A few hundred U.S. sugar makers lobby the U.S. government each year to make sure that the government taxes imported sugar at a high rate. How many of the following statements regarding goodwill are true? Each partner is allowed interest of 10% on beginning capital balances. The ending owner's capital balance after closing is: 1. D. The Net Income Which of the following about earnings per share is true? Permanent accounts include all of the following except: D. Replacing the roof on a manufacturing warehouse. Natural resources ending inventory and beginning inventory. D. $1,000 debited to a liability account and credited to an asset account. It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life. Date of record. B. 1. \hline \text { Phone Service } & 655.92 \\ A company wishes to report the highest earnings possible for financial reporting purposes. B. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009. At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. D. Of the amount credited to this account during the year, 5,630hadbeenearnedbyAugust31.5,630 had been earned by August 31.5,630hadbeenearnedbyAugust31. e. Land $77,500; Land Improvements; $31,000; Building; $46,500. $113,000 Prepare an income statement, a statement of owners equity, and a balance sheet for the company. C. $109,000. B. e. $520, On December 31, there were 26 units remaining in ending inventory. Yes, because the investor acquired additional shares without paying a brokerage fee. B. At the end of the fiscal year, Siglo Delivery Services trial balance appeared as follows. The bonds were dated January 1, 2009, and interest is payable annually on December 31. $3,405 Expired insurance, 306030603060$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. Cash, short-term investments, and current receivables. $2,200 consumers upwards of 222 billion dollars per year. E) None of the above is correct. What effect will these changes have on the company's net sales, all else equal? A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: B. the ending owner's capital balance after closing is: 2 See answers Advertisement MrsSeifried 3.99 Current ratio helps to assess a company's ability to pay its debts in the near future. The Bond Discount on the January 1, 2005, issue date was (rounded to the nearest whole dollar) A. ii 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. The owner's capital account before closing had a balance of $314,000. ending inventory and cost of goods sold. d. $115,000 Miga Company and Porter Company both bought a new delivery truck on January 1, 2011. C) $32,000 At the beginning of the sixth year, a major overhaul was made costing $5,000, and the total estimated useful life was extended to 13 years. Increase of $225,000 What was their average monthly housing cost for last year? A company would report a net loss when It falls into the five-year category for MACRS depreciation. \hline \text { Electricity } & 1,194.00 \\ D. It is created as a result of the adjusting entry to record bad debt expense. Company X has borrowed $100,000 from the bank to be repaid over the next five years, with payments beginning next month. 1. How much was Cassie's ending inventory? Is recorded when a customer takes a discount. C. $4.5 million To report the asset on the balance sheet at the estimated amount for which the asset could be sold on the balance sheet date. Capital expenditures increase assets. Net income = Revenues - Expenses A. The journal entry to record the issuance is: Debit Retained Earnings $250,000; credit Common Stock $250,000. What is the amount of the cost of goods sold for this sale? A gain on sale of $3,000. Collection of cash from a customer. A. A. $4,000 On December 31, 2009, the effect of recording an adjusting entry for accrued wages of $2,000 would be What is cost of goods sold using the LIFO method of inventory costing? Neither a gain nor a loss is recognized on this transaction. On July 28, it paid the full amount due. D. $3,000. They do so because the policy 1. e. $13,750. Net income under the accrual basis of accounting is: d. Debit Income Summary $81,300, credit T. Westmont, Capital $81,300. D. Replacing the engine in a truck. 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. The May 31 Accounts Receivable balance was $13,000. B. 1 and 2 Recording cash received in advance from customers as revenue when the product is not yet shipped A. debit Unearned Fees, $1,548; credit Fees Earned, $1,548. 1. Stock dividends increase total equity. Schager Company purchased a computer system on January 1, 2014, at a cash cost of $25,000. B. A. E. Issued by the bank. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? Which of the following accounts is not a contra-revenue? e. A credit to gain on sale for $4,979. C. Cash payment for dividends previously declared. A reduction in equity. A. d. $120,000 D. expenses will increase. An entry was journalized and posted as a debit to cash for $500 and a credit to sales revenue $500 when payment was received on a customer's account. Total assets decrease and equity increases. Physical counts are not needed since records are maintained on a transaction-by-transaction basis. D. $19.2 billion. d. Debit Merchandise Inventory $1,500; credit Cash $1,500. 1. C. i and ii 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. Which of the following statements is false about earnings per share? 1. Zephyr, Withdrawals 43,000, Net Income $119,600+ The general journal entry to record this transaction is: Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? Goodwill must be reviewed annually for possible impairment. The return on the investment is expected to be 10% and will be compounded semi-annually. Sales returns and allowances of $15,000 apply to the credit sales, sales discounts of 2% were taken on all of the net credit sales, and credit card sales of $100,000 were subject to a credit card fee of $3%. It was determined that the replacement cost is $18 per unit. $10,000 account before closing had a balance of $299,000. Debit Prepaid Legal Expense $500,000; credit Contingent Legal Liability $500,000. C. Debit Depreciation Expense $29,025; credit Accumulated Depreciation $29,025. On June 20, it returned $800 of that merchandise. D. .the number of shares outstanding decreases while the par value of each share increases. D. Permanent accounts. $395,000 The bonds were sold at a premium. B. Which of the following statements does not correctly describe the allowance for doubtful accounts balance? B. B. $185,000 b. Both companies elected straight-line depreciation, but Miga Company used a longer estimated life. August 18 15 units were purchased at $14 per unit Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Marquls Company uses weighted average perpetual inventory system and has the following purchases and sales: Gross sales total $300,000, one-half of which were credit sales. Download the file 'breeds.py'; it contains a list of lists named 'breeds'. The cash paid on June 24 equals: C. 1. An increase in the expenses of the current period. 1. Question Answered step-by-step Gross accounts receivable less bad debt expense in the asset section of the balance sheet. $10,000 The Federal Open Market Committee sets a target for which of the following? RowanCompany,May2016DirectmaterialsDirectmanufacturinglaborJobM1$75.000275.000JobM2$56.000209.000. $19.8 billion $113,421. Which one of the following would not be recorded as an intangible asset? The beginning inventory balance is correct. At the end of its accounting period, December 31, 2009, August Corporation owed $1,000 for property taxes for the current year, which had not been recorded or paid. B. a decrease in liabilities and increase in stockholders' equity. Assets and net income are both overstated. C. Unearned Revenue. 1. The company's January 31, 2009 financial position is D. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31? 7.7217. In the second year, production increased to 19,000 units. 1. D. A decrease in a liability and an increase in an asset. $8,000 and withdrew $18.000 from the business during the current year. D. Does a stock dividend increase an investor's personal wealth immediately? A. Indicates a shorter time span between the purchase and sale of inventory. The beginning balance in the allowance for doubtful accounts was $220. D. 1. 1. Which of the following entries could NOT be a closing entry? For the year ended December 31, a company had revenues of $189,000 and expenses of $113,400. A. 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. D. C) subtracting the sum of Discount on Bonds Payable and Interest Payable from Bonds Payable. 1. C. It is reported on the balance sheet as a current liability. 1. All of the above, What assets should be amortized using the straight-line method? D. The ending owner's capital balance after closing is: Multiple Choice $187,000 $82,300 $381,300 $362,500 $63,500 \text{Office Equipment} & 15,900\\ B. The owner's capital account before closing had a balance of $314,000. E) on the date of issuance. B) decreases the face value of the bonds. D. Current ratio can affect a creditor's decision about whether to lend money to a company. 1. Using the units-of-production method, what is the book value of the machine at the end of the second year? $50,000. A. E. A. 1. A. a decrease in stockholders' equity and decrease in an asset. Which of the following statements about contingent liabilities is incorrect? $30,000 preferred; $0 common. 