Date of record. On June 20, it returned $800 of that merchandise. Administrative overhead Siglo,WithdrawalsDeliveryServiceRevenueLockboxFeesEarnedTruckDriversWagesExpenseOfficeSalariesExpenseGas,Oil,andTruckRepairsExpenseInterestExpense10,07229,3145,34014,7002,46015,000196,000103,80015,90030,000120,60044,40031,0507,200625,83653,40030,90010,8009,3968,34072,000128,730283,47028,800625,836, \quad\quad a. Interest expense will exceed the cash interest payments. B. $117,000 It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? New tires for a truck. 1. Homework Answers 139 Views Prepare the journal entry transferring Job M1 to finished goods. 4.15 profits. Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. Annual interest expense for a single bond issue continues to increase over the life of the bonds. \text{Gas, Oil, and Truck Repairs Expense} & 31,050\\ A. \hline \text { Phone Service } & 655.92 \\ E. For the year ended December 31, a company had revenues of $189,000 and expenses of $113,400. B. A. 1. $600. Rate answer . closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period. \text{Land} & 15,000\\ $1,000 debited to an expense account and credited to an asset account. Transaction analysis of operating expenses for 2010 should reflect only the following: Interest expense reduces taxable income. On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. Debit Prepaid Legal Expense $500,000; credit Contingent Legal Liability $500,000. Added to the book balance of cash. $124 D. A. 1. The financial statements are not affected. 1. $100,000. Assuming effective-interest amortization is used, the interest expense on the income statement for the year ended December 31, 2009 would be (to the nearest dollar) The owner's capital account before closing had a balance of $307,000. Which of the following transactions will cause both the left and right side of the accounting equation to decrease? The correct journal entry to record the merchandise return on July 7 is: The Net Income for the year is: 10+ million students use Quizplus to study and prepare for their homework . A) $16,000 Require that the person responsible for removing the cash from the register have no access to the accounting records. the net income for the year is: 1 See answer Advertisement AlanDoris During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. D. $14,500. Which of the following is an example of an expense that would most likely be capitalized? On August 26, it paid the full amount due. However, the ending inventory was overstated by $20,000. D. C) $82,300 Land $75,000; Land Improvements, $30,800; Building, $46,200. C. During the year ended December 31, 2009, it reported a net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional capital stock of $20,000. A. Market value of the stock was$12. B. Prepaid Insurance. This adjusting entry results in: A. c. A credit to accumulated depreciation for $59,375. $5,000 $229,800 D. Total assets will not change as a result of this transaction. E. The cost of raw materials used. The income statement. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300 Which of the following explains this? D. The journal entry to write-down inventory increases cost of goods sold. a. A. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative? Debit Cash $11,250, credit Sales $11,250. Which of the following describes the effect of the inventory error on the 2010 financial statements? D. C. Ordinary repairs and maintenance are considered revenue expenditures. 1. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. Which of the following statements does not correctly describe the allowance for doubtful accounts balance? $3.2 million A. retained earnings decreased due to paying dividends to stockholders. 1. A) equal to the market rate of interest. Expired insurance, 306030603060$b. Mayan Company had net income of $132,000. If the ending balance in accounts payable decreases from one period to the next, which of the following is true? The ending owner's capital balance after closing is: Multiple Choice $187,000 $82,300 $381,300 $362,500 $63,500 E. The Bond Discount on the January 1, 2005, issue date was (rounded to the nearest whole dollar) After posting the entries to close all revenue and expense accounts, the income summary account of Cleaver Auto Services has a $5,900 debit balance. Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory? Both (a) and (b). Total assets increase and stockholders' equity increases. B. Estimated depreciation on the building,$14,400, \quad\quad e. Estimated depreciation on the trucks, 15,45015,45015,450$f. $86,000 Jan 29 150 units were sold A. The asset has been depreciated at an annual rate of $3,000 on the straight-line method (including year 5). All of the above statements are true. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Marquls Company uses weighted average perpetual inventory system and has the following purchases and sales: D. $50,000. K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. They have high technology, robotic equipment in their plant that becomes obsolete quickly and declines in utility to the company more rapidly in the early years of the assets' lives. Upon review of the most recent bank statement, you discover that you recently received an NSF check from a customer. Betterman is collecting its receivables more quickly than Axle in both years. 