1) Financial Statements
The financial statements of Procter & Gamble Company available at http://www.pg.com/en_US/index.shtml . Refer to P&G's financial statements and the accompanying notes to answer the following questions:
1. Using the notes to the consolidated financial statements, determine P&G's revenue recognition policies. Discuss the impact of trade promotions on P&G's financial statements.
2. Give two examples of where historical cost information is reported in P&G's financial statements and related notes. Give two examples of the use of fair value information reported in either the financial statements or related notes.
3. How can we determine that the accounting principles used by P&G are prepared on a basis consistent with those of last year?
4. What is P&G's accounting policy related to advertising? What accounting principle does P&G follow regarding accounting for advertising? Where are advertising expenses reported in the financial statements?
Provide reference if any in APA format.
2) Trial Balance
Listed below are the transactions for Hunter Marketing. Inc. for the month of July:
July 1 Hunter begins his marketing company and invests $50,000 cash.
July 5 Purchases computers and office equipment on account from OfficeMax for $10,250.
July 6 Pays rent for office space $800 for the month.
July 6 Employs a secretary, Mary Jones.
July 8 Purchases office supplies for cash $960.
July 9 Receives $2,430 from customer for services performed.
July 11 Pays miscellaneous office expenses $375.
July 13 Bills customers $4,900 for serviced performed.
July 15 Pays Office Max $3,500 on account.
July 18 Withdraws $2,000 from business for personal use.
July 20 Receives $1,900 from customers on account.
July 23 Bills customers $6,320 for services performed.
July 30 Pays the following expenses in cash: office salaries $2,300 and utilities $400.
a. Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies on Hand, Office Equipment, Accumulated Depreciation, Accounts Payable, Hunter-Capital, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries Expense, Supplies Expense, Utilities Expense, Depreciation Expense and Income Summary.
b. Prepare an unadjusted trial balance.
c. Record depreciation using a 5-year life on the office equipment, the straight-line method, and no salvage value. Round to whole numbers. Also, record an adjustment for office supplies used in the amount of $510.
d. Prepare an adjusted trial balance.
e. Prepare an income statement, a statement of retained earnings, and an unclassified balance sheet.
f. Close the ledger.
g. Prepare a post-closing trial balance.
3) Balance Sheet
Lander Inc. had the following balance sheet at December 31, 2008:
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LANDER, INC.
Balance Sheet
December 31, 2008
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Cash
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$45,300
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Accounts payable
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$33,800
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Accounts receivable
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$18,900
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Bonds payable
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$35,000
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Investments
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$25,000
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Common stock
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$190,000
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Plant assets (net)
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$78,000
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Retained earnings
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$18,400
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Land
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$110,000
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Total Assets
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$277,200
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Total Liabilities & Equity
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$277,200
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Total Assets $277,200 Total Liabilities & Equity $277,200
During 2009 the following occurred.
a. Lander liquidated its available-for-sale investment portfolio at a loss of $6,500.
b. A tract of land was purchased for $31,000.
c. An additional $20,000 in common stock was issued at par.
d. Dividends totaling $5,000 were declared and paid to stockholders.
e. Net income for 2009 was $29,000, including $7,000 in depreciation expense.
f. Land was purchased through the issuance of $25,000 in additional bonds.
g. At December 31, 009, Cash was $72,650, Accounts Receivable was $35,250, and Accounts Payable was $32,500.
i. Prepare a statement of cash flows for the year 2009 for Lander.
ii. Prepare the balance sheet as it would appear at December 31, 2009.