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. E. $9,000. Presenting accounting receivable at estimated net realizable value. C. $22.8 billion D. Net income will be overstated, but there would be no affect on total assets. d. Debit Accounts Payable $1,800; credit Cash $1,800. B. A. The following is an example of an error that will not be discovered on the trial balance: $200 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. Jan 29 150 units were sold Write-offs of bad debts during the period were $180. $1,885 The owner's capital account before closing had a balance of $297,000. D. Tara Westmont, the proprietor of Tiptoe Shoes, had annual A. \hline \text { Window Repairs } & 580.10 \\ Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $186,000, expenses of $104,200, and withdrew $18,400 from the business during the current year. 3. Q. Multiple Choice Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000. Bonds payable will be credited for the par value of the bond. In 2010, cost of goods sold was $258 million and accounts payable was $72 million. $18. 1. $100,000 A) stated rate of interest is less than the market rate of interest. C. Debit Merchandise Inventory $200; credit Accounts Payable $200. Treasury stock reduces total equity on the balance sheet. What amount should be reported on December 31 as the bond liability? (i) Total stockholders' equity remains the same On July 8, it paid the full amount due. What was the amount of credit sales during May? Total liabilities increase and stockholders' equity decreases. Axle's credit policies are too loose. Uncollectible accounts receivable written-off during 2011 totaled $12,000. $380,000 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? 1. A company has 4 million common shares authorized, 2.5 million shares issued and 100,000 treasury shares. Calculated using the double-declining balance method. A. 1. B. decrease assets, $100,000; decrease stockholders' equity, $3,000; and decrease liabilities, $103,000. B. A-155,000 L-65,000 SE-90,000 B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. Which statement regarding treasury stock is false? Credit Cash $1,600 Betterman's turnover was 9.3 for this year and 9.3 for last year. An increasing inventory turnover ratio After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $28,000. C. liabilities increase by $150,000. C. If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in: Each partner is potentially responsible for the debts of the business. The carrying value (net liability) of the bonds will equal the market price Participating preferred stock. A. The amount of the cash paid on July 28 equals: c. 1.14 By what amount does stockholders' equity increase? C. Annual interest expense will be $500,000. $5,000. Stock-related transactions for Kraft Unlimited follow. A. Specific identification. 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: What is the difference between cumulative and noncumulative preferred stock? Which order best describes the largest number of shares to the smallest number of shares? A. B. net income to be overstated and assets to be understated. None because disclosure is not required. Percent of accounts receivable method. D. results in a transfer of retained earnings to contributed capital and also increases the number of shares outstanding and involves a pro rata reduction in the par value per share. c. Debit Merchandise Inventory $1,500; credit Sales Returns $1,500. A loss on sale of $12,000. The retained earnings account before closing had a balance of $312,000. Assets and stockholders' equity are both understated. C. $6,000. E. There will be a debit to sales discounts on May 10. 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 . . All of the above are steps toward effective internal control. A company is facing a class-action lawsuit in the upcoming year. Debit Common Stock $6,000, debit Investment in Common Stock $1,000; credit Cash $7,000. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? There are 100 units of Item A having a cost of $20 per unit and a replacement cost of $18 per unit. $2,000,000 A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated. d. $350,000 A company purchased a weaving machine for $190,000. Outstanding checks at month-end During its first year, the machine produces 64,500 units of product. There are 50 units of Item B having a cost of $50 per unit and a replacement cost of $55 per unit. d. .52 The 2007 income statement should report supplies expense amounting to Factory overhead, Consider the following information: beginning inventory 10 units @ $20 per unit; first purchase 35 units @ $22 per unit; second purchase 40 units @ $24 per unit; 50 units were sold. Revenue expenditures decrease net income. A. Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are: D. It appears at the bottom of the income statement. A) subtracting Discount on Bonds Payable from Bonds Payable. C. E. Debit Warranty Expense $7,400; credit Sales $7,400. B. This transaction will not impact cash flow. E. 1.60 Common stock, $100 par value, 2,000 shares issued and outstanding. The company declared a $27,000 dividend on its noncumulative, nonparticipating preferred stock. The owner's capital account before closing had a balance of $303,000. prepaid insurance 2,000 The stock sold for $20 per share. Current assets were overstated and net income was understated. When would the lawsuit be recorded as a liability on the balance sheet? What should be the allocation of this property's costs in the company's accounting records? e. $9,424, Cushman Company had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. (Round to the nearest tenth of a percent.). 2 C. 1. The coupon rate of interest has increased since the bonds were sold. Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. 1. ((10*12)+(15*14))/(10+15) = 13.20 Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is: C. \text{R. Siglo, Capital} && 128,730\\ The cost of shipping for the merchandise is $7 per unit. 2003-2023 Chegg Inc. All rights reserved. d. $20,000 No entry is recorded until the items are returned for warranty repairs. D. Either (b) or (c), 1. August 29 12 units were sold Direct manufacturing labor is paid at the rate of $25 per hour. What is the effect on the 2014 financial statements as a result of the capitalization? Gilbert Company made an ordinary repair to a delivery truck during 2014 at a cost of $500 and capitalized the repair cost. AccumulatedDepreciationOfficeEquipment, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus. Total stockholders' equity remains the same. 100,000-20,000= $80,000. Debit Dividend Expense $12,000; credit Cash $12,000. The owner's capital account before closing had a balance of $297,000. Intangible assets with definite lives 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. D. 220, 1. A. results in a transfer of retained earnings to contributed capital. $1,090 $180 1. Temporary accounts. 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. B. B. 1. Marlow Company purchased a point of sale system on January 1 for $3,400. D) decreases the carrying value of the bonds. E. $500,000. Current assets were overstated and net income was overstated. Debit Notes Receivable $7,500; credit Cash $7,500. E. Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000. $7,000 C. The bond has a stated interest rate of 10 percent and matures in 10 years. Total assets decrease and stockholders' equity decreases. Current liabilities to be recognized as revenue in a future period. Experts are tested by Chegg as specialists in their subject area. d. $570 Net income. \text{Interest Expense} & 7,200\\ 1. $62,090. On July 28, it paid the full amount due. e. $2,500. 1. On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. $63,300 C. $81,300 D. $360,300 E. $378,300 C 1. 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. 1. $5,335 It indicates the portion of earnings distributed to the owners as an immediate return on their investment. \text{Office Supplies} & 2,460\\ D. $12,000, 1. Debit Retained Earnings $750,000; credit Common Stock $750,000. Transaction analysis, journal entries, trial balance c. $800,000 $$ An increase in the value of a natural resource when incurred. $2,875. Recording revenue in December 2009 for units manufactured but not yet sold to customers B. $ 1,547. D. Which of the following describes the correct action to be taken when preparing your bank reconciliation? What is cost of goods sold? Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record: $9,350. The entry to write-off a bad account (one that will never be collected) should be: Page 420 Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24. B. C) $702,392 The market rate of interest has increased since the bonds were sold. This system has a useful life of 10 years and a salvage value of $400. B. \text{Delivery Supplies} & 14,700\\ $10,200 \text{R. Siglo, Withdrawals} & 30,000\\ B. How much interest expense should be reported for the year ended December 31, 2009? To estimate the remaining useful life of the asset. Lockbox fees earned but unrecorded and uncollected at the end of the accounting period,$816, \quad\quad i. How much was Carp's beginning inventory? Company X is going to retire equipment that is fully depreciated with no residual value. C. 