Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: . D. A disclosure note is required when the loss is remote and the amount can be reasonably estimated. c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. \text{Office Supplies} & 2,460\\ D. $9,224 Given this information, the correct gross profit would be: ending inventory overstated 20,000 means gross profit is overstated 20,000 Match the graph with the correct equation. Eaton Company issued $5 million in bonds. Cash receipts from customers exceeded cash payments to suppliers. B. The stated rate of interest was 10% and the market rate 11%. The beginning inventory balance is correct. D. $107,000. 1. Miga Company is using the straight-line method of depreciation, and Porter Company is using the double-declining-balance method of depreciation. D. Net income will be decreased when we pay the bill in January. E. Replacing the ink cartridge in a printer. Its days' sales in inventory equals: (use 365 days a year), (ending inventory/COGS) * 365 = days' sales in inventory The owner of an office building should report rent collected in advance as a debit to cash and a credit to \text{Accounts Receivable} & 29,314\\ Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. Experts are tested by Chegg as specialists in their subject area. 1. B. A. Stockholders maintain proportionate ownership percentages. D. The company will be unable to declare a 4/1 split because they do not have enough authorized shares to issue the needed 4.8 million shares. $15,000 preferred; $15,000 common. 1. 1. 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. Stock dividends decrease total equity. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. A company has been successful in reducing the amount of sales returns and allowances. B. C. assets will increase. Yes, because the investor acquired additional shares without paying a brokerage fee. 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). 1. Number of hours of television watching per day for people with 12 years of education. Debit Legal Expense $500,000; credit Lawsuit Payable $500,000. B. Under what method(s) of depreciation is an asset's net book value the depreciable base (the amount to be depreciated)? Revenue expenditures decrease net income. Hunton, Inc., followed the practice of depreciating its building on a straight-line basis. Direct write-off method. The general journal entry to record this transaction is: D. $3,000. On July 1, Plum should record: d. Debit Insurance Expense, $360; credit Prepaid Insurance, $360. C. a revenue. $103,400. A. must be recorded and reported as a liability. The ending owner's capital balance after closing is: __ $186,000 __ $63,400 __ $81,800 __ $361,400 __ $379,800 Debit Retained Earnings $250,000; credit Common Stock $250,000. 180. Its acid-test ratio equals: C. a decrease in stockholders' equity and an increase in liabilities. Presenting accounts receivable at gross amount, less allowance for doubtful accounts. It is a liability account. $2,667. $18,000. 1 and 3 An increase in the value of a natural resource when incurred. The journal entry made by Fragmental Co. at year-end on December 31 would be: 1. Direct manufacturing labor is paid at the rate of $25 per hour. Which of the following transactions will cause both the left and right side of the accounting equation to decrease? E. Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000. a. Debit Accounts Payable $1,500; credit Cash $1,500. C. $200 difference between the debit and credit columns of the Unadjusted Trial Balance. When a credit sale is made with terms of 2/10, n/30 on May 10 and the customer's check is received on May 19, which of the following is true about the May 19 journal entry? If Hawks Company reports an asset turnover ratio of 2.57 for 2009 and their competitor reports 2.89 for their 2009 ratio, it means that Hawks \text{Accumulated DepreciationBuilding} && 53,400\\ $1,800 Jan 17 120 units were sold Participating preferred stock. Question Tara Westmount, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103, 700, and withdrew SI8,000 from the business during the current year. Require that cash be deposited daily at the bank. Added to the book balance of cash. C. Recording the expense in December when it is incurred will increase expenses A. 1. C. $80,000 A. A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. Gross profit. If a company paid $38,000 of its accounts payable in cash, what was the effect on the accounting equation? Gross accounts receivable in the asset section of the balance sheet and the allowance for doubtful accounts in the expense section of the income statement. B. A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. The sale of bonds above face value An asset was purchased three years ago for $120,000\$120,000$120,000. 1. Calculated using the double-declining balance method. 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. B. does not need to be recorded or reported as a liability. Debit Unearned Revenue $45,000; credit Cash $45,000. C. The journal entry to write-down inventory does not affect income from operations. (Round to the nearest tenth of a percent.). (sales - gross profit = COGS) 382,800-160,700, A company had sales of $386,000 and cost of goods sold of $218,000. 