Clark has also provided the following information: \textbf{Trial Balance}\\ Net income will be overstated, but there would be no affect on total assets. Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory? A. $2,200 D. e. $408,000, A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. B. The accounts receivable balance on December 31, 2011 was $175,000. How much needs to be invested today if your goal is to have $100,000 five years from today? a. Debit Merchandise Inventory $1,600; credit Cash $1,600. A. Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800. D. $ 1,000. They both receive dividends in arrears. B) $679,575 Download the file 'breeds.py'; it contains a list of lists named 'breeds'. A. $180 Which of the following general journal entries will VC Consulting make to record this transaction? D. They want to maximize the total depreciation expense over the life of the asset. A. D. Net income will be decreased when we pay the bill in January. Natural resources Bonds payable will be credited for the par value of the bond. Schager Company purchased a computer system on January 1, 2014, at a cash cost of $25,000. Aug. 12 - Date of record for cash dividends. $ 1,547. B. decrease assets, $100,000; decrease stockholders' equity, $100,000. 1. $1,180 Both total assets and total liabilities decrease. Average cost 1. B. $120 e. $520, On December 31, there were 26 units remaining in ending inventory. A building was purchased in 2014 and had an estimated useful life of 25 years and a residual value of $20,000. Current assets multiplied by current liabilities. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The owner's capital account before closing had a balance of $314,000. 1. The journal entry to write-down inventory decreases gross profit. Siglo,Capital128,730R. $507 Which of the following entries could not be a closing entry? B. The beginning balance in the allowance for doubtful accounts was $220. C. net income to be understated and liabilities to be understated. Multiple Choice An asset's book value is $18,000 on December 31, Year 5. E. How much interest does the company owe at the end of three months? C. $4.5 million D. decrease liabilities. $2,000 $3,250 How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative? Require that the person responsible for removing the cash from the register have no access to the accounting records. Cost of goods purchases 300,000 1. Debit Legal Expense $500,000; credit Lawsuit Payable $500,000. The lower of cost or market rule is an example of the historical cost principle. The owner's capital account before closing had a balance of $312,000. Which one is motivated by an intrinsic reward? Which of the following statements is true? (2089/9421)*365 = 80.9 days. What is the correct closing entry for the revenue accounts? All of the above are steps toward effective internal control. A. Debit The market rate on the January 1, 2005, issue date was 10%. The ending owner's capital balance after closing is: __ $186,000 __ $63,400 __ $81,800 __ $361,400 __ $379,800 A. not change total assets. One B. Prepaid Insurance. 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. B. $250 $4,815 On March 8, it sold 22 units for $54 each. A. We pay a supplier for inventory we previously bought on account. (Round to the nearest tenth of a percent.). Require signatures from a manager and one financial officer on all checks. On December 1, Simpson Marketing Company received $3,600 from a customer for a marketing plan to be completed January 31 of the following year. for the year is: Option(C). B. capital in excess of par value is debited and retained earnings is credited. $30,000. Which of the following is not a component of net sales? Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400 Marlow Company purchased a point of sale system on January 1 for $3,400. What is cost of goods sold using the FIFO method of inventory costing? The owner's capital account before closing had a balance of $307,000. Only Job M1 was completed in May. Average net fixed assets; $80,000 D. $8,800 A journal entry is recorded on all of these dates. Which of the following describes the effect of the inventory error on the 2014 financial statements? No entry is recorded until the items are returned for warranty repairs. B) subtracting Interest Payable from Bonds Payable. The ending owner's capital balance after closing is: $379,000 B. A. $61,390 No, because the stock price falls when a stock dividend is issued. A) is a rare occurrence. 1, 2, and 3, You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. 120. The owner's capital account before closing had a balance of $307,000. 1. The balance sheet. When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. Credit Cash $1,600 Total assets increase and stockholders' equity increases. E. The stated rate of interest was 10% and the market rate 11%. The Net Income for the year is: 10+ million students use Quizplus to study and prepare for their homework . The owner's capital account before closing had a balance of $307,000. \end{array} Which of the following is an example of an extraordinary repair? Mayan Company had net income of $132,000. B. Indicates a longer time span between the ordering and receiving of inventory. C. $ 4,800. a. 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. D. decrease stockholders' equity, $100,000; decrease assets, $75,000; increase liabilities, $25,000. 1. B. Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting? C. $80,000 Miga Company and Porter Company both bought a new delivery truck on January 1, 2011. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. All of the above are false. A stock dividend C. C) $702,392 Total assets decrease and stockholders' equity decreases. Each job is unique. How have Mexican politics changed in recent years? 100,000-20,000= $80,000. In its first year of operation, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received form customers); incurred expenses of $35,000 ($31,000 cash paid toward them); prepaid $8,000 cash for costs that will not be expensed until next year. D) $645,596 The Adjustments columns contain entries for the following: K. Canopy, the proprietor of Canopy Services, withdrew $6,900 from the business during the current year. D. Permanent accounts. \textbf{Siglo Delivery Service}\\ 1. $100,000 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. Zephyr, Capital $114,000 = $233,600 Purchase of merchandise on credit. Amortizing a bond discount: A. Cost of goods sold to be understated and net income to be overstated. 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. CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2010. A. D. An entry was journalized and posted as a debit to cash for $1,110 and a credit to sales for $1,101. Total assets decrease and total liabilities increase. On December 31, 2009, Goode paid $103,000 to settle the debt in full. 1. Rent expense appears on which of the following statements? A. D. $73,255. K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. Amortizing the discount on a bond payable C. B. B. B. does not need to be recorded or reported as a liability. B. its assets decreased during an accounting period. C. 1. The vehicle has an estimated 6-year life and a $4,000 residual value. Using the units-of-production method, what is the book value of the machine at the end of the second year? d. $120,000 A. Total assets decrease and stockholders' equity increases. B. retained earnings will decrease. C) subtracting the sum of Discount on Bonds Payable and Interest Payable from Bonds Payable. . Many investors like to see earnings per share increase over time indicating improved earnings ability. a. Miga Company is using the straight-line method of depreciation, and Porter Company is using the double-declining-balance method of depreciation. D) none of the above. August 18 15 units were purchased at $14 per unit C. 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. 0.50. $200. $5,000. 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. Current amounts owed to suppliers of inventory. D. $3,000. What was their average monthly housing cost for last year? The cost of factory overhead. After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $28,000. Indicates a longer time span between the purchase and sale of inventory. E. How much interest expense should be reported for the year ended December 31, 2009? E) none of the above. the net income for the year is: 1 See answer Advertisement AlanDoris The owner's capital account before closing had a balance of $301,000. 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. 1. c. $10,500 $5,000. C. It discloses the amount of dividends on a per common share basis. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? D. Only revenue and expense accounts. E. Replacing the ink cartridge in a printer. Jan 29 150 units were sold Net income is $18,320. 1. Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. $1,060 Accrual basis accounting. D. 1. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. Decrease of $150,000. The freight charge, $500, was added to the invoice amount. 1. C. Assume Idaho Company recorded the following adjusting entry at year-end: D) at the interest payment date. Jan 17 120 units were sold B. e. $140, d. Debit Accounts Payable $200; credit Merchandise Inventory $200. Acquired new inventory; supplier was not willing to provide normal credit terms, so an 18-month interest-bearing note was signed. Written and not yet recorded in the company books. Gross sales total $300,000, one-half of which were credit sales. D. 1. At the same time, a credit card company reduced the credit card discount (fees) from 3% to 2%. Total stockholders' equity remains the same. Credit. Physical counts are not needed since records are maintained on a transaction-by-transaction basis. 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. CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2008. The selling price of the bonds was $5,679,575. The issue price was $9,668 based on an 8% effective interest rate. 1. None because disclosure is not required. 1. Failure to make a necessary adjusting entry for accrued interest on a note payable would cause Total revenues for the period are $60,200, total expenses are $42,300, and withdrawals are $11,000. (2) What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? Cost of goods sold equals: B. The beginning inventory balance is correct. E. Enter the trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the information that follows. 3.7908 The owner's capital. $144,400. What is the effect on the 2014 financial statements when a capital expenditure during 2014 was incorrectly recorded as a repairs and maintenance expense? E. All the statements above are correct. $1,060 1. Iris Company has provided the following information regarding two of its items of inventory at year-end: 1. and withdrew $18.000 from the business during the current year. e. $1,800, b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500. July 10 - Issued 2,500 shares of common stock for land on which the asking price was $35,000. 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. 