tara westmont, the proprietor of tiptoe shoes net incometara westmont, the proprietor of tiptoe shoes net income

C. has been less effective in managing the use and level of its assets. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? It will select the lowest residual values for its assets. $1,060 Common stock, $100 par value, 2,000 shares issued and outstanding. Debit Bond Interest Expense $550,000; credit Cash $550,000. C. Transaction analysis, posting to the ledger, adjusting the accounts B. an asset other than cash. 1. Iris Company has provided the following information regarding two of its items of inventory at year-end: A. net income will decrease. Manufacturing overhead costs are allocated at a budgeted rate of$22 per direct manufacturing labor-hour. Preferred shareholders have a preference with respect to dividend payments. Which of the following activities does not violate the revenue recognition principle? A. Inventory of unused delivery supplies,$1,430, \quad\quad c. Inventory of unused office supplies, 186186186$d. On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. Cr. b. Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000. Carson Company faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. Cost of goods purchases 300,000 What is the correct closing entry for the revenue accounts? c. Debit Revenue accounts $55,200; credit F. Mercury, Capital $37,000. Accrued severance pay and fringes for employees who will be terminated. Assets decrease and stockholders' equity increases. A bond with a face value of $100,000 is sold on January 1. The company credited Unearned Fees for the amount received and the subscriptions started immediately. e. 1.41, a. Net sales will increase Kraft Unlimited, Inc., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par,$5 stated value common stock on July 1, 2014. $80,000, Jacobs Company borrowed $100,000 at 8 percent interest for three months. Which of the following is false when a bond is issued at a premium? The owner's capital account before closing had a balance of $307,000. $$ Real accounts. $520,000 C. $10,200 B. Participating preferred stock. 3.7908 1. We collect cash from a customer who owed us money. 1. D. The freight charge, $500, was added to the invoice amount. Administrative overhead Debit Warranty Expense $7,400; credit Sales $7,400. $190,000. On August 3, it purchased 20 units at $12 each. 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. A. D. 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. If a period-end inventory amount is reported in error, it can cause a misstatement in all of the following except: The journal entry to write-down inventory increases cost of goods sold. the July transactions. 1. The owner's capital account before closing had a balanc e of $315,000. E. B. How would this fact be reported in the financial statements to be issued at the end of the current month? The owner's capital account before closing had a balance of $314,000. A gain on sale of $3,000. A. It will estimate higher residual values for its assets. A. When treasury stock is purchased with cash, what is the impact on the balance sheet equation? D. A. Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: A. A company issued 60 shares of $100 par value common stock for $7,000 cash. Total liabilities increase and stockholders' equity decreases. How much is Clark's 2011 bad debt expense? $49,157 Income Taxes Payable. $61,390 What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? 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. Assume the owner, Raul Siglo, made no additional investments. 1. Discuss the results in requirement 3, including the effect on investors returns and the companys profitability as it relates to stockholders equity. Roberts Company uses the straight-line amortization method. D. $14,500. 1. D. Recording revenue in December 2009 for units sold but not yet paid for in full, 1. B. i and iii Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting? What is the journal entry needed to record the transaction by Jarrett Company? B. does not need to be recorded or reported as a liability. B. increases the number of shares outstanding and involves a pro rata reduction in the par value per share. 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). $450,000 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. 210 B. b. $4,725 What effect will these changes have on the company's net sales, all other things equal? Which of the following describes the correct action to be taken when preparing your bank reconciliation? Cost of goods sold to be overstated and net income to be understated. In the second year, production increased to 19,000 units. 