a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. A contingent liability that is "reasonably possible" but "cannot reasonably be estimated" On January 1, 2014, Wasson Company purchased a delivery vehicle costing $40,000. D. They want to maximize the total depreciation expense over the life of the asset. D. must be reported as a liability, but not recorded. The cost of raw materials used. To determine whether a bond will be sold at a premium, discount, or at face value, one must know which of the following pairs of information? C. The cost of rent on the factory building. d. A debit to loss on sale for $3,042. 1. $3,270 \text{Gas, Oil, and Truck Repairs Expense} & 31,050\\ $130,000 C. Carpet cleaning and repair. Manufacturing overhead costs are allocated at a budgeted rate of$22 per direct manufacturing labor-hour. $1,180 C. Affect both income statement and balance sheet accounts. B) subtracting Interest Payable from Bonds Payable. B. \text{Office Equipment} & 15,900\\ A. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. D. An entry was journalized and posted as a debit to cash for $1,110 and a credit to sales for $1,101. 1. Which of the following is not true about the Allowance for Doubtful Accounts? Raw materials Debit Lawsuit Payable $500,000, credit Contingent Legal Liability $500,000. Calculated using the double-declining balance method. Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. C. e. 1.41, a. 1. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24,400 from the business during the current year. $2,667. Intangible assets with indefinite lives Kraft Unlimited, Inc., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par,$5 stated value common stock on July 1, 2014. D. Replacing the engine in a truck. On July 7, it returned $200 worth of merchandise. Total assets decrease and equity increases. $30,000. When the replacement cost of inventory drops below the cost shown in the financial records, net income is reduced. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2008. Sales discounts Beginning inventory $100,000 1. C. The debit to cash will be less than the credit to accounts receivable on May 19. Both stock and cash dividends reduce retained earnings. 1. The owner's capital account before closing had a balance of $314,000. The owner's capital account before closing had a balance of $297.000. \text{Building} & 196,000\\ Debit Cash $7,500; credit Notes Payable $7,500. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185.000, expenses of $103.700. Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. A. When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable, the following are the effects on the accounting equation: The financial statements are not affected. B. Their records show that for last year, they paid$10,789.20 in mortgage payments, $581.00 for insurance premiums, and$2,685.00 in real estate taxes. 1. $800 $123,255 B. decrease assets, $100,000; decrease stockholders' equity, $100,000. C. Not recording interest earned in 2009 until the cash is received in 2010 B. Debit Depletion Expense $29,025; credit Accumulated Depletion $29,025. Total expenses remain the same. Indicates a longer time span between the ordering and receiving of inventory. C. $4,750 If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be: Assume the owner, Raul Siglo, made no additional investments. $2,200. The Net Income for the year is: 1. c. 1.14 D. Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. D. Net income and assets will both be understated. A company has been successful in reducing the amount of sales returns and allowances. $5,855 D. total assets increase by $200,000. Gain of $500 A. The entry to close the withdrawals account at the end of the year is: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $195,000, expenses of $108,700, and withdrew $22,000 from the business during the current year. The 2007 income statement should report supplies expense amounting to $7. $210 A journal entry is recorded on all of these dates. Tara Westmont, the owner of Tiptoe Shoes, had annual revenues of $189,000, expenses of $105,700, and withdrew $19,600 from the business during the current year. Assets will be overstated, but there would be no effect on net income for the year. 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). Experts are tested by Chegg as specialists in their subject area. D. The journal entry to write-down inventory increases cost of goods sold. 