Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Chapter 3, Problem 3.16MCE
Journal Entries for Vail Resorts
Refer to the income statement for Vail Resorts shown in the chapter opener. Using the account titles reported there, prepare the
- Fuel for the motors in the ski lifts is purchased for $1,000.
- A skier purchases a lift ticket for $80.
- Salaries and wages for hotel staff of $4,000 are paid.
- A guest pays $150 for one night’s lodging.
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Before you begin this assignment, review the Tying It All Together feature in the chapter.
Part of Fry’s Electronics, Inc.'s experience involves providing technical support to its customers. This includes in-home installations of electronics and also computer support at their retail store locations.
Requirements
Suppose Fry’s Electronics, Inc. provides $10,500 of computer support at the Dallas-Fort Worth store during the month of November. How would Fry's Electronics record this transaction? Assume all customers paid in cash. What financial statement(s) would this transaction affect?
Assume Fry’s Electronics, Inc.’s Modesto, California, location received $24,000 for an annual contract to provide computer support to the local city government. How would Fry’s Electronics record this transaction? What financial statement(s) would this transaction affect?
What is the difference in how revenue is recorded in requirements 1 and 2? Clearly state when revenue is recorded in each requirement.
You are have just been hired to mange the Hotel Gift/Sundries Shop. The Hotel
Manager provides you with the following information:
Hotel Gift/Sundries Shop
Summary Balance Sheet
Assets
Current Assets
Hotel Gift/Sundries Shop
Summary Income Statement
Revenue
2018
2019
2020
2018
2019
2020
$3,000,000 $2,738,000 51.800 250
$2,325,000 $2,050,000 $1,400,000
$688.000
$706,000
($18,000)
Cost of Goods Sold
$117,491
$4,125
$25,000
$146,616
$37,793
$92,273
$2,534
$5,000
$99,807
$40,808
$42,356
$1,252
$30,000
$73,608
$96,286
Gross Profit
Selling, General & Admin
$675.000
$702,500
(527,500)
$400,250
$390,000
Cash
Accounts Receivable
Inventory
Net Income
$10,250
Current Assets
Fixed Assets
Total Assets
Liabilities
$184,408
$140,615
$169,894
$180,231
$29,873
$210,104
(569,489)
$140,615
$201,498
$27,635
$229,133
(559,239)
$169,894
Current Liabilities
Long Term Liabilities
Total Liabilities
Total Equity
Total Liabilities and STE
$199,247
$36,650
$235,897
(551,489)
$184,408
Based on the information:
1.…
Cornwall Mobile Detailing (CMD) is a service that washes and details a customer's vehicle at their home or office. It operates on a
membership basis. Members pay $200 dues per month, which entitle them to a complete wash and detail service monthly. Members
may also order additional car washes during the month at a fee of $75. Additional washes are common in both summer and winter
months. The number of members also varies with the season. The number of members and the average number of additional washes
by members for the months of interest follow:
January
February
March
April
May
June
Members
360
420
980
1,120
1,150
1,300
March
Apri
May
June
Additional
Washes (Average
per Member).
Cornwall allows members to pay for dues on credit. Cornwall's experience is that 40 percent of its members pay cash for the dues, 50
percent of the members pay the dues for a month in the next month, 5 percent in the second month after. The remainder is
uncollectible. Additional washes are payable in cash.…
Chapter 3 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 3 - Read each definition below and write the number of...Ch. 3 - Types of Events For each of the following events,...Ch. 3 - Prob. 3.2ECh. 3 - The Effect of Transactions on the Accounting...Ch. 3 - Types of Transactions There are three elements to...Ch. 3 - Balance Sheet Accounts and Their Use Choose from...Ch. 3 - Normal Account Balances Each account has a normal...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Trial Balance The following list of accounts was...
Ch. 3 - Journal Entries Recorded Directly in T Accounts...Ch. 3 - Prob. 3.11MCECh. 3 - Determining an Ending Account Balance Jessies...Ch. 3 - Reconstructing a Beginning Account Balance During...Ch. 3 - Journal Entries Prepare the journal entry to...Ch. 3 - Journal Entries Following is a list of...Ch. 3 - Journal Entries for Vail Resorts Refer to the...Ch. 3 - Prob. 3.17MCECh. 3 - Prob. 3.1PCh. 3 - Transaction Analysis and Financial Statements Just...Ch. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Transactions Reconstructed from Financial...Ch. 3 - Prob. 3.5MCPCh. 3 - Prob. 3.6MCPCh. 3 - Transaction Analysis and Journal Entries Recorded...Ch. 3 - Prob. 3.8MCPCh. 3 - Journal Entries Atkins Advertising Agency began...Ch. 3 - Prob. 3.10MCPCh. 3 - The Detection of Errors in a Trial Balance and...Ch. 3 - Journal Entries, Trial Balance, and Financial...Ch. 3 - Journal Entries, Trial Balance, and Financial...Ch. 3 - Prob. 3.1APCh. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Transactions Reconstructed from Financial...Ch. 3 - Prob. 3.5AMCPCh. 3 - Accounts Used to Record Transactions A list of...Ch. 3 - Prob. 3.7AMCPCh. 3 - Trial Balance and Financial Statements Refer to...Ch. 3 - Journal Entries Castle Consulting Agency began...Ch. 3 - Prob. 3.10AMCPCh. 3 - Entries Prepared from a Trial Balance and Proof of...Ch. 3 - Journal Entries Overnight Delivery Inc. is...Ch. 3 - Journal Entries and a Balance Sheet Krittersbegone...Ch. 3 - Prob. 3.1DCCh. 3 - Prob. 3.2DCCh. 3 - Prob. 3.3DCCh. 3 - Prob. 3.4DCCh. 3 - Prob. 3.5DCCh. 3 - Prob. 3.6DCCh. 3 - Prob. 3.7DC
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