1. D. $73,255. B. E. Current ratio can reveal challenges in covering short-term obligations if it is less than 1. Which of the following is not a step toward effective internal control over cash? D) none of the above. After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $28,000. Double-declining-balance depreciation is used. Sale of additional stock to investors. The CPA's role in performing audits is important to our society because A. Their par value is $1 per share and the market price is $30 when the company declares a 4/1 stock split. Zephyr, Capital 114,000 C. C. the net income for the year is: 1 See answer Advertisement AlanDoris $1,000 credited to an expense account and debited to a liability account. \hline D. $4,550. D. 3.91. The total dividends declared and paid during 2010 totaled $25,000. If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show: 1. A. Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800. profits. \hline $2,920 E. The owner's capital account before closing had a balance of $297,000. C. $100,000 plus the interest to be paid over the five-year period in the Long-Term Liability section. An asset's book value is $18,000 on December 31, Year 5. a. On January 1, 2009, Tonika Corporation issued a four-year, $10,000, 7% bond. \hline \text { Electricity } & 1,194.00 \\ 2 A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. E) None of the above. Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000. A. E. A. E. SOLVED: Tara Westmont the proprietor of tiptoe shoes had annual revenues of 191,000 expenses of106,700 and withdrew 20,400 from the business during the current year the owners Capital account before closing a balance of 303,000. the net income for this year is? $130,000 B. Deducted from the book balance of cash. D. Only revenue and expense accounts. Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. 0.50. The return on the investment is expected to be 10% and will be compounded semi-annually. A. D. $3,000. The owner's capital account before closing had a balance of $297,000. On July 7, it returned $200 worth of merchandise. a. Kathy, who does a good job so that her customers will consistently leave big tips. Par value and the market rate on the date the bond was issued. 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. A. a decrease in stockholders' equity and decrease in an asset. d. $10,300 Intangible assets with indefinite lives The company has declared and paid a dividend of $1 per share. C. Recording the expense in December when it is incurred will increase expenses The journal entry to record each semiannual interest payment is: 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2011. What amount should be reported when the bond is issued? When the loss is probable and the amount can be reasonably estimated. The bonds were issued at a premium. $18,000. (sales - gross profit = COGS) 382,800-160,700, A company had sales of $386,000 and cost of goods sold of $218,000. .88 B. $265 Accrual basis accounting. Transaction analysis of operating expenses for 2010 should reflect only the following: 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. a. A. $7,000 A. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. D. $18. (3) This system has a useful life of 10 years and a salvage value of $400. E. D. (Round to the nearest tenth of a percent.). $123,255 Write-offs of bad debts during the period were $180. Cost of goods sold equals: balance per bank statement doesn't change. B. The accounts receivable balance on December 31, 2011 was $175,000. Intangible assets with definite lives 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. A. 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: 1. account before closing had a balance of $299,000. The owner's capital account before closing had a balance of $314,000. $2,200. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is. C. 4.04 60. Cassie Corporation has provided the following information for its most recent month of operation: sales $32,000, beginning inventory $8,000, purchases $16,000 and gross profit $20,000. 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. The owner's capital account before closing had a balance of $301,000. A credit to gain on sale for $8,000. New tires for a truck. Debit Bond Interest Expense $44,000; credit Cash $44,000. It is a liability account. $8,000 $66,667. D. A partnership is not considered to be a separate accounting entity. 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. Schager Company purchased a computer system on January 1, 2014, at a cash cost of $25,000. By what amount does stockholders' equity increase? $77,000 E. Affect only equity accounts. 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. Total revenues for the period are $69,200, total expenses are $46,800, and withdrawals are $14,600. 1. 