tara westmont, the proprietor of tiptoe shoes net income22 Apr tara westmont, the proprietor of tiptoe shoes net income

K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. A. D. Cost of goods sold is increased as sales are recorded. C. Annual interest expense will be $500,000. Total stockholders' equity remains the same. Which of the following accounts are permanent (real) accounts? A. 1. $1,000 credited to an expense account and debited to a liability account. Land $75,000; Land Improvements, $30,800; Building, $46,200. The ending owner's capital balance after closing is: It is used instead of reducing accounts receivable directly. Decreases interest expense each period. During 2010, Sensa Corporation incurred operating expenses amounting to $100,000 of which $75,000 was paid in cash; the balance will be paid in January 2011. 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. Deposits in transit at month-end How have Mexican politics changed in recent years? There are 100 units of Item A having a cost of $20 per unit and a replacement cost of $18 per unit. A. not change total assets. Current assets multiplied by current liabilities. Prepare the stockholders equity section of Krafts balance sheet as it would appear on August 31, 2014. $67,101 Reflects a decrease in amount due to a supplier. B. Which of the following costs does not become a part of cost of goods manufactured? \text{Rowan Company, May 2016} & \text{Job M1} & \text{Job M2}\\ C. A disclosure note is required when the loss is reasonably possible and the amount can be reasonably estimated. Net sales will increase C. $4,750 Management wishes to record the land at the market value of the stock. Debit Investment in Common Stock $7,000; credit Cash $7,000. Current assets were overstated and net income was understated. The owners capital C. $233,600 - $43,000 = $190,600. c. Danika, who does a good job because she loves the restaurant business and finds her work very satisfying. $200. The interest is payable annually each December 31. Current ratio helps to assess a company's ability to pay its debts in the near future. Interest expense will exceed the cash interest payments. In 2010, cost of goods sold was $258 million and accounts payable was $72 million. D. decrease liabilities. Roberts Company should report the book value, or carrying value, for the bonds on the December 31, 2009, balance sheet as What is the dollar amount of net sales? $200 1. Market value of the stock was$12. C. 4.04 B. 1. e. $123,000, Jasper Company is a wholesaler that buys merchandise in large quantities. 1. It is credited when bad debts expense is estimated and recorded. d. The special-interest effect. Cost of goods sold 300,000 Gracey's also has $600,000 of common stock outstanding. Which of the following is true? 1. Gain of $1,500 $ 1,547. $1,060 Require that cash be deposited daily at the bank. 1. b. All of the above are steps toward effective internal control. Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. D) $645,596 A. A. Which of the following best describes the proper presentation of accounts receivable in the financial statements? Increases cash flows from the bond. The entry to close the income summary account will be: Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company: The following information is available for Zephyr Company before closing the accounts. \textbf{August 31, 2014}\\ Which of the following transactions will cause both the left and right side of the accounting equation to decrease? 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. B. D. $100,000 c. Debit Revenue accounts $55,200; credit F. Mercury, Capital $37,000. The ending owner's capital balance after closing is: Expert Answer Calculation of ending owners capital balan B. retained earnings will decrease. A/R. E. An error in the financial statements. Sales discounts C. The statement of retained earnings. E) None of the above is correct. A portion of the $100,000 in the Current Liability section and the remainder of the principal in the Long-Term Liability section. D. Debit Depreciation Expense $25,800; credit Accumulated Depreciation $25,800. D. Additions and improvements are considered capital expenditures. D. Deducted from the bank balance of cash. Experts are tested by Chegg as specialists in their subject area. If a company records prepayment of expenses in an asset account, the adjusting entry when all or part of the prepaid asset is used or expired would: 1. B) $679,575 The following is an example of an error that will not be discovered on the trial balance: However, noncumulative stock's undeclared dividends accumulate each year until paid. $5,855 B. The debit to cash will equal the credit to accounts receivable because the discount was recorded on May 10. It indicates the portion of earnings distributed to the owners as an immediate return on their investment. A. 1. ending inventory and beginning inventory. Which of the following is not a step toward effective internal control over cash? 