 shares outstanding)
|
|
400
|
|
Additional paid-in-capital
|
|
19,000
|
|
Retained earnings
|
|
6,000
|
|
Service revenue
|
|
61,360
|
|
Remaining expenses (not detailed, excludes income tax)
|
33,360
|
|
|
Income tax expense
|
|
|
|
Totals
|
115,960
|
115,960
|
Data not yet recorded at December 31, 2014, included:
a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be used in 2015.
b. Insurance expired during 2014, $800.
c. Depreciation expense for 2014, $3,700.
d. Wages earned by employees not yet paid on December 31, 2014, $640.
e. Income tax expense, $5,540.
Required:
1. Record the 2014 adjusting entries.
2. Prepare an income statement and a classified balance sheet that include the effects of the preceding five transactions.
3. Record the 2014 closing entry.
Problem 2: Finding the Financial Information:
Refer to the financial statements of Urban Outfitters.
Required:
1. How much is in the Prepaid Expense and Other Current Assets account at the end of the most recent year (for the year ended January 31, 2012)? Where did you find this information?
2. What did the company report for Deferred Rent and Other Liabilities at January 31, 2012? Where did you find this information?
3. What is the difference between prepaid rent and deferred rent?
4. Describe in general terms what accrued liabilities are.
5. What would generate the interest income that is reported on the income statement?
6. What company accounts would not have balances on a post-closing trial balance?
7. Prepare the closing entry, if any, for Prepaid Expenses.
8. What are the company's earnings per share (basic only) for the three years reported?
9. Compute the company's total assets turnover ratio for the three years reported. What does the trend suggest to you about Urban Outfitters?
|
Rolex watch manufacturer had in inventory of watches worth
: At the end of 2012 the prestigious Rolex watch manufacturer had in inventory of watches worth $725 dollars. In 2013, Rolex produced $333 worth of watches and sold $260. What was the change in inventories in 2013? (Hint: careful with the signs, rememb..
|
|
Prepare a trial balance of may for wells consultant services
: Prepare a trial balance as of May 31, 2007 for Wells Consultant Services. Assuming that supplies expense (which has not been recorded) amounts to $1,000 for May/
|
|
Unethical versus ethical leadership
: How does a leader find the courage to step through fear and confusion to act ethically despite the risks involved?
|
|
Santiago is from spain but lives in texas
: Santiago is from Spain but lives in Texas. Ryan is from England but he lives in Arizona. A car dealer in Texas buys a new BMW from a BMW factory in Arizona for $51,567 and later sells the new BMW to the final buyer, who is Santiago for $75,120. Later..
|
|
Recording adjusting and closing entries
: Problem 1: Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earning per Share:
|
|
What was net exports
: In the economy of Qonos in 2102 investment was $1,611, GDP was $5,829, government spending was $1,521 and consumption was $1,694. What was Qonos's net exports in 2102?
|
|
About the increasing geometric gradient
: You are told that the present worth of an increasing geometric gradient is $88,146. If the cash flow in year 1 is $25,000 and the gradient increase is 18% per year, what is the value of n? The interest rate is 10%per year.
|
|
Apply cost principles to business problems
: For this discussion question, you will apply cost principles to business problems. A sunk cost is one that has already been incurred and cannot be recovered. Economic theory supports that only prospective (or future) costs are relevant to a decision...
|
|
Minimum of three general economic principles
: For the Portfolio Project, conduct an analysis of a recent article and provide your evaluation and outcome expectations in an articulate and informative paper that discusses: A minimum of three general economic principles related to the article. Iden..
|