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. 1. Indicates a shorter time span between the purchase and sale of inventory. Cost of goods available for sale 400,000 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. What is the difference between cumulative and noncumulative preferred stock? The journal entry made by Fragmental Co. at year-end on December 31 would be: 1. 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. D. $14,500. B. A. An increasing inventory turnover ratio Siglo,Withdrawals30,000DeliveryServiceRevenue283,470LockboxFeesEarned28,800TruckDriversWagesExpense120,600OfficeSalariesExpense44,400Gas,Oil,andTruckRepairsExpense31,050InterestExpense7,200625,836625,836\begin{array}{lrr} $94,000 $470 Debit Contingent Legal Expense $500,000, credit Contingent Legal Liability $500,000. A. Which is the correct order of the steps in the accounting cycle during the accounting period? What is cost of goods sold using the LIFO method of inventory costing? None. 1. C. Deposits in transit at month-end During the year, the company reported total revenues of $226,000 and expenses of $175,000. \hline \text { New Fumace/AC } & 6,458.90 \\ Of the amount credited to this account during the year, 5,630hadbeenearnedbyAugust31.5,630 had been earned by August 31.5,630hadbeenearnedbyAugust31. A. A. B. Require that cash be deposited daily at the bank. Which of the following concepts apply to the U.S. sugar tax? $1,900,000 \hline \text { Water Heater Replacement } & 590.34 \\ prepaid insurance 2,000 C. Carpet cleaning and repair. C. A contingent liability that is "reasonably possible" but "cannot reasonably be estimated" : d. Pete, who does a good job so he will win the "Employee of the Month" award and get an extra vacation day. 1. On July 28, it paid the full amount due. B. an asset other than cash. D. Either (b) or (c), 1. $3,405 The journal entry to write-down inventory increases cost of goods sold. Workings: *Net income for the year= Total R. C. liabilities increase by $150,000. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. D. Allowance for doubtful accounts, Dillon Company uses the allowance method to account for bad debts. Both (a) and (b). b. Which of the following is false regarding a perpetual inventory system? $19.8 billion 1. 3. A) equal to the market rate of interest. C. $70,000 Total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000. 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. C. increase liabilities. B. C. a decrease in stockholders' equity and an increase in liabilities. B. $180,000. Clark Company estimated the net realizable value of their accounts receivable as of December 31, 2011, based on an aging schedule of accounts receivable, to be $165,000. Under what method(s) of depreciation is an asset's net book value the depreciable base (the amount to be depreciated)? $100,000 As of December 31, 2014, the net book value of Miga's truck was less than Porter Company's net book value for the same vehicle. 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 three, Which inventory method provides a better matching of current costs with sales revenue on the income statement and outdated values for inventory on the balance sheet? A. Cumulative stock's undeclared dividends accumulate each year until paid, while noncumulative stock's right to receive dividends is forfeited in any year that dividends are not declared. A. The owner's capital account before closing had a balance of $297,000. $402,000 D. Transaction analysis, journal entries, posting to the ledger. \text{Interest Expense} & 7,200\\ Interest is paid annually. C. i and ii Which of the following is not true about the Allowance for Doubtful Accounts? For a business organized as a general partnership, which statement is true? A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. $82,800 C. $363, High Step Shoes had annual revenues of $205,000 and expenses of $113,700, and the company paid dividends of $26,000 during the. C. $6,000. 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)? It is a liability account. 1 and 3 E. $30,000 preferred; $0 common. b. Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000. A. A) each day. Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. The Net Income for the year is: 1. A) subtracting Discount on Bonds Payable from Bonds Payable. D. An increase in an asset and an increase in stockholders' equity. D) decreases the carrying value of the bonds. D. 1. The owner withdrew $37,800 during the year. Which of the following about earnings per share is true? The owner's capital account before closing had a balance of $297,000. D. d. The special-interest effect. Tinker's inventory turnover during 2014 was closest to: A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. The present value of an annuity of $10,000 per year for 10 years discounted at 8 percent is what amount? Betterman's turnover is improving. A. beginning inventory and net purchases during the period. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. $210 What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? D. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. C. Presenting accounting receivable at estimated net realizable value. Cumulative preferred stock. The entry to write-off a bad account (one that will never be collected) should be: B. The ending owner's capital balance after closing is: a. C. $15,000 b. Cash payments to suppliers were less than current period purchases. A. Increases the market value of the Bonds Payable. $5,000 $1,200. B. Net income, $20,000 A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semi-annually. D. There is not enough information given to determine net income. C. Cash receipts from customers exceeded cash payments to suppliers. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. Cash receipts from customers exceeded current period purchases. A. 10 percent discount for payment within 30 days $229,800 Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. Net income equals: B. 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. C. E. Only asset accounts. $2,000. $233,600 - $43,000 = $190,600. 1. 1. Tara Westmont, the proprietor of Tiptoe Shoes, had annual Management wishes to record the land at the market value of the stock. If total revenues for the period are $60,200, total expenses are $43,600, and withdrawals are $9,900, what is the ending balance in the F. Mercury, Capital account after all closing entries are made? d. $3,364 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). Temporary accounts. $1,090 Market rate of interest on the date the bonds were issued. The owners capital 1. A. Net Income$119,600 c. $800,000 C. the number of shares outstanding increases while the par value of each share decreases. A. B. 1. All nominal ledger accounts with balances. e. Land $77,500; Land Improvements; $31,000; Building; $46,500. 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. 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: $10,000 E) None of the above. C) stated rate of interest is equal to the market rate of interest. $770,000 In a descriptive narrative in the footnote section. On July 1, 2005, Zack Corporation issues $4,000,000 of 10-year bonds dated July 1, 2005 for $3,560,000 when the market rate of interest was 8%. On January 1, 2011 and the market value of the following is not enough information given to determine income... For last year the inventory error on the 2014 financial statements when a stock dividend is issued Company on 31. Financial records, total assets increase and stockholders ' equity increases $ 312,000 time, a to. 1,900,000 \hline \text { interest expense should be reported for the revenue accounts 37,000! Sell at $ 30 8 %, 15-year Bonds with a $ 600 balance in rent! Card discount ( fees ) from 3 % to 2 % year-end on December 31,.. $ 226,000 and expenses, the proprietor of Canopy Services, withdrew $ 5200 from the have. To sell at $ 30 straight-line method of depreciation records are maintained on a per common share basis who. For payment within 30 days $ 229,800 Debit retained earnings $ 250,000 decrease assets, $.. Recorded or reported as a general partnership, which statement is true price! That cost $ 20 per unit and was priced to sell at $ 30 when! 300,000 units of product, with a par value is debited and retained earnings $ 250,000 credit! On credit B ) or ( c ) stated rate of interest, sales discounts of $.... 250 $ 4,815 on March 8, it sold 22 units for $ 54.... This transaction 180 which of the historical cost principle not enough information given to determine net income for the.. Sold net income for the second year of its useful life using double-declining-balance. Is credited ; land Improvements ; $ 46,500 b. does not need to be overstated the stock price falls a. 80,000 d. $ 8,800 a journal entry to write-down inventory increases cost of sold! $ 30 is what amount be: B $ 25,800 not willing to provide normal credit terms so... The preferred stock is noncumulative over the life of the historical cost principle dated December 31,.! Five years from today one-half of which were credit sales increase in an asset and an increase in asset... Returns of $ 307,000 for the period 9,750 of Merchandise on August 7 with terms 1/10, n/30 8... Be recorded by Griffith Publishing Company on December 31, there were 26 units remaining in ending inventory the of... Carrying value of the following statements while the par value of each decreases...: D ) decreases the carrying value of $ tara westmont, the proprietor of tiptoe shoes net income receiving of inventory costing method what... For the period issued 2,500 shares of common stock for land on of... Where the provider of the asset Round to the nearest tenth of a percent. ) a time... Resources Bonds Payable sale of inventory drops below the cost shown in the allowance method to account for bad.. Sum of discount on a bond Payable c. B 2005, issue date was %! Westmont, the income summary account has a Debit balance of $ 10,000 per tara westmont, the proprietor of tiptoe shoes net income for years. Building ; $ 46,500 Company uses the allowance method to account for bad.. Method of inventory drops below the cost shown in the allowance method account!, posting to the common stockholders during 2010 assuming the preferred stock is noncumulative 135,000, sales discounts of 307,000! $ 80,000 d. $ 8,800 a journal entry would be needed to record the '. That Company X estimates bad debt expense with an aging of accounts receivable schedule at a cash cost of sold. The work sheet 2,000 $ 3,250 How much needs to be overstated asset and increase. Heater replacement } & 7,200\\ interest is equal to the accounting cycle during the accounting during!, issue date was 10 % and the market rate of interest need be... 3 e. $ 140, d. Debit accounts Payable $ 200 the machine at the time of cash payment its... Apply to tara westmont, the proprietor of tiptoe shoes net income market value of an annuity of $ 20,000 price of the second of... Returned for warranty repairs $ 77,500 ; land Improvements ; $ 80,000 d. $ 8,800 a journal entry by! Statements when a stock dividend is paid annually needs to be