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. Which of the following statements is true? Their par value is $1 per share and the market price is $30 when the company declares a 4/1 stock split. $h. E. Total revenues for the period are $69,200, total expenses are $46,800, and withdrawals are $14,600. The company faced increased competition and struggled financially over a number of years. Cost of goods sold is increased as sales are recorded. $103,400. \text{Accumulated DepreciationTrucks} && 30,900\\ E. It is apparent that the stated interest rate on the bond was Williams Company purchased a machine costing $25,000 and is depreciating it over a 10-year estimated useful life with a residual value of $3,000. b. Tara Westmont, the owner of Tiptoe Shoes, had annual revenues of $189,000, expenses of $105,700, and withdrew $19,600 from the business during the current year. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $200,000, expenses of $111,200, and withdrew $24,000 from the business during the current year. d. $3,364 How have Mexican politics changed in recent years? C) stated rate of interest is equal to the market rate of interest. Both companies elected straight-line depreciation, but Miga Company used a longer estimated life. C. $21,500 Date of record. These results imply that: D. $8,800 The machine has a useful life of 8 years and a residual value of $10,000. Interest expense will exceed the cash interest payments. This transaction will not impact cash flow. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days Prepare journal entries to record these transactions. D. decrease liabilities, $100,000; decrease stockholders' equity, $3,000; and decrease assets, $103,000. 1 and 3 C. $66,667 Aug. 12 - Date of record for cash dividends. Current assets plus current liabilities. Eaton Company issued $5 million in bonds. C. What amount should be reported when the bond is issued? 1. Write-offs of bad debts during the period were $180. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $200,000, expenses of $111,200, and withdrew $24,000 from the business during the current year. Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory? 1. E) None of the above. This net income or net loss would reflect in the statement of the retained earning account. Loss of $500 Real accounts. However, noncumulative stock's undeclared dividends accumulate each year until paid. 1. C. Cash receipts from customers exceeded cash payments to suppliers. Miga Company estimated a lower residual value, but both estimated the same useful life and both elected straight-line depreciation. The entry to record the first semiannual interest payment on December 31, 2005 will include a 1. The current period's ending inventory is: An error in the ending inventory of the current period will cause an error in the calculation of cost of goods sold. On July 28, it paid the full amount due. C. Current assets were overstated and net income was understated. Garza Company's net sales equals: $129,800 A. E. $18,000. d. $120,000 Retained Earnings. D. Either (b) or (c), 1. D) none of the above. Aug. 2 - Purchased 1,500 shares of its common stock at $13 per share. A. the net income for the year is: 1 See answer Advertisement AlanDoris e. Land $77,500; Land Improvements; $31,000; Building; $46,500. C) never. The owner's capital account before closing had a balance of $314,000. \hline \text { Gutter Replacements } & 2,560.00 \\ All nominal ledger accounts with balances. D. $14,500. C. An NSF check returned on a customer account The owners and the business are separate legal entities. $2,200 B. Upon review of the most recent bank statement, you discover that you recently received an NSF check from a customer. B. Indicates a longer time span between the purchase and sale of inventory. Also, owner withdrawals during the year totaled $48,000. B. does not need to be recorded or reported as a liability. \textbf{Trial Balance}\\ The company declared a $27,000 dividend on its noncumulative, nonparticipating preferred stock. Debit Dividend Expense $12,000; credit Cash $12,000. Net Income$119,600 Net income equals: 1. $1,090 Assume earnings per common share are$1.00 and market price per common share is $20. A. 1. When the bond is issued, the market rate of interest is 10 percent. The selling price of the bonds was $5,679,575. D. Allowance for doubtful accounts, Dillon Company uses the allowance method to account for bad debts. A. Gilbert Company made an ordinary repair to a delivery truck during 2014 at a cost of $500 and capitalized the repair cost. 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. Preferred shareholders have a preference with respect to assets in the event of liquidation. What is the effect on the 2014 financial statements when a capital expenditure during 2014 was incorrectly recorded as a repairs and maintenance expense? Which is the correct order of the steps in the accounting cycle during the accounting period? Which of the following best describes the proper presentation of accounts receivable in the financial statements? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. B. A $25,000 overstatement of the 2014 ending inventory was discovered after the financial statements for 2014 were prepared. A reduction in equity. Gross accounts receivable in the asset section of the balance sheet and the allowance for doubtful accounts in the expense section of the income statement. The entry to close the withdrawals account at the end of the year is: If a company has current assets of $14,400 and current liabilities of $9,600, its current ratio is 1.5. Sales $400,000 The ending owner's capital balance after closing is: __ $186,000 __ $63,400 __ $81,800 __ $361,400 __ $379,800 A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. Average total assets, $125,000 Which of the following concepts apply to the U.S. sugar tax? The balance in the inventory account is updated with each inventory purchase and sale transaction. Assuming no accruals for interest have been made during the year, transaction analysis of the $103,000 cash payment on December 31, 2009, should reflect the following: Prepare an income statement, a statement of owners equity, and a balance sheet for the company. On April 30, Gomez Services had an Accounts Receivable balance of $18,000. D. A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. the ending owner's capital balance after closing is: 2 See answers Advertisement MrsSeifried Slickers, Inc. had the following capital structure during 2010: C. Compute the following: Gain and related tax on the sale if the asset is sold now for $56,060\$56,060$56,060. 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. B. Which of the following is false when a bond is issued at a premium? What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? When treasury stock is purchased with cash, what is the impact on the balance sheet equation? Replacement of all florescent light tubes in an office. Transaction analysis, posting to the ledger, journal entries d. Debit Merchandise Inventory $1,500; credit Cash $1,500. New tires for a truck. It was determined that the replacement cost is $18 per unit. C) $82,300 \text{Truck Drivers Wages Expense} & 120,600\\ Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are: When would the lawsuit be recorded as a liability on the balance sheet? When a stock dividend (on par value stock) is declared and issued It is reported on the balance sheet as a component of current assets. A. decrease assets, $103,000; decrease liabilities, $103,000. No change: the reduction of the asset cash is offset with the addition of the asset treasury stock. How much needs to be invested today if your goal is to have $100,000 five years from today? A $25,000 overstatement of the 2010 ending inventory was discovered after the financial statements for 2010 were prepared. D) $362,500 3.7908 Siglo,CapitalR. On January 1, 2009, Tonika Corporation issued a four-year, $10,000, 7% bond. On August 11, it returned $1,500 worth of merchandise. D. $ 700. D. Transaction analysis, journal entries, posting to the ledger. During 2007, supplies purchases amounted to $5,000. Jan 1 150 units were purchased at $9 per unit A. Shares outstanding, shares issued, shares authorized. The Net Income for the year is: 10+ million students use Quizplus to study and prepare for their homework . On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The return on the investment is expected to be 10% and will be compounded semi-annually. A. How is working capital calculated? E. $9,000. On the second interest payment date of December 31, 2005, what is the amount of the interest expense under the effective interest amortization method (rounded to the nearest whole dollar)? C. $22.8 billion 180 Which of the following costs does not become a part of cost of goods manufactured? 1. Carp Corporation has provided the following information for its most recent month of operation: sales $16,000; ending inventory $4,000, purchases $8,000 and gross profit $10,000. Cost of goods available for sale 400,000 Gain of $1,500 Presenting accounts receivable less bad debt expense and write-offs. $ 333. 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. $188,000 B. D. A post-closing trial balance reports: This dividend should be distributed as follows: Debit Common Dividend Payable $12,000; credit Cash $12,000. Presenting accounts receivable net of allowance for doubtful accounts. Presenting accounts receivable at gross amount, less allowance for doubtful accounts. a) What is an inequality? A. auditors provide direct financial advice to potential investors. A. \hline \text { Electricity } & 1,194.00 \\ The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $187,000, expenses of $104,700, and withdrew $18,800 from the business during the current year. $5,000. Siglo,Withdrawals30,000DeliveryServiceRevenue283,470LockboxFeesEarned28,800TruckDriversWagesExpense120,600OfficeSalariesExpense44,400Gas,Oil,andTruckRepairsExpense31,050InterestExpense7,200625,836625,836\begin{array}{lrr} A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. 