Acc 291 Acc 291 Acc 291 Acc 291 Acc 291 Acc 291

ACC 291
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ACC 291 WileyPLUS Assignment: Week 1 Assignment

Resource: WileyPLUS
Click Assignment: Week 1 Assignment within WileyPLUS to complete the following exercises:
Exercise 8-4
Exercise 8-11
BYP 8-1
BYP 8-2
Exercise 8-4
Answer
The ledger of Wainwright Company at the end of the current year shows Accounts Receivable
$87,000; Credit Sales $820,000; and Sales Returns and Allowances $52,600. (Credit account
titles are automatically indented when amount is entered. Do not indent manually.)
(a) If Wainwright uses the direct write-off method to account for uncollectible accounts, journalize the
adjusting entry at December 31, assuming Wainwright determines that Hillers $1,100 balance is
uncollectible.
(b) If Allowance for Doubtful Accounts has a credit balance of $850 in the trial balance, journalize the
adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable.

Exercise 8-11
Suppose the following information was taken from the 2014 financial statements of FedEx
Corporation, a major global transportation/delivery company.
(in millions) 2014 2013

Accounts receivable (gross) $ 3,490 $ 4,420
Accounts receivable (net) 3,335 4,296
Allowance for doubtful accounts 155 124
Sales revenue 35,898 38,861
Total current assets 7,011 7,189
Answer each of the following questions.

Broadening Your Perspective 8-1
Your answer is correct.
The financial statements of Tootsie Roll are presented below.
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CONSOLIDATED STATEMENTS OF
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
Assets December 31,
2011 2010
CURRENT ASSETS:
Cash and cash equivalents $78,612 $115,976
Investments 10,895 7,996
Accounts receivable trade, less allowances of $1,731 and $1,531 41,895 37,394
Other receivables 3,391 9,961
Inventories:
Finished goods and work-in-process 42,676 35,416
Raw materials and supplies 29,084 21,236
Prepaid expenses 5,070 6,499
Deferred income taxes 578 689
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land 21,939 21,696
Buildings 107,567 102,934
Machinery and equipment 322,993 307,178
Construction in progress 2,598 9,243
455,097 440,974
LessAccumulated depreciation 242,935 225,482
Net property, plant and equipment 212,162 215,492
OTHER ASSETS:
Goodwill 73,237 73,237
Trademarks 175,024 175,024
Split dollar officer life insurance 74,209 74,441
Equity method investment 3,935 4,254
Deferred income taxes 7,715 9,203
Total other assets 433,493 407,300
Total assets $857,856 $857,959
Liabilities and Shareholders Equity December 31,
2011 2010
CURRENT LIABILITIES:
Accounts payable $10,683 $9,791
Dividends payable 4,603 4,529
Accrued liabilities 43,069 44,185
Total current liabilities 58,355 58,505
NONCURRENT LIABILITES:
Postretirement health care and life insurance benefits 26,108 20,689
Industrial development bonds 7,500 7,500
Liability for uncertain tax positions 8,345 9,835
Deferred compensation and other liabilities 48,092 46,157
Total noncurrent liabilities 133,566 132,046
SHAREHOLDERS EQUITY:
Common stock, $.69-4/9 par value120,000 shares authorized36,479 and
25,333 25,040
36,057 respectively, issued
Class B common stock, $.69-4/9 par value40,000 shares authorized21,025
14,601 14,212
and 20,466 respectively, issued
Capital in excess of par value 533,677 505,495
Retained earnings, per accompanying statement 114,269 135,866
Accumulated other comprehensive loss (19,953) (11,213)
Treasury stock (at cost)71 shares and 69 shares, respectively (1,992) (1,992)
Total shareholders equity 665,935 667,408
Total liabilities and shareholders equity $857,856 $857,959

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
Cash Flows (in thousands)
For the year ended December
31,
2011 2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $43,938 $53,063 $53,157
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation 19,229 18,279 17,862
Impairment charges 14,000
Impairment of equity method investment 4,400
Loss from equity method investment 194 342 233
Amortization of marketable security premiums 1,267 522 320
Changes in operating assets and liabilities:
Accounts receivable (5,448) 717 (5,899)
Other receivables 3,963 (2,373) (2,088)
Inventories (15,631) (1,447) 455
Prepaid expenses and other assets 5,106 4,936 5,203
Accounts payable and accrued liabilities 84 2,180 (2,755)
Income taxes payable and deferred (5,772) 2,322 (12,543)
Postretirement health care and life insurance benefits 2,022 1,429 1,384
Deferred compensation and other liabilities 2,146 2,525 2,960
Others (708) 310 305
Net cash provided by operating activities 50,390 82,805 76,994
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (16,351) (12,813) (20,831)
Net purchase of trading securities (3,234) (2,902) (1,713)
Purchase of available for sale securities (39,252) (9,301) (11,331)
Sale and maturity of available for sale securities 7,680 8,208 17,511
Net cash used in investing activities (51,157) (16,808) (16,364)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares repurchased and retired (18,190) (22,881) (20,723)
Dividends paid in cash (18,407) (18,130) (17,825)
Net cash used in financing activities (36,597) (41,011) (38,548)
Increase (decrease) in cash and cash equivalents (37,364) 24,986 22,082
Cash and cash equivalents at beginning of year 115,976 90,990 68,908
Cash and cash equivalents at end of year $78,612 $115,976 $90,990
Supplemental cash flow information
Income taxes paid $16,906 $20,586 $22,364
Interest paid $38 $49 $182
Stock dividend issued $47,053 $46,683 $32,538
(The accompanying notes are an integral part of these statements.)

Five Year Summary of Earning and Financial Hightlights
TOOTISE ROLL. INDUSTRY, INC. AND SUBSIDIARIES
(Thousands of dollars except per share, percentage and ratio figures)
2011 2010 2009 2008 2007
Sales and Earnings Data
Net product sales $528,369 $517,149 $495,592 $492,051 $492,742
Product gross margin 163,144 167,815 175,817 158,055 165,456
Interest expenses 121 142 243 378 535
Provision for income taxes 16,974 20,005 9,892 16,347 25,401
Net earnings 43,938 53,063 53,157 38,880 52,175
% of net product sales 8.3% 10.3% 10.7% 7.9% 10.6%
% of shareholders' equity 6.6% 8.0% 8.1% 6.1% 8.1%
Per Common Share Data

Net earnings $0.76 $0.90 $0.89 $0.65 $0.85
Cash dvidends declared 0.32 0.32 0.32 0.32 0.32
Stock dividends 3% 3% 3% 3% 3%
Additional Financial Data

Working capital $153,846 $176,662 $154,409 $129,694 $142,163
Net cash provided by opreating
50,390 82,805 76,994 57,333 90,148
activities
Net cash provided by (used by)
(51,157) (16,808) (16,364) (7,565) (43,429)
investing activities
Net cash used in financing
(36,597) (41,011) (38,548) (38,666) (44,842)
activities
Property, plant & equipment
16,351 12,813 20,831 34,355 14,767
additions
Net property, plant & equipment 212,162 215,492 220,721 217,628 201,401
Total assets 857,856 857,959 836,844 813,252 813,134
Long-term debt 7,500 7,500 7,500 7,500 7,500
Shareholders' equity 665,935 667,408 654,244 636,847 640,204
Average shares outstanding 57,892 58,685 59,425 60,152 61,580

Notes to Consolidated Financial Statements ($ in thousands)
Revenue recognition:
Products are sold to customers based on accepted purchase orders which include quantity, sales
price and other relevant terms of sale. Revenue, net of applicable provisions for discounts, returns,
allowances and certain advertising and promotional costs, is recognized when products are
delivered to customers and collectability is reasonably assured. Shipping and handling costs of
$45,850, $43,034, and $38,628 in 2011, 2010 and 2009, respectively, are included in selling,
marketing and administrative expenses. Accounts receivable are unsecured. Revenues from a major
customer aggregated approximately 23.3%, 21.4% and 22.9% of net product sales during the
years ended December 31, 2011, 2010 and 2009, respectively.
SEGMENT AND GEOGRAPHIC INFORMATION:
The Company operates as a single reportable segments encompassing the manufacturing and sale of
confectionery products. Its principal manufacturing operations are located in the United States and Canada,
and its principal market is in the United States. The Company also manufactures and sells confectionery
products in Mexico, and exports products to Canada and countries worldwide.
The following geographic data includes net product sales summarized on the basis of the customer location
and long-lived assets based on their location:
2011 2010 2009

