Natalie hires an helper at an hourly pay of $ 8 to assist with cooky devising and some administrative responsibilities. Natalie teaches the category that was booked on November 25. The balance out- standing is received. Cookie Creations receives a cheque for the sum due from the vicinity school for the category given on November 30. Cookie Creations receives $ 750 in progress from the local school board for five categories that the company will give during December and January. Pays the cell phone bill outstanding at November 30. Issues a cheque to Natalie’s brother for the sum owed for the design of the web site. Receives a sedimentation of $ 60 on a cooky category scheduled for early January. Additional gross earned during the month for cookie-making categories sums to $ 4. 000. ( Natalie has non had clip to account for each category individually. ) $ 3. 000 in hard currency has been collected and $ 1. 000 is still outstanding. ( This is in ad- dition to the December 5 and December 9 transactions. )
Extra baking supplies purchased during the month for sugar. flour. and chocolate french friess sum to $ 1. 250 hard currency. Issues a cheque to Natalie’s helper for $ 800. Her adjunct worked approxi- mately 100 hours from the clip in which she was hired until December 23. Pay a dividend of $ 500 to the common stockholder ( Natalie ) . As of December 31. Cookie Creations’ year-end. the following adjusting entry informations are provided. 1. A count reveals that $ 45 of booklets and postings were used. 2. Depreciation is recorded on the baking equipment purchased in November. The bak-ing equipment has a utile life of 5 old ages. Assume that 2 months’ deserving of depreci-ation is required. 3. Amortization ( which is similar to depreciation ) is recorded on the web site. ( Credit the Website history straight for the sum of the amortization. ) The web site is amortized over a utile life of 2 old ages and was available for usage on December 1. 4. Interest on the note collectible is accrued. ( Assume that 1. 5 months of involvement accrued during November and December. ) Round to nearest dollar. 5. One month’s worth of insurance has expired.
6. NatalieisunexpectedlytelephonedonDecember28togiveacookieclassattheneigh-borhood community centre on December 31. In early January Cookie Creations sends an bill for $ 450 to the community centre. 7. A count reveals that $ 1. 025 of baking supplies were used. 8. A cell phone bill is received for $ 75. The bill is for services provided during the month of December and is due on January 15. 9. Because the cookie-making category occurred out of the blue on December 28 and is for such a big group of kids. Natalie’s helper helps out. Her helper worked 7 hours at a rate of $ 8 per hr. 10. An analysis of the unearned gross history reveals that two of the five categories paid for by the local school board on December 9 still have non been taught by the terminal of Decem- ber. The $ 60 sedimentation received on December 19 for another category besides remains unearned. Instruction manuals
Using the information that you have gathered and the general leger histories that you have prepared through Chapter 3. plus the new information above. make the followers. ( a ) Journalize the above minutess. ( B ) Post the December minutess. ( Use the general leger histories prepared in Chapter 3. ) | 220 chapter 4 ( degree Celsius ) Totals ( vitamin E ) Totals ( degree Fahrenheit ) Net income ( H ) TotalsAccrual Accounting ConceptsPrepare a test balance at December 31. 2011. ( vitamin D ) Prepare and station seting journal entries for the month of December. Prepare an adjusted test balance as of December 31. 2011. Fix an income statement and a maintained net incomes statement for the 2-month pe- riod stoping December 31. 2011. and a classified balance sheet as of December 31. 2011. $ 8. 160 ( degree Celsius ) $ 8. 804 ( vitamin E ) $ 3. 211 ( degree Fahrenheit ) ( g ) Prepare and station shutting entries as of December 31. 2011. $ 6. 065 ( H ) Fix a post-closing test balance. | | broadening your perspective|
Fiscal Reporting and AnalysisFINANCIAL REPORTING PROBLEM: Tootsie Roll Industries. Inc. BYP4-1 The fiscal statements of Tootsie Roll are presented in Appendix A at the terminal of this book. Instruction manuals * ( a ) Using the amalgamate income statement and balance sheet. place points that may ensue in seting entries for recesss. * ( B ) Using the amalgamate income statement. place two points that may ensue in seting en- attempts for accumulations. * ( degree Celsius ) What was the sum of depreciation disbursal for 2009 and 2008? ( You will necessitate to exam- ine the notes to the fiscal statements or the statement of hard currency flows. ) Where was accumu- lated depreciation reported? * ( vitamin D ) What was the hard currency paid for income revenue enhancements during 2009. reported at the underside of the consol- idated statement of hard currency flows? What was income revenue enhancement disbursal ( proviso for income revenue enhancements ) for 2009? COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey BYP4-2 The fiscal statements of The Hershey Company are presented in Appendix B. follow-ing the fiscal statements for Tootsie Roll in Appendix A. Instructions * ( a ) Identify two histories on Hershey’s balance sheet that provide grounds that Hershey uses ac- crual accounting. In each instance. place the income statement history that would be affected by the accommodation procedure.
* ( B ) Identify two histories on Tootsie Roll’s balance sheet that provide grounds that Tootsie Roll uses accrual accounting ( different from the two you listed for Hershey ) . In each instance. place the income statement history that would be affected by the accommodation procedure. RESEARCH CASEBYP4-3 The February 13. 2010. issue of the Wall Street Journal includes an article by Scott Thurm entitled “For Some Firms. a Case of ‘Quadrophobia’ . ”InstructionsRead the article and reply the followers. * ( a ) What method did the study’s writers use to find that companies were “managing” their net incomes per portion computation? * ( B ) For the mean company in the survey. how much would the company have to hike net incomes in order to increase net incomes per portion by 1/10 of a cent? * ( degree Celsius ) What examples did the writers cite of accounting accommodations that companies can do to hike net income sufficiency that they can round up to the following highest cent? Why aren’t these methods of accommodation considered illegal? | * ( vitamin D ) What is an net incomes restatement?
What relationship did the writers identify about companies that restate net incomes? * ( vitamin E ) What incentive do companies hold to round up their net incomes per portion to the following highest cent? INTERPRETING FINANCIAL STATEMENTSBYP4-4 Laser Recording Systems. founded in 1981. green goodss discs for usage in the place market. The followers is an extract from Laser Recording Systems’ fiscal statements ( all dollars in 1000s ) . Accrued liabilities increased to $ 1. 642 at January 31. from $ 138 at the terminal of the pre- vious financial twelvemonth. Compensation and related accumulations increased $ 195 due chiefly to additions in accumulations for rupture. holiday. committees. and resettlement disbursals. Accrued professional services increased by $ 137 chiefly as a consequence of legal disbursals related to several outstanding contractual differences. Other disbursals increased $ 35. of which $ 18 was for involvement collectible. Instruction manuals * ( a ) Can you state from the treatment whether Laser Recording Systems has prepaid its legal ex- penses and is now doing an accommodation to the plus history Prepaid Legal Expenses. or whether the company is managing the legal disbursal via an accumulated disbursal accommodation?
* ( B ) Identify each of the accommodations Laser Recording Systems is discoursing as one of the four types of possible accommodations discussed in the chapter. How is net income finally affected by each of the accommodations? * ( degree Celsius ) What journal entry did Laser Recording do to enter the accrued involvement? FINANCIAL ANALYSIS ON THE WEBBYP4-5 Purpose: To larn about the maps of the Securities and Exchange Commission ( SEC ) . Address: World Wide Web. sec. gov/about/whatwedo. shtml. or travel to www. wiley. com/college/kimmelInstructionsUse the information in this site to reply the undermentioned inquiries. ( a ) What event spurred the creative activity of the SEC? Why was the SEC created? ( B ) What are the four divisions of the SEC? Briefly describe the intent of each.