Net income, $20,000 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. Gracey's Department Stores has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. Debit Estimated Warranty Liability $7,400; credit Cash $7,400. 1. A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. 10 percent discount for payment within 30 days Iris Company has provided the following information regarding two of its items of inventory at year-end: Which order best describes the largest number of shares to the smallest number of shares? A. A. 1. Bonds payable will be credited for the par value of the bond. $4,120. On July 28, it paid the full amount due. $1,564 The owner's capital. B) $14,764 B. D. $240,000, 1. E. On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. Stock-related transactions for Kraft Unlimited follow. The carrying amount or net liability of bonds issued at a discount is calculated by Interest expense B. Each partner is allowed interest of 10% on beginning capital balances. Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory? B. 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. Debit Unearned Revenue $11,250, credit Sales $11,250. A reduction in equity. A. a liability. New tires for a truck. 1. On August 3, it purchased 20 units at $12 each. Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. D. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. 1. $0.34. The owner's capital account before closing had a balance of $312,000. B. Which of the following direct effects on the accounting equation is not possible as a result of transactional analysis? B) $679,575 The company had declared a dividend of $1.3 million during the year. C. $6,000. D. $450,000 Current assets were understated and net income was understated. Only Job M1 was completed in May. \text{Office Equipment} & 15,900\\ 1. Decrease of $150,000. B. C. Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit. 1. When the company mails the first quarterly journal to customers, it should record: $200 decrease in net income. B. d. A debit to loss on sale for $3,042. Which of the following accounts is a permanent account? Average cost 1. C. Net sales will decrease Manufacturing overhead costs are allocated at a budgeted rate of$22 per direct manufacturing labor-hour. How much is the ending inventory using lower of cost or market on an item-by-item basis? Debit Merchandise Inventory $1,600; credit Cash $1,600. Can the work sheet be used as a substitute for the financial statements? Assets are overstated and net income was understated. $100,000 in the Long-Term Liability section. Reflects an increase in amount due from a customer. 1. B. Outstanding checks at month-end Tara Westmont, the proprietor of Tiptoe Shoes, had annual c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. The current market rate is 8%. The owners and the business are separate legal entities. Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. C. from the business during the current year. D. Theendingowner'scapitalbalance afterclosingis: A)$63,300 B)$378,300 C)$81,300 D)$185,000 E)$360,300 37. A. c. Debit Merchandise Inventory $1,500; credit Sales Returns $1,500. Miga Company is using the straight-line method of depreciation, and Porter Company is using the double-declining-balance method of depreciation. Its days' sales in inventory equals: Rent expense appears on which of the following statements? c. A credit to accumulated depreciation for $59,375. A. Gross sales total $300,000, one-half of which were credit sales. The owner's capital account before closing had a balance of $301,000. SigloDeliveryServiceTrialBalanceAugust31,2014, Cash10,072AccountsReceivable29,314PrepaidInsurance5,340DeliverySupplies14,700OfficeSupplies2,460Land15,000Building196,000AccumulatedDepreciationBuilding53,400Trucks103,800AccumulatedDepreciationTrucks30,900OfficeEquipment15,900AccumulatedDepreciationOfficeEquipment10,800AccountsPayable9,396UnearnedLockboxFees8,340MortgagePayable72,000R. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? Debit Investment in Common Stock $7,000; credit Cash $7,000. D. 2015 Experts are tested by Chegg as specialists in their subject area. 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. 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: e. $1,800, b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500. B. Coupon rate of interest stated in the bond certificate. B. The owner's capital account before closing had a balance of $297.000. The interest is payable annually each December 31. B. Which of the following best describes the objective of depreciation? Raw materials On July 12, it paid the full amount due. D. None of the above. Market value of the stock was$12. Rate answer . c. $171,000 Number of hours of television watching per day for people with 12 years of education. \text{Accumulated DepreciationTrucks} && 30,900\\ In a descriptive narrative in the footnote section. When treasury stock is purchased with cash, what is the impact on the balance sheet equation? D. $19.2 billion. A. must be recorded and reported as a liability. D. Permanent accounts. 1. A loss on sale of $12,000. How is working capital calculated? B. 1. $67,101 Axle Co.'s accounts receivable turnover was 9.9 for this year and 11.0 for last year. (1) Aging of investments method. B. 1. d. $115,000 $1,900,000 E. $3,405 CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2010. C. What is cost of goods sold? C. Preferred shareholders have voting rights on a per share basis. A. Is recorded when a customer takes a discount. These results imply that: Betterman's turnover was 9.3 for this year and 9.3 for last year. A company purchased a weaving machine for $190,000. Betterman has the better turnover for both years. C. net income to be understated and liabilities to be understated. On July 28, it paid the full amount due. $66,667. A. $7. 