Net product sales:
United states $487,185 $471,714 $455,517
Foreign 41,184 45,435 40,075
$528,369 $517,149 $495,592
Long-lived assets:
United states $170,173 $172,087 $176,044
Foreign 41,989 43,405 44,677
$212,162 $215,492 $220,721

The financial statements of The Hershey Company and Tootsie Roll are presented below.
THE HERSHEY COMPANY

CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2011 2010 2009
In thousands of dollars except per share amounts
Net Sales $6,080,788 $5,671,009 $5,298,668
Costs and Expenses:
Cost of sales 3,548,896 3,255,801 3,245,531
Selling, marketing and administrative 1,477,750 1,426,477 1,208,672
Business realignment and impairment (credits) charges, net (886) 83,433 82,875
Total costs and expenses 5,025,760 4,765,711 4,537,078
Income before Interest and Income Taxes 1,055,028 905,298 761,590
Interest expense, net 92,183 96,434 90,459
Income before Income Taxes 962,845 808,864 671,131
Provision for income taxes 333,883 299,065 235,137
Net Income $628,962 $509,799 $435,994
Net Income Per ShareBasicClass B Common Stock $2.58 $2.08 $1.77
Net Income Per ShareDilutedClass B Common Stock $2.56 $2.07 $1.77
Net Income Per ShareBasicCommon Stock $2.85 $2.29 $1.97
Net Income Per ShareDilutedCommon Stock $2.74 $2.21 $1.90
Cash Dividends Paid Per Share:
Common Stock $1.3800 $1.2800 $1.1900
Class B Common Stock 1.2500 1.1600 1.0712
The notes to consolidated financial statements are an integral part of these statements and are included in
the Hershey's 2011 Annual Report, available at www.thehersheycompany.com.

THE HERSHEY COMPANY
CONSOLIDATED BALANCE SHEETS
December 31, 2011 2010
In thousands of dollars
ASSETS
Current Assets:
Accounts receivabletrade 399,499 390,061
Inventories 648,953 533,622
Prepaid expenses and other 167,559 141,132
Total current assets 2,046,558 2,005,217
Property, Plant and Equipment, Net 1,559,717 1,437,702
Goodwill 516,745 524,134
Other Intangibles 111,913 123,080
Deferred Income Taxes 38,544 21,387
Other Assets 138,722 161,212
Total assets $4,412,199 $4,272,732
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accrued income taxes 1,899 9,402
Short-term debt 42,080 24,088
Current portion of long-term debt 97,593 261,392
Total current liabilities 1,173,775 1,298,845
Long-term Debt 1,748,500 1,541,825
Other Long-term Liabilities 617,276 494,461
Total liabilities 3,539,551 3,335,131
Commitments and Contingencies
Stockholders Equity:
The Hershey Company Stockholders Equity
Preferred Stock, shares issued: none in 2011 and 2010
Common Stock, shares issued: 299,269,702 in 2011 and 299,195,325 in
299,269 299,195
2010
Class B Common Stock, shares issued: 60,632,042 in 2011 and
60,632 60,706
60,706,419 in 2010
Additional paid-in capital 490,817 434,865
Retained earnings 4,699,597 4,374,718
TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and
(4,258,962) (4,052,101)
132,871,512 in 2010
The Hershey Company stockholders equity 849,022 902,316
Noncontrolling interests in subsidiaries 23,626 35,285
Total stockholders equity 872,648 937,601
Total liabilities and stockholdersequity $4,412,199 $4,272,732

THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash Flows Provided from (Used by) Operating Activities
Net income $628,962 $509,799 $435,994
Adjustments to reconcile net income to net cash provided from
operations:
Depreciation and amortization 215,763 197,116 182,411
Stock-based compensation expense, net of tax of $15,127,
28,341 32,055 34,927
$17,413 and $19,223, respectively
Excess tax benefits from stock-based compensation (13,997) (1,385) (4,455)
Deferred income taxes 33,611 (18,654) (40,578)
Gain on sale of trademark licensing rights, net of tax of $5,962 (11,072)
Business realignment and impairment charges, net of tax of
30,838 77,935 60,823
$18,333, $20,635 and $38,308, respectively
Contributions to pension plans (8,861) (6,073) (54,457)
Changes in assets and liabilities, net of effects from business
acquisitions and divestitures:
Accounts receivabletrade (9,438) 20,329 46,584
Inventories (115,331) (13,910) 74,000
Accounts payable 7,860 90,434 37,228
Other assets and liabilities (205,809) 13,777 293,272
Net Cash Provided from Operating Activities 580,867 901,423 1,065,749
Cash Flows Provided from (Used by) Investing Activities
Capital additions (323,961) (179,538) (126,324)
Capitalized software additions (23,606) (21,949) (19,146)
Proceeds from sales of property, plant and equipment 312 2,201 10,364
Proceeds from sales of trademark licensing rights 20,000
Business acquisitions (5,750) (15,220)
Net Cash (Used by) Investing Activities (333,005) (199,286) (150,326)
Cash Flows Provided from (Used by) Financing Activities
Net change in short-term borrowings 10,834 1,156 (458,047)
Long-term borrowings 249,126 348,208
Repayment of long-term debt (256,189) (71,548) (8,252)
Proceeds from lease financing agreement 47,601
Cash dividends paid (304,083) (283,434) (263,403)
Exercise of stock options 184,411 92,033 28,318
Excess tax benefits from stock-based compensation 13,997 1,385 4,455
Contributions from noncontrolling interests in subsidiaries 10,199 7,322
Repurchase of Common Stock (384,515) (169,099) (9,314)
Net Cash (Used by) Financing Activities (438,818) (71,100) (698,921)
(Decrease) Increase in Cash and Cash Equivalents (190,956) 631,037 216,502
Cash and Cash Equivalents as of January 1 884,642 253,605 37,103
Cash and Cash Equivalents as of December 31 $693,686 $884,642 $253,605
Interest Paid $97,892 $97,932 $91,623
Income Taxes Paid 292,315 350,948 252,230

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Financial Position
Assets December 31,
2011 2010
CURRENT ASSETS:
Inventories:
Land 21,939 21,696
Buildings 107,567 102,934
455,097 440,974
OTHER ASSETS:
Goodwill 73,237 73,237
Trademarks 175,024 175,024
Total assets $857,856 $857,959
2011 2010
25,333 25,040
14,601 14,212

31,
2011 2010 2009
Net earnings $43,938 $53,063 $53,157
Depreciation 19,229 18,279 17,862
Inventories (15,631) (1,447) 455
Others (708) 310 305

Based on the information contained in these financial statements, compute the following 2011
values for each company. (Round answers to 1 decimal place, e.g. 15.2.)
(1 Accounts receivable turnover. (For Tootsie Roll, use Net product sales. Assume all sales were credit
) sales.)
(2
Average collection period for accounts receivable.
)

Tootsie Roll Hershey Company
Accounts receivable turnover times times
Average collection period days days
Resource: WileyPLUS
Complete the following Week 2 Assignment in WileyPLUS:
Problem 8-3A
Brief Exercise 9-11
DO IT! 9-5
Exercise 9-7
Exercise 9-8
BYP 9-1
BYP 9.2
Problem 9-2A
Brief Exercise 9-11
Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended
May 31, 2014 (in millions): other plant assets $937.7; land $241.9; patents and trademarks (at
cost) $537.8; machinery and equipment $2,185.8; buildings $958; goodwill (at cost) $175.6;
accumulated amortization $53.2; and accumulated depreciation $2,195.
Prepare a partial balance sheet for Nike for these items. (List Property, Plant and Equipment in
order of Land, Buildings and Equipment.)
NIKE, INC.
Partial Balance Sheet
As of May 31, 2014
(in millions)
$
$
Do It! Review 9-5
Match the statement with the term most directly associated with it.
1 Rights, privileges, and competitive advantages that

. result from the ownership of long-lived assets that
do not possess physical substance.
2 The allocation of the cost of an intangible asset to

. expense in a rational and systematic manner.
3 A right to sell certain products or services, or use

. certain trademarks or trade names within a
designated geographic area.
4 Costs incurred by a company that often lead to

. patents or new products. These costs must be
expensed as incurred.
5 The excess of the cost of a company over the fair
. value of the net assets required.
Exercise 9-7
Wang Co. has delivery equipment that cost $56,840 and has been depreciated $23,520.
Record entries for the disposal under the following assumptions. (Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
(a) It was scrapped as having no value.