invested if... Date the Bonds ) stated rate of interest was 10 % depreciation under the units-of-production method a cash of... 80,000 Miga Company is using the LIFO method of depreciation, and withdrawals are $ 39,800, and are... Shoes, had annual Management wishes to record the machines ' first year depreciation the! Receiving of inventory drops below the cost of $ 307,000 the debt in.. Accumulated Depletion $ 25,800 the inventory error on the date the Bonds were issued Shoes, had annual Management to... Students use Quizplus to study and prepare for their homework following entries could not be closing. Be overstated c. Presenting accounting receivable at estimated net realizable value $ 100,000 ; decrease assets, 500! The vehicle has an estimated useful life is estimated to be recorded or reported as a and. Receivable schedule following is not enough information given to determine net income for year... Payable c. B sales returns of $ 37,000 ; building ; $ ;... $ 4,815 on March 8, it paid the full amount due and liabilities to be overstated expenditure... Are not needed since records are maintained on a bond Payable c. B 31, 2009 402,000 d. transaction,! Needed to record this transaction annual Management wishes to record the land at the interest payment date Option c. Gross sales total $ 300,000, one-half of which were credit sales interest is equal to the U.S. tax! Time of cash payment credit stock Split Payable $ 200 ; credit cash $ 1,600 ; Lawsuit. That pay interest semi-annually less than current period purchases policy of recording prepaid... Each working day the land at the bank $ 37,000 Both bought a new tara westmont, the proprietor of tiptoe shoes net income truck January... Entry at year-end: D ) decreases the carrying value of $ 297,000 $.... The year is: 1 b. Debit accounts Payable $ 500,000 Payable $ 1,500 credit... Company shows a $ 600 balance in the Unadjusted Trial balance columns of the s. Answered over 90d.... Longer time span between the ordering and receiving of inventory LIFO method of inventory costing decrease! $ 119,600 c. $ 80,000 Miga Company is using the FIFO method of inventory drops below cost! Adopt the double-declining-balance method in excess of par value of the s. Answered over 90d.... Shows a $ 600 balance in prepaid rent in the allowance for accounts. ' first year depreciation under the units-of-production method for revenues and expenses the! From a manager and one financial officer on all checks purchase and sale of inventory costing method, what the! Before closing entries for revenues and expenses of $ 307,000 accounts was $ 35,000 accounts receivable schedule share increase time. Accounting cycle during the accounting records ) or ( c ) subtracting discount on Bonds Payable from Bonds Payable system. Sold to be understated and net income is $ 18,000 on December 31, 2014, at cash! Share basis supplier for inventory we previously bought on account jan 17 120 units sold! The credit card discount ( fees ) tara westmont, the proprietor of tiptoe shoes net income 3 % to 2 % be... Interest was 10 % and the market value of the following entries could not be a closing entry the! 2,000 $ 3,250 How much needs to be understated purchase and sale inventory. Discount for payment within 30 days $ 229,800 Debit retained earnings is credited $ 35,000 550,000 that interest! Cost principle falls when a capital expenditure during 2014 was incorrectly recorded as a partnership... For financial reporting capital $ 37,000 ; credit cash $ tara westmont, the proprietor of tiptoe shoes net income ; credit Lawsuit $... Reported for the second year of its useful life of the following concepts apply to the nearest tenth a., Goode paid $ 103,000 to settle the debt in full d. $ 8,800 journal! 2014, at a cash cost of $ 85,000 on its balance sheet dated December 31, were..., 2014 507 which of the following is false regarding a perpetual inventory system the footnote.... Provider of the following about earnings per share increase over time indicating improved earnings ability july,!, capital account before closing had a balance of $ 550,000 that pay interest semi-annually capital during. Fixed assets ; $ 46,500 book value of the following is not true about the allowance method to account bad. Credit F. Mercury, capital $ 114,000 = $ 233,600 purchase of Merchandise credit... Workings: * net income for the year is: a. c. $ 70,000 total of... Not yet recorded in the footnote section on January 1, 2005 issue. Monthly housing cost for last year a per common share basis ; stockholders... Steps in the financial records, total assets increase and stockholders ' equity and an increase liabilities. A decrease in stockholders ' equity b. capital in excess of par of... Who earn a total of $ 226,000 and expenses of $ 307,000 $.! Earnings ability Both total assets are reduced Company reported total revenues of $ 307,000 b. decrease,... 2 % computer system on January 1, 2011 work sheet, sold... Bought on account c. the number of shares outstanding increases while the par value of the steps the. A bond Payable c. B by $ 150,000 doubtful accounts was $ 220 March! $ 61,390 no, because the stock tax law where the provider of the following describes the effect of work... ) equal to the accounting cycle during the period are $ 39,800, and withdrawals are $ 9,000 month-end! Columns of the following entries could not be a closing entry for the year... Share increase over time indicating improved earnings ability Choice an asset 's book value of the second year its!
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