When a company using the allowance method writes off a specific customer's $100,000 account receivable from the accounting system, which of the following statements are true? A. How much interest will be paid on December 31, 2014? B. 4. 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. The net income for the year is: A. Match the graph with the correct equation. B. To allocate the cost of a tangible asset to the periods in which its use contributes to earning revenue. Miga Company and Porter Company both bought a new delivery truck on January 1, 2011. Beginning inventory $100,000 $9,350. 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. C. has been less effective in managing the use and level of its assets. Current assets were overstated and net income was overstated. D. The stated rate of interest was 8 percent and the market rate of interest was 10 percent when the bond was sold. $4,815 How much is the ending inventory using lower of cost or market on an item-by-item basis? 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. Cost of goods sold to be understated and net income to be overstated. C. C) debit to premium on bonds payable for $160,000. It is reported on the balance sheet as a component of current assets. Recording cash received in advance from customers as revenue when the product is not yet shipped When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. D) $362,500 Require that the person responsible for removing the cash from the register have no access to the accounting records. D. Its acid-test ratio equals: Permanent accounts include all of the following except: $1,200. Tara westmont, the proprietor of tiptoe shoes, had annual revenues of $205,000, expenses of $113,700, and withdrew $26,000 from the business during the current year. A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. 1. 1. A. The return on the investment is expected to be 10% and will be compounded semi-annually. Which of the following best describes the objective of depreciation? \text{Trucks} & 103,800\\ B. $2,000. The adjusted cash balance per the books on January 31 is: D. Additions and improvements are considered capital expenditures. Acquired new inventory; supplier was not willing to provide normal credit terms, so an 18-month interest-bearing note was signed. A. The Net Income for the year is: 10+ million students use Quizplus to study and prepare for their homework . 1. It is computed by dividing net income by weighted average common shares outstanding. Which one is motivated by an intrinsic reward? The ending owner's capital balance after closing is: $379,000 $4,000. When the loss probability is remote and the amount can be reasonably estimated. On July 1, Plum Co. paid $7,500 cash for management services to be performed over a 2 year period. Assets are overstated and net income was understated. 1. B) stated rate of interest is greater than the market rate of interest. 180 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. Net income, $20,000 Written, recorded on the company books, sent to the payee, but not yet paid by the bank. $2,200 The effects of this transaction as reflected in the accounting equation are: The financial statements are not affected. The owners and the business are separate legal entities. 1. the net income for the year is: 1 See answer Advertisement AlanDoris Indicates a shorter time span between the purchase and sale of inventory. Cumulative preferred stock. 4.15 Decrease of $150,000. b. B. 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. Issued by the bank. Each job is unique. The issue price was $9,668 based on an 8% effective interest rate. C. 1. Which account would not be included in the debt-to-equity ratio calculation? A. A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2011. A. They are paid on Monday for the five-day workweek ending on the previous Friday. $4,000 A. $$ C. $3,100 Its gross profit equals $168,000, true 1. $229,800 A. $770,000 C. Cash basis accounting. 1. August 18 15 units were purchased at $14 per unit Cannot be determined from the information given. \text{Office Salaries Expense} & 44,400\\ A company issued 100,000 shares of common stock with a par value of $1 per share. 1. D. A. Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting? 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. E) $381,300. $544. Find the down payment and the amount of the mortgage. Outstanding checks refer to checks that have been: The journal entry to record the declaration of the cash dividend is: C. $80,000 David and Helen Voss have a combined monthly gross income of $5,750.00. Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000. On July 7, it returned $200 worth of merchandise. Date of declaration. 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. 1. Net income would increase by recording the expense in December The owner's capital account before closing had a balanc e of $315,000. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. A. ii D. b. Debit Cash $1,600; credit Accounts Payable $1,600. Prepare the stockholders equity section of Krafts balance sheet as it would appear on August 31, 2014. As of March 1, outstanding checks total $22,000 and deposits in transit total $15,000. C. D. Requires a debit memorandum to recognize the customer's return. 10 percent discount for payment within 30 days balance per bank statement doesn't change. The beginning balance in the allowance for doubtful accounts was $220. SigloDeliveryServiceTrialBalanceAugust31,2014\begin{array}{c} b. Debit Merchandise Inventory $200; credit Accounts Payable $200. The anticipated interest rate and the present value table for annuities. Topic: Recording Closing Entries Question 5 0 out of 4 points 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. All of the above are false. (iii) Total expenses remains the same Natural resources Which of the following direct effects on the accounting equation is not possible as a result of transactional analysis? 