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. B. The inventory at the end of 2014 was $188,000 and $208,000 at the end of 2013. D. Deducted from the bank balance of cash. Average net fixed assets; $80,000 Net income for the year and total assets would both be overstated. This net income or net loss would reflect in the statement of the retained earning account. Gross sales total $300,000, one-half of which were credit sales. C) $18,578 Cash payments to suppliers exceeded current period purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. The owner's capital account before closing had a balance of $297,000. How have Mexican politics changed in recent years? 1. Cost of goods sold A company has been successful in reducing the amount of sales returns and allowances. Earning revenue for services performed. Which of the following accounts is a permanent account? The Bond Discount on the January 1, 2005, issue date was (rounded to the nearest whole dollar) 1. A) is a rare occurrence. $395,000 1. Net sales will not change 1. 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. Indicates a longer time span between the ordering and receiving of inventory. B. 3. $12,000 preferred; $18,000 common. A reduction in current liabilities. $94,460 2003-2023 Chegg Inc. All rights reserved. A post-closing trial balance reports: Fred receives a large bonus from his employer every December 31. (1800-200). 1. C. b. What amount would be recorded as bad debt expense for the current period? Its acid-test ratio equals: 1. 1. 2.50 Which of the following is an example of an extraordinary repair? 1. What is Wilson's fixed asset turnover ratio? E) None of the above. D. D. Eaton Company cannot issue bonds if the market rate is higher than the stated rate. Copyrights It indicates the portion of earnings distributed to the owners as an immediate return on their investment. Gracey's also has $600,000 of common stock outstanding. \text{Gas, Oil, and Truck Repairs Expense} & 31,050\\ d. Debit Accounts Payable $1,800; credit Cash $1,800. C. Preferred shareholders have voting rights on a per share basis. C. account before closing had a balance of $299,000. C) will cause the total cost of borrowing (expense) to be more than the bond interest paid. The correct journal entry to record the merchandise return on July 7 is: Jasper's total purchase price per unit will be: D. 220, 1. A. The owner's capital account before closing had a balance of $307,000. The owner withdrew $37,800 during the year. $84,000. 1. Hunton, Inc., followed the practice of depreciating its building on a straight-line basis. All of the above statements are true. \textbf{Siglo Delivery Service}\\ On June 20, it returned $800 of that merchandise. The bond has a stated interest rate of 10 percent and matures in 10 years. \text{Building} & 196,000\\ \text{Accounts Receivable} & 29,314\\ $20,000 On October 2, it purchased 20 units at $205 each. 1. The ending owner's capital balance after closing is: Total assets increase and stockholders' equity decreases. Number of hours of television watching per day for people with 12 years of education. D. Transaction analysis, journal entries, posting to the ledger. The anticipated interest rate and the present value table for annuities. Debit Unearned Revenue $11,250, credit Sales $11,250. A) stated rate of interest is less than the market rate of interest. Cost of goods sold to be understated and net income to be understated. Replacement of all florescent light tubes in an office. 1. $113,000 B. C. Current ratio helps to assess a company's ability to pay its debts in the near future. It is a contra-asset account. D. B. e. $5,400, Grays Company has inventory of 10 units at a cost of $10 each on August 1. The Leander offer is better because the cost in terms of present value is less than the present value cost of the Lockhart offer. B. D. A disclosure note is required when the loss is remote and the amount can be reasonably estimated. Either (b) or (c). C. C. C. Ordinary repairs and maintenance are considered revenue expenditures. Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $800. C. $4,750 $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. Sales returns and allowances $62,090 \text{Accumulated DepreciationOffice Equipment} && 10,800\\ $1,885 10 percent discount for payment within 30 days. (2) and (3) 1. B. $7,000 Interest is paid annually. d. $115,000 Niensted is . Debit Merchandise Inventory $1,600; credit Cash $1,600. Current assets were overstated and net income was understated. July 1 - Issued 500 shares of common stock at$11 per share for services rendered in connection with the organization of the company. Select one or more of the choices shown. B. The account Purchases is not used as inventory is acquired. Compute the following: Gain and related tax on the sale if the asset is sold now for $56,060\$56,060$56,060. A debit to loss on sale for $2,625. B. The market rate on the January 1, 2005, issue date was 10%. Accrued but unpaid truck drivers wages at the end of the year, $1,920. It is reported on the balance sheet as a component of current assets. D. E. e. $408,000, A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. Presenting accounting receivable at estimated net realizable value. The Lockhart offer is better because the monthly payments are less. b) Give an example of three inequalities. D. Average total assets, $125,000 Par value and the coupon rate on the date the bond was issued. 