Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 1SDC
Finding Financial Information
Answer the following questions by referring to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. As with many retail companies, The Home Depot labels the period “Fiscal 2016” even though it ends in the 2017 calendar year. The label “Fiscal 2016” is appropriate because Fiscal 2016 includes 11 months from the 2016 calendar year. The Home Depot explains its choice of fiscal period in Note 1 to its financial statements.)
Required:
- 1. What amount of net income was reported (in millions) for the year ended January 29, 2017?
- a. $94,595
- b. $32,313
- c. $7,009
- d. $7,957
- 2. What amount of sales revenue (in millions) was earned for the year ended January 29, 2017?
- a. $32,313
- b. $94,595
- c. $7,957
- d. $7,009
- 3. What was the cost (in millions) of the company’s inventory on January 29, 2017?
- a. $2,538
- b. $12,549
- c. $2,216
- d. $11,809
- 4. How much cash (in millions) does The Home Depot have on January 29, 2017?
- a. $2,538
- b. $12,549
- c. $2,216
- d. $11,809
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Refer to the financial statements of Lowe’s Companies, Incorporated, in Appendix B. (Note: Fiscal 2019 for Lowe’s runs from February 2, 2019, to January 31, 2020. As with many retail companies, Lowe’s labels the period “Fiscal 2019” even though it ends in the 2020 calendar year. The label “Fiscal 2019” is appropriate because Fiscal 2019 includes 11 months from the 2019 calendar year. Lowe’s explains its choice of fiscal period in Note 1 to its financial statements.)
2. What journal entry must Lowe’s make when a customer purchases and pays for, but does not yet use, a gift card?
I also need the journal entry for december 31 2025
SM Department Store sells gift certifications redeemable only when merchandise is purchased. These gift certificates have an expiration date of two years after issuance date.
The unearned revenue account relating to gift certificates has a beginning balance of P65,000 and the sale of gift certificates during the year 2017 was likewise credited to this account. The balance of the unearned revenue account as at year end totaled P300,000, before any adjustment for the recognition of the revenue.
You verified that during the year, P15,000 worth of gift certificates expired and the total of gift certificates that were redeemed was P200,000.
Compute for the correct balance of the Unearned Revenue for Gift Certificates Outstanding as of December 31, 2017.
P200,000P200,000
P15,000P15,000
None of theseNone of these
P300,000P300,000
P85,000
Chapter 1 Solutions
Fundamentals Of Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Explain why the income statement, statement of...Ch. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1MECh. 1 - Matching Definitions with Terms or Abbreviations...Ch. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 11MECh. 1 - Preparing a Statement of Retained Earnings Stone...Ch. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc., is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Labeling and Classifying Business Transactions The...Ch. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Interpreting the Financial Statements Refer to...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to CP1-3....Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 2PACh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PA1-3....Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Interpreting the Financial Statements Refer to PB...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PB1-3....Ch. 1 - Finding Financial Information Answer the following...Ch. 1 - Comparing Financial Information Refer to the...Ch. 1 - Prob. 5SDCCh. 1 - Prob. 6SDCCh. 1 - Prob. 1CC
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