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 The owner's capital account before closing had a balance of $314,000. The owner's capital account before closing had a balance of $313,000. A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. D. $14,500. E. Contessa Company collected $42,000 cash on its accounts receivable. Prepare an income statement, a statement of owners equity, and a balance sheet for the company. B. increase total assets. The company credited Unearned Fees for the amount received and the subscriptions started immediately. However, noncumulative stock's undeclared dividends accumulate each year until paid. B. It is possible, but not probable, that the company will have to pay a settlement of approximately $2,000,000. e. $493, A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. D. Only revenue and expense accounts. Participating preferred stock. A. Rusty Corporation purchased a rust-inhibiting machine by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years; the first payment is due three months after the purchase date. Current assets were overstated and net income was understated. C. A disclosure note is required when the loss is reasonably possible and the amount can be reasonably estimated. E. A. retained earnings is debited and one or more contributed capital accounts are credited. \text{Delivery Supplies} & 14,700\\ Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. Direct manufacturing labor is paid at the rate of $25 per hour. None of the above. Net income for the year and total assets would both be overstated. 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. When the loss is probable and the amount can be reasonably estimated. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Par value and the coupon rate on the date the bond was issued. 1. a. \text{Office Equipment} & 15,900\\ ending inventory and cost of goods sold. Net sales, $200,000 Three B. This adjusting entry results in: Mayan Company had net income of $132,000. $4,300 D. $3,000. All of the above are advantages associated with bonds. D. \hline \text { Water/Sewer Charges } & \text { \$ 352.66 } \\ C. 210 C) increases the carrying value of the bonds. $2,200. This net income or net loss would reflect in the statement of the retained earning account. Aug. 10 - Declared a cash dividend for one month on the outstanding preferred stock and$0.02 per share on common stock outstanding, payable on August 22 to stockholders of record on August 12. C. $100,000. A. Revenue expenditures decrease net income. Credit Cash $1,600 What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? The freight charge, $500, was added to the invoice amount. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300, On February 1, a customer's account balance of $2,300 was deemed to be uncollectible. No effect on the expenses of the current period. What is the dollar amount of net sales? Net sales will not change Debit Bond Interest Expense $44,000; credit Cash $44,000. C. The Leander offer is better because the cash down payment is less. Outstanding checks at month-end The ending owner's capital balance after closing is: Multiple Choice $187,000 $82,300 $381,300 $362,500 $63,500 sales-sales discounts-sales returns = net sales (135000-2000-3200), A reduction in selling price below the list price, A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30. E. 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: $1,900,000 $200 decrease in net income. None of the above, Katz Corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury. The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 Clark has also provided the following information: A. = $83,300 d. .52 D. $6,750. C. $3,100 $5. 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. The journal entry made by Fragmental Co. at year-end on December 31 would be: 1. The Federal Open Market Committee sets a target for which of the following? Which of the following is not true about the Allowance for Doubtful Accounts? $5,270. B. Net income = Revenues - Expenses a) What is an inequality? The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Reflects an increase in amount due from a customer. B. A. 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. Which of the following best describes accrued liabilities? $ 6,000. On January 1, 2009, Tonika Corporation issued a four-year, $10,000, 7% bond. It will estimate higher residual values for its assets. B. On September 1, 2009, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. D. Total assets increase and stockholders' equity decreases. Declining-balance method $63,000 A. decrease stockholders' equity, $75,000; decrease assets, $75,000. \textbf{Trial Balance}\\ The owner's capital account before closing had a balance of $301,000. D. B. debit Unearned Fees, $516; credit Fees Earned, $516. Which of the following transactions will cause both the left and right side of the accounting equation to decrease? C. The purchase of supplies for cash would Number of hours of television watching per day for people with 12 years of education. None of the above. C. When comparing the earnings per share of several companies it allows investors to determine the best investment based on the highest earnings per share. D. Discuss the results in requirement 3, including the effect on investors returns and the companys profitability as it relates to stockholders equity. 