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3. In Owl Company’s Annual Report, which of these financialstatements show their 3 comparative years, one on top of another(top to bottom), not in side-by-side columns? a. Statement ofStockholders’ Equity b. Statement of Financial Position c.Statement of Cash Flows d. Statement of Income e. All of thesefinancial statements show their comparative years in side-by-sidecolumns.

At year-end, the following information is available from the FoxCo. Adjusted Trial Balance (Accounts are in random order, butassume Normal Account Balances):

Equipment $200,000 Accumulated Depreciation $ 100,000

AccountsPayable 80,000 Cost of Goods Sold 120,000
Loss on Truck Sale 20,000 Depreciation Expense 40,000

Dividends 70,000 Cash 10,000
Salaries Expense 60,000 Sales 650,000
RetainedEarnings 140,000 Accounts Receivable 120,000

Based on this info, what is Fox’sNet Income for the year?

a. 310,000 b. 410,000 c.340,000 d.430,000

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Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

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4. During 2018 Fox Co. collected $250,000 in accountsreceivable, while performing services with invoices totaling$280,000. Also during 2018, Fox paid $120,000 to buy resources,using $100,000 of these resources in their operations. In December2018, Fox declared dividends of $40,000, paying $10,000 of them nowand the rest to be paid in 2019. What is the change in RetainedEarnings that Fox will report for 2018? a. 120,000 b. 180,000 c.90,000 d. 140,000

5. A new company, in its 1st physical count, included $1,000,000more inventory than it actually owned. What is the effect of thiserror on its 2nd Year Net Income (NI) and on its Stockholders'Equity (SE) at the end of its 2nd Year, respectively? (Key forAnswers: O = Overstated, U = Understated, and C = Correct) a. NI=O& SE=O b. NI=U & SE=C c. NI=C & SE=C d. NI=U & SE=Ue. NI=O & SE=C.

6. Which inventory method generally results in the highest cashflows, after taxes? a. Last in first out (LIFO) b. First in firstout (FIFO) c. Weighted-average d. Choice of inventory methods donot effect earnings per share.

7. At year-end, the following information is available from theFox Co. Adjusted Trial Balance (Accounts are in random order, butassume Normal Account Balances): Equipment $200,000 AccumulatedDepreciation $ 100,000 Accounts Payable 80,000 Cost of Goods Sold120,000 Loss on Truck Sale 20,000 Depreciation Expense 40,000Dividends 70,000 Cash 10,000 Salaries Expense 60,000 Sales 650,000Retained Earnings 140,000 Accounts Receivable 120,000 Based on thisinfo, what is Fox’s Net Income for the year? a. 310,000 b. 410,000c. 340,000 d. 430,000

8. For these 4 accounts, which answer would decrease eachaccount: Sales Allowance for Doubtful Accounts Premium on BondPayable Cost of Sales a. Credit Credit Credit Debit b. Debit DebitDebit Credit c. Debit Credit Debit Credit d. Credit Debit DebitDebit e. None of the above answers are completely correct.

Kriveloff Company is in the processof closing its books at the end of 2017. The company's preliminaryincome statement for 2017 and its reported income statement for2016 are given below.

2017 2016

SalesRevenues $900,000 $880,000

Costof GoodsSold (450,000) (425,000)

GrossProfit 450,000 455,000

Depreciation (115,000) (115,000)

OtherExpenses (108,000) (102,000)

NetIncome $227,000 $238,000

Kriveloff's recordsreveal the following information:

(1) Kriveloff failed toaccrue $7,000 of supplies expense at the end of2016. The supplies expense was recorded as paid in2017.

(2) On 1/1/15, Kriveloffpurchased a machine for $120,000. Although the machinewas expected to have a five-year life, it was erroneously expensedin recording the purchase. The appropriate depreciationmethod for this machine is double-declining-balance with noresidual.

(3) At the end of 2017,Kriveloff decided to change its inventory costing method fromaverage cost to the FIFO method. An analysis of theaccounting records provides the following cost of goods soldamounts under average cost and FIFO:

Year FIFO Average

2015 410,000 430,000

2016 420,000 425,000

2017 432,000 450,000

(4) Kriveloff acquired a truck on1/3/15 for $75,000 and estimated its useful life to be 6 years witha salvage value of $15,000. In 2017, after the preliminarystatements were prepared, Kriveloff realized that the truck couldbe used for an additional 5 years, but that the salvage value atthe end of that time would probably be only $10,000. Straight-linedepreciation is being used.

Required:

A. Preparethe necessary journal entries at December 31, 2017, to record theabove information.

B. Prepare new comparative income statements to reflect theadjustments required by items (1)-(3) above. You mayignore income taxes.

C. Retainedearnings reported for the end of 2016 was $2,333,000 and at the endof 2015 was $2,195,000. Dividends of $100,000 have beendeclared in each year. Prepare comparative statements ofretained earnings for Kriveloff Company, reflecting appropriateadjustments from items (1)-(3) above, ignoring income taxes.

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