(a) The following are users of financial statements.
______Customers ______Securities and Exchange Commission
______Internal Revenue Service ______Store manager
______Labor unions ______Suppliers
______Marketing manager ______Vice-president of finance
Identify the users as being either external users or internal users.
(b) The following questions could be asked by an internal user or an external user.
______Can we afford to give our employees a pay raise?
______Did the company earn a satisfactory income?
______Do we need to borrow in the near future?
______How does the company’s profitability compare to other companies?
______What does it cost us to manufacture each unit produced?
______Which product should we emphasize?
______Will the company be able to pay its short-term debts?
Identify each of the questions as being more likely asked by an internal user or an external user.
(a) What is the most important output of the accounting cycle?
(b) Do all companies have an accounting cycle? Explain.
(a) What is the term used to describe the owner’s equity section of a corporation?
(b) Identify the two owners’ equity accounts in a corporation and indicate the purpose of each.
The document that captures the total amount of time that individual workers spend on each production job is called a
(a) Explain the purpose of the accounts Depreciation Expense and Accumulated Depreciation.
(b) Is it customary for the balances of the two accounts to be equal?
(c) In what financial statements, if any, will each account appear?
The adjusted trial balance for Turner Company is presented in E4-8.
(a) Prepare an income statement and an owner equity statement for the year. Turner did not make any capital investments during the year.
(b) Prepare a classified balance sheet at July 31.
Willow Turenne Company had the following adjusted trial balance.
(a) Prepare closing entries at June 30, 2012.
(b) Prepare a post-closing trial balance.
Selected worksheet data for Woodny Company are presented below.
(a) Fill in the missing amounts.
(b) Prepare the adjusting entries that weremade.