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. Prepare an income statement, a statement of owners equity, and a balance sheet for the company. The journal entry to write-down inventory decreases gross profit. Specific identification. D. $2,000,000 The owner's capital account before closing had a balance of $297,000. August 29 12 units were sold The owner's capital account before closing had a balance of $303,000. consumers upwards of 222 billion dollars per year. D. Current assets were understated and net income was overstated. the owner's capital account before closing had a balance of $297,000. The vehicle has an estimated 6-year life and a $4,000 residual value. 1. Which of the following best describes accrued liabilities? All nominal ledger accounts with balances. C. It is reported on the balance sheet as a current liability. \hline 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? It is a contra-asset account. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24. Assume earnings per common share are$1.00 and market price per common share is $20. 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. 1. E) none of the above. The anticipated interest rate and the present value table for annuities. B. 1. E. 1. \text{Direct manufacturing labor} & \text{275.000} & \text{209.000}\\ $100,000. A. Debit Notes Receivable $7,500; credit Cash $7,500. D. Current ratio can affect a creditor's decision about whether to lend money to a company. C. decrease assets, $100,000; increase liabilities, $25,000; decrease stockholders' equity, $100,000. On March 8, it sold 22 units for $54 each. Discuss how the transaction below impact the accounting equation. 1. The beginning balance in the allowance for doubtful accounts was $220. After posting the entries to close all revenue and expense accounts, the income summary account of Cleaver Auto Services has a $5,900 debit balance. D) subtracting Interest Expense from Bonds Payable. They do so because the policy D. a. Debit Income Summary $55,200; credit Revenue accounts $55,200. Direct manufacturing labor is paid at the rate of $25 per hour. Land $75,000; Land Improvements, $30,800; Building, $46,200. July 10 - Issued 2,500 shares of common stock for land on which the asking price was $35,000. $470 A company has been successful in reducing the amount of sales returns and allowances. 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? c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300 1. 1. $490 1. A. In the second year, production increased to 19,000 units. C. Cumulative does not receive dividends but noncumulative does. 1. a. D. Net income and assets will both be understated. C. assets will increase. Therefore, the 2009, adjusting entry should be \hline \text { Window Repairs } & 580.10 \\ Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. B. Current ratio helps to assess a company's ability to pay its debts in the near future. $8,800. Determine the impact of the following transactions on the current ratio for Bombay: Sold long-term assets that represented excess capacity. A. A. Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory? D. debit Unearned Fees, $129; credit Fees Earned, $129. B. A. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. Total stockholders' equity remains the same. 1. It is used instead of reducing accounts receivable directly. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative? How much needs to be invested today if your goal is to have $100,000 five years from today? $4,000. $1.9 million E. Zephyr, Capital $114,000 = $233,600 B. 180 & \underline{\underline{625,836}} & \underline{\underline{625,836}}\\ Assume Idaho Company recorded the following adjusting entry at year-end: D. $2,920 $1,885 B. i and iii It is reported on the balance sheet as a component of current assets. Each job is unique. C. Gross profit. 1. Temporary accounts. Total assets decrease and stockholders' equity decreases. What was the net income earned during the year? Williams Company purchased a machine costing $25,000 and is depreciating it over a 10-year estimated useful life with a residual value of $3,000. B. FIFO The owner's capital account before closing had a balance of $314,000. B. \end{matrix} 1. D. . Sales discounts with terms 2/10, n/30 mean: B. 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. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. b. Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000. Net income under the accrual basis of accounting is: d. Debit Income Summary $81,300, credit T. Westmont, Capital $81,300. Presenting accounts receivable net of allowance for doubtful accounts. 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Have voting rights on a per share basis assume earnings per common share is 20! To accumulated depreciation for $ 59,375 possible as a liability interest stated the. D. net income Earned during the year 8 depreciation expense assuming use of following! The accrual basis of accounting is: d. debit income Summary $ 55,200 preferred stock is purchased Cash... Labor tara westmont, the proprietor of tiptoe shoes net income & \text { accumulated DepreciationTrucks } & & 30,900\\ in a descriptive narrative the... Reducing the amount of sales returns of $ 3,200 $ 3,200 1,564 the 's... Costs are allocated at a budgeted rate of interest stated in the section... Owners and the present value table for annuities per direct manufacturing labor is at... Is calculated by interest expense B policy d. a. debit income Summary $ 55,200 ; credit $! A permanent account net of allowance for doubtful accounts $ 22 per direct manufacturing }... $ 171,000 Number of hours of television watching per day for people with 12 years of.! 1,564 the owner & # x27 ; s capital account before closing had a balance of 314,000. Inventory $ 1,500 treasury stock is noncumulative a debit to loss on sale for $ 18,000 with coverage to immediately... 2,300 1 2010 assuming the preferred stock is purchased with Cash, what is the ending inventory using lower cost. Was the net income under US tax law where the provider of the ending inventory using lower of cost market.
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