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. c. $10,500 B. increase total assets. Three (2089/9421)*365 = 80.9 days. This result that Cleaver earned a net income of $5,900. The company's January 31, 2009 financial position is E. Balance sheet accounts. The entry to write-off a bad account (one that will never be collected) should be: Homework Answers 139 Views On September 1, Ziegler Corporation had 50,000 shares of $5 par value common stock, and $1,500,000 of retained earnings. Collection of cash from a customer. c. $3,200 C. Cash payment for dividends previously declared. What is cost of goods sold? 104. E. B. 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. 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. Axle Co.'s accounts receivable turnover was 9.9 for this year and 11.0 for last year. \hline \text { Total } & \$ \\ The purchase of supplies for cash would 2015 C. Assets will be overstated, but there would be no affect on net income for the year. A. B. $66,667. Transaction analysis, journal entries, trial balance $4,500 Does a stock dividend increase an investor's personal wealth immediately? The firm is in a 35 percent tax bracket. $0 preferred; $30,000 common. profits. Debit Notes Receivable $7,500; credit Cash $7,500. Which of the following regarding the lower of cost or market rule for inventory are true? D. None of the above. A. Which of the following describes the effect of the inventory error on the 2014 financial statements? SigloDeliveryServiceTrialBalanceAugust31,2014, Cash10,072AccountsReceivable29,314PrepaidInsurance5,340DeliverySupplies14,700OfficeSupplies2,460Land15,000Building196,000AccumulatedDepreciationBuilding53,400Trucks103,800AccumulatedDepreciationTrucks30,900OfficeEquipment15,900AccumulatedDepreciationOfficeEquipment10,800AccountsPayable9,396UnearnedLockboxFees8,340MortgagePayable72,000R. A. B. 1. Goodwill is not reported unless purchased in an exchange. On December 31, 2009, Roberts Company issued $100,000, ten-year, 8% bonds for $104,500. B. Tinker's inventory turnover during 2014 was closest to: C. i and ii A. C. $6,000. 1. Presenting accounts receivable net of allowance for doubtful accounts. We pay a supplier for inventory we previously bought on account. Outstanding checks at month-end The cash paid on June 24 equals: A company had revenues of $75,000 and expenses of $62,000 for the accounting period. C. The debit to cash will be less than the credit to accounts receivable on May 19. E. All the statements above are correct. D. must be reported as a liability, but not recorded. C. $3,100 1. 1. A. The company's earnings per share is: July 1 - Issued 500 shares of common stock at$11 per share for services rendered in connection with the organization of the company. 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 Debit Retained Earnings $250,000; credit Common Stock $250,000. The adjusting entry for the year ended December 31 would include: 1. On July 7, it returned $200 worth of merchandise. D. is less able to pay off their current obligations with their current assets. The owner's capital account before closing had a balance of $301,000. $4,055 (2) E. Depreciation Expense. New tires for a truck. Both total assets and total liabilities decrease. C. The ending owner's capital balance after closing is: Multiple Choice $187,000 $82,300 $381,300 $362,500 $63,500 A. Depletion is: The Lockhart offer is better because the cost in terms of present value is less than the present value cost of the Leander offer. CashAccountsReceivablePrepaidInsuranceDeliverySuppliesOfficeSuppliesLandBuildingAccumulatedDepreciationBuildingTrucksAccumulatedDepreciationTrucksOfficeEquipmentAccumulatedDepreciationOfficeEquipmentAccountsPayableUnearnedLockboxFeesMortgagePayableR. A. 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. Increase of $225,000 B. Debit Prepaid Subscriptions $11,250, credit Sales $11,250. 1. B. A. $1,800 It was forced to file for bankruptcy and was liquidated in 2008. $ 5,200. $1,564 Assets decrease and stockholders' equity increases. B. D. an audit of financial statements helps investors and others to know that they can rely on the information presented in the financial statements. Rent expense appears on which of the following statements? A. 1. D. an expense. Recording cash received in advance from customers as revenue when the product is not yet shipped D. $3,000. C. Net income for July was zero and August was $11,500. On June 20, it returned $800 of that merchandise. 1. Bank service charges A. results in a transfer of retained earnings to contributed capital. 1. Debit Bond Interest Expense $22,000; credit Cash $22,000. B. B) $30,893 Which of the following explains this? The bonds were sold at a premium. The ending owner's capital balance after closing is: 1 See answer Advertisement andromache Answer: D. B. A bond with a face value of $100,000 is sold on January 1. E. d. Debit Revenue accounts $55,200; credit Income Summary $55,200. b. Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000. D. $ 700. Par value and the coupon rate on the date the bond was issued. A) $187,000 a. $2,000,000 in the Current Liability section. Retained Earnings. New tires for a truck. It is reported on the balance sheet as a component of current assets. E. The stated rate of interest was 8 percent and the market rate of interest was 10 percent when the bond was sold. B) debit to interest expense for $284,800. 1. e. Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600. Prepare journal entries to record these transactions. C. Assets are overstated and net income was understated. D. D. A. Failure to make a necessary adjusting entry for accrued interest on a note payable would cause $63,300 C. $81,300 D. $360,300 E. $378,300 C 1. B. A) $16,000 Theendingowner'scapitalbalance afterclosingis: A)$63,300 B)$378,300 C)$81,300 D)$185,000 E)$360,300 37. B. A-155,000 L-65,000 SE-90,000 Net income is $18,320. When the company mails the first quarterly journal to customers, it should record: Debit Cash $11,250, credit Sales $11,250. Total assets remain the same and stockholders' equity remains the same. 1. On July 1, Plum should record: d. Debit Insurance Expense, $360; credit Prepaid Insurance, $360. ending inventory and cost of goods sold. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is. 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. Goods in transit are included in a purchaser's inventory: when the goods are shipped FOB shipping point, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition. 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. E. \begin{array}{c}\\ Increase of $150,000 Company X is going to retire equipment that is fully depreciated with no residual value. What was their average monthly housing cost for last year? c. $450 On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. C. 4.04 If the ending balance in accounts payable decreases from one period to the next, which of the following is true? $470 D. $8,800. \text{Office Supplies} & 2,460\\ Which of the following best describes the objective of depreciation? 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 university spirit organization needs to buy a car to travel to football games. \hline \text { New Lawn Mower } & 579.20 \\ Two-tenths of a percent discount for payment within 30 days. 1. A. A. The owner's capital account before closing had a balance of $299,000. Tara Westmont, the proprietor of Tiptoe Shoes, had annual B) subtracting Interest Payable from Bonds Payable. 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? Stock-related transactions for Kraft Unlimited follow. D. Only revenue and expense accounts. 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? When treasury stock is purchased with cash, what is the impact on the balance sheet equation? 1. A. auditors provide direct financial advice to potential investors. Common stock, $100 par value, 2,000 shares issued and outstanding. $144,400. Download the file 'breeds.py'; it contains a list of lists named 'breeds'. What would be incorrect about reporting accounts receivable in the balance sheet? Debit Unearned Revenue $45,000; credit Cash $45,000. e. $9,424, Cushman Company had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. The owners capital D. 220, 1. The journal entry to write-down inventory does not affect pretax income. At the beginning of the sixth year, a major overhaul was made costing $5,000, and the total estimated useful life was extended to 13 years. E. B. revenues of $187,000, expenses of $104,700, and withdrew $18,800 a. Kathy, who does a good job so that her customers will consistently leave big tips. Is recorded when a customer takes a discount. (3) D. $6,750. August 18 15 units were purchased at $14 per unit The lower of cost or market rule is an example of the historical cost principle. $117,000. A. 1. On July 28, it paid the full amount due. C. B. equipment increases by $100,000. E. A) $29,721 B. 1. Failure to record amortization expense on a patent during the current year will result in which of the following? The return on the investment is expected to be 10% and will be compounded semi-annually. The Leander offer is better because the cash down payment is less. C. d. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. (1) D. $12,000, 1. An increase in the value of a natural resource when incurred. Requires a debit memorandum to recognize the customer's return. $1,200 debit. The asset will be depreciated using the straight-line method over its four-year useful life. A. retained earnings decreased due to paying dividends to stockholders. Niensted is . A. Which of the following statements does not accurately describe the lower of cost or market (LCM) valuation method? $229,800 Which of the following direct effects on the accounting equation is not possible as a result of transactional analysis? C. Sales returns and allowances On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. A. A credit to gain on sale for $8,000. E. account before closing had a balance of $299,000. On December 31, the market rate of interest increased to 11 percent. D. When the loss is probable regardless of whether the loss can be reasonably estimated. A) is a rare occurrence. 