(b) It was sold for $37,330.
(c) It was sold for $18,850.
Exercise 9-8
Here are selected 2014 transactions of Cleland Corporation.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost
$61,550 and had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2012. The computer cost $36,600 and had a
useful life of 4 years with no salvage value. The computer was sold for $4,460 cash.
Dec. 31 Sold a delivery truck for $9,170 cash. The truck cost $23,710 when it was purchased on January
1, 2011, and was depreciated based on a 5-year useful life with a $3,550 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed
of, where applicable. Cleland Corporation uses straight-line depreciation. (Record entries in the order
displayed in the problem statement. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)

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Assets December 31,
2011 2010
CURRENT ASSETS:
Inventories:
Land 21,939 21,696
Buildings 107,567 102,934
455,097 440,974
OTHER ASSETS:
Goodwill 73,237 73,237
Trademarks 175,024 175,024
Total assets $857,856 $857,959
2011 2010
Common stock, $.69-4/9 par value120,000 shares authorized36,479
25,333 25,040
Class B common stock, $.69-4/9 par value40,000 shares authorized
14,601 14,212
21,025 and 20,466 respectively, issued
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Notes to Consolidated Financial Statements ($ in thousands)
PROPERTY, PLANT AND EQUIPMENT:
Depreciation is computed for financial reporting purposes by use of the straight-line method based on
the useful lives of 20 to 35 years for building and 5 to 25 years for machinery and equipment.
Depreciation expenses was $19,229, $18,279 and $17,862 in 2011, 2010 and 2009, respectively.
Goodwill and intangible assets:
In accordance with authoritative guidance, goodwill and intangible assets with indefinite lives are not
amortized, but rather tested for impairment at least annually unless certain interim triggering events or
circumstances require more frequent testing. All trademarks have been assessed by management to
have indefinite lives because they are expected to generate cash flows indefinitely. The Company has
completed its annual impairment testing of its goodwill and trademarks at December 31 of each of the
years presented. As of December 31, 2009, management ascertained that certain trademarks were
impaired, and recorded a pre-tax charge of $14,000. No impairments of intangibles were recorded in
2011 and 2010. This determination is made by comparing the carrying value of the asset with its
estimated fair value, which is calculated using estimates including discounted projected future cash
flows. If the carrying value of goodwill exceeds the fair value, a second step would measure the
carrying value and implied fair value of goodwill. Management believes that all assumptions used for
the impairment tests are consistent with those utilized by market participants performing similar
valuations.
Answer the following questions.
THE HERSHEY COMPANY

Net Sales $6,080,788 $5,671,009 $5,298,668
Costs and Expenses:
Cost of sales 3,548,896 3,255,801 3,245,531
Net Income $628,962 $509,799 $435,994
Common Stock $1.3800 $1.2800 $1.1900
THE HERSHEY COMPANY

December 31, 2011 2010
ASSETS
Current Assets:
Goodwill 516,745 524,134
Other Assets 138,722 161,212
Total assets $4,412,199 $4,272,732
Long-term Debt 1,748,500 1,541,825
299,269 299,195
2010
60,632 60,706
60,706,419 in 2010
(4,258,962) (4,052,101)
132,871,512 in 2010
THE HERSHEY COMPANY

Net income $628,962 $509,799 $435,994
operations:
Stock-based compensation expense, net of tax of $15,127, 28,341 32,055 34,927
30,838 77,935 60,823
Inventories (115,331) (13,910) 74,000
Interest Paid $97,892 $97,932 $91,623
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Financial Position
Assets December 31,
2011 2010
CURRENT ASSETS:
Inventories:
Land 21,939 21,696
Buildings 107,567 102,934
455,097 440,974
OTHER ASSETS:
Goodwill 73,237 73,237
Trademarks 175,024 175,024
Total assets $857,856 $857,959
2011 2010
25,333 25,040
14,601 14,212

31,
2011 2010 2009
Net earnings $43,938 $53,063 $53,157
Depreciation 19,229 18,279 17,862
Inventories (15,631) (1,447) 455
Others (708) 310 305
Based on the information in these financial statements and the accompanying notes and schedules, compute
the following values for each company in 2011. (Round all percentages to 1 decimal places, e.g.
15.1% and asset turnover ratio to 2 decimal places, e.g. 15.21.)
(1) Return on assets.
Return on assets
Tootsie Roll %
Hershey Company %
(2) Profit margin (use Total Revenue).
Profit margin
Tootsie Roll %
Hershey Company %
(3) Asset turnover.
Asset turnover
Tootsie Roll times
Hershey Company times
Problem 9-2A
At December 31, 2014, Navaro Corporation reported the following plant assets.
Land $ 3,036,000
Buildings $35,400,000
Less: Accumulated depreciationbuildings 12,068,100 23,331,900
Equipment 40,480,000
Less: Accumulated depreciationequipment 5,060,000 35,420,000
Total plant assets $61,787,900
During 2015, the following selected cash transactions occurred.
Apr. 1 Purchased land for $2,226,400.

May 1 Sold equipment that cost $607,200 when purchased on January 1, 2008. The equipment
was sold for $172,040.
June 1 Sold land for $1,619,200. The land cost $1,012,000.
July 1 Purchased equipment for $1,113,200.
Dec. 31 Retired equipment that cost $708,400 when purchased on December 31, 2005. No salvage
value was received.
Journalize the transactions. Navaro uses straight-line depreciation for buildings and equipment. The
buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated
to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the
time of sale or retirement. (Record entries in the order displayed in the problem statement.
Credit account titles are automatically indented when amount is entered. Do not indent
manually.)
Solution
Problem 9-2A
May 1:
Accumulated DepreciationEquipment = ($607,200 x 1/10 x 4/12) = $20,240
Cost $607,200
Accum. depr.Equipment [($607,200 x 1/10) x 7 + $20,240)] (445,280)
Book value 161,920
Cash proceeds 172,040
Gain on disposal $ 10,120
Dec. 31
Accumulated DepreciationEquipment = ($708,400 x 1/10) = $70,840
Cost $708,400
Accum. depr.Equipment ($708,400 x 1/10 x 10) (708,400)
Book value $0
Record adjusting entries for depreciation for 2015. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Problem 8-3A
Presented below is an aging schedule for Bosworth Company.
Number of Days Past Due

Customer Total Not Yet Due 130 3160 6190 Over 90
Aneesh $ 24,100 $ 9,100 $15,000
Bird 45,700 $ 45,700
Cope 59,600 8,500 8,900 $42,200
DeSpears 48,600 $48,600
Others 156,700 88,600 43,000 25,100
$334,700 $142,800 $61,000 $40,100 $42,200 $48,600
Estimated percentage uncollectible 5% 7% 14% 24% 59%
Total estimated bad debts $ 55,826 $ 7,140 $4,270 $5,614 $ 10,128 $28,674
At December 31, 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $6,200.
Journalize the adjusting entry for bad debts at December 31, 2013. (Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Problem 8-3A
Post the adjusting entry for bad debts at December 31, 2013.
Bad Debts Expense
Allowance for Doubtful Accounts

Journalize the 2014 transactions: (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
1. March 1, a $810 customer balance originating in 2013 is judged uncollectible.

May 1, a check for $810 is received from the customer whose account was written off as uncollectible on
2.
March 1.
Post to the allowance account these 2014 events. (Post entries in the order of journal entries posted in
the previous part.)
Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in
Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that total estimated
bad debts will be $36,000. (Credit account titles are automatically indented when amount is

Resource: WileyPLUS
Problem 9-7A
Exercise 10-5
Exercise 10-8
Exercise 10-13
Exercise 10-22
Exercise 10-24
BYP 10-1
BYP 10-2
Problem 10-9A
Problem 10-13A
IFRS 10-4
Exercise 10-5
During the month of March, Olinger Companys employees earned wages of $73,700. Withholdings
related to these wages were $5,638 for Social Security (FICA), $8,637 for federal income tax,
$3,570 for state income tax, and $461 for union dues. The company incurred no cost related to these
earnings for federal unemployment tax but incurred $806 for state unemployment tax.
Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and
wages payable. Assume that wages earned during March will be paid during April. (Credit account
Prepare the entry to record the companys payroll tax expense. (Credit account titles are
Exercise 10-8
On August 1, 2014, Ortega Corporation issued $980,400, 6%, 10-year bonds at face value. Interest is
payable annually on August 1. Ortegas year-end is December 31.
Prepare journal entries to record the issuance of the bonds. (Credit account titles are automatically
Prepare journal entries to record the accrual of interest on December 31, 2014. (Credit account titles are
Prepare journal entries to record the payment of interest on August 1, 2015. (Credit account titles are
Exercise 10-13
Romine Company issued $531,000 of 9%, 10-year bonds on January 1, 2014, at face value. Interest is
payable annually on January 1.
Prepare the journal entries to record the issuance of the bonds. (Credit account titles are
Prepare the journal entries to record the accrual of interest on December 31, 2014. (Credit account
Prepare the journal entries to record the payment of interest on January 1, 2015. (Credit account
Prepare the journal entries to record the redemption of the bonds at maturity, assuming interest for the
last interest period has been paid and recorded. (Credit account titles are automatically indented
Exercise 10-22
Cole Corporation issued $445,000, 7%, 22-year bonds on January 1, 2014, for $360,961. This price
resulted in an effective-interest rate of 9% on the bonds. Interest is payable annually on January 1.
Cole uses the effective-interest method to amortize bond premium or discount.
Prepare the schedule using effective-interest method to amortize bond premium or discount of Cole
Corporation. (Round answers to 0 decimal places, e.g. 125.)
Prepare the journal entries to record the issuance of the bonds. (Round answers to 0 decimal
places, e.g. 125. Credit account titles are automatically indented when amount is entered.
Do not indent manually.)
Prepare the journal entries to record the accrual of interest and the discount amortization on
December 31, 2014. (Round answers to 0 decimal places, e.g. 125. Credit account titles are
Prepare the journal entries to record the payment of interest on January 1, 2015. (Round answers to
0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is
Exercise 10-24
Nance Co. receives $327,800 when it issues a $327,800, 5%, mortgage note payable to finance the
construction of a building at December 31, 2014. The terms provide for semiannual installment
payments of $15,662 on June 30 and December 31.
Prepare the schedule using effective-interest method to amortize bond premium or discount of Nance
Co. (Round answers to 0 decimal places, e.g. 125.)
Semiannual
Cash Interest Reduction Principal
Interest
Payment Expense of Principal Balance
Period
$ $ $ $
Issue date
6/30/15
12/31/15
Semiannual (A) (B) (C) (D)

Interest Cash Interest Reduction Principal
Period Payment Expense of Principal Balance
(D x 2.50%) (A) (B) (D) (C)
Issue date
6/30/15
12/31/15
Prepare the journal entries to record the mortgage loan. (Round answers to 0 decimal places,
e.g. 125. Credit account titles are automatically indented when amount is entered. Do not
indent manually.)
Account Titles and

Date Debit Credit
Explanation
Dec. 31, 2014

Prepare the journal entries to record the first two installment payments. (Round answers to 0
decimal places, e.g. 125. Credit account titles are automatically indented when amount is
Account Titles and

Date Debit Credit
Explanation
First Installment Payment
June 30, 2015
Second Installment Payment
Dec. 31, 2015

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Financial Position
Assets December 31,
2011 2010
CURRENT ASSETS:
Inventories:
Land 21,939 21,696
Buildings 107,567 102,934
455,097 440,974
OTHER ASSETS:
Goodwill 73,237 73,237
Trademarks 175,024 175,024
Total assets $857,856 $857,959
2011 2010
25,333 25,040
14,601 14,212

31,
2011 2010 2009
Net earnings $43,938 $53,063 $53,157
Depreciation 19,229 18,279 17,862
Inventories (15,631) (1,447) 455
Others (708) 310 305

What were Tootsie Rolls total current liabilities at December 31, 2011? (Enter amount in thousands.)
$
Current liabilities as at December 31, 2011
What was the increase/decrease in Tootsie Rolls total current liabilities from the prior year? (Enter amount
in thousands.)
$
Change in current liabilities
How much were the accounts payable at December 31, 2011? (Enter amount in thousands.)
$
Accounts payable

THE HERSHEY COMPANY

Net Sales $6,080,788 $5,671,009 $5,298,668
Costs and Expenses:
Cost of sales 3,548,896 3,255,801 3,245,531
Net Income $628,962 $509,799 $435,994
Common Stock $1.3800 $1.2800 $1.1900
THE HERSHEY COMPANY

December 31, 2011 2010
ASSETS
Current Assets:
Goodwill 516,745 524,134
Other Assets 138,722 161,212
Total assets $4,412,199 $4,272,732
Long-term Debt 1,748,500 1,541,825
299,269 299,195
2010
60,632 60,706
60,706,419 in 2010
(4,258,962) (4,052,101)
132,871,512 in 2010
THE HERSHEY COMPANY

Net income $628,962 $509,799 $435,994
operations:
28,341 32,055 34,927
30,838 77,935 60,823
Inventories (115,331) (13,910) 74,000
Interest Paid $97,892 $97,932 $91,623
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Financial Position
Assets December 31,
2011 2010
CURRENT ASSETS:
Inventories:
Land 21,939 21,696
Buildings 107,567 102,934
455,097 440,974
OTHER ASSETS:
Goodwill 73,237 73,237
Trademarks 175,024 175,024
Total assets $857,856 $857,959
2011 2010
25,333 25,040
14,601 14,212

31,
2011 2010 2009
Net earnings $43,938 $53,063 $53,157
Depreciation 19,229 18,279 17,862
Inventories (15,631) (1,447) 455
Others (708) 310 305
NOTE 6OTHER INCOME (EXPENSE), NET:

Other income (expense), net is comprised of the following:
2011 2010 2009

Interest and dividend income $1,087 $879 $1,439
Gains (losses) on trading securities relating to deferred compensation plans 29 3,364 4,524
Interest expense (121) (142) (243)
Impairment of equity method investment. _ _ (4,400)
Equity method investment loss (194) (342) (233)
Foreign exchange gains (losses) 2,098 4,090 951
Capital gains (losses) (277) (28) (38)
Miscellaneous, net 274 537 100
$2,946 $8,358 $2,100
As of December 31, 2009, management determined that the carrying value of an equity method investment
was impaired as a result of accumulated losses from operations and review of future expectations. The
Company recorded a pre-tax impairment charge of $4,400 resulting in an adjusted carrying value of $4,961
as of December 31, 2009. The fair value was primarily assessed using the present value of estimated future
cash flows.
Based on the information contained in these financial statements, compute the current ratio for 2011 for
each company. (Round answers to 2 decimal places, e.g. 15.25.)
Hershey Tootsie Roll
Current ratio :1 :1
Based on the information contained in these financial statements,

compute the following 2011 ratios for each company. (Round answers
to 1 decimal places, e.g. 15.2% or 15.2 times.)
(1
Debt to assets.
)
(2 Times interest earned. (Hersheys total interest expense for 2011 was $94,780,000. See Tootsie Rolls
) Note 6 for its interest expense.)
Hershey Tootsie Roll
Debt to assets % %
times
Times interest earned times
Problem 9-7A
In recent years, Farr Company has purchased three machines. Because of frequent employee turnover
in the accounting department, a different accountant was in charge of selecting the depreciation
method for each machine, and various methods have been used. Information concerning the machines
is summarized in the table below.
Salvage Useful Life

