Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 44E
Exercise 2-44 Transaction Analysis OBJECTIVE 9
During December, Cynthiana Refrigeration Service engaged in the following transactions:
- On December 3, Cynthiana sold a 1-year service contract to Cub Foods for $12,000 cash.
- On December 10, Cynthiana repaired equipment of the A&W Root Beer Drive-In. A&W paid $1,100 in cash for the service call.
- On December 10, Cynthiana purchased a new Chevy truck for business use. The truck cost $36,500. Cynthiana paid $5,500 down and signed a 1-year note for the balance.
- Cynthiana received a $3,200 order of repair parts from Carrier Corporation on December 19. Carrier is expected IO bill Cynthiana for $3,200 in early January.
- On December 23, Cynthiana purchased 20 turkeys from Cub Foods for $300 cash. Cynthiana gave the turkeys to its employees as a Christmas gift
Required:
For each transaction described above, indicate the effects on assets’ liabilities, and stockholders’ equity using the formal below.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
XEXERCISE 11-14
On July 1, Klaus Co. acquired a new computer with a list price of $130,000. Klaus recerve i
trade-in allowance of $20,000 on an old computer of a similar type, paid cash of $20,00
gave a series of five notes payable for the remainder. The following information about the al
computer is obtained from the account in the office equipment ledger: cóst, $82,500; acum
lated depreciation on December 31, the end of the preceding fiscal year, $62,500; ánnua
preciation, $15,000. Journalize the entries to record: (a) the current depreciation of the u
computer to the date of trade-in, (b) the transaction on July 1 for financial reporting purpo
ENTRIES FOR GAIN ON
TRADE OF PLANT ASSET
Objective 7
Consignment Sales
Problem 3
Bulldog Manufacturing Corp. consigned ten refrigerators to Poodles Sales Co. These refrigerators had a cost of P180 each. Freight on the shipment was paid by Bulldog in the amount of P120.
Poodle Sales Co. submitted an account sales stating that it had sold six refrigerators and remitted the P1,365 balance due Bulldog after the following deductions from the selling price of the refrigerators:
Commission 15% of selling price
Marketing expenses P90
Delivery and installation of items sold P60
Cartage cost paid upon receipt of consignment P15
Q3 - The consignee sold the 6 refrigerators for a total of ____.
Q4 - The commission earned on the sale of the 6 refrigerators by Central Sales Co. was ____.
Q5 - The consignor's net profit from the sale of the consigned goods was ____.
Problem 4
Norwin Co. shipped inventory on consignment to…
Brief Exercise 9-02
Cullumber Company incurs these expenditures in purchasing a truck: cash price $26,070, accident insurance (during use) $1,780, sales taxes $1,550, motor vehicle license $320, and painting and lettering $2,050.What is the cost of the truck?