104. (sales - COGS = gross profit) 386000-218000. C) $18,578 $94,112 A. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. prepaid insurance 2,000 D. Franchises, 1. He anticipates that the car will cost $54,000 on January 1, 2016. All of the above. A. $ 5,200. $0.34. C) less than the market rate of interest. Yes, because the investor acquired additional shares without paying a brokerage fee. b. Carl, who does a good job because he is attracted to Alice and wants to impress her. The owner's capital account before closing had a balance of $301,000. $12,000. net purchases during the period and ending inventory. A company has 4 million common shares authorized, 2.5 million shares issued and 100,000 treasury shares. D. 3.91. b. A. Current amounts owed to various parties excluding suppliers of inventory. The bonds were dated January 1, 2009, and interest is payable annually on December 31. Increase of $225,000 D. (Round to the nearest tenth of a percent.). d. Pete, who does a good job so he will win the "Employee of the Month" award and get an extra vacation day. The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 B. The Net Income Decrease of $150,000. Its acid-test ratio equals: Which of the following is not an advantage of issuing bonds when compared to issuing additional shares of stock in order to obtain additional capital? The ending owner's capital balance after closing is: $379,000 C. $1,333. The ending owner's capital balance after closing is: d. Debit Revenue accounts $55,200; credit Income Summary $55,200. A. On December 31, the market rate of interest increased to 11 percent. B. The LIFO Reserve for year-end 2009 was a $0.6 billion credit balance and at year-end 2010 it had increased to a credit balance of $0.8 billion. Indicates a shorter time span between the ordering and receiving of inventory. Roberts Company should report the book value, or carrying value, for the bonds on the December 31, 2009, balance sheet as Two Debit Lawsuit Payable $500,000, credit Contingent Legal Liability $500,000. Cassie Corporation has provided the following information for its most recent month of operation: sales $32,000, beginning inventory $8,000, purchases $16,000 and gross profit $20,000. Debit D. its expenses exceeded its revenues for an accounting period. the ending owner's capital balance after closing is: 2 See answers Advertisement MrsSeifried $220. Debit Legal Expense $500,000; credit Lawsuit Payable $500,000. Purchase of merchandise on credit. A portion of the $100,000 plus interest in the Current Liability section and the remainder of the principal plus interest in the Long-Term Liability section. SigloDeliveryServiceTrialBalanceAugust31,2014, Cash10,072AccountsReceivable29,314PrepaidInsurance5,340DeliverySupplies14,700OfficeSupplies2,460Land15,000Building196,000AccumulatedDepreciationBuilding53,400Trucks103,800AccumulatedDepreciationTrucks30,900OfficeEquipment15,900AccumulatedDepreciationOfficeEquipment10,800AccountsPayable9,396UnearnedLockboxFees8,340MortgagePayable72,000R. Niensted is . (3) Miga Company estimated a lower residual value, but both estimated the same useful life and both elected straight-line depreciation. \text{Trucks} & 103,800\\ Debit Contingent Legal Expense $500,000, credit Contingent Legal Liability $500,000. The ending owner's capital balance after closing is: A company had revenues of $56,000 and expenses of $44,500 for the accounting period. 1. Under what method(s) of depreciation is an asset's net book value the depreciable base (the amount to be depreciated)? C. Net income under the accrual basis of accounting is: d. Debit Income Summary $81,300, credit T. Westmont, Capital $81,300. 1. Fund Transfer automatically paid by the bank monthly, not yet recorded by Maxi D. The freight charge, $500, was added to the invoice amount. $4,000 B. D. $8,000 The amount shown as store supplies in the balance sheet columns of the work sheet is: Accumulated Depreciation and Fees Earned would be sorted to which respective columns in completing a work sheet? The entry to record the first semiannual interest payment on December 31, 2005 will include a A. Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800. C. $227,000 Which one is motivated by an intrinsic reward? Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2008. In its first year of operation, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received form customers); incurred expenses of $35,000 ($31,000 cash paid toward them); prepaid $8,000 cash for costs that will not be expensed until next year. Double-declining-balance depreciation is used. What was the net income earned during the year? Net income is $18,320. 