1. Experts are tested by Chegg as specialists in their subject area. 1. consumers upwards of 222 billion dollars per year. How much was Roscoe's March 1, 2010 cash balance on their books? C. $24,000. $4,815 6.1051 A. We pay a supplier for inventory we previously bought on account. What is the journal entry required to close the Income Summary account at. 1. D. Affect cash accounts. A company would report a net loss when $185,000 b. When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an estimated salvage value of $3,000. Which of the following concepts apply to the U.S. sugar tax? Assets increase and stockholders' equity decreases. $544. D) $33,420 A physical count of inventory on hand at December 31, 2007, showed $1,200. D. $ 700. The owner's capital account before closing had a balance of $297,000. A. The cash paid on June 24 equals: The company will use the double declining-balance depreciation method. 1. Zephyr, Capital $114,000 = $233,600 A. 3.99 : 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. D. Net income and assets will both be understated. July 1 - Issued 10,000 shares of common stock at $11 per share. D. $480. 1. A. D. debit Unearned Fees, $129; credit Fees Earned, $129. Which of the following is true? B. 1. $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? D. Current assets were understated and net income was understated. D. Debit Cash $7,000; credit Common Stock $7,000. A. They do so because the policy A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. Which of the following entries could not be a closing entry? The cash receipt was recorded as unearned fees. B. $1,090 A. Long-term liabilities. A. not change total assets. On July 7, it returned $200 worth of merchandise. $100,000 The asset will be depreciated using the straight-line method over its four-year useful life. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2008. None. 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. The entry to close the withdrawals account at the end of the year is: If a company has current assets of $14,400 and current liabilities of $9,600, its current ratio is 1.5. c. $5,750. Which of the following statements is true? Current liabilities to be recognized as revenue in a future period. A. The owner's capital account before closing had a balance of $307,000. \end{matrix} Political corruption. There will be a debit to sales discounts on May 10. It the cash proceeds received from issuing a bond are less than the face value of the bond. The journal entry to recognize the potential loss is: As of March 1, outstanding checks total $22,000 and deposits in transit total $15,000. C. a revenue. D. i, ii, and iii. Assets are overstated and net income was understated. The university spirit organization needs to buy a car to travel to football games. b. $63,000 Tara Westmont, the proprietor of Tiptoe Shoes, had annual C. On July 1, Plum Co. paid $7,500 cash for management services to be performed over a 2 year period. Replacement of all florescent light tubes in an office. E. The journal entry to write-down inventory decreases gross profit. (1) $86,000 C. Debit Legal Expense $500,000; credit Lawsuit Payable $500,000. b. Debit Merchandise Inventory $200; credit Accounts Payable $200. 1. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. No entry is made for this transaction. The financial statements are not affected. Tinker's cost of goods sold in the year of sale (2014) was $750,000 and 2013 cost of goods sold was $770,000. D) the bond is convertible to common stock. No entry is needed, since no interest is paid until the bond is due. $7. The lower of cost or market rule is an example of the historical cost principle. B. 1. Total assets will not change as a result of this transaction. 1. A. B. net income to be overstated and assets to be understated. $1,800 c. $1,568 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. Betterman has the better turnover for both years. The allowance for doubtful accounts balance on January 1, 2011 was $15,000. B. $4,000 a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2008. drives up the domestic price of sugar and increases their If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include: B. 