1.
Introduction:
Financial statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
The method through which the
2.
Introduction:
Financial statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
The strength and weaknesses of S’s method of recording depreciation.
3.
Introduction:
Financial statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
The situation faced by person B is ethical or not.
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Chapter 3 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
- Flounder Manufacturing has old equipment that cost $48,500. The equipment has accumulated depreciation of $28,100. Flounder has decided to sell the equipment. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) What entry would Flounder make to record the sale of the equipment for $31,000 cash? (b) What entry would Flounder make to record the sale of the equipment for $15,000 cash? Account Titles and Explanation I (a) 1 (b) Debit Credit 11arrow_forwardThe owner of a local business complains that the adjustments process consumes a lot of time and delays reportingmonth-end financial results. How would you convince herof the importance of this process?arrow_forwardAn accounting intern for a local CPA firm was reviewing the financial statements of a client in the electronics industry. The intern noticed that the client used the FIFO method of determining ending inventory and cost of goods sold. When she asked a colleague why the firm used FIFO instead of LIFO, she was told that the client used FIFO to minimize its income tax liability. This response puzzled the intern because she thought that LIFO would minimize income tax liability. Required: What would you tell the intern to resolve the confusion?arrow_forward
- The bookkeeper entered an adjusting entry as DR. Depreciation Expense and CR. Cash. Further investigation indicated that the bookkeeper and the cashier colluded to withdraw $10,000 (the amount of Depreciation Expense) from the company's bank account and forged necessary documents to perpetuate this crime. At the time when this was discovered, the bookkeeper and the cashier already absconded. As the accounting software consultant, what can you recommend to avoid this event from happening again? Group of answer choices Establish pairings of account titles of certain transactions, and unsual pairings of account titles can be labeled as adjusting entries The General Manager should always monitor the entries made by the bookkeeper All of the above None of the abovearrow_forwardYou are preparing a post-closing trial balance for the company where you work, but it doesn’t balance. You are tired, and besides, you don’t think the company pays you for this much hassle and extra time. You decide to increase the balance of an asset account to make the totals balance. Discuss this action and explain whether it is ethical or illegal.arrow_forwardSpeedy delivery service recently hired a new accountant who discovered that the prior accountant had erroneously capitalized routine repair and maintenance costs on delivery trucks. The costs were added to the overall trucks book values and depreciated over time. How should Speedy have recorded routine maintenance and repair costs? What effect did the error have on Speedys balance sheet and income statement?arrow_forward
- B. Harper is surfing the Internet and finds a great pair of rollerblades at a really low price, but he has never heard of the company and is concerned that the product he ordered may not be the product he receives. Harper may be more willing to place an order with this company ifa. The website displays the WebTrust seal.b. The company provides its annual report and the report of the independent auditors on its website.c. The company provides a money-back guarantee.d. Only a partial payment is required prior to receiving the product.arrow_forwardJayarrow_forwardAn employee working on her first trial balance discovers that the Equipment account has a credit balance of $2500 and a customer's A/R account has a credit balance of $25. Based on the knowledge you have gained in this course and how account balances are recorded and increase/decrease, has the accountant made a mistake in her records or are these situations possible?arrow_forward
- Ivanhoe Company had the following two transactions related to its delivery truck. 1. Paid $58 for an oil change. 2. Paid $430 to install special shelving units, which increase the operating efficiency of the truck. Prepare Ivanhoe Company's journal entries to record these two transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1. Maintenance and Repairs Expense Cash | 2.arrow_forwardSwifty Company had the following two transactions related to its delivery truck. 1. Paid $31 for an oil change. 2. Paid $260 to install special shelving units, which increase the operating efficiency of the truck. Prepare Swifty's journal entries to record these two transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No Account Titles and Explanation Debit Credit 1. 2.arrow_forwardCrane Company had the following two transactions related to its delivery truck. 1. Paid $54 for an oil change. 2. Paid $427 to install special shelving units, which increase the operating efficiency of the truck. Prepare Crane Company’s journal entries to record these two transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1. enter an account title to record the first transaction enter a debit amount enter a credit amount enter an account title to record the first transaction enter a debit amount enter a credit amount 2. enter an account title to record the second transaction enter a debit amount enter a credit amount enter an account title to record the second transactionarrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage Learning
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