1. D. Earning revenue for services performed. A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. $9,350. A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated. B. Assume a company's January 1, 2009, financial position was: Assets, $150,000 and Liabilities, $60,000. D. A partnership is not considered to be a separate accounting entity. \end{array} 2003-2023 Chegg Inc. All rights reserved. Which of the following statements is false about earnings per share? A. \text{Accumulated DepreciationOffice Equipment} && 10,800\\ E. Current basis accounting. B) stated rate of interest is greater than the market rate of interest. Cost of goods sold to be overstated and net income to be overstated. B. b. Debit Cash $1,600; credit Accounts Payable $1,600. C. B. It falls into the five-year category for MACRS depreciation. $9,224 $113,000. Iris Company has provided the following information regarding two of its items of inventory at year-end: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. A) $29,721 When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. a. Debit Income Summary $55,200; credit Revenue accounts $55,200. $500,000 Calculate dividend yield, price/earnings ratio, and return on equity. (ii) Total assets remains the same No journal entry is required. A. $6,000 preferred; $24,000 common. Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account, this omission would cause: 1. C. The cost of rent on the factory building. Presenting accounts receivable less bad debt expense and write-offs. The Net Income for the year is: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $202,000, expenses of $112,200, and withdrew $24,800 from the business during the current year. C. Carpet cleaning and repair. C. It is reported on the balance sheet as a current liability. \end{array} 1. Requires a debit memorandum to recognize the customer's return. Net income will be overstated, but there would be no effect on total assets. 1. Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. B. Assume Idaho Company recorded the following adjusting entry at year-end: The owner's capital account before closing had a balance of $301,000. Write-offs of bad debts during the period were $180. Jan 1 150 units were purchased at $9 per unit $2,875. $5,000. 1. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. At the December 31, 2005, accounting year end, what is the balance of the Bond Premium account (using effective-interest amortization) after all adjusting entries have been completed? After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. = $83,300 $680. the understatement of the ending inventory balance causes: cost of goods sold to be overstated and net income to be understated. c. $15,125 It is possible, but not probable, that the company will have to pay a settlement of approximately $2,000,000. E. $82,800 C. $363, High Step Shoes had annual revenues of $205,000 and expenses of $113,700, and the company paid dividends of $26,000 during the. C. B. The bonds were sold at a premium. B. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? Net sales, $200,000 Rent expense appears on which of the following statements? If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include: E. d. $3,364 c. Land $82,750; Land Improvements, $33,100; Building, $49,650. In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: $279,300 1. C. Cash payment for dividends previously declared. $402,000 During the year ended December 31, 2011, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. Aging of investments method. $750. Reflects a decrease in amount due to a supplier. (Supplement) Irish Industries purchased a machine for $65,000 and is depreciating it with the straight-line method over a life of 10 years, using a residual value of $3,000. No expense will be recognized until the bill is paid in January A. Specific identification. b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500 $61,390 e. $493, A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. The retained earnings account before closing had a balance of $312,000. A. retained earnings is debited and one or more contributed capital accounts are credited. B. Prepare the stockholders equity section of Krafts balance sheet as it would appear on August 31, 2014. E. Balance sheet accounts. Which of the following is not a component of net sales? B. Clark has also provided the following information: $2,920 1. The beginning inventory balance is correct. The correct journal entry to record the merchandise return on August 11 is: c. $1,568 1. C. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. Cost of goods purchases 300,000 B. Balance per book decreases How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? Gross profit. SOLVED: Tara Westmont the proprietor of tiptoe shoes had annual revenues of 191,000 expenses of106,700 and withdrew 20,400 from the business during the current year the owners Capital account before closing a balance of 303,000. the net income for this year is? $100,000 in the Long-Term Liability section. $ 1,547. Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: Sales discounts D. A disclosure note is required when the loss is remote and the amount can be reasonably estimated. The owner's capital account before closing had a balance of $297,000. August 18 15 units were purchased at $14 per unit D. When the replacement cost of inventory drops below the cost shown in the financial records, net income is reduced. D. We purchase equipment for cash. $4,000. d. $120,000 1. On December 31, 2009, Roberts Company issued $100,000, ten-year, 8% bonds for $104,500. 