(a) Assume that the only changes affecting retained earnings were net income and dividends. What amount of dividends did Colgate-Palmolive pay to its shareholders in 2008?
$

Enter an exact number.

1

(b) This dividend amount constituted what percent of its net income? (Give your answer correct to three significant figures.)

Enter a number.

2%

(a) If the amount in supplies Expense represents the January 31 adjustment for the supplies used in January, and $630 worth of supplies were purchased during January, what was the January 1 beginning balance of Supplies?
$

Enter an exact number.

1

(b) The amount in the Insurance Expense account represents the adjustment made at January 31 for January insurance expense. If the original insurance premium was for one year, what was the amount of the premium and on what date did the insurance policy start?
$

Enter an exact number.

2


(c) If we assume that no beginning balance existed in Wages Payable or Wages Expense on January 1, how much cash was paid as wages during January?
$

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4

(d) If the truck has a useful life of five years, what is the monthly amount of depreciation expense?
$

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5

How many months has Fields owned the truck?

Enter an exact number.

6 months

(a) Compute the cash paid for merchandise inventories in 2008. Assume all merchandise was purchased on account and that accounts payable come entirely from inventory purchases.
$

Enter an exact number.

1

(b) Compute the net cost of property acquired in 2008.
$

Enter an exact number.

2

(c) Compute the cash dividends paid in 2008.
$

Enter an exact number.

3

(a) For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized by the percentage-of-completion method, where percentage-of-completion is determined by the number of employees trained.

Year		2010		2011		2012
Revenue		Enter an exact number. 1		Enter an exact number. 2		Enter an exact number. 3
Expenses		Enter a number. 4		Enter an exact number. 5		Enter a number. 6
Gross profit		Enter a number. 7		Enter an exact number. 8		Enter a number. 9

For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized by the percentage-of-completion method, where percentage-of-completion is determined by the costs incurred.

Year		2010		2011		2012
Revenue		Enter a number. 10		Enter a number. 11		Enter a number. 12
Expenses		Enter an exact number. 13		Enter an exact number. 14		Enter an exact number. 15
Gross profit		Enter a number. 16		Enter a number. 17		Enter a number. 18

For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized by the completed contract method.

Year		2010		2011		2012
Revenue		Enter an exact number. 19		Enter an exact number. 20		Enter an exact number. 21
Expenses		Enter an exact number. 22		Enter an exact number. 23		Enter an exact number. 24
Gross profit		Enter an exact number. 25		Enter an exact number. 26		Enter an exact number. 27

(b) Which method do you believe is most appropriate in this situation? Explain.

The completed contract method, because Philbrick has a non-cancelable contract.

The percentage-of-completion method based on costs incurred, because the costs cannot be estimated accurately.

The percentage-of-completion method based on the number of employees trained, because the number of employees can be estimated accurately.

(a) each item of inventory
$

Enter an exact number.

1

(b) the total inventory
$

Enter an exact number.

2