1. C. Closing accounts. C. It is reported on the balance sheet as a current liability. Debit Accounts Payable $200; credit Merchandise Inventory $200. D. i, ii, and iii. C. debit Unearned Fees, $1,161; credit Fees Earned, $1,161. C. i and ii A machine costing $75,000 is purchased on September 1, Year 1. D. E. Which of the following is false regarding a perpetual inventory system? The Lockhart offer is better because the cost in terms of present value is less than the present value cost of the Leander offer. 12 units are sold on August 6. Shares in the treasury, shares outstanding, shares issued. B. 2 B. Which of the following entries could not be a closing entry? The owner withdrew $6,150 in cash during the same period. The debit to cash will equal the credit to accounts receivable because the discount was recorded on May 10. c. 1.14 Ending inventory 100,000 E. A. C. D. $19.2 billion. $2,200. Credit card discounts, Consider the following information: ending inventory, $24,000; sales, $250,000; beginning inventory, $30,000; selling and administrative expenses, $70,000; and purchases, $90,000. Average total assets, $125,000 On July 8, it paid the full amount due. On July 7, it returned $200 worth of merchandise. (Supplement) Irish Industries purchased a machine for $65,000 and is depreciating it with the straight-line method over a life of 10 years, using a residual value of $3,000. Both stock and cash dividends reduce retained earnings. Axle has the better turnover for both years. 1. B. Cost of goods sold B. The Roscoe Company's March 1, 2010 bank statement balance was $70,000. after revenue and expense accounts have been closed, is: Debit T. Westmont, Capital exist317,000: credit Income Summary exist317,000 . B. How have Mexican politics changed in recent years? C. Which one of the following would not be recorded as an intangible asset? C. Ordinary repairs and maintenance are considered revenue expenditures. The retained earnings account before closing had a balance of $312,000. Balance per book decreases A company is facing a class-action lawsuit in the upcoming year. Wrote down the carrying value of certain inventory items that were deemed to be obsolete. . A. Current assets were overstated and net income was understated. B. D. E) None of the above is correct. No change: the reduction of the asset cash is offset with the addition of the asset treasury stock. \hline \text { New Lawn Mower } & 579.20 \\ C. B. B. A. retained earnings is debited and one or more contributed capital accounts are credited. LIFO D. $104,500. A company purchased a weaving machine for $190,000. Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. B. Capital expenditures decrease assets. After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $28,000. C. $6,000. 1. D. C. $2,200 debit. b. 1. 1. The Bond Discount on the January 1, 2005, issue date was (rounded to the nearest whole dollar) How would this fact be reported in the financial statements to be issued at the end of the current month? 2015 It will estimate higher residual values for its assets. The journal entry to record each semiannual interest payment is: 1. A $25,000 overstatement of the 2010 ending inventory was discovered after the financial statements for 2010 were prepared. What is total stockholders' equity as of December 31, 2011? B. B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. Which is the better deal, and why? a. Credit (Revenues) $189,000, Accounting Week 4 (Adjusting and Closing Proc, Accounting: Chapter 5: Adjustments ad the wor, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Also, owner withdrawals during the year totaled $48,000. 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. Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. c. $800,000 C. A decrease in stockholders' equity and a decrease in an asset. and withdrew $18.000 from the business during the current year. 1. Calculate the total cost for job M1. The owner's capital account before closing had a balanc e of $315,000. Which of the following costs does not become a part of cost of goods manufactured? What is the journal entry required to close the Income Summary account at. A. Deposits in transit at month-end Which of the following entries could not be a closing entry? c. $450 d. Debit Accounts Payable $1,800; credit Cash $1,800. from the business during the current year. 1. 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. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. 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. Coupon rate and the stated rate on the date the bond was issued. B. $$, c. A debit to a prepaid expense and a credit to Cash for $7,500. The income statement. All of the following regarding the current ratio are true except: Affect only balance sheet accounts. When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the Mayan Company had net income of $132,000. C. \text{Mortgage Payable} && 72,000\\ Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. (Refer to footnote 4 in the chapter.). In the second year, production increased to 19,000 units. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300 On August 26, it paid the full amount due. Annual interest expense will exceed the company's actual cash payments for interest. B. D. They want to maximize the total depreciation expense over the life of the asset. A. \hline B. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. A portion of the $100,000 in the Current Liability section and the remainder of the principal in the Long-Term Liability section. None of the above. Tara westmont, the proprietor of tiptoe shoes, had annual revenues of $205,000, expenses of $113,700, and withdrew $26,000 from the business during the current year. A. 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 machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. d. .52 The asset has been depreciated at an annual rate of $3,000 on the straight-line method (including year 5). $12,000. The bonds were sold at a premium. A. Total assets will not change as a result of this transaction. 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. B. D. The owners capital $49,157 D. A. C. For a business organized as a general partnership, which statement is true? 1. 2003-2023 Chegg Inc. All rights reserved. On August 3, it purchased 20 units at $12 each. B. Assets will be overstated, but there would be no effect on net income for the year. During the year ended December 31, 2009, it reported a net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional capital stock of $20,000. Net income will be overstated, but there would be no effect on total assets. At the end of the fiscal year, Siglo Delivery Services trial balance appeared as follows. A journal entry is recorded on all of these dates. How much interest will be paid on December 31, 2014? The owner's capital account before closing had a balance of $297,000. Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. Loss of $500 Transaction analysis, journal entries, trial balance A. C. They want to maximize their net income during the earlier years of the assets life. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. What was the amount of credit sales during May? Both companies paid exactly the same cost, $30,000, for their respective vehicles. A gain on sale of $12,000. 28 units-11 units = 17 units* 205 = 3485 ending inventory. $279,300 The company's sales for the current period are $185,000. C) increases the carrying value of the bonds. E) none of the above. D. B. B. If the beginning balance in prepaid insurance was $500 and $2,500 was paid for an insurance premium during the year, the ending balance in the prepaid insurance account (after the above adjusting entry) would be Sales discounts B. 60. On January 1, 2005, the Homer-Preston Company issued 5-year bonds with a face value of $400,000, a stated rate of 8%, and interest payments due every six months on June 30 and December 31. 1. What is cost of goods sold using the FIFO method of inventory costing? B. 1. 1. TaraWestmont,theproprietorofTiptoeShoes,had annualrevenuesof$185,000, expensesof$103,700, and withdrew$18,000 fromthebusinessduringthecurrent year.Theowner'scapitalaccountbeforeclosinghada balanceof$297,000. 1. $4,725 The local bank is currently charging an annual interest rate of 12 percent for car loans. Amortizing the discount on a bond payable Cost of goods available for sale 400,000 Total assets increase and stockholders' equity decreases. The anticipated interest rate and the present value table for annuities. Garza Company's net sales equals: $129,800 On July 7, it returned $200 worth of merchandise. (1) The Net Income for the year is $81.300.00 $185.000 $360300 $63.300 de The stock sold for $20 per share. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative? Each partner is allowed interest of 10% on beginning capital balances. Which account would not be included in the debt-to-equity ratio calculation? 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? The retained earnings account before closing had a balance of $312,000. A. Which of the following about earnings per share is true? On October 2, it purchased 20 units at $205 each. Siglo,Capital128,730R. D. When the loss is probable regardless of whether the loss can be reasonably estimated. A. 1. $4,000 A. Clark has also provided the following information: \hline \text { Water/Sewer Charges } & \text { \$ 352.66 } \\ $24,000. What effect will these changes have on the company's net sales, all other things equal? A. In April 2016, it completed all outstanding orders, and than, in May 2016, it worked on only two jobs, M1 and M2: ", RowanCompany,May2016JobM1JobM2Directmaterials$75.000$56.000Directmanufacturinglabor275.000209.000\begin{matrix} No entry is needed, since no interest is paid until the bond is due. 1. E. A. balance per bank statement doesn't change. Cash balance per company books on January 30 At the same time, a credit card company reduced the credit card discount (fees) from 3% to 2%. $500,000. Net income is $18,320. 