Crane Mart and Cullumber Shop are two companies of roughly the same size both running a chain of convenience stores. Each company depreciates its plant assets using the straight-line method. An investigation of their financial statements reveals the following information: CraneMart CullumberShop Net income $ 164,052 $ 166,020 Sales revenue 1,121,400 1,386,000 Total assets (average) 5,468,400 6,917,400 Plant assets (average) 2,079,000 2,394,000 For each company, calculate: (Round answers to 2 decimal places, e.g. 52.75.) CraneMart CullumberShop A. Return on assets B. Asset turnover

Crane Mart and Cullumber Shop are two companies of roughly the same size both running a chain of convenience stores. Each company depreciates its plant assets using the straight-line method. An investigation of their financial statements reveals the following information: CraneMart CullumberShop Net income $ 164,052 $ 166,020 Sales revenue 1,121,400 1,386,000 Total assets (average) 5,468,400 6,917,400 Plant assets (average) 2,079,000 2,394,000 For each company, calculate: (Round answers to 2 decimal places, e.g. 52.75.) CraneMart CullumberShop A. Return on assets B. Asset turnover

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Exercise 17-18A (Algo) Income statement presentation LO A2 Net sales Expenses: Item Total operating expenses Other unusual and/or infrequent gains (losses) Discontinued segment: RANDA MERCHANDISING, INCORPORATED Income Statement For Year Ended December 31 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.) Debit $ $ 1,684,000 247,000 264,000 505,000 728,000 0 0 0 0 Credit $…
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In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. Item 1. 2. 3. 4. 5. 6. 7. 8. 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Exercise 13-17A (Algo) Income statement categories LO A2 Debit Section $ 1,888,000 277,000 296,000 566,000 817,000 Credit $ 3,700,000 293,000 Indicate where each of the following income-related items for this company appears on its current year income statement by selecting the appropriate section in the drop down beside each item. 989,000 Item Net sales Gain on state's condemnation of company…
Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) $ 165,000 76,000 During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 2,150 27,000 The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $13,000 estimated residual value. The annual accounting period ends on December 31. Required: 1. Prepare the adjusting journal entry that would have been made at the end of 2020 for depreciation on the manufacturing equipment. 2. Starting at the beginning of 2021, what is the remaining estimated life? 3. Prepare the journal entries to record the two expenditures for repairs and maintenance during 2021.