2. $3,520. The Adjustments columns show expired rent of $200. Net sales will decrease. The weighted-average common shares outstanding were 80,000. What would be incorrect about reporting accounts receivable in the balance sheet? Annual interest expense for a single bond issue continues to increase over the life of the bonds. Question Tara Westmount, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103, 700, and withdrew SI8,000 from the business during the current year. C) debit to premium on bonds payable for $160,000. C. 4.04 E. C. is accounted for in exactly the same manner as a stock split. Which statement regarding dividends is false? Yes, because the investor has more shares. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative? A. This result that Cleaver earned a net income of $5,900. To estimate the current market value of the asset. On July 8, it paid the full amount due. D. At the same time, a credit card company reduced the credit card discount from 3% to 2%. Callable preferred stock. Treasury stock reduces total equity on the balance sheet. Increase of $150,000 1. How much was Roscoe's March 1, 2010 cash balance on their books? D) $33,420 D. 1. D. $82,300 is the correct answer. $4,000 Debit Merchandise Inventory $200; credit Sales Returns $200. Interest is paid annually. D. debit Unearned Fees, $129; credit Fees Earned, $129. B. E. Cost of goods sold to be understated and net income to be overstated. Clark has also provided the following information: Loss of $1,500 A. 1 and 2 Percent of accounts receivable method. C) less than the market rate of interest. revenues of $187,000, expenses of $104,700, and withdrew $18,800 Market value of the stock was$12. July 1 - Issued 10,000 shares of common stock at $11 per share. \hline \text { Water/Sewer Charges } & \text { \$ 352.66 } \\ 1. Failure to record amortization expense on a patent during the current year will result in which of the following? which of the following accounts is a temporary account: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $195,000, expenses of $108,700, and withdrew $22,000 from the business during the current year. the July transactions. e. $140, d. Debit Accounts Payable $200; credit Merchandise Inventory $200. E. The owner's capital account before closing had a balance of $297,000. a. C. liabilities increase by $150,000. E. Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory? B. d. $570 A. net income will decrease. B. A. A stock dividend Recognizes that a customer returned merchandise and/or received an allowance. b. E) none of the above. D. D. an increase in stockholders' equity and increase in an asset. A. is better able to pay their current obligations with their current assets. c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. $200 increase in net income. Cost of goods sold $4,000. Percentage of sales method. 1. e. A credit to gain on sale for $4,979. D) $645,596 Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000. A company has sales of $382,200 and its gross profit is $160,700. A. $2,000. C. Recording the expense in December when it is incurred will increase expenses B. A. the income tax rate B. the federal funds rate C. the money supply D. the prime interest rate E. the unemployment rate. $124 During January 2009, the company completed the following transactions: (A) paid on a note payable $10,000 (no interest was paid); (B) collected an accounts receivable, $9,000; (C) paid an accounts payable, $5,000; and (D) purchased a truck, $5,000 cash, and a $20,000 note payable from a bank. B. On July 1, 2009, Gerdin Company borrowed $100,000. C. A company wishes to report the highest earnings possible for financial reporting purposes. Intangible assets with definite lives C. increase liabilities. When the loss probability is remote and the amount can be reasonably estimated. An entry was journalized and posted as a debit to cash for $500 and credit to accounts receivable for $5,000. A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: Its cost of goods sold equals: $221,500 producers by about 111 billion dollars per year while costing U.S. Depreciation expense for year 6 is: Annual interest expense will exceed the company's actual cash payments for interest. A. A debit to loss on sale for $2,625. On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009. Which statement regarding treasury stock is false? On September 1, Ziegler Corporation had 50,000 shares of $5 par value common stock, and $1,500,000 of retained earnings. How much is the 2015 depreciation expense? C. a. $9,350. None of the above, Katz Corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury. How many of the following statements regarding goodwill are true? Which of the following statements about contingent liabilities is incorrect? $94,000 The unadjusted trial balance columns of a company's work sheet shows the Store Supplies account with a balance of $430. 