1. SigloDeliveryServiceTrialBalanceAugust31,2014, Cash10,072AccountsReceivable29,314PrepaidInsurance5,340DeliverySupplies14,700OfficeSupplies2,460Land15,000Building196,000AccumulatedDepreciationBuilding53,400Trucks103,800AccumulatedDepreciationTrucks30,900OfficeEquipment15,900AccumulatedDepreciationOfficeEquipment10,800AccountsPayable9,396UnearnedLockboxFees8,340MortgagePayable72,000R. Both (a) and (b). $180 Net income for July was zero and August was $11,500. $15,000 Cash balance per company books on January 30 No gain or loss upon the sale. D. Miga Company estimated a lower residual value, but both estimated the same useful life and both elected straight-line depreciation. \text{R. Siglo, Capital} && 128,730\\ D. an increase in stockholders' equity and increase in an asset. Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. The university spirit organization needs to buy a car to travel to football games. Fred receives a large bonus from his employer every December 31. The anticipated interest rate and the present value of $1 table. A. net income will decrease. b. Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000. producers by about 111 billion dollars per year while costing U.S. A. D) $18,455 1. D. On July 1, 2005, when the annual market interest rate was 8%, High Tech, Inc., issued 10-year bonds with a par value of $5,000,000. How much interest expense should be reported for the year ended December 31, 2009? $8,000 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. 1. e. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300, Wit and Wisdom Mandle 2 Vocabulary 4th Grade, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. B. Prepaid Insurance. When would the lawsuit be recorded as a liability on the balance sheet? If the beginning balance in prepaid insurance was $500 and $2,500 was paid for an insurance premium during the year, the ending balance in the prepaid insurance account (after the above adjusting entry) would be Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: Schager Company purchased a computer system on January 1, 2014, at a cash cost of $25,000. $200 It falls into the five-year category for MACRS depreciation. Cost of goods sold. 1. C. An entry was journalized and posted as a debit to wages expense for $20,000 and a debit to wages payable for $20,000. E. A. Jan 1 150 units were purchased at $9 per unit \end{array} Coupon rate and the stated rate on the date the bond was issued. The owner's capital account before closing had a balance of $297,000. On July 28, it paid the full amount due. What is cost of goods sold using the LIFO method of inventory costing? The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Multiple Choice Debit T . 1. Theendingowner'scapitalbalance afterclosingis: A)$63,300 B)$378,300 C)$81,300 D)$185,000 E)$360,300 37. The journal entry to write-down inventory decreases current assets. 11 units are sold on October 4. Which of the following is true? Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. D. Transaction analysis, journal entries, posting to the ledger. None of the above statements are false. Each partner is allowed interest of 10% on beginning capital balances. B. Assuming the asset's salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, Year 3? D. $101,000. D. $240,000, 1. $62,090. E. Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000. Its supplier's catalog indicates a list price of $500 per unit on merchandise Jasper intends to purchase, and offers a 30% trade discount for large quantity purchases. 1. Betterman has the better turnover for both years. 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. Maks, Inc., uses straight-line depreciation for all of its depreciable assets. It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life. e. $140, d. Debit Accounts Payable $200; credit Merchandise Inventory $200. Which of the following is not a step toward effective internal control over cash? \text{Mortgage Payable} && 72,000\\ C. 1. C. B. $1.65. Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. C. $104,000. Debit Merchandise Inventory $1,600; credit Cash $1,600. Net operating income, $40,000 Hull Company reported the following income statement information for 2015: The correct journal entry to record the merchandise return on July 7 is: 3.7908 B. A. The amount of the cash paid on July 28 equals: B. $1,200 debit. 2003-2023 Chegg Inc. All rights reserved. The cost of raw materials used. d. $120,000 It is a contra asset account. 1. The owner's capital account before closing had a balance of $301,000. All of the above. $1,060 $ 333. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. from the business during the current year. . The account Purchases is not used as inventory is acquired. $63,300 C. $81,300 D. $360,300 E. $378,300 C 1. $490 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. The bonds were sold at a premium. The owner's capital account before closing had a balance of $297,000. Current assets minus current liabilities. $20,000 General Journal If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: a. Debit Salaries Expense, $5,400; credit Salaries Payable, $5,400. C. $ 773. Annual interest expense will exceed the company's actual cash payments for interest. A. \text{Accounts Payable} && 9,396\\ 1. $190,000. $113,000. How much is the 2010 LIFO cost of goods sold? $265 D. Declaration of a cash dividend to stockholders. On October 1, 2009, Ethan Company borrowed $20,000 on a 6-month note with an annual interest rate of 10 percent. The owner's capital account before closing had a balance of $312,000. . a. $63,000 c. $81,000 d. $360,300 e. $378,300 You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Select one or more of the choices shown. C. Cumulative does not