TEST BANK FOR Financial Accounting 11th Edition Robert Libby, Patricia Libby, Frank Hodge / Complete All Chapters ()

TEST BANK FOR Financial Accounting 11th Edition Robert Libby, Patricia Libby, Frank Hodge / Complete All Chapters () Determine the missing amounts for each independent case below. Assume the amounts shown are at the end of the company's first year of operation. Company Name Total Revenue Total Assets Total Expenses Total Liabilitie s Net Income (Loss) Stockholders ' Equity Randolph $ 600,00 0 $ 450,00 0 $ 350,00 0 $ 130,000 Newman $ 105,00 0 $ 80,000 $ 10,000 $ 75,000 Wiseman $ 190,00 0 $ 70,000 $(30,000 ) $ 100,000 Martin $ 180,00 0 $ 215,00 0 $ 115,00 0 $ 75,000 VanTasse l $ 55,000 $ 75,000 $ 19,000 $ 79,000 Question Details AACSB : Knowledge Application AICPA : BB Critical Thinking AICPA : FN Measurement Bloom's : Apply Difficulty : 2 Medium Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish different financial statements Type : Static Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : manual 2) Frank’s Flower Company, a small retail store that sells flowers, started business on January 1, 2022. At the end of January 2022, the following information was available: Sales of flowers for cash $ 150,000 Sales of flowers for credit (not yet collected) 30,000 Cost of flowers which were sold and paid for during January 90,000 Expenses during January incurred, and paid for, during January unless otherwise noted: Salaries $ 10,000 Telephone 500 Office supplies (all used) 300 Electricity 600 Rent on the store for January, 2022 (will not be paid until February, 2022) 2,000 Required:A.Using the above information, prepare the income statement for Frank’s Flower Company for the month ended January 31, 2022. B.What is the amount of cash flows provided by operating activities to be presented on the statement of cash flows? Question Details AACSB : Knowledge Application AICPA : BB Critical Thinking AICPA : FN Measurement Bloom's : Apply Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish different financial statements Type : Static Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Difficulty : 3 Hard Gradable : manual 3) Indicate on which financial statement you would expect to find each of the following. If an item can be found on more than one statement, list each statement. Example: Cash Balance Sheet and Statement of Cash Flows Notes payable ___________blank Salaries expense ___________blank Cost of goods sold ___________blank Sales revenue ___________blank Inventory ___________blank Income tax expense ___________blank Dividends declared ___________blank Retained earnings ___________blank Accounts payable ___________blank Equipment ___________blank EMAIL ME: EMAIL ME: Question Details AICPA : BB Critical Thinking AICPA : FN Measurement Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish different financial statements Type : Static AACSB : Reflective Thinking Difficulty : 1 Easy Bloom's : Remember Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : manual 4) For each of the following items that appear on the balance sheet, identify each as an asset (A), liability (L), or element of stockholders' equity (SE). For any item that would not appear on the balance sheet, write the letter, N. Retained earnings ___________blank Accounts payable ___________blank Selling expense ___________blank Common stock ___________blank Accounts receivable ___________blank Income tax expense ___________blank Dividends ___________blank Property and equipment ___________blank EMAIL ME: Question Details AICPA : BB Critical Thinking AICPA : FN Measurement Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Type : Static AACSB : Reflective Thinking Difficulty : 1 Easy Bloom's : Remember Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Financial statements-Balance sheet Gradable : manual 5) Rose Corporation began operations on January 2, 2022. During 2022, Rose made cash and credit sales totaling $500,000 and collected $420,000 in cash from its customers. Rose purchased inventory costing $250,000, paid $15,000 for dividends and the cost of goods sold was $210,000. Also, the corporation incurred the following expenses during 2022: Salary expense $ 80,000 Interest expense 5,000 Insurance expense 4,000 Supplies expense 6,000 Income tax expense 34,000 Required:1.Prepare an income statement showing revenues, expenses, income before income taxes, income tax expense, and net income for the year ended December 31, 2022. 2.Based on the above information, what is the amount of accounts receivable on the balance sheet prepared as of December 31, 2022? 3.Based on the above information, what is the amount of retained earnings on the balance sheet prepared as of December 31, 2022? EMAIL ME: Question Details AACSB : Knowledge Application AICPA : BB Critical Thinking AICPA : FN Measurement Bloom's : Apply Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish different financial statements Type : Static Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Difficulty : 3 Hard Gradable : manual 6) Cosmos Corporation was established on December 31, 2021, by a group of investors who invested a total of $1,000,000 for shares of the new corporation's common stock. During the month of January 2022, Cosmos provided services to customers for which the total revenue was $100,000. Of this amount, $10,000 had not been collected by the end of January. Cosmos recorded salary expense of $20,000, of which 90% had been paid by the end of the month; rent expense of $5,000, which had been paid on January 1; and other expenses of $12,000, which had been paid by check. On January 31, 2022, Cosmos purchased a van by paying cash of $30,000. There were no other transactions that affected cash. Required:1.In which section of the statement of cash flows would the amount of cash paid for rent be reported? 