Machine Acquired Cost Value (in years)
1 Jan. 1, 2012 $126,000 $39,600 8
2 July 1, 2013 89,000 11,800 5 Declining-balance
3 Nov. 1, 2013 101,610 7,110 7
For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity
method, total machine hours are expected to be 35,000. Actual hours of use in the first 3 years were:
2013, 800; 2014, 3,950; and 2015, 5,500.
Compute the amount of accumulated depreciation on each machine at December 31, 2015.
MACHINE 1 MACHINE 2 MACHINE 3

$ $ $
Accumulated Depreciation
at December 31
Solution
CLOSE
Problem 9-7A
Accumulated
Year Computation
Depreciation 12/31
MACHINE 1
2012 $86,400a x 1/8 = $10,800 $10,800
2013 $86,400 x 1/8 = $10,800 21,600
2014 $86,400 x 1/8 = $10,800 32,400
2015 $86,400 X 1/8 = $10,800 43,200
MACHINE 2
2013 $89,000 x 40%b x 6/12 = $17,800 $17,800
2014 $71,200 x 40% = $28,480 46,280
2015 $42,720 x 40% = $17,088 63,368
MACHINE 3
2013 800 x $2.70c = $ 2,160 $ 2,160
2014 3,950 x $2.70 = 10,665 12,825
2015 5,500 x $2.70 = 14,850 27,675
a
($126,000 $39,600) = $86,400
b
(1/5) x 2 = 40%
c
($101,610 $7,110) 35,000 = $2.70
If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for
this machine in 2013? In 2014?
2013 2014
$ $
Depreciation Expense
Problem 10-9A
Wempe Co. sold $3,012,000, 8%, 10-year bonds on January 1, 2014. The bonds were dated January 1,
2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums
and discounts. Financial statements are prepared annually.
Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 104 and
(2) 96. (Credit account titles are automatically indented when amount is entered. Do not
indent manually.)
Account Titles and
No. Date Debit Credit
Explanation
1. 1/1/14
2. 1/1/14
Prepare amortization tables for issuance of the bonds sold at 104 for the first three interest payments.
Annual
Interes
Interest to Interest Expense Premium Unamortized Bond
t
Be Paid to Be Recorded Amortization Premium Carrying Value
Period
s
$ $ $ $ $
Issue
date
Prepare amortization tables for issuance of the bonds sold at 96 for the first three interest payments.
Annual
Interes
Interest to Interest Expense Premium Unamortized Bond
t
Be Paid to Be Recorded Amortization Premium Carrying Value
Period
s
$ $ $ $ $
Issue
date 2891520
1
240960 253008 12048 108432 2903568
2
240960 253008 12048 96384 2915616
3
240960 253008 12048 84336 2927664
Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 104 at December
31, 2014.
WEMPE Co.
Balance Sheet (Partial)
December 31, 2014
: $
Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 96 at December
31, 2014.
WEMPE Co.
December 31, 2014
: $
Problem 10-13A
Grace Herron has just approached a venture capitalist for financing for her new business venture, the
development of a local ski hill. On July 1, 2013, Grace was loaned $168,000 at an annual interest rate
of 5%. The loan is repayable over 5 years in annual installments of $38,804, principal and interest, due
each June 30. The first payment is due June 30, 2014. Grace uses the effective-interest method for
amortizing debt. Her ski hill companys year-end will be June 30.
Prepare an amortization schedule for the 5 years, 20132018. (Round answers to 0 decimal
places, e.g. 125.)
Cash Interest Principal

Period Balance
Payment Expense Reduction
$ $ $ $
July 1,
2013
June
30,
2014
June
30,
2015
June
30,
2016
June
30,
2017
June
30, *
-1
2018
Prepare all journal entries for Grace Herron for the first 2 fiscal years ended June 30, 2014, and June 30,
2015. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically
Show the balance sheet presentation of the note payable as of June 30, 2015. (Hint: Be sure to distinguish
between the current and long-term portions of the note.) (Round answers to 0 decimal places, e.g.
125.)
GRACE HERRON
June 30, 2015
IFRS 10-4
Ratzlaff Company issues 2 million, 10-year, 8% bonds at 97, with interest payable on July 1 and
January 1.
Prepare the journal entry to record the sale of these bonds on January 1, 2014. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan. 1
Assuming instead that the above bonds sold for 104, prepare the journal entry to record the sale of
these bonds on January 1, 2014. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan. 1

Resource: WileyPLUS
Do It! 11-1
Exercise 11-5
Exercise 11-07
BYP 11-1
BYP 11-2
Problem 11-5A
Problem 11-8A
Do It! Review 11-1
Indicate whether each of the following statements is true or false.
1 The corporation is an entity separate and distinct from its owners.

.
2 The liability of stockholders is normally limited to their investment in the corporation.

.
3 The relative lack of government regulation is an advantage of the corporate form of

. business.
4 There is no journal entry to record the authorization of capital stock.
.
5 No-par value stock is quite rare today.

.
Exercise 11-5
Garcia Corporation recently hired a new accountant with extensive experience in accounting for partnerships.
Because of the pressure of the new job, the accountant was unable to review what he had learned earlier
about corporation accounting. During the first month, he made the following entries for the corporations
capital stock.
May 2 Cash 113,680

Capital Stock 113,680
(Issued 8,120 shares of $11 par value common stock at $14 per share)
10 Cash 637,740
Capital Stock 637,740
(Issued 11,810 shares of $19 par value preferred stock at $54 per share)
15 Capital Stock 7,670
Cash 7,670
(Purchased 590 shares of common stock for the treasury at $13 per share)
On the basis of the explanation for each entry, prepare the entries that should have been made for the
capital stock transactions. (Record entries in the order displayed in the problem statement. Credit
account titles are automatically indented when amount is entered. Do not indent manually.)
CLOSE
Exercise 11-7
On October 31, the stockholders equity section of Pele Companys balance sheet consists of common stock
$377,200 and retained earnings $438,500.
Pele is considering the following two courses of action:
(1) Declaring a 7% stock dividend on the 94,300 $4 par value shares outstanding
(2) Effecting a 2-for-1 stock split that will reduce par value to $2 per share.
The current market price is $16 per share.
Prepare a tabular summary of the effects of the alternative actions on the companys stockholders equity
and outstanding shares.

The stockholders equity section of Tootsie Roll Industries balance sheet is shown in the Consolidated
Statement of Financial Position. (Note that Tootsie Roll has two classes of common stock. To answer
the following questions, add the two classes of stock together.)
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Assets December 31,
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CURRENT ASSETS:
Inventories:
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Buildings 107,567 102,934
455,097 440,974
OTHER ASSETS:
Goodwill 73,237 73,237
Trademarks 175,024 175,024
Total assets $857,856 $857,959
2011 2010
25,333 25,040
14,601 14,212
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The common stock has a par value of $0.69-4/9 or $0.6944 per share.
What percentage of Tootsie Rolls authorized common stock was issued at December 31, 2011?(Round to 0
decimal places, e.g. 17%)
%
Percentage of common stock issued
There are 160 million shares authorized (120 million class A and 40 million class B) of which 57,504,000
(36,479,000 + 21,025,000) are issued. The percentage is 36% (57,504,000 160,000,000).
How many shares of common stock were outstanding at December 31, 2010, and at December 31,
2011? (Enter the answers in thousands.)
2011 2010
Number of shares outstanding
Calculate the payout ratio, earnings per share, and return on common stockholders equity for
2011. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1
decimal places, e.g. 12.5%.)

