P4-7 tunstall inc cp4-2 urban outfitters

P4-7 Tunstall Inc

CP4-2Urban Outfitters

 

Complete P4-7 (page 209) and CP4-2 (page 217) from Chapter 4 of your Financial Accounting textbook.

Libby, R., Libby, P. A., & Short, D. G. (2014). Financial accounting (8th ed.) [Custom text bundle]. New York, NY: McGraw-Hill. ISBN: 9781259329029.

 

 

P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement  Including Earnings per Share LO4-1, 4-2, 4-4

 

Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2014:

 

Account Titles  Debit Credit

  Cash          $42,000

  Accounts receivable           11,600

   Supplies                900

  Prepaid insurance               800

   Service trucks           19,000

  Accumulated depreciation         $9,200

  Other assets            8,300

  Accounts payable           3,000

  Wages payable

  Income taxes payable

  Note payable (3 years; 10% interest due each December 31)         17,000

  Common stock (5,000 shares outstanding)             400

  Additional paid-in capital         19,000

  Retained earnings           6,000

  Service revenue         61,360

  Remaining expenses (not detailed; excludes income tax)          33,360

   Income tax expense

      Totals       $115,960     $115,960

 

Data not yet recorded at December 31, 2014, included:

 

a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be used in 2015.

b. Insurance expired during 2014, $800.

c. Depreciation expense for 2014, $3,700.

d. Wages earned by employees not yet paid on December 31, 2014, $640.

e. Income tax expense, $5,540.

 

Required:

1 Record the 2014 adjusting entries. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

A                     b                      c                      d                      e

 

Required:

 

2-a. Prepare an income statement that includes the effects of the preceding five transactions. (Round “Earnings per share” to 2 decimal places.)

 

TUNSTALL, INC.

Income Statement

For the Year Ended December 31, 2014

Operating revenue:

Operating expenses:

Total expenses

Net income

$16,720

Earnings per share

 

 Required:

 

2-b. Prepare a classified balance sheet that includes the effects of the preceding five transactions. (Amounts to be deducted should be indicated by a minus sign.)

 

TUNSTALL, INC.

Balance Sheet

At December 31, 2014

Assets

Liabilities and Stockholders Equity

Current assets:

Current liabilities:

 

Required:

 

3 Record the 2014 closing entry. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

 

 

CP4-2 Finding Financial Information LO4-2, 4-3, 4-4

Refer to the financial statements of Urban Outfitters in Appendix C at the end of this book.

 

Required:

1. How much is in the Prepaid Expenses and Other Current Assets account at the end of the most recent year (for the year ended January 31, 2012)?         (in thousands)

Where did you find this information?

 

2. What did the company report for Deferred Rent and Other Liabilities at the end of the most recent year (for the year ended January 31, 2012)? (in thousands)

 

Where did you find this information?

 

3. What is the difference between prepaid rent and deferred rent?

 

4. Describe in general terms what accrued liabilities are.

 

5. What would generate the interest income that is reported on the income statement?

 

6. What company accounts would not have balances on a post-closing trial balance?

 

7. Describe the closing entry, if any, for Prepaid Expenses.

 

8. What is the company’s earnings per share (basic only) for the three years reported?

 

Year Ended:

EPS:

 January 31, 2012

 

 January 31, 2011

 

 January 31, 2010

 

 

9. Compute the company’s total asset turnover ratio for the three years reported. Dollars in thousands.)

Fiscal Year    Ended

Sales            Revenue /

Average Total Assets

 = Total Asset Turnover

31/01/2012

 

 

  

31/01/2011

 

 

  

31/01/2010

 

 

  

 

What does the trend suggest to you about Urban Outfitters?

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Assignment Help has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!

Essays

Essay Writing Services

At Assignment Help, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.

Admissions

Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!

Editing

Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.

Coursework

Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.

Coursework

College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!

Coursework

Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.