2.In which section of the statement of cash flows would the amount of cash paid for the van purchase be reported? 3.By how much did Cosmos's cash increase or decrease during January 2022? 4.What was Cosmos's net income or net loss (after income tax expense) for the month of January 2022? The income tax expense was $18,900. 5.Explain why the net increase or decrease in cash for a business generally will be different than the net income, or net loss, for the same period. Question Details AACSB : Knowledge Application AICPA : BB Critical Thinking AICPA : FN Measurement Bloom's : Apply Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish different financial statements Type : Static Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Difficulty : 3 Hard AACSB : Communication Gradable : manual 7) Parker Pool Supply, Incorporated reported the following items for the year ended December 31, 2022: Salaries and salary expense $ 685,100 Cost of goods sold 1,461,200 Rent expense 513,500 Sales revenue 3,333,200 Interest expense 39,000 Income tax expense 157,300 Accounts receivable 35,100 Required: Prepare an income statement for the year ended December 31, 2022. EMAIL ME: Question Details AACSB : Knowledge Application AICPA : BB Critical Thinking AICPA : FN Measurement Difficulty : 2 Medium Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Type : Static Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Topic : Financial statements-Income statement Gradable : manual 8) National Shops, Incorporated reported the following amounts on its balance sheet as of December 31, 2022: Inventory $ 325,000 Notes payable 100,000 Cash 150,000 Common stock 750,000 Net property, plant and equipment 600,000 Accounts receivable 30,000 Accounts payable 45,000 Retained earnings ? Required:1.What is the amount of National's total assets as of December 31, 2022? 2.Identify the items listed above that are liabilities. 3.What is the amount of National's retained earnings as of December 31, 2022? 4.Prepare a balance sheet for National at December 31, 2022. 5.National wishes to purchase merchandise from your company on account. The amount of the purchases would probably be about $10,000 per month, and the terms would require National to make payment in full within 30 days. Would you recommend that your company grant credit to National under these terms? Explain the reasoning for your response. Question Details AACSB : Knowledge Application AICPA : BB Critical Thinking AICPA : FN Measurement Bloom's : Apply Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Type : Static Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Financial statements-Balance sheet Difficulty : 3 Hard AACSB : Communication AACSB : Analytical thinking AICPA : FN Decision Making Bloom's : Analyze Gradable : manual 9) During 2022, Winterset Company performed services for which customers paid or promised to pay a total of $587,000. Of this amount, $552,000 had been collected by year-end. Winterset paid $340,000 in cash for employee salaries and owed the employees $15,000 at the end of the year for work that had been done but had not paid for. Winterset paid interest expense of $3,000 and $195,000 for other service expenses. The income tax rate was 35%, and income taxes had not yet been paid at the end of the year. Winterset declared and paid dividends of $20,000. There were no other transactions that affected cash. Required:1.What was the amount of the increase or decrease in cash during the year? 2.Prepare an income statement for Winterset for the year 2022. 3.At the beginning of 2022, Winterset's retained earnings were $90,000. Prepare a statement of stockholders' equity with only a column for retained earnings. EMAIL ME: Question Details AACSB : Knowledge Application AICPA : BB Critical Thinking AICPA : FN Measurement Bloom's : Apply Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish different financial statements Type : Static Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Difficulty : 3 Hard Gradable : manual 10) Alfred Company manufactures men's clothing. During the current year, the company reported the following items that affected cash. Indicate whether each of these items is a cash flow from operating activities (O), investing activities (I), or financing activities (F). Purchased equipment by paying cash: ___blank Collected cash on account from customers: ___blank Paid dividends to stockholders: ___blank Paid cash for supplies: ___blank Paid suppliers for fabric: ___blank Borrowed money from bank on a note payable: ___blank Paid interest to bank on the note payable: ___blank Paid salaries to employees: ___blank Sold shares of common stock to new stockholders: ___blank Question Details AICPA : BB Critical Thinking AICPA : FN Measurement Difficulty : 2 Medium Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Type : Static AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Topic : Financial statements-Cash flows Gradable : manual 11) Fulton Company was established at the beginning of 2022 when several investors paid a total of $200,000 to purchase Fulton common stock. No additional investments in common stock were made during the year. By December 31, 2022, Fulton had cash on hand of $45,000, office equipment of $40,000, inventory of $156,000, and accounts payable of $10,000. Sales for the year were $812,000. Of this amount, customers still owed $20,000. Fulton declared and paid dividends of $25,000 to its stockholders during 2022. Required:1.Based on the information above, prepare a balance sheet for Fulton Company at December 31, 2022. In the process of preparing the balance sheet, you must calculate the ending balance in retained earnings