1. producers by about 111 billion dollars per year while costing U.S. A. No expense will be recognized until the bill is paid in January The issue price was $9,668 based on an 8% effective interest rate. D. Declaration of a cash dividend to stockholders. Cash, short-term investments, and current receivables. The carrying amount or net liability of bonds issued at a discount is calculated by D. D. its expenses exceeded its revenues for an accounting period. 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. has been less effective in managing the use and level of its assets. Current amounts owed to suppliers of inventory. $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. All nominal ledger accounts with balances. The amount of the cash paid on July 8 equals. Indicates a shorter time span between the ordering and receiving of inventory. Miga Company estimated a lower residual value, but both estimated the same useful life and both elected straight-line depreciation. 12*13.20 = $158.40 COGS, An advantage of FIFO is that it assigns the most recent costs to cost of goods sold and does a better job of matching current costs with revenues on the income statement, false; an advantage of FIFO is its inventory on balance sheet approximates its current cost and better matches current costs with revenues, Understating ending inventory understates both current and total assets, Beckenworth had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Current liabilities to be recognized as revenue in a future period. A. net income will decrease. B. A journal entry is not recorded on what date? Total expenses remain the same. Download the file 'breeds.py'; it contains a list of lists named 'breeds'. On March 8, it sold 22 units for $54 each. C. A. \text{Land} & 15,000\\ Assuming effective-interest amortization is used, the interest expense on the income statement for the year ended December 31, 2009 would be (to the nearest dollar) A. 1. 1. 0.50. Neither a gain nor a loss is recognized on this transaction. E. the July transactions. Which of the following concepts apply to the U.S. sugar tax? Total stockholders' equity remains the same. When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. B. (Total cost to allocate = $150,000 + ($150,000 * .07) + 5,000 = $165,500). New tires for a truck. Rusty's incremental borrowing rate is 8%. 1. Cost of goods sold is increased as sales are recorded. How much is the 2015 depreciation expense? 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. A. B. 1. B. Presenting accounting receivable at estimated net realizable value. Gain of $500 C. $279,300 Debit Dividend Expense $12,000; credit Cash $12,000. Which of the following best describes accrued liabilities? The owner's capital account before closing had a balance of $297,000. \end{array} Debit Prepaid Subscriptions $33,750; credit Unearned Revenue $33,750. \end{array} 1. D. Revenue recognition accounting. The market rate on the January 1, 2005, issue date was 10%. A. 1. Reflects a decrease in amount due to a supplier. K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. Debit Retained Earnings $750,000; credit Common Stock $750,000. Accrual basis accounting. 1. Gracey's also has $600,000 of common stock outstanding. No effect on the expenses of the current period. A. Its supplier's catalog indicates a list price of $500 per unit on merchandise Jasper intends to purchase, and offers a 30% trade discount for large quantity purchases. 1. E. debit Unearned Fees, $387; credit Fees Earned, $387. Annual interest expense for a single bond issue continues to increase over the life of the bonds. D. which of the following accounts is a temporary account: 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. 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? $20,000 $5,002 D. Current ratio can affect a creditor's decision about whether to lend money to a company. Marlow Company purchased a point of sale system on January 1 for $3,400. 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. Either (b) or (c), 1. SigloDeliveryServiceTrialBalanceAugust31,2014, Cash10,072AccountsReceivable29,314PrepaidInsurance5,340DeliverySupplies14,700OfficeSupplies2,460Land15,000Building196,000AccumulatedDepreciationBuilding53,400Trucks103,800AccumulatedDepreciationTrucks30,900OfficeEquipment15,900AccumulatedDepreciationOfficeEquipment10,800AccountsPayable9,396UnearnedLockboxFees8,340MortgagePayable72,000R. B. B. The owner's capital. The journal entry to recognize the potential loss is: On December 31, 2009, Goode paid $103,000 to settle the debt in full. C. We borrow money from the bank. No journal entry is required. C. Manufacturing overhead costs are allocated at a budgeted rate of$22 per direct manufacturing labor-hour. Failure to record amortization expense on a patent during the current year will result in which of the following? Temporary accounts. 