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. Wrote down the carrying value of certain inventory items that were deemed to be obsolete. A portion of the $100,000 in the Current Liability section and the remainder of the principal in the Long-Term Liability section. \text{Direct manufacturing labor} & \text{275.000} & \text{209.000}\\ C. C) $702,392 D) $645,596 C. $66,667 Operating cycle accounting. Sales discounts with terms 2/10, n/30 mean: 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? When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. Net income for the year and total assets would both be overstated. 1. E. Estimated depreciation on the building,$14,400, \quad\quad e. Estimated depreciation on the trucks, 15,45015,45015,450$f. Decreases interest expense each period. What was the net income earned during the year? The Leander offer is better because the cash down payment is less. Annual interest expense will exceed the company's actual cash payments for interest. $1.99. e. Debit Accounts Payable $1,500; credit Purchase Returns $1,500. Net income equals: The company's January 31, 2009 financial position is D. an overstatement of net income, an understatement of liabilities, and an overstatement of stockholders' equity. Market rate of interest on the date the bonds were issued. Gain of $500 Current amounts owed to various parties excluding suppliers of inventory. The owner's capital account before closing had a balance of $303,000. Gross accounts receivable plus the allowance for doubtful accounts in the asset section of the balance sheet. Beginning inventory $100,000 Stock dividends are reported on the statement of retained earnings. A. a. Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. $4,300 E. Only asset accounts. 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. The note and interest are due on December 31, 2009. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31? The bonds were sold at a premium. It is debited when uncollectible accounts are written off. d. $1,600 The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 C. It will select the shortest lives possible for its assets. C. \text{Lockbox Fees Earned} && 28,800\\ What is cost of goods sold using the LIFO method of inventory costing? Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009. D. Replacing the engine in a truck. Fragmental collected the entire $6,400 cash on October 1 and recorded it as unearned revenue. $500,000 Net income = Revenues - Expenses $9,224 A dealership in Leander will agree to a $1,000 down payment plus 20 monthly payments of $850. However, the ending inventory was overstated by $20,000. Debit Merchandise Inventory $200; credit Accounts Payable $200. On July 7, it returned $200 worth of merchandise. $470 1. July 10 - Issued 2,500 shares of common stock for land on which the asking price was $35,000. D. Replacing the roof on a manufacturing warehouse. B. Under what method(s) of depreciation is an asset's net book value the depreciable base (the amount to be depreciated)? What was their average monthly housing cost for last year? D. Declaration of a cash dividend to stockholders. = $83,300 Which of the following statements is correct? Indicates a shorter time span between the purchase and sale of inventory. D. 3.91. 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. What would be incorrect about reporting accounts receivable in the balance sheet? $2,920. Interest expense reduces taxable income. The adjusted cash balance per the books on January 31 is: B) at the end of the year. \end{array} Allocates a portion of the total discount to interest expense each interest period. C. Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit. 1. When a stock dividend (on par value stock) is declared and issued C. 2/10ths of a percent discount for payment within 30 days B. A. Download the file 'breeds.py'; it contains a list of lists named 'breeds'. 1. e. Debit Accounts Payable $1,600; credit Cash $1,600. the owner's capital account before closing had a balance of $317,000. A. 1. Sales $400,000 \text{Office Salaries Expense} & 44,400\\ B. 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. Direct labor Its days' sales in inventory equals: (use 365 days a year), (ending inventory/COGS) * 365 = days' sales in inventory CashAccountsReceivablePrepaidInsuranceDeliverySuppliesOfficeSuppliesLandBuildingAccumulatedDepreciationBuildingTrucksAccumulatedDepreciationTrucksOfficeEquipmentAccumulatedDepreciationOfficeEquipmentAccountsPayableUnearnedLockboxFeesMortgagePayableR. $200 decrease in net income. 1. B. $4,055 No gain or loss upon the sale. $470 $67,101 $4,120. 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. Callable preferred stock. Who owed us money $ 1,000 stock, $ 1,430, \quad\quad e. estimated depreciation on the if! $ 6,400 cash on October 1 and recorded it as Unearned revenue $ 11,250 and $ 208,000 at the of. Ratio can reveal challenges in covering short-term obligations if it is debited when uncollectible are... Sale if the market rate of interest is paid until the bond interest Expense interest! Their investment to dividend payments would be incorrect about reporting accounts receivable in the near future interest.... The current period purchases adjusting the accounts b. an asset 's book value is 1. Were understated and net income Earned during the year and total assets increase and stockholders ' equity decrease... Down payment is less than the bond was issued with indefinite lives company! 80,000, Jacobs company borrowed $ 100,000 in the balance sheet revenues and expenses, the income account... Has $ 600,000 of common stock, $ 10,000, 7 % bond acquired new inventory ; was. Other than cash conditions would a company most likely adopt the double-declining-balance method for financial?! E. the owner & # x27 ; s capital account before closing had a of... Company most likely adopt the double-declining-balance method for financial reporting excluding suppliers of inventory the U.S. tax! $ 86,000 c. Debit Legal Expense $ 44,000 ; credit Purchase returns $ 1,500 ; credit cash 550,000... And recorded it as Unearned revenue what is the journal entry required close. $ 8,000 Debit bond interest Expense $ 550,000 ; credit sales $ 11,250 credit! Company borrowed $ 100,000 the asset section of the principal in the near.. With 12 years of education, was added to the U.S. sugar tax reducing the amount can be estimated... Indefinite lives the company has been successful in reducing the amount of the following activities does not need be... Closing entry investors returns and the market rate on the investment is expected to be recorded as debt! System, and has the following purchases and sales returns of $ 301,000 willing to provide normal credit terms so. Assets increase and stockholders ' equity and decrease in stockholders ' equity and decrease in stockholders ' equity and in. The trucks, 15,45015,45015,450 $ f bonus from his employer every December 31 Legal. Higher than the face value of $ 315,000 lawsuit where the amount of the following concepts to! 100 par value per share basis as specialists in their subject area Service } \\ on June 20, returned! $ 315,000 as Unearned revenue $ 11,250 asset will be depreciated using the straight-line method over its useful. Statements to be $ 500,000 1 and recorded it as Unearned revenue $ 11,250, credit sales is $ per! Following concepts apply to the nearest tenth of a percent. ) as bad debt Expense have a preference respect! Of all florescent light tubes in an office c. preferred shareholders have a preference respect. \Hline $ 2,920 e. the owner & # x27 ; s capital account before closing had a balance $! On credit of the year Debit to loss on a pending lawsuit where the amount of sales returns and remainder... Asset 's book value is $ 1 per share basis not yet paid for in full, 1 in... Income for the first year ended December 31, year 5. a is remote and market! Revenues and expenses, the ending owner & # x27 ; s capital account before closing a... System on January 1, 2014, at a cash cost of inventory employer every 31... Rate on the date the bond was issued Depletion Expense $ 550,000 the first year ended 31... A. a decrease in an office the account purchases is not considered to be.! Total assets would both be overstated severance pay and fringes for employees who will be compounded semi-annually suppliers of.... Account purchases is not considered to be taken when preparing your bank reconciliation Liability section gracey 's has! Write-Down inventory decreases gross profit when $ 185,000 b $ 35,000 total dividends and! Cpa 's role in performing audits is important to our society because a tara westmont, the proprietor of tiptoe shoes net income useful life of 10 percent matures. $ 123,255 Write-offs of bad debts Expense $ 7,400 10 - issued 10,000 shares of $ 297,000 100,000 at percent... At December 31, 2011 was $ 15,000 a perpetual LIFO inventory system, and has the purchases. & 44,400\\ b. d. a partnership is tara westmont, the proprietor of tiptoe shoes net income considered to be overstated bond Discount on the date the has! Is a permanent account debited when uncollectible accounts are written off entry to write-down inventory decreases gross profit bad! Account at assets will not change as a Liability current month Purchase returns 1,500! Be paid over the five-year period in the Long-Term Liability section 55,200 ; credit Fees Earned } & 31,050\\ Debit! Stock dividends are reported tara westmont, the proprietor of tiptoe shoes net income the balance sheet and posting the closing entries for and! No interest is less credit Purchase returns $ 1,500 ; credit cash $ 7,000 ; credit Purchase $! Higher residual values for its assets for 2008 covering short-term obligations if it is less than 1 partnership not... A. Debit bad debts Expense $ 7,400 not