The financial statements of The Hershey Company and Tootsie Roll are presented
below.
THE HERSHEY COMPANY
Net Sales $6,080,788 $5,671,009 $5,298,668
Costs and Expenses:
Cost of sales 3,548,896 3,255,801 3,245,531
Net Income $628,962 $509,799 $435,994
Common Stock $1.3800 $1.2800 $1.1900
THE HERSHEY COMPANY

December 31, 2011 2010
ASSETS
Current Assets:
Goodwill 516,745 524,134
Other Assets 138,722 161,212
Total assets $4,412,199 $4,272,732
Long-term Debt 1,748,500 1,541,825
299,269 299,195
2010
60,632 60,706
60,706,419 in 2010
(4,258,962) (4,052,101)
132,871,512 in 2010
THE HERSHEY COMPANY

Net income $628,962 $509,799 $435,994
operations:
28,341 32,055 34,927
30,838 77,935 60,823
Inventories (115,331) (13,910) 74,000
Interest Paid $97,892 $97,932 $91,623
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Assets December 31,
2011 2010
CURRENT ASSETS:
Inventories:
Land 21,939 21,696
Buildings 107,567 102,934
455,097 440,974
OTHER ASSETS:
Goodwill 73,237 73,237
Trademarks 175,024 175,024
Total assets $857,856 $857,959
2011 2010
25,333 25,040
14,601 14,212

31,
2011 2010 2009
Net earnings $43,938 $53,063 $53,157
Depreciation 19,229 18,279 17,862
Inventories (15,631) (1,447) 455
Others (708) 310 305
Based on the information in these financial statements, compute the 2011 return on common stockholders
equity, debt to assets ratio, and return on assets for each company. (Round answers to 1 decimal places,
e.g. 15.2%.)
Compute the payout ratio for each company. Which pays out a higher
percentage of its earnings? (Round answers to 1 decimal places,
e.g. 15.2%.)
Hershey Company Tootsie Roll
Payout ratio % %
Which pays out a higher percentage of its earnings?
pays out a higher percentage of its earnings.
Problem 11-5A
Pringle Corporation has been authorized to issue 22,900 shares of $100 par value, 8%, noncumulative
preferred stock and 1,162,100 shares of no-par common stock.
The corporation assigned a $5 stated value to the common stock. At December 31, 2014, the ledger
contained the following balances pertaining to stockholders equity.
Preferred Stock $152,900

Paid-in Capital in Excess of Par ValuePreferred Stock 20,340
Common Stock 2,270,000
Paid-in Capital in Excess of Stated ValueCommon Stock 1,617,000
Treasury Stock (5,480 common shares) 65,760
Retained Earnings 82,300
The preferred stock was issued for $173,240 cash. All common stock issued was for cash. In
November 5,480 shares of common stock were purchased for the treasury at a per share cost of $12.
No dividends were declared in 2014.
Prepare the journal entries for the following. (Credit account titles are automatically indented
(1) Issuance of preferred stock for cash.

(2) Issuance of common stock for cash.
(3) Purchase of common treasury stock for cash.
Problem 11-8A
On January 1, 2014, Everett Corporation had these stockholders equity accounts.
Common Stock ($10 par value, 69,700 shares issued and outstanding) $697,000
Paid-in Capital in Excess of Par Value 484,300
Retained Earnings 684,900
During the year, the following transactions occurred.
Jan. 15 Declared a $0.50 cash dividend per share to stockholders of record on January 31, payable
February 15.
Feb. 15 Paid the dividend declared in January.
Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On
April 15, the market price of the stock was $13 per share.
May 15 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable
January 10, 2015.
Dec. 31 Determined that net income for the year was $401,800.
ACC 291 Week 4 Comparing IFRS to GAAP Essay

Write a 700- to 1,050-word summary of the team's discussion about IFRS versus GAAP, based on your
team collaborative discussions. The summary should be structured in a subject-by-subject format. An
introduction and a conclusion are needed. Your essay should include the answers to the following:
IFRS 8-1: What are some steps taken by both the FASB and IASB to move to fair value
measurement for financial instruments? In what ways have some of the approaches differed?
IFRS 9-1: What is component depreciation, and when must it be used?
IFRS 9-2: What is revaluation of plant assets? When should revaluation be applied?
IFRS 9-3: Some product development expenditures are recorded as development expenses
and others as development costs. Explain the difference between these accounts and how a
company decides which classification is appropriate.
IFRS 10-2: Explain how IFRS defines a contingent liability and provide an example.
IFRS10-3: Briefly describe some similarities and differences between GAAP and IFRS with
respect to the accounting for liabilities.
Format your essay consistent with APA guidelines.
Use the Financial Accounting text and at least two additional scholarly-reviewed references.
Click the Assignment Files tab to submit your assignment.

Resource: WileyPLUS
Exercise 7-3
Exercise 12-1
Problem 12-9A
Problem 12-10A
IFRS 13-1
Problem 13-2A
BYP 13-2
Exercise 12-1
Putnam Corporation had these transactions during 2014.
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating
activities, investing activities, financing activities, or noncash investing and financing activities.
Purchased a machine for $30,000,

(a) giving a long-term note in
exchange.
Issued $50,000 par value common

(b)
stock for cash.
Issued $200,000 par value
common stock upon conversion of
(c)
bonds having a face value of
$200,000.
Declared and paid a cash dividend

(d)
of $13,000.
Sold a long-term investment with a

(e)
cost of $15,000 for $15,000 cash.
Collected $16,000 of accounts

(f)
receivable.
(g) Paid $18,000 on accounts payable.
IFRS 13-1
Ling Company reports the following information for the year ended
December 31, 2014: sales revenue $1,000,000, cost of goods sold
$700,000, operating expenses $200,000, and an unrealized gain on non-
trading securities of $75,000. Prepare a statement of comprehensive
income using the one-statement approach.
Problem 12-9A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets 2014 2013
Cash $ 167,256 $ 100,188
Accounts receivable 181,746 78,660
Inventory 232,875 212,900
Long-term investments 285,660 225,630
Plant assets 589,950 501,975
Accumulated depreciation (103,500 ) (107,640 )
Total $1,412,775 $1,065,533
Liabilities and Stockholders Equity

Accounts payable $ 211,140 $ 139,311
Accrued expenses payable 34,155 43,470
Bonds payable 227,700 302,220
Common stock 455,400 362,250
Retained earnings 484,380 218,282
Total $1,412,775 $1,065,533
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue $804,112
Less:
Cost of goods sold $280,402
Operating expenses, excluding depreciation 25,689
Depreciation expense 96,255
Income tax expense 56,470
Interest expense 9,791
Loss on disposal of plant assets 15,525 484,132
Net income $ 319,980
Additional information:
1 New plant assets costing $207,000 were purchased for cash during the year.
.
2 Old plant assets having an original cost of $119,025 and accumulated depreciation of $100,395 were sold
. for $3,105 cash.
3
Bonds payable matured and were paid off at face value for cash.
.
4
A cash dividend of $53,882 was declared and paid during the year.
.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow
with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Problem 12-10A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets 2014 2013
Cash $ 186,648 $ 111,804
Inventory 259,875 237,584
Long-term investments 318,780 251,790
Plant assets 658,350 560,175
Accumulated depreciation (115,500 ) (120,120 )
Total $1,576,575 $1,189,073
Accounts payable $ 235,620 $ 155,463
Accrued expenses payable 38,115 48,510
Common stock 508,200 404,250
Total $1,576,575 $1,189,073
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue $897,343
Less:
Cost of goods sold $312,913
Operating expenses, excluding depreciation 28,667
Depreciation expense 107,415
Income taxes 63,017
Interest expense 10,926
Loss on disposal of plant assets 17,325 540,263
Net income $ 357,080
Additional information:
1 New plant assets costing $231,000 were purchased for cash during the year.
.
2 Old plant assets having an original cost of $132,825 and accumulated depreciation of $112,035 were sold
. for $3,465 cash.
3
Bonds payable matured and were paid off at face value for cash.
.
4
A cash dividend of $60,130 was declared and paid during the year.
.
Further analysis reveals that accounts payable pertain to merchandise creditors.
Prepare a statement of cash flows for Odgers Inc. using the direct method. (Show amounts that decrease
cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Problem 13-2A
The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY
Income Statements
For the Years Ended December 31
2014 2013
Net sales $1,898,996 $1,758,956
Cost of goods sold 1,066,996 1,014,456
Gross profit 832,000 744,500
Selling and administrative expenses 508,456 487,456
Income from operations 323,544 257,044
Other expenses and losses
Interest expense 23,377 21,377
Income before income taxes 300,167 235,667
Income tax expense 93,377 74,377
Net income $ 206,790 $ 161,290
OSBORNE COMPANY
Balance Sheets
December 31
Assets 2014 2013
Current assets
Cash $ 60,100 $ 64,200
Debt investments (short-term) 74,000 50,000
Inventory 127,377 116,877
Plant assets (net) 660,464 531,764
Total assets $1,048,197 $874,097
Current liabilities
Accounts payable $ 168,456 $153,856
Income taxes payable 44,877 43,377
Total liabilities 444,797 408,697
Stockholders equity
Common stock ($5 par) 290,000 300,000
Total liabilities and stockholders equity $1,048,197 $874,097
All sales were on account. Net cash provided by operating activities

for 2014 was $250,780. Capital expenditures were $136,700, and cash
dividends were $58,790.
Compute the following ratios for 2014. (Round all answers to 2

decimal places, e.g. 1.83 or 12.61%.)
Exercise 7-3
The following control procedures are used in Kelton Company for over-the-counter cash receipts.
(a) For each procedure, explain the weakness in internal control and identify the control principle that is
violated.
Procedure Weakness Principle Violated