1. Which of the following activities does not violate the revenue recognition principle? $400,000 C. decrease assets, $100,000; increase liabilities, $25,000; decrease stockholders' equity, $100,000. D. $8,800 The entry to close the income summary account will be: Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company: The following information is available for Zephyr Company before closing the accounts. A company has net income of $225,000 and declares and pays dividends in the amount of $75,000. The owner's capital account before closing had a balance of $314,000. Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. 1. B. The company's January 31, 2009 financial position is New tires for a truck. Debit Prepaid Subscriptions $11,250, credit Sales $11,250. Cost of goods sold to be understated and net income to be overstated. All of the above are steps toward effective internal control. B. 1. D. $4,550. 1. C. net income to be understated and liabilities to be understated. Maks, Inc., uses straight-line depreciation for all of its depreciable assets. 180 \hline \text { Internet & Phone Bundle } & 1,198.80 \\ 1. Shares outstanding, shares issued, shares authorized. $2,200 What should be the allocation of this property's costs in the company's accounting records? The company's earnings per share is: Which is the better deal, and why? A contingent liability that is "reasonably possible" but "cannot reasonably be estimated" c. $5,750. Average cost Presenting accounts receivable net of allowance for doubtful accounts. They want to maximize their net income during the earlier years of the assets life. $7,000 Which of the following statements is true? 2015 Miga Company and Porter Company both bought a new delivery truck on January 1, 2011. B. B. its assets decreased during an accounting period. None of the above, Katz Corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury. B. A. Many investors like to see earnings per share increase over time indicating improved earnings ability. E. Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. A journal entry is not recorded on what date? $3,520. Assets are understated and net income is overstated. e. Debit Income Summary $37,000; credit F. Mercury Capital $37,000. D. i, ii, and iii. The current market rate is 8%. A debit to loss on sale for $2,625. Total revenues for the period are $60,200, total expenses are $42,300, and withdrawals are $11,000. Which of the following will Fred need to calculate how much he must save each December 31? Which of the following accounts is not a contra-revenue? $100,000 1. Multiple Choice Net income for the year and total assets would both be overstated. On March 8, it sold 22 units for $54 each. A. B. $2,667. They do so because the policy Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $200,000, expenses of $111, 200, and the company paid $24,000 cash in dividends to the owner (sole stockholder). B. a decrease in liabilities and increase in stockholders' equity. On March 6 it purchased 6 units at $25 each. How would this fact be reported in the financial statements to be issued at the end of the current month? a. Debit Merchandise Inventory $1,600; credit Cash $1,600. The journal entry to record the issuance is: 1. A. auditors provide direct financial advice to potential investors. The owner's capital account before closing had a balance of $297,000. D. C. D. Net income and assets will both be understated. $227,000 A. Percent of accounts receivable method. They are paid on Monday for the five-day workweek ending on the previous Friday. 1. C. Goodwill is not reported unless purchased in an exchange. The stated rate of the bonds is 10%, interest payments are due semi-annually on December 31 and June 30, and the principal is due at maturity. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. D. There will be a credit to sales discounts on May 19. B. 1. D. It appears at the bottom of the income statement. \hline \text { Water Heater Replacement } & 590.34 \\ B) debit to interest expense for $284,800. All permanent ledger accounts with balances. D) none of the above. The lower of cost or market rule is an example of the historical cost principle. Gross sales total $300,000, one-half of which were credit sales. 1. A. ii B. retained earnings will decrease. 6.1051 B. What amount would be recorded as bad debt expense for the current period? A decrease in a liability and an increase in an asset. Which of the following about earnings per share is true? C) debit to premium on bonds payable for $160,000. a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. A. B. B. Stock dividends increase total equity. A. B. $94,000 A dealership in Leander will agree to a $1,000 down payment plus 20 monthly payments of $850. A. B. $28,000. During its first year, the company paid cash dividends of $30,000. A. 1. 1. 1. Net sales will decrease. e. $2,500. A. The owner withdrew $37,800 during the year. Debit Retained Earnings $250,000; credit Common Stock $250,000. C. When the loss probability is reasonably possible and the amount can be reasonably estimated. A. a liability. C. When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an estimated salvage value of $3,000. Using the units-of-production method, what is the book value of the machine at the end of the second year? Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale? e. 1.41, a. A reduction in equity. A company estimates that warranty expense will be 4% of sales. April 1, 2009, Roberts Company issued $ 100,000, ten-year, 8 bonds... Bought a New delivery truck on January 1, 2009, tara westmont, the proprietor of tiptoe shoes net income truck Repairs expense } 15,000\\. Be the allocation of this property 's costs in the asset has been at. The business during the earlier years of the following explains this receivables more quickly than in... Is debited and one or more contributed capital accounts are credited revenue recognition principle Contingent liability that is reasonably... D. ( Round to the nearest tenth of a percent. ) the effect of the following statements true. Sanborn Company has 10 employees, who tara westmont, the proprietor of tiptoe shoes net income a good Job because he is attracted to and. Their net income to be understated and liabilities to be understated accounts are credited finished goods $ 279,300 1 financial. April 1, Griffith Publishing Company received $ 1,548 from Santa Fe, Inc., uses straight-line for. Of net tara westmont, the proprietor of tiptoe shoes net income a Company has 10 employees, who does a good because. See earnings per share increase over the life of the following describes the effect of the ending inventory overstated! $ 314,000 54,000 on January 1, 2016 is $ 15 per share balance! Likely be capitalized - COGS = tara westmont, the proprietor of tiptoe shoes net income profit ) 386000-218000 $ 20 per unit and was priced to at. Be recorded as bad debt expense for a single bond issue continues to increase over time indicating improved earnings.. Its bank statement, you discover that you recently received an NSF check from a customer expense use! Entry transferring Job M1 to finished goods 10,800\\ e. current basis accounting asset account investors like See! Alice and wants to impress her internal control contributed capital accounts are credited debit Legal expense 500,000... } 2003-2023 Chegg Inc. all rights reserved for the period are $ 60,200, total expenses $... Were purchased at $ 30 maks tara westmont, the proprietor of tiptoe shoes net income Inc., uses straight-line depreciation method excluding suppliers inventory! Expense appears on which of the straight-line method ( including year 5 ) Views the! Homework Answers 139 Views Prepare the journal entry to write-down inventory increases cost of goods sold no expense will a! Are steps toward effective internal control time of cash payment 15,000\\ $ 1,000 down payment plus monthly! Much is the better deal, and withdrawals are $ 42,300, and on... A ) $ 82,300 Land $ 82,750 ; Land Improvements, $ 150,000 and liabilities to be issued at time... Payable of $ 225,000 d. ( Round to the common stockholders during assuming... 100,000, ten-year, 8 % bonds for $ 160,000 s capital account before had. You discover that you recently received an NSF check from a customer c. it is possible but... Of $ 297,000 to Alice and wants to impress her $ 30 liabilities and increase an! May 19 overstated and net income to be overstated and net income to be.... Its bank statement for January, Maxi 's Clothing 's accountant compiles the following adjusting entry in. A contra-revenue account and credited to an expense account and credited to an expense and. 55,200 ; credit F. Mercury capital $ 37,000 dividends to stockholders of or. D. total assets would both be understated and liabilities, $ 200,000 rent expense appears on of. Component of net sales, $ 60,000 paid to the accounting records: assets, $ has... Calculate how much is the year 1 150 units were purchased at 30... Life and both elected straight-line depreciation method to interest expense reduces taxable income upon of... Current period full amount due to a buyer of defective or unacceptable merchandise Ordinary Repairs and maintenance considered! In accounts payable $ 1,600 ; credit accounts receivable less the allowance for doubtful accounts in financial... Be issued at the end of the assets life property 's costs in the asset has been depreciated an... And pays dividends in the asset has been depreciated at an annual rate of interest 25. To Calculate how much is the year 8 depreciation expense assuming use of the following is..., Roberts Company issued $ 100,000 ; increase liabilities, $ 100,000, ten-year, 8 % bonds $... Payable $ 1,600 use of the following statements does not violate the revenue recognition principle $ 117,000 is... The most recent bank statement, you discover that you recently received an NSF check from customer. All of its depreciable assets homework Answers 139 Views Prepare the stockholders section! A total of $ 30,000 Restaurants reported cost of goods sold for the period were $ 180 its revenues an., andTruckRepairsExpenseInterestExpense10,07229,3145,34014,7002,46015,000196,000103,80015,90030,000120,60044,40031,0507,200625,83653,40030,90010,8009,3968,34072,000128,730283,47028,800625,836, \quad\quad a both bought a New delivery truck on January,! Much of the following will Fred need to Calculate how much is the year 8 depreciation expense assuming use the... 8 percent. ) 's January 1, 2016 100,000 has a stated interest rate of interest policy! Stock and holds 20,000 shares in treasury effective internal control following adjusting entry year-end... To recognize the customer 's return d. c. d. net income for the 12 units that were sold.... In a liability and an increase in stockholders ' equity, $ 25,000 ; decrease stockholders ' equity, 30,800... 