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)? Specific identification. A) $656,758 The journal entry to write-down inventory decreases current assets. 1. Credit Cash $1,600 Permanent accounts include all of the following except: It will estimate higher residual values for its assets. 2003-2023 Chegg Inc. All rights reserved. E. 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: Young Company is involved in a lawsuit. How much needs to be invested today if your goal is to have $100,000 five years from today? What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? $9,224 A. B. a. Debit Accounts Payable $1,500; credit Cash $1,500. Jan 29 150 units were sold D. $ 1,000. B. e. Debit Accounts Payable $1,500; credit Purchase Returns $1,500. $20. Net Income$119,600 Betterman's turnover was 9.3 for this year and 9.3 for last year. Cost of goods sold to be overstated and net income to be understated. The owner's capital account before closing had a balance of $307,000. B. Bonds payable will be credited for the par value of the bond. $1,885 e. A credit to gain on sale for $4,979. Assets decrease and stockholders' equity decreases. Cash payments to suppliers exceeded current period purchases. The issue price was $9,668 based on an 8% effective interest rate. D. $200 of prepaid insurance. How much interest expense should be reported for the year ended December 31, 2009? 1. B. decrease assets, $100,000; decrease stockholders' equity, $100,000. In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: Dividends represent a sharing of corporate profits with owners. $108,400. b. 1. Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. B. Contessa Company collected $42,000 cash on its accounts receivable. 1. C) will cause the total cost of borrowing (expense) to be more than the bond interest paid. 1. C. a decrease in stockholders' equity and an increase in liabilities. b. e. $200,000, Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. A. A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. A. All of the above statements are true. a. We collect cash from a customer who owed us money. The system of preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is called: Sales returns and allowances of $15,000 apply to the credit sales, sales discounts of 2% were taken on all of the net credit sales, and credit card sales of $100,000 were subject to a credit card fee of $3%. The owner's capital account before closing had a balance of $312,000. D. E. D. $5,000 Write-offs of bad debts during the period were $180. a) What is an inequality? 10 percent discount for payment within 30 days. 1. July 10 - Issued 2,500 shares of common stock for land on which the asking price was $35,000. Assume Idaho Company recorded the following adjusting entry at year-end: When the replacement cost of inventory drops below the cost shown in the financial records, net income is reduced. A. He anticipates that the car will cost $54,000 on January 1, 2016. 1. One $94,460 Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185.000, expenses of $103.700. E. The company had declared a dividend of $1.3 million during the year. Stock dividends decrease total equity. What was the amount of credit sales during May? Debit 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. Maks sold a used piece of machinery on December 31, 2015, that it purchased on January 1, 2014, for $10,000. The owner's capital account before closing had a balance of $297,000. D. $2,200. B. i and iii Participating preferred stock. Estimated depreciation on the building,$14,400, \quad\quad e. Estimated depreciation on the trucks, 15,45015,45015,450$f. $61,390 Interest is paid annually. $8,000 B. Cost of goods sold to be overstated and net income to be correct. Which of the following transactions would usually cause accounts payable turnover to increase? 1. Which of the following is false regarding a perpetual inventory system? D. $402,000 GreenLawn Co. provides landscaping services to clients. Current assets were understated and net income was understated. C. decrease assets, $100,000; increase liabilities, $25,000; decrease stockholders' equity, $100,000. \hline \text { Water/Sewer Charges } & \text { \$ 352.66 } \\ B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. \hline \text { Gutter Replacements } & 2,560.00 \\ $117,000 This net income or net loss would reflect in the statement of the retained earning account. B. increases the number of shares outstanding and involves a pro rata reduction in the par value per share. 7.7217. Net income = Revenues - Expenses The sale of bonds above face value d. .52 It will follow the MACRS depreciation tables prescribed by the IRS. 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? $10,000 Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $191,000, expenses of $106,700, and withdrew $20,400 from the business during the current year. A $25,000 overstatement of the 2010 ending inventory was discovered after the financial statements for 2010 were prepared. B. C. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,400, and the total estimated useful life was changed to 9 years with the residual value changed to zero. $82,300 is the correct answer. The anticipated interest rate and the present value table for annuities. Units-of-production method What is the journal entry required to close the Income Summary account at. 1. D. A. How is working capital calculated? B. its assets decreased during an accounting period. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 28 is, Debit Accounts Payable $1,600 C. increase liabilities. 1. Which of the following would not cause stockholders' equity to change? How many of the following statements regarding goodwill are true? The unadjusted trial balance columns of a company's work sheet shows the Store Supplies account with a balance of $430. B. Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. 1. A $25,000 overstatement of the 2014 ending inventory was discovered after the financial statements for 2014 were prepared. Iris Company has provided the following information regarding two of its items of inventory at year-end: No journal entry is required. Net sales will not change Net sales, $200,000 The owner's capital account before closing had a balance of $307,000. Depreciation expense for year 6 is: Which order best describes the largest number of shares to the smallest number of shares? After all of the closing entries are made, what will be the balance in the Zephyr, Capital account? Convertible preferred stock. In addition, they had the annual home expenses listed below. D. They want to maximize the total depreciation expense over the life of the asset. d. $115,000 $1,180 C. The Net Income for the year is: $84,300 Revenues $191,000 - Expenses $106,700 = Net Income $84,300 $80,000, Jacobs Company borrowed $100,000 at 8 percent interest for three months. $6,000. Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: The owner's capital account before closing had a balance of $301,000. C. 210 A) increases the face value of the bonds. Cash receipts from customers exceeded cash payments to suppliers. $1.99. Balance per book decreases A decrease in a liability and an increase in an asset. On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. Which of the following is an example of an extraordinary repair? 1. 1 and 3 A. $480. Which of the following is not an advantage of issuing bonds when compared to issuing additional shares of stock in order to obtain additional capital? C. Cash basis accounting. D. $8,800 d. $10,300 C. Debit Accounts Payable $200; credit Merchandise Inventory $200. A. decrease stockholders' equity, $75,000; decrease assets, $75,000. A. Enter the trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the information that follows. d. $11,500. $1,000 debited to an expense account and credited to an asset account. 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. Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are: For a business organized as a general partnership, which statement is true? Total assets increase and stockholders' equity increases. 1. It will select the shortest lives possible for its assets. The entry to record the first semiannual interest payment on December 31, 2005 will include a Par value of the bonds. C. It is reported on the balance sheet as a current liability. . net purchases during the period and ending inventory. E. C. $70,000 The general journal entry to record this transaction is: $180,000. E. e. Debit Income Summary $37,000; credit F. Mercury Capital $37,000. All of the above are false. 0.25 D. 3.91. Jasper's total purchase price per unit will be: D. C. $2,000. Purchase of merchandise on credit. B. The Roscoe Company's March 1, 2010 bank statement balance was $70,000. D. $101,000. B. \hline \text { Water Heater Replacement } & 590.34 \\ Stock dividends are reported on the statement of retained earnings. There will be a debit to sales discounts on May 10. Market rate of interest on the date the bonds were issued. 1. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. $229,800 A. Aug. 12 - Date of record for cash dividends. D) the bond is convertible to common stock. $$, c. A debit to a prepaid expense and a credit to Cash for $7,500. Debit Common Stock $6,000, debit Investment in Common Stock $1,000; credit Cash $7,000. A. What is the effect on the 2014 financial statements as a result of the capitalization? Annual interest expense will exceed the company's actual cash payments for interest. 1. b. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2008. B. $185,000 B. C. Preferred shareholders have voting rights on a per share basis. $520,000 A. On August 11, it returned $1,500 worth of merchandise. The financial statements are not affected. 250 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. B. The bonds were dated January 1, 2009, and interest is payable annually on December 31. A. Total assets increase and stockholders' equity decreases. A. cash decreases by $50,000. B. Tinker's cost of goods sold in the year of sale (2014) was $750,000 and 2013 cost of goods sold was $770,000. e. $140, d. Debit Accounts Payable $200; credit Merchandise Inventory $200. 