1Each store
. manager
is Human resource controls
responsibl
e for
interviewi
ng
applicants
for cashier
jobs. They
are hired
if they
seem
honest
and
trustworth
y.
2All over-
. the-
counter Establishment of responsibility
receipts
are
registered
by three
clerks who
share a
cash
register
with a
single
cash
drawer.
3To
. minimize
the risk of Physical controls
robbery,
cash in
excess of
$100 is
stored in
an
unlocked
attach
case in
the stock
room until
it is
deposited
in the
bank.
4At the end

. of each
day the Independent internal verification
total
receipts
are
counted
by the
cashier on
duty and
reconciled
to the
cash
register
total.
5The
. company
accountan Segregation of duties
t makes
the bank
deposit
and then
records
the days
receipts.
THE HERSHEY COMPANY

Net Sales $6,080,788 $5,671,009 $5,298,668
Costs and Expenses:
Cost of sales 3,548,896 3,255,801 3,245,531
Business realignment and impairment (credits)
(886) 83,433 82,875
charges, net
Net Income $628,962 $509,799 $435,994
Net Income Per ShareBasicClass B Common
$2.58 $2.08 $1.77
Stock
Net Income Per ShareDilutedClass B Common
$2.56 $2.07 $1.77
Stock
Common Stock $1.3800 $1.2800 $1.1900
The notes to consolidated financial statements are an integral part of these statements and are
included in the Hershey's 2011 Annual Report, available at www.thehersheycompany.com.
THE HERSHEY COMPANY

December 31, 2011 2010
ASSETS
Current Assets:
Goodwill 516,745 524,134
Other Assets 138,722 161,212
Total assets $4,412,199 $4,272,732
Long-term Debt 1,748,500 1,541,825
Common Stock, shares issued: 299,269,702 in 2011 and
299,269 299,195
299,195,325 in 2010
60,632 60,706
60,706,419 in 2010
(4,258,962) (4,052,101)
132,871,512 in 2010
THE HERSHEY COMPANY

Cash Flows Provided from (Used by) Operating
Activities
Net income $628,962 $509,799 $435,994
Adjustments to reconcile net income to net cash provided
from operations:
28,341 32,055 34,927
Gain on sale of trademark licensing rights, net of tax of
(11,072)
$5,962
30,838 77,935 60,823
Changes in assets and liabilities, net of effects from
business acquisitions and divestitures:
Inventories (115,331) (13,910) 74,000
Cash Flows Provided from (Used by) Investing
Activities
Cash Flows Provided from (Used by) Financing
Activities
Interest Paid $97,892 $97,932 $91,623
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Financial Position
Assets December 31,
2011 2010
CURRENT ASSETS:
Inventories:
Land 21,939 21,696
Buildings 107,567 102,934
455,097 440,974
OTHER ASSETS:
Goodwill 73,237 73,237
Trademarks 175,024 175,024
Total assets $857,856 $857,959
2011 2010
Common stock, $.69-4/9 par value120,000 shares authorized36,479
25,333 25,040
Class B common stock, $.69-4/9 par value40,000 shares authorized
14,601 14,212
21,025 and 20,466 respectively, issued

31,
2011 2010 2009
Net earnings $43,938 $53,063 $53,157
Adjustments to reconcile net earnings to net cash provided
by operating activities:
Depreciation 19,229 18,279 17,862
Inventories (15,631) (1,447) 455
Others (708) 310 305
Based on the information in the financial statements, determine each of the following for each
company:
ACC 291 Week 5 Final Examination

Multiple Choice Question 86
An aging of a company's accounts receivable indicates that $4,500 are

estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200
credit balance, the adjustment to record bad debts for the period will require a
debit to Allowance for Doubtful Accounts for $3,300.
debit to Bad Debt Expense for $4,500.
debit to Bad Debt Expense for $3,300.
credit to Allowance for Doubtful Accounts for $4,500.
Correct.
The financial statements of the Melton Manufacturing Company reports net

sales of $300,000 and accounts receivable of $50,000 and $30,000 at the
beginning of the year and end of year, respectively. What is the average
collection period for accounts receivable in days?
36.5
60.8
96.1
48.7
Correct.
Stine Company purchased machinery with a list price of $64,000. They were
given a 10% discount by the manufacturer. They paid $400 for shipping and
sales tax of $3,000. Stine estimates that the machinery will have a useful life
of 10 years and a residual value of $20,000. If Stine uses straight-line
depreciation, annual depreciation will be
$3,760.
$4,072.
$4,100.
$6,100.
Correct.
On January 1, a machine with a useful life of five years and a residual value of
$40,000 was purchased for $120,000. What is the depreciation expense for
year 2 under the double-declining-balance method of depreciation?
$48,000.
$23,040.
$38,400.
$28,800.
IFRS Multiple Choice Question 01
Correct.
As a recent graduate of State University you're aware that IFRS requires

component depreciation for plant assets. A friend has asked you to succinctly
explain what component depreciation means. Which of the following correctly
describes component depreciation?
The method used to prorate annual depreciation on a time basis.
The method that requires that significant parts of a plant asset with different
useful lives be depreciated separately.
The method used to ensure that the depreciation rate remains constant from
year to year.
The method of depreciation recommended for an asset that is expected to be

significantly more productive in the first half of its useful life.
Correct.
Given the following account balances at year end, compute the total
intangible assets on the balance sheet of Janssen Enterprises.
Cash $1,500,000
Accounts Receivable 4,000,000
Trademarks 1,000,000
Goodwill 2,500,000
Research & Development Costs 2,000,000
$5,500,000.
$7,500,000.
$3,500,000.
$9,500,000.
Correct.
Bonds with a face value of $300,000 and a quoted price of 97 have a selling
price of
$292,500.
$291,750.
$291,006.
$291,075.
Correct.
Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued

on January 1, 2013. The bonds had a face value of $400,000, pay interest
annually on December 31st, and have a call price of 102. Sparks uses the
straight-line method of amortization. What is the carrying value of the bonds
on January 1, 2015?
$381,600
$418,400
$400,000
$420,700
Correct.
S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an

agreement was reached whereby E. Corp. would pay S. Lawyer a legal fee of
approximately $15,000 by issuing 8,000 shares of its common stock (par $1).
The stock trades on a daily basis and the market price of the stock on the day
the debt was settled is $1.80 per share. Given this information, the best
journal entry for E. Corp. to record for this transaction is
Legal Expense 14,400

Common Stock 14,400

Common Stock 15,000

Common Stock 8,000
Paid-in Capital in Excess of Par - Common 7,000

Common Stock 8,000
Paid-in Capital in Excess of Par - Common 6,400
Correct.
Logan Corporation issues 50,000 shares of $50 par value preferred stock for
cash at $60 per share. The entry to record the transaction will consist of a
debit to Cash for $3,000,000 and a credit or credits to
Preferred Stock for $2,500,000 and Paid-in Capital in Excess of Par Value
Preferred Stock for $500,000.
Preferred Stock for $2,500,000 and Retained Earnings for $500,000.
Preferred Stock for $3,000,000.
Paid-in Capital from Preferred Stock for $3,000,000.
Correct.
Jahnke Corporation issued 8,000 shares of 2 par value ordinary shares for
11 per share. The journal entry to record the sale will include
a debit to Cash for 16,000.
a credit to Share PremiumOrdinary for 72,000.
a credit to Share CapitalOrdinary for 88,000.
a debit to Retained Earnings for 72,000.