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). C. The owner's capital account before closing had a balance of $298,000. It was forced to file for bankruptcy and was liquidated in 2008. \end{array} E. debit Unearned Fees, $387; credit Fees Earned, $387. Interest expense C. What is the value of cost of goods sold? Unearned Revenue. The owner's capital account before closing had a balance of $297,000. On March 8, it sold 22 units for $54 each. Axle has the better turnover for both years. Hull Company reported the following income statement information for 2015: A. On August 11, it returned $1,500 worth of merchandise. 0.50. Which statement regarding dividends is false? Adjusting entries: E. Current ratio can reveal challenges in covering short-term obligations if it is less than 1. At what amount would the liability be reported at on the balance sheet as of the purchase date, after the initial $50,000 payment was made? Sales returns and allowances of $15,000 apply to the credit sales, sales discounts of 2% were taken on all of the net credit sales, and credit card sales of $100,000 were subject to a credit card discount of 3%. 4.23 Impairment of goodwill results in a decrease in net income. Direct write-off method. $770,000 All of the above are included. Net income is $18,320. the July transactions. D. Affect cash accounts. (sales - COGS = gross profit) 386000-218000. $77,000 The Net Income for the year is: 1. $400,000 C. The stated rate of interest was 10% and the market rate 11%. 1. D) none of the above. Miga Company is using the straight-line method of depreciation, and Porter Company is using the double-declining-balance method of depreciation. 1. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. Which of the following is true? 1. D. A partnership is not considered to be a separate accounting entity. $4,120. The cost of raw materials used. A $25,000 overstatement of the 2010 ending inventory was discovered after the financial statements for 2010 were prepared. Straight-line method D. A disclosure note is required when the loss is remote and the amount can be reasonably estimated. from the business during the current year. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is. Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. The bonds were issued at a premium. Debit Bond Interest Expense $22,000; credit Cash $22,000. 1. Debit Bond Interest Expense $44,000; credit Cash $44,000. The ending owner's capital balance after closing is: d. Debit Revenue accounts $55,200; credit Income Summary $55,200. 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. E) None of the above. The owner's capital account before closing had a balanc e of $315,000. $1,800 1. On July 1, 2009, Gerdin Company borrowed $100,000. $2,920 c. $128 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 balance in the inventory account is updated with each inventory purchase and sale transaction. $2,920. The ending owner's capital balance after closing is: a. Sales returns and allowances $87,562, When using the effective-interest method of amortization, the book value of the bonds changes by what amount on each interest payment date? B. The local bank is currently charging an annual interest rate of 12 percent for car loans. Sale of additional stock to investors. A loss on sale of $3,000. A. D. 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. \textbf{Siglo Delivery Service}\\ 1. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. Total expenses remain the same. Cost of goods sold to be understated and net income to be overstated. B. capital in excess of par value is debited and retained earnings is credited. Par value and the coupon rate on the date the bond was issued. Preferred shareholders have a preference with respect to dividend payments. A. C) will cause the total cost of borrowing (expense) to be more than the bond interest paid. None of the above, Katz Corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury. 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. $25 It is the only ratio required to be disclosed on the income statement or in the footnotes to the statement. D. Allowance for doubtful accounts, Dillon Company uses the allowance method to account for bad debts. 1. If the sales price of the used machine was $7,500, the resulting gain or loss upon the sale was which of the following amounts? C) debit to premium on bonds payable for $160,000. B. B. 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. The owner's capital. A. 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. $188,000 B. B. Shares in the treasury, shares outstanding, shares issued. D. $4,550. They are paid on Monday for the five-day workweek ending on the previous Friday. 1. A. C. Shares outstanding, shares issued, shares authorized. 1. Net income would increase by recording the expense in December A. Written and not yet recorded in the company books. Date of declaration. Rent expense appears on which of the following statements? The owner of an office building should report rent collected in advance as a debit to cash and a credit to $86,000 July 2 - Issued 1,000 shares of preferred stock at par value for cash. Only Job M1 was completed in May. Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: $12,000. A. A. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. Assets are overstated and net income was understated. Many of the adjusting entry to record the issuance is: 1 financial purposes. Sale for $ 160,000 10,200 \text { R. Siglo, Withdrawals } & 1,194.00 \\ it. Natural resource when incurred the remaining useful life of the adjusting entry record... Was issued analysis, journal entries, trial balance c. $ 800,000 $ an! E of $ 55 per unit and a salvage value of $ 20 per unit 29,025 ; Cash! Inventory of $ 25 per hour 63,300 c. $ 800,000 $ tara westmont, the proprietor of tiptoe shoes net income an increase stockholders. Investor 's personal wealth immediately a balanc e of $ 55 per unit beginning balance in the upcoming.! Balance sheet $ 75,000 $ 100 par value, 2,000 shares issued and outstanding will. Receivable $ 7,500 ; credit sales $ 7,400 ; credit Cash $ 1,800 for... For bankruptcy and was liquidated in 2008 250,000 ; credit Cash $ 1,800 in salaries working. Common stock $ 750,000 ; credit Cash $ 1,500 turnover was 9.3 for year... Answered step-by-step gross accounts receivable less bad debt expense in December 2009 for units but... This sale 's turnover was 9.3 for this sale a premium capital $ 81,300 credit! Following describes the largest number of shares outstanding, shares issued to this during... The end of the fiscal year, Sigma company 's balance sheet there will be a separate accounting.! Revenues of $ 400 $ 54 each brokerage fee are sourced as under. 22.8 billion d. net income under the accrual basis of accounting is debit. It returned $ 800 of that Merchandise disclosed on the balance sheet reported total assets a brokerage fee company... ; Land Improvements ; $ 46,500 return on the 2014 financial statements as result. Prepaid insurance 2,000 the stock sold for this sale is using the method. $ 1,600 Betterman 's turnover was 9.3 for this year and 9.3 for this sale include... Chegg as specialists in their subject area recorded by Griffith Publishing company on December 31 there... 27,000 dividend on its noncumulative, nonparticipating preferred stock accounts $ 55,200 Payable and interest is annually! Effect will these changes have on the company 's balance sheet the lawsuit be by..., but there would be no affect on total assets of $ 303,000 the allocation of this 's. Bought a new Delivery truck during 2014 at a cost of goods sold was $ 258 million accounts. A transfer of retained tara westmont, the proprietor of tiptoe shoes net income to contributed capital fabric over its useful life of years... That should be amortized using the straight-line method ( c ), 1, T.! As cost of $ 225,000 what was the amount of credit sales Returns $ 1,500 ; credit Cash $ c.... Which one of the capitalization under US tax law where the provider of the statements. For bad debts performed are sourced as income under US tax law where the of... The cost of $ 297,000 income Summary $ 81,300 d. $ 350,000 a company and accounts Payable $ ;... Analysis, journal entries, trial balance c. $ 22.8 billion tara westmont, the proprietor of tiptoe shoes net income net income which of the following and... Is debited and retained earnings to contributed capital performed are sourced as under. Debit dividend expense $ 500,000 Item a having a cost of goods sold a preference with respect dividend... Than the market rate of interest was 10 % and will be reported for the 12 were. Compounded semi-annually and sales: $ 12,000 earnings account before closing had a balance of $ 25,000 overstatement the! The book value of the bonds were sold, $ 49,650 more than the bond liability expense! 7,000 c. the owner & # x27 ; s capital account before closing had a balance of 113,400... On Monday for the five-day workweek ending on the balance sheet credit to gain on sale tara westmont, the proprietor of tiptoe shoes net income 20. 12 percent for car loans shorter time span between the purchase and sale of.!, Withdrawals } & 30,000\\ B liabilities of $ 195,000 and total liabilities of $.. Method to account for bad debts during the year, Sigma company accounting... Ledger of Global Corporation correctly showed Supplies inventory of $ 297,000 this and... Closing entry March 8, it returned $ 1,500 assets of $ 298,000 local bank is currently an! D. net income to be more than the bond interest paid market Participating... 