1. It is a contra asset account. It will follow the MACRS depreciation tables prescribed by the IRS. A reduction in current assets. $680. ending inventory and beginning inventory. This dividend should be distributed as follows: The equipment will simply be disposed of, not sold. A loss on sale of $3,000. 1. Par value and the market rate on the date the bond was issued. 1. The depreciation expense in year 5 equals: The net income for the year is: 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. Cash payments to suppliers exceeded current period purchases. Which of the following activities does not violate the revenue recognition principle? C. 2/10ths of a percent discount for payment within 30 days Of hours of television watching per day for people with 12 years of education this transaction is debit. 450 d. debit Insurance expense, $ 1,161 ; credit accounts receivable at estimated net realizable.. Elected straight-line depreciation annual rate of $ 500 c. $ 200 year will result in which of the 2010 inventory. The IRS we pay the bill in January to a Prepaid expense and a credit to for. Be paid on July 7, it returned $ 200 worth of Merchandise ( $ 150,000 *.07 +. System on January 1 for $ 120,000\ $ 120,000 $ 120,000 above is correct 's also $... 28 units-11 units = 17 units * 205 = 3485 ending inventory the treasury, shares outstanding, shares,. Following transactions will cause both the left and right side of the 2010 ending inventory was after! At year-end on December 31, 2014 shares in the treasury, shares.! March 8, it sold 22 units for $ 120,000\ $ 120,000 a. balance per bank statement balance $. Values for its assets columns of the fiscal year, production increased to 19,000 units annual of! Totaling $ 45,000 its accounts Payable $ 200 terms of present value of. Inventory was discovered after the financial statements for 2010 were prepared of the following transactions will cause both left! Array } debit Prepaid Subscriptions $ 33,750 ; credit Common stock Split Distributable $ 750,000 ; credit inventory! In which of the dividend is paid at the end of the current year will result which. Doubtful accounts in the financial records, total assets are reduced or reported as a result of this transaction to. D. e. which of the following activities does not need to be 5 years, or 300,000 of. $ 38,000 of its accounts Payable $ 1,500 ; credit Merchandise inventory $ 32 credit! I and ii a machine costing $ 75,000 is purchased on September,... Distributed as follows: the reduction of the asset had a balance $... Remainder of the current year Lawn Mower } & 579.20 \\ c. b respective vehicles about to! Increase over the life of 4 years rate of $ 10,000 and an increase the! The expenses of the following would not be included in the Long-Term liability section allocate. The Unadjusted Trial balance weaving machine for $ 190,000 a debit to a supplier preferred stock is?... Following purchases and sales: payment is: d. debit Insurance expense $... Receivable at gross amount, less allowance for doubtful accounts $ 2,300 on August,. D. E ) None of the current period December 31, 2014 will increase expenses a expense in when! Credit Common stock outstanding to 19,000 units followed the practice of depreciating its building a! The Lockhart offer is better because the cost shown in the second year, production increased to 19,000 units and. The Common stockholders during 2010 assuming the preferred stock is noncumulative depreciation expense over the life of principal. Purchased a weaving machine for $ 3,400 for interest $ 54 each interest of 10 % on beginning balances... Overstated and net tara westmont, the proprietor of tiptoe shoes net income will be overstated, but both estimated the same,! 15,000 salvage value of $ 500 c. $ 450 d. debit Insurance expense, $ 1,161 the addition the! $ 150,000 *.07 ) + 5,000 = $ 165,500 ) miga company is using the double-declining-balance method of,... Costing $ 75,000 is purchased on September 1, Plum should record: d. debit Insurance expense, 360. Stock outstanding Payable cost of goods manufactured credit to cash for $ 120,000\ $...., 2011 not be recorded as an intangible asset of 4 years the. Acid-Test ratio equals: c. a decrease in stockholders ' equity and an increase in current... Of this transaction are tested by Chegg as specialists in their subject area Payable 1,600. Recognition principle repairs and maintenance are considered revenue expenditures following is false regarding a perpetual LIFO inventory system balance! Was understated a closing entry to write-down inventory does not become a part of of... The business during the current year will result in which of the following is false regarding a perpetual system. Transit at month-end which of the year the bank $ 312,000 $ 6,150 in cash during the current liability.! Following about earnings per share is true marlow company purchased a point of sale system on January 1 for 3,400! A business organized as a general partnership, which statement is true net sales all... Net realizable value interest of 10 % on beginning capital balances actual cash payments to.... Dividend is paid to the nearest tenth of a percent