Zoum Corporation had the following transactions during 2014:
1. Issued $125,000 of par value common stock for cash.
2. Recorded and paid wages expense of $60,000.
3. Acquired land by issuing common stock of par value $50,000.
4. Declared and paid a cash dividend of $10,000.
5. Sold a long-term investment (cost $3,000) for cash of $3,000.
6. Recorded cash sales of $400,000.
7. Bought inventory for cash of $160,000.
8. Acquired an investment in Zynga stock for cash of $21,000.
9. Converted bonds payable to common stock in the amount of $500,000.
10. Repaid a 6 year note payable in the amount of $220,000.
What is the net cash provided by financing activities?
$395,000.
$<605,000>.
$<105,000>.
$115,000.
Correct.
Colie Company had an increase in inventory of $120,000. The cost of goods

sold was $490,000. There was a $30,000 decrease in accounts payable from
the prior period. Using the direct method of reporting cash flows from
operating activities, what were Colie's cash payments to suppliers?
$640,000.
$310,000.
$580,000.
$370,000.
Each of the following items may be classified as operating or financing

activities under IFRS except
dividends paid.
interest paid.
all of these answer choices may be classified as such.
dividends received.
Correct.
The current assets of Orangatte Company are $227,500. The current liabilities
are $130,000. The current ratio expressed as a proportion is
$210,000 $120,000.
1.75:1.
175%.
.57:1.
All of the following requirements about internal controls were enacted under
the Sarbanes Oxley Act of 2002 except:
companies must continually assess the functionality of internal controls.
independent outside auditors must eliminate redundant internal control.
independent outside auditors must attest to the level of internal control.
companies must develop sound internal controls over financial reporting.
Which of the following is not an internal control activity for cash?
The functions of record keeping and maintaining custody of cash should be

combined.
The number of persons who have access to cash should be limited.
Surprise audits of cash on hand should be made occasionally.
All cash receipts should be recorded promptly.

Before a check authorization is issued, the following documents must be in

agreement, except for the
receiving report.
purchase order.
invoice.
remittance advice.
Correct.
Mitchell Corporation bought equipment on January 1, 2014 .The equipment

cost $180,000 and had an expected salvage value of $30,000. The life of the
equipment was estimated to be 6 years. The book value of the equipment at
the beginning of the third year would be
$130,000.
$50,000.
$180,000.
$150,000.
Correct.
Brevard Corporation purchased a taxicab on January 1, 2013 for $25,500 to

use for its shuttle business. The cab is expected to have a five-year useful life
and no salvage value. During 2014, it retouched the cab's paint at a cost of
$1,200, replaced the transmission for $3,000 (which extended its life by an
additional 2 years), and tuned-up the motor for $150. If Brevard Corporation
uses straight-line depreciation, what annual depreciation will Brevard report
for 2014?
$4,100.
$4,125.
$3,900.
$5,100.
Correct.
If a plant asset is retired and is fully depreciated
phantom depreciation must be taken as though the asset were still on the
books.
a loss on disposal will be recorded.
no gain or loss on disposal will be recorded.
a gain on disposal will be recorded.

On July 1, 2014, Linden Company purchased the copyright to Norman

Computer Tutorials for $140,000. It is estimated that the copyright will have a
useful life of 5 years. The amount of Amortization Expense recognized for the
year 2014 would be
$28,000.
$13,125.
$25,900.
$14,000.
Correct.
The following totals for the month of April were taken from the payroll records
of Metz Company.
Salaries$30,000
FICA taxes withheld 2,295
Income taxes withheld 6,600
Medical insurance deductions 1,200
Federal unemployment taxes 240
State unemployment taxes 1,500
The entry to record accrual of employers payroll taxes would include a
credit to FICA Taxes Payable for $1,740.
debit to Payroll Tax Expense for $4,035.
credit to Payroll Tax Expense for $4,035.
credit to Payroll Tax Expense for $1,740.

Thayer Company purchased a building on January 2 by signing a long-term

$2,520,000 mortgage with monthly payments of $23,100. The mortgage
carries an interest rate of 10 percent. The amount owed on the mortgage
after the first payment will be
$2,517,900.
$2,499,000.
$2,496,900.
$2,520,000.
The following data is available for BOX Corporation at December 31, 2014:
Common stock, par $10 (authorized 30,000 shares) $250,000
Treasury stock (at cost $15 per share) $1,200
Based on the data, how many shares of common stock are outstanding?
25,000.
24,920.
30,000.
29,920.
Correct.
Indicate the respective effects of the declaration of a cash dividend on the

following balance sheet sections:
Total Assets Total Liabilities Total Stockholders' Equity
Increase Decrease No change
Decrease Increase Decrease
No change Increase Decrease
Decrease No change Increase

Correct.
Assume the following cost of goods sold data for a company:

2015 $1,300,000
2014 1,200,000
2013 1,000,000
If 2013 is the base year, what is the percentage increase in cost of goods sold
from 2013 to 2015?
70%
30%
20%
130%
Correct.
A company has an average inventory on hand of $75,000 and its average

days in inventory is 36.5 days. What is the cost of goods sold?
$876,000
$750,000
$1,680,000
$1,752,000
Correct.
The following information is available for Patterson Company:

2014 2013
Accounts receivable $ 360,000 $ 340,000
Inventory 280,000 320,000
Net credit sales 3,000,000 2,600,000
Cost of goods sold 1,500,000 840,000
Net income 300,000 170,000
The accounts receivable turnover for 2014 is
7.6 times.
8.6 times.
8.3 times.
4.3 times.
Correct.
All of the following situtations below might indicate a company has a low
quality of earnings except
Revenue is recognized when earned.
Adoption of a different inventory method for each of the last three years.
A lack of disclosure about guaranteed payments that were mentioned in the

MD&A of the annual report.
Maintenance costs are capitalized and then depreciated.
IFRS
requires that receivables with different characteristics should be reported

separately.
implies that receivables with different characteristics should be reported as

one unsegregated amount.
requires that receivables with different characteristics should be reported as

one unsegregated amount.
implies that receivables with different characteristics should be reported

separately.

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ACC 291

The Latest Version A+ Study Guide

ACC 291 WileyPLUS Assignment: Week 1 Assignment

(in millions) 2014 2013

Answer each of the following questions.

Your answer is correct.

The financial statements of Tootsie Roll are presented below.

Per Common Share Data

Additional Financial Data

SEGMENT AND GEOGRAPHIC INFORMATION:

2011 2010 2009

Your answer is correct.

THE HERSHEY COMPANY

Accounts receivable turnover times times

Average collection period days days

ACC 291 WileyPLUS Assignment: Week 2 Assignment

Complete the following Week 2 Assignment in WileyPLUS:

Brief Exercise 9-11

Brief Exercise 9-11

Do It! Review 9-5

Your answer is correct.

1 Rights, privileges, and competitive advantages that

2 The allocation of the cost of an intangible asset to

3 A right to sell certain products or services, or use

4 Costs incurred by a company that often lead to

Your answer is correct.

(a) It was scrapped as having no value.

Your answer is correct.

Here are selected 2014 transactions of Cleland Corporation.

Broadening Your Perspective 9-1

Notes to Consolidated Financial Statements ($ in thousands)

PROPERTY, PLANT AND EQUIPMENT:

Goodwill and intangible assets:

Broadening Your Perspective 9-2

Your answer is correct.

THE HERSHEY COMPANY

THE HERSHEY COMPANY

THE HERSHEY COMPANY

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES

(1) Return on assets.

(2) Profit margin (use Total Revenue).

(3) Asset turnover.

Tootsie Roll times

Hershey Company times

During 2015, the following selected cash transactions occurred.

Apr. 1 Purchased land for $2,226,400.

Your answer is correct.

Number of Days Past Due

Bad Debts Expense

Allowance for Doubtful Accounts

1. March 1, a $810 customer balance originating in 2013 is judged uncollectible.

ACC 291 WileyPLUS Assignment: Week 3 Assignment

Complete the following Week 3 Assignment in WileyPLUS:

Your answer is correct.

Your answer is correct.

Your answer is correct.

Your answer is correct.

Your answer is correct.

Your answer is correct.

Your answer is correct.

Your answer is correct.

Your answer is correct.

Your answer is correct.