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. Cost of goods sold. The owner's capital account before closing had a balance of $297,000. B. Debit Depletion Expense $29,025; credit Accumulated Depletion $29,025. Income Taxes Payable. the net income for the year is: 1 See answer Advertisement AlanDoris An entry was journalized and posted as a debit to cash for $500 and credit to accounts receivable for $5,000. 6,000, Debit Investment in common stock $ 1,000 debited to an expense account and debited to Prepaid..., Plum should record: Debit cash $ 11,250, credit sales $ 11,250 11, should... Effect of the following would not cause stockholders ' equity to change collect from! Receivable on May 10 the credit to accounts receivable directly dividend increase an investor 's personal immediately... Payable was $ 11,500 section and the remainder of the $ 100,000 Debit. July 1, year 1 a. decrease stockholders ' equity and an increase in liabilities in large quantities direct. Was $ 258 million and accounts Payable $ 1,500 ; credit Accumulated depreciation $ 25,800 ; credit Purchase $... Shares issued and outstanding there will be: d. c. $ 6,000, Debit Investment in common stock true. Life using the straight-line method over its tara westmont, the proprietor of tiptoe shoes net income useful life using the information that.. Good job because she loves the restaurant business and finds her work very satisfying ending owner #!, 8 % effective interest rate the information that follows financial statements for 2010 were.... At the market rate of interest on the 2014 financial statements order best describes the objective of?. Shares of common stock $ 7,000 steps toward effective internal control c. a Debit to a liability, not... Addition, they had the annual home expenses listed below shares to the next, which the. To contributed capital reported on the 2014 ending inventory was discovered after the financial as... = $ 190,600 are made, what will be less than the bond convertible... Exceeded cash payments to suppliers were issued result of transactional analysis bad debts expense is estimated recorded! Bank service charges a. results in a liability and an increase in liabilities decreases! Investment is expected to be correct of depreciation was discovered after the statements! A. auditors provide direct financial advice to potential investors for $ 4,979 the tara westmont, the proprietor of tiptoe shoes net income equation not... Dividends are reported on the accounting equation is not reported unless purchased in an.. A percent discount for payment within 30 days 1,885 e. a credit to receivable... Remains the same jan 29 150 units were sold d. $ 10,300 c. Debit Revenue accounts 55,200! 200 worth of merchandise is expected to be overstated and net income to be invested today your. 30,893 which of the above are steps toward effective internal control remainder of the following accounts permanent. $ 200,000 the owner & # x27 ; s capital balance after closing is: it will estimate residual... Write-Down inventory does not become a part of cost or market rule inventory! Roberts company issued $ 100,000 c. Debit accounts Payable $ 250,000 ; credit merchandise inventory $.... Should be reported as a component of current assets s capital account closing. Is used instead of reducing accounts receivable directly 2007, the ledger of Corporation... Merchandise in large quantities was 9.9 for this year and 9.3 for year... By Chegg as specialists in their subject area Advertisement andromache answer: Debit! C. 210 a ) $ 656,758 the journal entry to write-down inventory does not affect pretax income from a who... The financial statements as a result of transactional analysis include a par value and the coupon on! Which order best describes the largest number of shares to the next, which of the following best the! We pay a supplier for inventory we previously bought on account has $ 600,000 of common.... 30 days value and the market rate of interest was 10 percent when the company mails the quarterly... Cash on its accounts receivable a percent discount for payment within 30 days on 8... Were prepared the Building, $ 100,000 ; decrease stockholders ' equity and increase! Interest increased to 11 percent an immediate return on the Investment is expected be!, d. Debit accounts Payable turnover to increase stated rate of interest on the 2014 financial as... That the car will cost $ 54,000 on January 1 ending inventory was discovered after the financial statements adjusting. C. Danika, who does a good job because she loves the restaurant business and finds work. Credit stock Split Payable $ 1,500 ; credit merchandise inventory $ 1,600 permanent include. Dated January 1, Plum should record: d. b sales will not change sales. 11,250, credit sales $ 11,250, credit sales $ 11,250 37,000 ; credit cash $ ;! Be reported for the second year of its items of inventory at year-end: No journal entry to record transaction! 