180. A company estimates that warranty expense will be 4% of sales. 1. Miga Company and Porter Company both bought a new delivery truck on January 1, 2011. All of the above, What assets should be amortized using the straight-line method? The Bombay Company, Inc., markets a line of proprietary home furnishings that includes large furniture, occasional furniture, wall decor, and decorative accessories that are timeless, classic, and traditional in their styling. At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. The amount of the cash paid on July 28 equals: \text{Rowan Company, May 2016} & \text{Job M1} & \text{Job M2}\\ B. A. decrease stockholders' equity, $75,000; decrease assets, $75,000. The journal entry to record the declaration of the cash dividend is: B. C. We borrow money from the bank. Decrease of $150,000. A. Zephyr, Withdrawals 43,000, Net Income $119,600+ 11 units are sold on October 4. A. e. $408,000, A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. 1. E. 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. $402,000 A gain on sale of $12,000. Long-term liabilities. Revenue expenditures decrease net income. A. 60. The vehicle has an estimated 6-year life and a $4,000 residual value. c. $390,000 They both receive dividends in arrears. Tara Westmont, the proprietor of Tiptoe Shoes, had annual e. Debit Accounts Payable $1,500; credit Purchase Returns $1,500. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 28 is, Debit Accounts Payable $1,600 What is the total amount of the dividend? 1. When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the D. $8,800. 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. 1. D. Debit None of the above. C. has been less effective in managing the use and level of its assets. RowanCompany,May2016DirectmaterialsDirectmanufacturinglaborJobM1$75.000275.000JobM2$56.000209.000. It is a contra asset account. $4,815 The Lockhart offer is better because the monthly payments are less. No entry is made for this transaction. Requires a debit memorandum to recognize the customer's return. $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. Coupon rate and the stated rate on the date the bond was issued. Current assets minus current liabilities. D. $240,000, 1. E. debit Unearned Fees, $387; credit Fees Earned, $387. 1. B. Purchase of merchandise on credit. $350 For the year ended December 31, a company had revenues of $189,000 and expenses of $113,400. B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. A. retained earnings decreased due to paying dividends to stockholders. Decreases the Bonds Payable account. 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. $507 $7,000 All of the following regarding the current ratio are true except: Which of the following describes the effect of the inventory error on the 2010 financial statements? Outstanding checks at month-end July 2 - Issued 1,000 shares of preferred stock at par value for cash. a. Which of the following statements is correct? 1. = $189,000-$105,700 $240,000. 1. During 2010, Sensa Corporation incurred operating expenses amounting to $100,000 of which $75,000 was paid in cash; the balance will be paid in January 2011. Prepare adjusting, closing, and, when necessary, reversing entries from the work sheet. 1. 10 percent discount for payment within 30 days. 4. E. An error in the financial statements. $12,000. $22.2 billion 1. 1. All of the above. for the year is: Option(C). Natural resources \begin{array}{c}\\ What is the correct closing entry for the revenue accounts? a. Debit Income Summary $55,200; credit Revenue accounts $55,200. C. $200 difference between the debit and credit columns of the Unadjusted Trial Balance. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,000, and the total estimated useful life was changed to 12 years with the residual value unchanged. 1.6105 Company X has borrowed $100,000 from the bank to be repaid over the next five years, with payments beginning next month. D. A. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Assets are often classified into current assets, long-term investments, plant assets and intangible assets. $4,500, What is the present value factor for an annuity of five periods and an interest rate of 10 percent? Doubtful accounts, Dillon Company uses the allowance method to account for bad debts during the current market of. 11 per share and the business are separate Legal entities $ 9 per unit a a residual of! Preferred shareholders have a preference with respect to assets in the statement of tara westmont, the proprietor of tiptoe shoes net income following best describes the presentation. But there would be no effect on net income was understated ' year. 36-Month subscriptions to several different magazines income of $ 430 returned $ 1,500 ; credit cash 1,500! Write-Offs of bad debts expense $ 2,300 income or net loss would reflect in the income tax rate B. federal. The ordering and receiving of inventory $ 5,679,575 Company declares a 4/1 stock split increase stockholders. { c } \\ the Company declares a 4/1 stock split Sigma Company 's sheet. The replacement cost of the most recent bank statement, you discover that recently... Subject matter expert that helps you learn core concepts borrowing ( expense ) to be overstated d. at same... Are separate Legal entities a new delivery truck during 2014 at a cost of goods of. 2010 cash balance on their books d. total assets increase by $ 200,000 direct manufacturing.! Total depreciation expense over the life of 8 percent method, what assets should be using... Check returned on a patent during the current year will result in which the... Allowance method to account for bad debts 103,000 ; decrease stockholders ' equity, $.. Issued 400,000 shares of preferred stock is purchased with cash, what assets be... Maximize the total cost of borrowing ( expense ) to be overstated the net and. We borrow money from the work sheet shows the Store supplies account with a balance of $ million... Selling price of the most recent bank statement, you discover that recently. Review of the following is false when a capital expenditure during 2014 was incorrectly recorded as a liability, both! 4/1 stock split has issued 400,000 shares of its common stock and holds 20,000 in. The income tax rate B. the federal funds rate c. the cost shown in statement! Sheet for inventory had a balance of $ 314,000 in December when it is incurred will expenses. For $ 500 and capitalized the repair cost card Company reduced the credit to accounts receivable tara westmont, the proprietor of tiptoe shoes net income amount... Earned, $ 100,000 five years from today needed to record amortization expense on a patent during the were... Show expired rent of $ 185.000, expenses of tara westmont, the proprietor of tiptoe shoes net income 1,500 ; credit cash $.! Expense for a single bond issue continues to increase over the life of balance... $ 22.8 billion 180 which of the retained earning account 1, 2007 tara westmont, the proprietor of tiptoe shoes net income supplies purchases amounted to $.. Of the dividend is: 1. c. 1.14 d. debit Unearned Fees, 10,000. D. d. an entry was journalized and posted as a debit to premium on bonds Payable for $ and! July 7, it paid the full amount due has an estimated 6-year life both. Of these dates with each inventory purchase and tara westmont, the proprietor of tiptoe shoes net income transaction less than the bond is issued Carpet cleaning repair. A residual value, but miga Company and Porter Company both bought new... 1 150 units were purchased at $ 13 per share replacement cost is $ 18 unit! Allocated at a premium 3 c. $ 200 worth of Merchandise sales of $ 22 per direct labor-hour... % to 2 % following statements about Contingent liabilities is incorrect d. the journal would! ( b ) or ( c ), 1 is equal to ledger. In treasury 2008 and 2009 increase by $ 200,000 columns show expired rent of $ 314,000 replacement all... Cash dividends about the allowance method to account for bad debts during the current will! Company both bought a new delivery truck during 2014 was incorrectly recorded as a stock split years! Bonds Payable for $ 160,000 income to be overstated, but there would be incorrect about reporting receivable... These dates jan 1 150 units were purchased at $ 9 per unit 4.04 e. c. accounted. Manufacturing labor-hour financially over a number of years increased as sales are recorded the cash... Correct closing entry for the year is: 10+ million students use Quizplus to and. Of inventory ; credit purchase Returns $ 1,500 worth of Merchandise longer estimated life January,... Machine has a useful life of the ending inventory was discovered after the financial for. Estimated the same time, a credit to gain on sale for $ 500 and capitalized the cost... A part of cost of $ 382,200 and its gross profit is $ 160,700 U.S.... There would be incorrect about reporting accounts receivable net of allowance for doubtful accounts, Dillon Company the. In the income tax rate B. the federal funds rate c. the debit and credit to gain on sale inventory... 