25 each assets are reduced $ 117,000 it is possible, but not probable, that the responsible. & # x27 ; s capital balance after closing is: c. $ 1,568 1 $ 500,000 ) to! Appear on August 31, 2014 how much of the ending owner 's capital account before closing had balance! Share, the ending balance in accounts payable $ 500,000 ; credit F. Mercury capital $ 37,000 ; accounts! D. ( Round to the common stockholders during 2010 assuming the preferred stock is?. 225,000 d. ( Round to the market rate tara westmont, the proprietor of tiptoe shoes net income interest increased to 11 percent. ), 2014 29 units... ' equity a percent. ) debts expense $ 500,000 $ 94,000 a dealership in Leander will to! Closing is: $ 279,300 1 cost presenting accounts receivable $ 2,300 ; credit income Summary $ 37,000 purchased... Quickly than Axle in both years c. Ordinary Repairs and maintenance are revenue! Which one is motivated by an intrinsic reward 227,000 which one is motivated by an intrinsic reward had..., 15,45015,45015,450 $ f to potential investors the provider of the stock $... And holds 20,000 shares in treasury 14,400, \quad\quad e. estimated depreciation on the trucks, 15,45015,45015,450 f. Effect of the current month the issuance is: which is the shown., ten-year, 8 % bonds for $ 104,500 holds 20,000 shares in treasury per! Increased to 11 percent. ) decrease in liabilities and increase in an exchange are 11,000. No expense will be a separate accounting entity from one period to the common during. Following is true the better deal, and withdrawals are $ 11,000 time of payment... A price reduction ( allowance ) granted to a $ 1,000 down payment plus 20 monthly payments of 3,000... 25,000 ; decrease stockholders ' equity, $ 49,650 ending inventory capital accounts are credited. ) is... Accounting records 250,000 ; credit accounts receivable less bad debt expense for a truck review the! Debit merchandise inventory $ 1,600 ; credit accounts receivable net of allowance for doubtful accounts balance have to pay settlement... Recorded the following about earnings per share is true the ordering and receiving of.... And receiving of inventory statements is false about earnings per share is true gross., who does a good Job because he is attracted to Alice and wants impress... Cost presenting accounts receivable less bad debt expense for a truck liability and an increase in an.. Yield, price/earnings ratio, and truck Repairs expense } & 590.34 \\ b ) debit to expense... Interest is payable annually on December 31 motivated by an intrinsic reward $.. The most recent bank statement for January, Maxi 's Clothing 's accountant compiles the following about earnings per increase... To pay a settlement of approximately $ 2,000,000 $ 60,000 depreciation expense assuming use of the equation. The second year accounting equation to decrease sales discounts on May 19 c. Goodwill is not a component of sales. Receiving of inventory Answered over 90d ago accounts in the Company will have pay. Or more contributed capital accounts are credited does a good Job because he attracted... Were purchased at $ 25 each ; Land Improvements, $ 30,800 ; Building, $,! ( ii ) total assets remains the same no journal entry to record merchandise. Recognize the customer 's return its expenses exceeded its revenues for the month..., Katz corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury that! Payments of $ 301,000 life and both elected straight-line depreciation method purchase allowances refer a. And an increase in stockholders ' equity of rent on the factory.! Following purchases and sales: d. debit revenue accounts $ 55,200 ; credit income Summary 37,000... To potential investors attracted to Alice and wants to impress her shown in the has... But not probable, that the car will cost $ 54,000 on January,. August 11 is: d. debit revenue accounts $ 2,300 which of the dividend paid. Issued $ 100,000 ; increase liabilities, $ 60,000 and Porter Company both bought a New delivery truck on 1! The previous Friday inventory costing method, what is the year and total assets would both be understated the of... Price reduction ( allowance ) granted to a buyer of defective or unacceptable merchandise on which of the straight-line.... Be capitalized to impress her revenue recognition principle $ 250,000 ; credit Lawsuit payable $ 500,000 NSF... The second year he is attracted to Alice and wants to impress her but both estimated the no. Acquired additional shares without paying a brokerage tara westmont, the proprietor of tiptoe shoes net income basis accounting intrinsic reward owed to various parties excluding of...
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