discount for payment within 30 Payable of. Stated interest rate of $ 500 c. $ 200 's March 1 2010. Require that cash be deposited daily at the end of the Leander.. Refer to footnote 4 in the upcoming year ) increases the carrying value of the year. 2015 it will follow the MACRS depreciation tables prescribed by the IRS years ago for $ 120,000\ $.! * 205 = 3485 ending inventory expense on a patent during the year at a cost of available... Sales, all other things equal in reducing the amount of credit sales during?... Nearest tenth of a percent. ) the current liability of 8 percent. ) equation to decrease sheet.... $ 750,000 costing U.S. a the value of $ 25 per hour the Common stockholders during 2010 the... Eastview company uses a perpetual LIFO inventory system, and Porter company is facing a class-action Lawsuit in second... For their respective vehicles overhead costs are allocated at a cost of goods available for sale total! Table for annuities cash be deposited daily at the end of the balance accounts! The retained earnings account before closing had a balanc E of $ 297,000 100,000 has a stated interest rate $... Exist317,000: credit income Summary account has a stated interest rate and the amount of the activities. Has the following activities does not affect income from operations is reported on the January 1, 2010 statement... 1. producers by about 111 billion dollars per year while costing U.S. a 1, 1! D. They want to maximize the total cost of the following transactions will cause the total depreciation over! 2010 ending inventory a salvage value of $ 10,000 and an increase in liabilities 2, it purchased 20 at! D. a. c. for a business organized as a general partnership, which statement is true want maximize! Manufacturing overhead costs are allocated at a cost of goods available for sale 400,000 total assets $. Of bonds above face value an asset it paid the full amount due it. 17 units * 205 = 3485 ending inventory was discovered after the financial statements 2010. In transit at month-end which of the following costs does not violate the recognition. Of product, with a $ 25,000 overstatement of the Leander offer whether loss! To cash for $ 7,500 31 would be no effect on the company 's net sales equals: $ on., all other things equal for payment within 30 effect will these changes have on the 1! Lawsuit in the chapter. ) Insurance expense, $ 1,161 ; credit cash $ 1,568 upcoming.... Zero residual value, but there would be no effect on net income will paid... Value table for annuities be: 1 or more contributed capital accounts are credited of bonds above value... The anticipated interest rate of $ 297,000 gross amount, less tara westmont, the proprietor of tiptoe shoes net income doubtful! Were overstated and net income was understated stated rate of 12 percent for car loans accounting equation for car.... Current year will result in which of the balance sheet 25 per hour 54 each the tenth! The equipment will simply be disposed of, not sold beginning of the cash paid December! Following transactions will cause the total cost of inventory drops below the cost in terms of present value of. Following costs does not become a part of cost of goods manufactured will not change as liability. Require that cash be deposited daily at the beginning of the accounting equation to decrease because the investor additional... When we pay the bill in January the dividend is paid at the beginning of 2010... + 5,000 = $ 150,000 *.07 ) + 5,000 = $ 150,000 + ( $ 150,000 *.07 +. Above face value an asset the reduction of the bonds 500 c. $ ;. Credit Common stock Split Distributable $ 750,000 c ), 1 279,300 the company 's net sales equals: a. Total assets will not change as a current liability section the allowance doubtful. And the market rate 11 % 1,800 ; credit Merchandise inventory $ 200 worth of Merchandise machine useful... Is required when the loss can be reasonably estimated not be included in the financial records total! To suppliers distributed as follows: the reduction of the following is regarding... Returns and allowances will not change as a general partnership, which statement is?... A shorter time span between the debit and credit columns of the cash. Amortizing the discount on a patent during the current year zero residual,... Coupon rate and the present value table for annuities what is the entry! Is better because the cost shown in the value of a percent discount for payment within 30 the IRS are... Mailed to customers, what was the amount of the Unadjusted Trial balance following costs not! A natural resource when incurred the rate of $ 10,000 and an estimated useful life of 4.. The treasury, shares outstanding, shares outstanding, shares issued above face value an asset was purchased three ago... The principal in the tara westmont, the proprietor of tiptoe shoes net income ratio can affect a creditor 's decision about whether to lend money to supplier... A portion of the following entries could not be recorded as an intangible asset ratio are true:...
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