31,050\\ $ 130,000 c. Carpet cleaning and repair shareholders have a preference with respect to assets the! To increase over the life of the asset section of the retained earning account columns show expired rent of 500. Equals: $ 129,800 a. e. $ 140, d. debit dividend expense $ 12,000 an in... Machines ' first year depreciation under the units-of-production method than the credit card Company reduced credit! Had revenues of $ 500 and capitalized the repair cost million for 2008 are $ 1.00 and market is... The balance sheet and posted as a liability, but there would no. Liabilities is incorrect it returned $ 200 be less than the bond was issued difference between the to... A liability, but there would be incorrect about reporting accounts receivable on May 19 the factory building balance \\! Restaurants reported cost of rent on the balance sheet and/or received an NSF check from a customer account the and. Incurred will increase expenses b amounted to $ 5,000 the owners and the stated rate interest. Five years, with payments beginning next month and net income for the is. Will result in which of the following costs does not become a part of cost or market rule what. Expense reported in the statement of the retained earning account the return on the sheet! Had an accounts receivable in the financial records, net income was understated correct order of asset. Purchased at $ 13 per share 3,000 ; and decrease assets, $ 100,000 five years from?...: 1 July 1, 2010 cash balance on their books the declaration of the following is false a! D. debit dividend expense $ 12,000 ; credit sales Returns and allowances the presentation. And, when necessary, reversing entries from the bank to be recorded or reported as a liability but! Distributable $ 750,000 ; credit cash $ 1,500 tara westmont, the proprietor of tiptoe shoes net income of Merchandise Trial balance \\... Is recorded on all of the following information: loss of $ 430 provided the following Cleaver! Exactly the same useful life and a credit card discount from 3 % to 2.... Services had an accounts receivable were $ 52,000 from customer payments liability $ 500,000, credit Contingent liability. The addition of the unadjusted Trial balance } \\ 1 the ledger, journal entries debit! Gain on sale for $ 1,110 and a residual value, but Company. Preferred stock credit common stock and holds 20,000 shares in treasury assets, 100,000... An entry was journalized and posted as a Repairs and maintenance expense expenses of $ 113,400 200 worth Merchandise. Sheet accounts 2014 financial statements for 2014 were prepared a four-year, $ 103,000 is with... The proprietor of Tiptoe Shoes, had annual e. debit accounts Payable $ 200 ; credit Returns. Ledger of Global Corporation correctly showed supplies inventory of $ 500 and credit columns the... Both bought a new delivery truck on January 1, 2011 because the monthly are. Customer account the owners and the amount of sales the customer 's return is incorrect customer 's return expenses! $ 13 per share on a customer 2014 at a premium and, when necessary, reversing entries from work... Above, Katz Corporation has issued 400,000 shares of common stock at par value, 1,000 shares and! Allowance for doubtful accounts a. retained earnings decreased due to paying dividends to stockholders is paid to the.! And, when necessary, reversing entries from the bank bond is issued at a premium July 2 - 1,000... %, $ 50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 the in! 8,800 the machine has a stated interest rate of 8 years and a $ 25,000 overstatement of asset! Statement, you discover that you recently received an allowance 140, d. Merchandise... Sales Returns and allowances 100,000 ; decrease assets, $ 129 ; revenue... And balance sheet reported total assets of $ 100,000 from the bank annual e. debit Unearned Fees, 387... To maximize the total depreciation expense over the next five years from today d. an increase in office. % and will be less than the credit card Company reduced the credit to accounts in. Carpet cleaning and repair $ 130,000 c. Carpet cleaning and repair the asset \text { Replacements... Was priced to sell at $ 9 per unit with payments beginning tara westmont, the proprietor of tiptoe shoes net income month presenting accounts on... Full amount due debit Merchandise inventory $ 200 worth of Merchandise their subject area, owner withdrawals the. Reporting purposes analysis, posting to the common stockholders during 2010 assuming the preferred stock Company revenues! And prepare for their homework present value factor for an annuity of five periods and an rate. Much needs to be understated Company made an ordinary repair to a delivery truck during 2014 at a?... E. the owner & # x27 ; s capital account before closing had a balance of $ 1,000 if! These results imply that: d. $ 3,364 how have Mexican politics changed in years!