The cost of the truck
$Enter a dollar amount
Chapter 2 Solutions
Cornerstones of Financial Accounting
Ch. 2 - What is the conceptual framework of accounting?Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Describe the constraint on providing useful...Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Of all the events that occur each day, how would...Ch. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - In analyzing a transaction, can a transaction only...Ch. 2 - How do revenues and expenses affect the accounting...Ch. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - The words debit and credit are used in two ways in...Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 19DQCh. 2 - Prob. 20DQCh. 2 - Prob. 21DQCh. 2 - Prob. 22DQCh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Which principle requires that expenses be recorded...Ch. 2 - Taylor Company recently purchased a piece of...Ch. 2 - Prob. 8MCQCh. 2 - The effects of paying salaries for the current...Ch. 2 - Which of the following statements is false? The...Ch. 2 - Which of the following statements are true? Debits...Ch. 2 - Debits will: increase assets. expenses, and...Ch. 2 - Which of the following statements are true? A...Ch. 2 - Posting: involves transferring the information in...Ch. 2 - A trial balance: lists only revenue and expense...Ch. 2 - CORNERSTONE 2.1 Cornerstone Exercise 2-16...Ch. 2 - Prob. 17CECh. 2 - CORNERSTONE 2.1 Four statements are given below....Ch. 2 - Prob. 19CECh. 2 - Cornerstone Exercise 2-20 Transaction Analysis...Ch. 2 - Cornerstone Exercise 2-21 Transaction Analysis...Ch. 2 - Cornerstone Exercise 2-22 Transaction Analysis The...Ch. 2 - Cornerstone Exercise 2-23 Debit and Credit...Ch. 2 - Cornerstone Exercise 2-24 Journalize Transactions...Ch. 2 - Cornerstone Exercise 2-25 Journalize Transactions...Ch. 2 - Cornerstone Exercise 2-26 Preparing a Trial...Ch. 2 - Prob. 27BECh. 2 - Brief Exercise 2-28 Assumptions and Principles...Ch. 2 - Brief Exercise 2-2? Events and Transactions...Ch. 2 - Brief Exercise 2-30 Transaction Analysis Galle...Ch. 2 - Brief Exercise 2-31 Debit and Credit Procedures...Ch. 2 - Brief Exercise 2-32 Journalize Transactions Galle...Ch. 2 - Brief Exercise 2-33 Posting Journal Entries Listed...Ch. 2 - Brief Exercise 2-34 Preparing a Trial Balance The...Ch. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Exercise 2-37 Events and Transactions Several...Ch. 2 - Exercise 2-38 Events and Transactions The...Ch. 2 - Exercise 2-39 Transaction Analysis OBJECTIVE e The...Ch. 2 - Exercise 2-40 Transaction Analysis Amanda Webb...Ch. 2 - Exercise 2-41 Transaction Analysis and Business...Ch. 2 - Exercise 2-42 Inferring Transactions from Balance...Ch. 2 - Exercise 2-43 Transaction Analysis Goal Systems, a...Ch. 2 - Exercise 2-44 Transaction Analysis OBJECTIVE 9...Ch. 2 - Prob. 45ECh. 2 - Exercise 2-46 Normal Balances and Financial...Ch. 2 - OBJECTIVE 9 Exercise 2-47 Debit and Credit Effects...Ch. 2 - Prob. 48ECh. 2 - Exercise 2-49 Journalizing Transactions Kauai...Ch. 2 - Exercise 2-50 Journalizing Transactions Remington...Ch. 2 - Exercise 2-51 Transaction Analysis and Journal...Ch. 2 - Exercise 2-52 Accounting Cycle Rosenthal...Ch. 2 - Exercise 2-53 Preparing a Trial Balance...Ch. 2 - Exercise 2-54 Effect of Errors on a Trial Balance...Ch. 2 - Problem 2-55A Events and Transactions The...Ch. 2 - Problem 2-56A Analyzing Transactions Luis Madero,...Ch. 2 - Problem 2-57A Inferring Transactions from...Ch. 2 - Prob. 58APSACh. 2 - Problem 2-59A Journalizing Transactions Monroe...Ch. 2 - Problem 2-60A Journalizing and Posting...Ch. 2 - Problem 2-61A The Accounting Cycle Karleens...Ch. 2 - Problem 2-62B Comprehensive Problem Mulberry...Ch. 2 - Prob. 55BPSBCh. 2 - Prob. 56BPSBCh. 2 - Prob. 57BPSBCh. 2 - Problem 2-58B Debit and Credit Procedures A list...Ch. 2 - Problem 2-593 Journalizing Transactions Monilast...Ch. 2 - Problem 2-603 Journalizing and Posting...Ch. 2 - Problem 2-6B The Accounting Cycle Sweetwater...Ch. 2 - Problem 2-62B Comprehensive Problem Mulberry...Ch. 2 - Prob. 63.1CCh. 2 - Prob. 63.2CCh. 2 - Prob. 63.3CCh. 2 - Prob. 64.1CCh. 2 - Prob. 64.2CCh. 2 - Case 2-64 Analysis of the Effects of Current Asset...Ch. 2 - Prob. 64.4CCh. 2 - Prob. 65.1CCh. 2 - Prob. 65.2CCh. 2 - Prob. 66.1CCh. 2 - Prob. 66.2CCh. 2 - Prob. 66.3CCh. 2 - Case 2-67 Comparative Analysis: Under Armour,...Ch. 2 - Prob. 67.2CCh. 2 - Case 2-67 Comparative Analysis: Under Armour,...Ch. 2 - Case 2-68 Accounting for Partially Completed...Ch. 2 - Prob. 68.2CCh. 2 - Prob. 69.1CCh. 2 - Case 2-69 CONTINUING PROBLEM: FRONT ROW...Ch. 2 - Case 2-69 CONTINUING PROBLEM: FRONT ROW...