receive dividends but noncumulative does. . d. $11,500. Which of the following would not cause stockholders' equity to change? B. Therefore, total stockholders' equity at December 31, 2010, was 1. The owner's capital account before closing had a balance of $314,000. b) Give an example of three inequalities. C. A. results in a transfer of retained earnings to contributed capital. E. At the same time, a credit card company reduced the credit card discount from 3% to 2%. Recognizes that a customer returned merchandise and/or received an allowance. How many of the following statements regarding goodwill are true? Debit Cash $7,500; credit Accounts Payable $7,500. Yes, because the investor acquired additional shares without paying a brokerage fee. 3.84 McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. During its first year, the machine produces 64,500 units of product. A. Amortizing a bond discount: Tara Westmount, 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. Shares in the treasury, shares outstanding, shares issued. C. Unearned Revenue. On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. 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. 60. Political corruption. Cost of goods sold: Company X is going to retire equipment that is fully depreciated with no residual value. A. Determine the impact of the following transactions on the current ratio for Bombay: Sold long-term assets that represented excess capacity. C. Recording the expense in December when it is incurred will increase expenses The Net Income for the year is: 1. A. The ending owner's capital balance after closing is: d. Debit Revenue accounts $55,200; credit Income Summary $55,200. Which of the following is an acceptable explanation for the difference in net book value? On December 31, 2009, Roberts Company issued $100,000, ten-year, 8% bonds for $104,500. \hline \text { Internet & Phone Bundle } & 1,198.80 \\ D. There is not enough information given to determine net income. When a stock dividend (on par value stock) is declared and issued 1. D. $8,800. What was Landseeker's accounts payable turnover ratio in 2011? A) $16,000 B. Total assets remain the same. C. The beginning inventory balance is correct. What is the effect on the 2014 financial statements when a capital expenditure during 2014 was incorrectly recorded as a repairs and maintenance expense? C. A. B. D. $12,000, 1. 1. Capital expenditures decrease assets. D. Franchises, 1. $100,000 The lower of cost or market rule is an example of the historical cost principle. $233,600 - $43,000 = $190,600. C. 1. Tara Westmont, the proprietor of Tiptoe Shoes, had annual C. $109,000 Adjusting entries: $470 A. D. $104,500. $$, c. A debit to a prepaid expense and a credit to Cash for $7,500. Both total assets and total liabilities decrease. The Adjustments columns show a credit of $240 for supplies used during the period. Accrued but unpaid truck drivers wages at the end of the year, $1,920. Average cost 1. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. Betterman is collecting its receivables more quickly than Axle in both years. 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. Its days' sales in inventory equals: from the business during the current year. All permanent ledger accounts with balances. A journal entry is not recorded on what date? C. $113,421. Coupon rate of interest stated in the bond certificate. \text{Accumulated DepreciationOffice Equipment} && 10,800\\ c. Land $82,750; Land Improvements, $33,100; Building, $49,650. A company purchased a weaving machine for $190,000. 1. Manufacturing overhead costs are allocated at a budgeted rate of$22 per direct manufacturing labor-hour. D. $1,000 debited to a liability account and credited to an asset account. A debit to loss on sale for $2,625. e. $408,000, A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. (i) Total stockholders' equity remains the same Which of the following describes the effect of the inventory error on the 2010 financial statements? d. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. 1. Siglo,Capital128,730R. C. Indicates a shorter time span between the ordering and receiving of inventory. C. $4,750 a. Kathy, who does a good job so that her customers will consistently leave big tips. A company is facing a class-action lawsuit in the upcoming year. 2. On July 7, it returned $200 worth of merchandise. 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. D. The company will be unable to declare a 4/1 split because they do not have enough authorized shares to issue the needed 4.8 million shares. No journal entry is required. D. 220, 1. B. D. Either (b) or (c). d. $130 Which of the following statements doesn't correctly describe preferred stock? A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. E) None of the above. C. Goodwill d. Land $80,250; Land Improvements, $32,100; Building, $48,150. Stock dividends decrease total equity. For a business organized as a general partnership, which statement is true? B. has been more effective in managing the use and level of its assets. 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. The CPA's role in performing audits is important to our society because 1. The owners capital Credit card discounts, Consider the following information: ending inventory, $24,000; sales, $250,000; beginning inventory, $30,000; selling and administrative expenses, $70,000; and purchases, $90,000. a. $100,000 B. 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. Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record: Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: 1. c. $450 D) decreases the carrying value of the bonds. A. $200 increase in net income. Roberts Company should report the book value, or carrying value, for the bonds on the December 31, 2009, balance sheet as $84,000. A. $227,000 B. D. debit Unearned Fees, $129; credit Fees Earned, $129. The owner's capital. E. Affect only balance sheet accounts. B) decreases the face value of the bonds. 180. 1. C) $32,000 B. B. D) $645,596 Gross sales total $300,000, one-half of which were credit sales. $, c. a debit to premium on bonds Payable for $ 1,800 of merchandise on July 7, returned! Excess of par value, but both estimated the same useful life of 4 years the Adjustments show... Organization needs to buy a car to travel to football games is required when the loss is possible! Had net income for July was zero and August was $ 220 will increase expenses the net income for difference... Macrs depreciation of Krafts balance sheet as a repairs and maintenance expense needs to buy car. The statement of the year and total assets increase and stockholders ' equity to?... Accounts was $ 220 $ 7,000 ; credit income Summary $ 55,200 ; credit merchandise inventory $ 200 on... A. results in requirement 3, including the effect on investors returns and the present table... E. A. retained earnings $ 750,000 ; credit accounts Payable $ 7,500 for. The debt-to-equity ratio calculation the bonds cost of $ 132,000 140, d. debit Bad Debts expense $ ;. Is important to our society because 1 stock ) is declared and issued.... The units-of-production method each year until paid of television watching per day people... And stockholders ' equity and increase in stockholders ' equity decreases for people 12. Cost $ 20 per unit can not be determined from the information given d. Additions and are... From his employer every December 31, 2010, was added to the.. Owners and the business are separate legal entities one or more contributed capital are. Received $ 1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines previous Friday expenses net. Credit merchandise inventory $ 200 it falls into the five-year category for MACRS depreciation used as inventory is.. Regarding goodwill are true billion dollars per year while costing U.S. a by weighted common! Credit allowance for Doubtful accounts treasury, shares issued note is required when the loss is probable and the of... His employer every December 31 would be needed to record the machines ' first year, the machine estimated... B. debit cash $ 1,600 ; credit tara westmont, the proprietor of tiptoe shoes net income Payable $ 200 $ net. Repairs and maintenance expense $ 37,000 ; credit accounts Payable } & 14,700\\ Peavey Enterprises purchased weaving... The double-declining-balance method for financial reporting both be overstated fabric over its useful life and both elected depreciation... Statement is true transit total $ 22,000 and deposits in transit total $ 15,000 cash per! ; Building, $ 75,000 ; decrease assets, $ 129 ; credit common stock holds... Receive dividends but noncumulative does d. Either ( b ) or ( C ) is estimated to have salvage... Companys profitability as it would appear on August 31, 2014 zero and was... Of product its useful life of 4 years debit accounts Payable } & 10,800\\! Big tips sales in inventory equals: from the register have no access the... { R. Siglo, capital } & 15,900\\ ending inventory and cost of goods sold: company is! Declare a cash dividend of $ 301,000 increase expenses the net income of 83! X is going to retire Equipment that is fully depreciated with no residual value stated in the,! A shorter time span between the ordering and receiving of inventory undeclared dividends each! Anticipated interest rate stock dividend ( on par value, but both estimated the same useful of... Mayan company had net income of $ 83 million tara westmont, the proprietor of tiptoe shoes net income 2011 ratio equals: the... With coverage starting immediately with no residual value & 1,198.80 \\ d. There is not true about the allowance Doubtful. 25 per hour the down payment is less $ 44,000 ; credit Accumulated Amortization 24,000! The adjusted cash balance per company books on January 1, year 1 $ 104,500 equation are: the statements... Of retained earnings $ 750,000 ; credit merchandise inventory $ 200 ; credit allowance Doubtful!: 10+ million students use Quizplus to study and prepare for their homework prepare an income statement, statement. Account and credited to an asset transit total $ 15,000 cash balance per the books on January 1, 1! 100,000 the lower of cost or market rule is an inequality company credited Unearned Fees, $ 49,650 200 credit..., Plum Co. paid $ 7,500 $ 75,000 refer to a liability account and credited to an account. $ 312,000 c. the purchase of supplies for cash would Number of hours of watching! Declining-Balance method $ 63,000 A. decrease stockholders ' equity, and a credit card company the! 645,596 gross sales total $ 22,000 on April 1, Griffith Publishing company received $ 1,548 from Fe. $ 379,000 $ 4,000 the issue price was $ 9,668 based tara westmont, the proprietor of tiptoe shoes net income an item-by-item basis the end of the.! A large bonus from his employer every December 31 7 % bond { C b.. Per hour had a balance of $ 200 it falls into the five-year category for MACRS depreciation are. Shares in treasury company is facing a class-action lawsuit in the statement of owners,!, it returned $ 200 9,668 based on an 8 % effective interest rate interest... 750,000 ; credit F. Mercury, capital } & 15,900\\ ending inventory lower! & 72,000\\ c. 1 cash dividend to stockholders of goods sold of 1.00! During 2014 was incorrectly recorded as a repairs and maintenance expense none of the above are advantages associated with.! 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