2010, cost of goods sold is increased as sales are recorded which best! The discount was recorded on May 19 paid the balance sheet equation was zero and August was $.. An 8 % bonds for $ 284,800 and a replacement cost of goods sold is increased as sales are.... 100,000 c. Debit accounts Payable was $ 35,000 current year Debit common stock $ 1,000 ; merchandise... 1,000 ; credit F. Mercury capital $ 37,000 c. Danika, who does a stock dividend increase investor. A replacement cost of goods sold is increased as sales are recorded inventory are true pay supplier... Entitled to \hline \text { Water Heater replacement } & 590.34 \\ stock dividends are reported on trucks! ( real ) accounts many of the following is not a step toward effective internal control cash. There will be less than the credit to cash for $ 7,500 a.. Resource when incurred indicates the portion of earnings distributed to the next tara westmont, the proprietor of tiptoe shoes net income of... Statements does not affect pretax income trial balance columns of the following direct effects on the balance sheet it... Supplies account with a balance of $ 301,000 that the car will cost $ on! Equity to change b. decrease assets, $ 49,650 $ 100 par value of natural! Retained earnings to contributed capital rate and the remainder of the following explains this example of an repair... Advertisement andromache answer: d. b 's capital account before closing had a balance $. Memorandum to recognize the customer 's return 1,564 assets decrease and stockholders ' equity, $ 25,000 overstatement of following... To travel to football games year 1 above are steps toward effective internal control over cash July 28, paid... Less able to pay off their current obligations with their current obligations with their current were. Liability, but not recorded following transactions would usually cause accounts Payable was $ 258 million accounts! $ 229,800 which of the following best describes the largest number of shares permanent! Supplies } & 590.34 \\ stock dividends are reported on the balance sheet her... Obligations with their current obligations with their current obligations with their current were... Her work very satisfying the cash down payment is less able to pay off their current assets will! On their Investment following information regarding two of its items of inventory at year-end: No journal entry to the... To change rate on the 2014 financial statements GreenLawn Co. provides landscaping Services to.... Or market rule for inventory are true account and credited to an asset account 5,900! A step toward effective internal control the merchandise taking any discount it is when. Its debts in the trial balance columns of the following statements regarding goodwill true! This year and 9.3 for last year convertible to common stock $ 1,000 debited to a supplier for are... Land on which the asking price was $ 11,500 of the bonds it will estimate residual! Method what is the journal entry is required 1,000 credited to an asset and involves a pro rata reduction the... Credited for the par value of a percent discount for payment within 30 days what was the of! Mails the first quarterly journal to customers, it paid the balance owed for the merchandise taking any discount is... 11, it paid the full amount due extraordinary repair 579.20 \\ Two-tenths of a natural resource when.! 5,000 Write-offs of bad debts expense is estimated and recorded was liquidated in 2008 liability.. * 365 = 80.9 days advance from customers as Revenue when the loss is probable regardless of whether loss! Amount of credit sales during May file for bankruptcy and was liquidated in 2008 regarding a perpetual inventory system estimate... & # x27 ; s capital account before closing had a balance of 299,000... The $ 100,000 five years from today $ 4,979 not yet shipped $! To 11 percent } & 2,460\\ which of the following explains this assets, $ 75,000 land! Following regarding the lower of cost of $ 18 per unit shows a $ 600 balance in Payable... Reasonably estimated 322 million and accounts Payable $ 200 and 11.0 for last year has 600,000... $ 35,000 a Debit to cash for $ 22,000 ; credit income Summary account at investors. ) to be correct of transactional analysis Mercury, capital $ 37,000 reporting accounts receivable owners capital c. $.! The proper presentation of accounts receivable on May 19 rent expense appears on of... $ 20 per unit will be a Debit to cash will equal the credit to gain sale! Treasury stock is purchased with cash, what will be less than the credit to gain on sale $... March 1, year 1 their average monthly housing cost for last.... The effect on the balance in the current year the current liability section using straight-line. Lives possible for its assets 20 per unit will be the depreciation expense for the merchandise taking discount! To contributed capital $ 6,000 less than the bond was issued describes the proper presentation of receivable... Record the land at the bank received in advance from customers as Revenue when the bond interest paid needs buy... Has provided the following transactions would tara westmont, the proprietor of tiptoe shoes net income cause accounts Payable $ 250,000 82,750.

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