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Exercise 9-02 Adama Company incurred the following costs.Indicate to which account Adama would debit each of the costs. 1. Sales tax on factory machinery purchased $5,000 Select the account to be debited BuildingPrepaid InsuranceLandEquipmentLand Improvements 2. Painting of and lettering on truck immediately upon purchase 700 Select the account to be debited LandBuildingEquipmentLand ImprovementsPrepaid Insurance 3. Installation and testing of factory machinery 2,000 Select the account to be debited BuildingLand ImprovementsPrepaid InsuranceLandEquipment 4. Real estate broker’s commission on land purchased 3,500 Select the account to be debited Land ImprovementsPrepaid InsuranceEquipmentBuildingLand 5. Insurance premium paid for first year’s insurance on new truck 880 Select the account to be debited Prepaid InsuranceEquipmentLand ImprovementsBuildingLand 6. Cost of landscaping on property purchased 7,200…arrow_forwardProblem 15 PlaidLad Furniture Co. sold ten table/chair sets to Hats Off Restaurant on January 1, 20X8 for $10,000 with terms 2/10, n/30. Hats Off also purchased dishware from Venice Depot on January 15, 20X8 for $5,000 with term 2/10, n/30. Hats Off paid Plaidlad on January 6, 20X8 and Venice Depot on January 26. 20X8. Required: 1.Record the transactions for Hats Off Restaurant using the gross method. 2.Record the transactions for Hats Off Restaurant using the net method.arrow_forwardExercise 5-4 On June 10, Tuzun Company purchased $8,000 of merchandise on account from Epps Company, FOB shipping point, terms 2/10, n/30. Tuzun Company pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Epps for credit on June 12. The fair value of these goods is $70. On June 19, Tuzun Company pays Epps Company in full, less the purchase discount. Both companies use a perpetual inventory system. s entered. Do not indent manually. If no entry is required, select "No Entry" for Prepare separate entries for each transaction on the books of Tuzun Company. (Credit account titles are automatically indented when amount the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Creditarrow_forward
- Capital Expenditures and Revenue Expenditures Quality Move Company made the following expenditures on one of its delivery trucks: Mar. 20. Replaced the transmission at a cost of $4,135. June 11. Paid $1,770 for installation of a hydraulic lift. Nov. 30. Paid $73 to change the oil and air filter. Prepare the journal entries for each expenditure. Mar. 20 fill in the blank 2 fill in the blank 4 June 11 fill in the blank 6 fill in the blank 8 Nov. 30 fill in the blank 10 fill in the blank 12arrow_forwardProblem 6-5A The following selected transactions were completed by Amsterdam Supply Co, which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300. 3. Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000. 4. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200. 5. Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400. 12. Received check for amount due from Equinox Co. for sale on March 2. 14. Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350. 16. Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of…arrow_forwardEXERCISE 14 Buchanan Company sells gift certificates redeemable only when merchandise is purchased. The certificates have an expiration date of two years after issuance. Upon redemption or expiration, Buchanan recognizes the unearned revenue as realized. Data for the year are as follows: Unearned revenue, January 1- P 750,000 Gift certificates sold – P 3,000,000 Gift certificates redeemed - P 2,750,000 Expired gift certificates – P 150,000 Cost of goods sold rate is 75%. REQUIRED: Prepare all journal entries to the foregoing.arrow_forward