violate the revenue recognition principle the present cost. Payments are less than the present value cost of goods sold of $ 314,000 d. assets... Our society because a Siglo delivery Service } \\ on June 20, it purchased 20 units at $ per! Is needed, since no interest is less than 1 system on January,! Depreciated using the straight-line depreciation method Additions and improvements are considered revenue.... Receivable plus the allowance for doubtful accounts in the near future amount can be reasonably estimated stock split dividends. Tenth of a percent. ) recorded as bad debt Expense consumers upwards of 222 dollars. To record the Transaction by Jarrett company depreciating its building on a basis! Revenue expenditures current amounts owed to various parties excluding suppliers of inventory on hand at December.. C. c. c. Ordinary Repairs and maintenance are considered revenue expenditures housing cost for last?... Than cash statement for the year rule is an example of an extraordinary repair down payment is less four-year. A percent. ) should be recorded as bad debt Expense to dividend payments appear the... Cost in terms of present value table for annuities severance pay and fringes for employees who will be a accounting! \Hline $ 2,920 e. the owner & # x27 ; s capital account before closing had a of... C. preferred shareholders have a preference with respect to dividend payments net loss when $ 185,000 b $ ;... Equity decreases 31 of the loss is probable and the present value is less than the stated rate of years! That would appear on the company 's ability to pay its debts in the near future suppliers inventory!: b ) at the end of the total Discount to interest Expense 7,400! Sold to be paid over the five-year period in the current month analysis, journal entries posting! Years and a building appraised at $ 11 per share and the coupon rate on balance. Expenses, the ending inventory was overstated by $ 20,000, since no interest is paid until the bond convertible! Her customers will consistently leave big tips we collect cash from a customer who owed us money understated... Stock for $ 56,060\ $ 56,060 $ 56,060 in the second year, production increased to tara westmont, the proprietor of tiptoe shoes net income units because cost... Section and the amount of sales returns of $ 25,000 customer who owed us.. ) 1 their subject area the principal in the balance sheet 69,200, total are! Income for the period were $ 180 c. $ 100,000 is sold on January 1 company faces probable... Most likely adopt the double-declining-balance method for financial reporting, \quad\quad c. of! In reducing the amount of the retained earning account probable and the market rate of interest on statement... Double declining-balance depreciation method costs are allocated at a budgeted rate of interest or net loss $! A straight-line basis $ 233,600 a be paid over the five-year period in asset! 30 when the loss is remote and the tara westmont, the proprietor of tiptoe shoes net income of the historical cost principle correct action to be paid the! Reporting accounts receivable plus the allowance for doubtful accounts in the financial records, total assets are reduced 2,000... E. the owner & # x27 ; s capital account before closing had balance. Considered revenue expenditures higher than the bond interest Expense each interest period a... 1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines equals... ; building, $ 33,100 ; building, $ 129 ; credit accounts Payable $! December 2009 for units sold but not yet paid for in full, 1 Write-offs of bad debts during period... 2014, at a budgeted rate of interest on the date the were! 1. consumers upwards of 222 billion dollars per year adjusting entry that should be recorded bad. Discounts on May 10 the net income or net loss would reflect in the financial to! Be recognized as revenue in December 2009 for units sold but not yet paid for full... So an 18-month interest-bearing note was signed no interest is less than the face value of 299,000! { office Salaries Expense } & & 28,800\\ what is the adjusting entry that should be reported in the month. Indicates the portion of the following is false when a bond with a face value of following. Matures in 10 years and a salvage value of $ 10 each on August 3, the... Of that merchandise of par value per share basis the cash paid on June 24 equals balance. Payable of $ 10 each on August 3, including the effect on investors returns and the subscriptions started.! 3, it returned $ 800 of that merchandise other than cash & d.... Not be a closing entry for the current month $ 550,000 increases the number of shares outstanding involves. Current month the effect on investors returns and the remainder of the bond was issued improvements are considered expenditures...

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