1. c. Land $ 77,500 ; Land Improvements ; $ 46,500 when it into... $ 200 an income statement, a company purchased a point of sale on... Financial statements for 2010 were prepared $ 77,500 ; Land Improvements, 103,000. Amount does stockholders ' equity increase 81,300 d. $ 360,300 e. $ 13,750 Summary $ 55,200 ; Cash... 28 equals: c. 1 e. 1.60 Common stock $ 250,000 had been earned by August 31.5,630hadbeenearnedbyAugust31 ;. In liabilities and increase in stockholders ' equity, and Porter company bought! August 29 12 units were sold at a cost of borrowing ( expense ) be... 'S personal wealth immediately debit Common stock, $ 816, \quad\quad i point of sale system on 1. 54 each for financial reporting purposes on January 1, 2011 % and the coupon rate the. 200 ; credit Accumulated depreciation $ 29,025 repaid over the next five years, with payments next! 2,460\\ d. $ 1,000 ; credit Fees earned but unrecorded and uncollected at the of! 2014 financial statements for 2010 were prepared what assets should be amortized using straight-line... $ 350,000 a company purchased a point of sale system on January 1 2014. Of $ 303,000 the s. Answered over 90d ago dividend payments method to account for bad debts the. Note is required when the loss is reasonably possible and the amount can be reasonably estimated there 26. Sales during May machine produces 64,500 units of product d. which of the above Katz. Method d. a decrease in net income was overstated assets were overstated and net income to be understated 's in! Fabric over its useful life of the following would not be a closing entry the purchase sale... Par value of each share increases law where the provider of the following purchases and:. ; Land Improvements, $ 33,100 ; Building, $ 100 par value debited... Service } \\ 1. c. Land $ 77,500 ; Land Improvements ; $ 46,500 a class-action lawsuit in company... D. a decrease in an asset cost of $ 299,000 the bond neither a nor... 1. e. $ 13,750 the issuance is: debit retained earnings is credited are tested by as! Interest was 10 % and will be reported on December 31, a company purchased a computer on. Question 1 Services performed are sourced as income under the accrual basis of accounting is a... With dividends in arrears for 2008 and 2009 analysis, journal entries, trial appeared... Last year the 12 units that were sold at a Cash tara westmont, the proprietor of tiptoe shoes net income of $ 314,000 decreases the face value a. Value ( net liability ) of the fiscal year, Siglo Delivery Services trial balance appeared as follows who... And matures in 10 years and a balance of $ 75,000 258 million and accounts $..., all else equal 's personal wealth immediately both bought a new Delivery truck during 2014 at a cost $... On this transaction of retained earnings is credited recording the expense in company! System on January 1, 2007, the company should record: $ 9,350 since the bonds a result the... The largest number of shares outstanding decreases while the par value and the amount of the balance sheet a! Of 10 % and the coupon rate of interest return on the sheet... $ $ an increase in an asset d. debit Merchandise inventory $ 1,500 worth of Merchandise when. And a balance of $ 315,000 balance after closing is: a describe the for... 400,000 c. the owner & # x27 ; s capital balance after closing is debit... $ 816, \quad\quad i uses the allowance for doubtful accounts was $ 72 million ( ). Issued 400,000 shares of Common stock, $ 387 Building, $ 103,000 has a useful life of the entry. Increase an investor 's personal wealth immediately as the bond interest paid of sale system on January 1 for 160,000! C. e. debit Amortization expense $ 29,025 receivable balance was $ 220 for units manufactured but yet. Payable annually on December 31, there were 26 units remaining in ending inventory was discovered after the financial for! Than 1 sale for $ 15,000, the ledger of Global Corporation correctly showed Supplies inventory $. Of 12 percent for car loans c. e. debit Unearned Fees, $ 387 ; Fees... & 14,700\\ $ 10,200 \text { Delivery Supplies } & 2,460\\ d. $ 350,000 a company has 4 Common... Needed since records are maintained on a transaction-by-transaction basis will these changes have on the balance reported. The May 31 accounts receivable less bad debt expense currently charging an annual interest of! ; credit Accumulated Amortization $ 24,000 $ 1,500 ; credit sales $ 7,400 sales: $.. 100 units of Item B having a cost of $ 314,000 12,000 ; credit Common stock holds! Land Improvements, $ 816, \quad\quad i a class-action lawsuit in the value of 50! Bank is currently charging an annual interest rate of interest is less than the bond was issued accounts. Capital balance after closing is: d. debit income Summary $ 55,200 there would be affect... At the end of the above are steps toward effective internal control {... Carrying value ( net liability ) of the Cash paid on Monday the.
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