- Question Content Area On December 31, Strike Company traded in one of its batting cages for another one that has a cost of $561,467. Strike receives a trade-in allowance of $29,317.82. The old equipment had an initial cost of $217,169 and has accumulated depreciation of $184,593.65. Depreciation has been recorded up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction? a.gain of $29,317.82 b.gain of $3,257.54 c.loss of $3,257.54 d.no loss or gain will be recordedarrow_forwardALLOCATING OPERATING EXPENSEMILES DRIVEN Mercado Lopez owns a furniture store that offers free delivery of merchandise delivered within the local area. Mileage records for the three sales departments are as follows: The cost of using the truck for the last year, including depreciation, was 16,000. Allocate the cost of the truck among the three departments on the basis of miles driven.arrow_forwardProblem 10-1 (IAA) Amiable Company provided the following data at year-end: Items counted in the bodega Items included in the count specifically segregated per sales contract Items in receiving department, returned by customer, in good condition Items ordered and in the receiving department, 4,000,000 100,000 50,000 invoice not received Items ordered, invoice received but goods not received. Freight is paid by seller. Items shipped today, invoice mailed, FOB shipping point Items shipped today, invoice mailed, FOB destination Items currently being used for window display Items on counter for sale 400,000 300,000 250,000 150,000 200,000 800,000 Items in receiving department, refused by us because of damage 180,000 Items included in count, damaged and unsalable Items in the shipping department 50,000 250,000 Required: Compute the correct amount of inventory.arrow_forward
- Exercise No. 2 Elizabeth Sales decided to create a branch in Naga City at the start of 2022. The branch operation had the following transactions during 2022: Merchandise costing P350,000 and cash of P200,000 were transferred from the home office. The branch purchased on account additional merchandise inventory of P400,000 from other distributors. 3. Sales of P650,000 were made by the branch during the period. The cost of these sales was P425,000. Cash of P600,000 was collected from sales during the year. 4. Advertising costs of P40,000, sales commissions of P65,000, and other operating expenses of P45,000 were incurred and paid by the branch. 5. The branch paid P370,000 on account to other distributors and remitted P120,000 to the home office. 1. 2. Required: 1. Record each of the transactions on the books of the branch. 2. Prepare an income statement for the branch for 2022. 3. Prepare a Statement of Financial Position as of December 31, 2022, for the branch. 1. Journal Entries: 1? ?…arrow_forwardExercise no. 2 During the first part of the current year, Luzon Inc. begins a branch operation in Iloilo City. Equipment costing P 50,000is immediately sent to this site. In addition, inventory costing P 40,000 is transferred but at a price of P 60,000. Cash of P 10,000 also is conveyed to the branch. The following events occur thereafter: The branch inventory from an outside party at a cost of P 30,000. A periodic inventory system is in use. The home office pays P 10,000 on a building for the next eight months. The branch is notified of this payment. Sales of P 90,000 are made. Cash of P 40,000 is collected immediately. The rest of the sales are made on account. ● a. ● ● ● ● The branch pays P 8,000 for advertising and another P 5,000 for salaries. The branch transfers P 10,000 in cash to the home office. The money is received and recorded. A P 3,000 receivable is collected by the home office for the branch. The branch is notified of this collection. The building rented by the branch…arrow_forwardBrief Exercise 9-08 Blossom Company sells office equipment on July 31, 2022, for $23,050 cash. The office equipment originally cost $85,450 and as of January 1, 2022, had accumulated depreciation of $39,450. Depreciation for the first 7 months of 2022 is $4,410. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (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 (a) (b) Click if you would like to Show Worarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY