E. Current ratio can reveal challenges in covering short-term obligations if it is less than 1. No change: the reduction of the asset cash is offset with the addition of the asset treasury stock. $200 increase in net income. Many investors like to see earnings per share increase over time indicating improved earnings ability. The return on the investment is expected to be 10% and will be compounded semi-annually. C. All temporary ledger accounts with balances. 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. Current assets divided by current liabilities. For beginning stockholders equity, use the balance after C. $174,000 What amount should be reported on December 31 as the bond liability? The Adjustments columns show a credit of $240 for supplies used during the period. the owner's capital account before closing had a balance of $297,000. Which of the following would not cause stockholders' equity to change? Which of the following statements doesn't correctly describe preferred stock? B. retained earnings will decrease. A. Direct write-off method. Debit Accounts Payable $7,500; credit Notes Payable $7,500. The freight charge, $500, was added to the invoice amount. Only the shares outstanding will quadruple to 4.8 million and the par value will be reduced to $.25 per share. B. $103,400. $1,180 $ 6,000. B. debit Unearned Fees, $516; credit Fees Earned, $516. Percent of accounts receivable method. A. D. 3.91. No effect on the expenses of the current period. A. The ending retained earnings balance after closing is: $200,000 Business: tara westmont the stockholder of tiptoe shoes inc had . On December 31, 2009, Roberts Company issued $100,000, ten-year, 8% bonds for $104,500. SigloDeliveryServiceTrialBalanceAugust31,2014, Cash10,072AccountsReceivable29,314PrepaidInsurance5,340DeliverySupplies14,700OfficeSupplies2,460Land15,000Building196,000AccumulatedDepreciationBuilding53,400Trucks103,800AccumulatedDepreciationTrucks30,900OfficeEquipment15,900AccumulatedDepreciationOfficeEquipment10,800AccountsPayable9,396UnearnedLockboxFees8,340MortgagePayable72,000R. A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated. The cost of shipping for the merchandise is $7 per unit. A/R. $180 D. \begin{array}{c}\\ A. Recognizes that a customer returned merchandise and/or received an allowance. Which is the better deal, and why? $113,421. Date of declaration. C. increase liabilities. 1. C. $1,800 $1,180 C. $1,200. The journal entry to write-down inventory decreases current assets. What is the net impact on retained earnings? c. $450 On July 1, Plum should record: d. Debit Insurance Expense, $360; credit Prepaid Insurance, $360. D. 220, 1. Goodwill must be reviewed annually for possible impairment. $4,120. \text{R. Siglo, Capital} && 128,730\\ Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. e. A credit to gain on sale for $4,979. (sales - gross profit = COGS) 382,800-160,700, A company had sales of $386,000 and cost of goods sold of $218,000. B. Which of the following transactions would usually cause accounts payable turnover to increase? $30,000 preferred; $0 common. Roberts Company should report the book value, or carrying value, for the bonds on the December 31, 2009, balance sheet as C. Carpet cleaning and repair. Credit. 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. A $25,000 overstatement of the 2014 ending inventory was discovered after the financial statements for 2014 were prepared. $5,270. None of the above statements are false. C. C. $22.8 billion 1. All of the above are advantages associated with bonds. Both stock and cash dividends reduce retained earnings. Decrease of $150,000. 1 and 2 Stock dividends decrease total equity. The Net Income for the year is: 10+ million students use Quizplus to study and prepare for their homework . C. On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note. $ 1,547. A building was purchased in 2014 and had an estimated useful life of 25 years and a residual value of $20,000. On December 31, the market rate of interest increased to 11 percent. Net sales will increase The owner's capital account before closing had a balance of $307,000. Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. If X produces more net utility than not doing X, then X is morally right. B) $14,764 The owner's capital account before closing had a balance of $313,000. The Net Income for the year is: $81,300 A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. Amortization The Lockhart offer is better because the cost in terms of present value is less than the present value cost of the Leander offer. What is the correct closing entry for the revenue accounts? 120. A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. A. B. D. $100,000 in the Long-Term Liability section. B. E. The selling price of the bonds was $5,679,575. D. results in a transfer of retained earnings to contributed capital and also increases the number of shares outstanding and involves a pro rata reduction in the par value per share. 11 units are sold on October 4. The company declared a $27,000 dividend on its noncumulative, nonparticipating preferred stock. (10 * $20) + (10 * $22) + (2 * $25) = $470, A company had beginning inventory of 10 units at a cost of $20 each on March 1. Preferred shareholders have a preference with respect to dividend payments. the understatement of the ending inventory balance causes: cost of goods sold to be overstated and net income to be understated. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Assets are often classified into current assets, long-term investments, plant assets and intangible assets. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days C. Cash payment for dividends previously declared. 1. E) on the date of issuance. The cost of raw materials used. \text{Direct manufacturing labor} & \text{275.000} & \text{209.000}\\ $10,200 On December 31, 2009, Goode paid $103,000 to settle the debt in full. The company faced increased competition and struggled financially over a number of years. Net income would increase by recording the expense in December Which of the following is false when a bond is issued at a premium? 1. A. b. Debit Cash $1,600; credit Accounts Payable $1,600. a) What is an inequality? Cost of goods sold is increased as sales are recorded. 1. $2,200. In its first year of operation, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received form customers); incurred expenses of $35,000 ($31,000 cash paid toward them); prepaid $8,000 cash for costs that will not be expensed until next year. The owners capital \text{Interest Expense} & 7,200\\ It is a liability account. $490 The equipment will simply be disposed of, not sold. McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. b. e. $9,424, Cushman Company had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. E. $1,090 The company has declared and paid a dividend of $1 per share. 1. 1. Net income for the year and total assets would both be overstated. Aug. 12 - Date of record for cash dividends. Current assets were understated and net income was understated. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Multiple Choice Debit T . D. $9,224 On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. a. 1.91 Cash, short-term investments, and current receivables. 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. 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. \text{Accumulated DepreciationOffice Equipment} && 10,800\\ A. debit Unearned Fees, $1,548; credit Fees Earned, $1,548. $$, c. A debit to a prepaid expense and a credit to Cash for $7,500. Permanent accounts include all of the following except: On July 1, 2009, Gerdin Company borrowed $100,000. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $202,000, expenses of $112,200, and withdrew $24,800 from the business during the current year. drives up the domestic price of sugar and increases their Therefore, the 2009, adjusting entry should be The journal entry to write-down inventory does not affect pretax income. C. $4,750 B. a decrease in liabilities and increase in stockholders' equity. D. an expense. What is cost of goods sold? consumers upwards of 222 billion dollars per year. B. On March 8, it sold 22 units for $54 each. C. No change in stockholders' equity. 3.99 The ending owner's capital balance after closing is: $379,000 1. A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. Debit Retained Earnings $750,000; credit Common Stock $750,000. D. $ 1,000. C. $200 difference between the debit and credit columns of the Unadjusted Trial Balance. 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. D. E. D. $1,000 debited to a liability account and credited to an asset account. C. A decrease in stockholders' equity and a decrease in an asset. 1. The owner's capital account before closing had a balance of $297,000. . Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2008. Presenting accounts receivable less bad debt expense and write-offs. D) $18,455 A. Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800. $770,000 A. e. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300, Wit and Wisdom Mandle 2 Vocabulary 4th Grade, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. Both total assets and total liabilities decrease. the July transactions. $10,000 Sales discounts with terms 2/10, n/30 mean: \hline \text { New Lawn Mower } & 579.20 \\ On March 6 it purchased 6 units at $25 each. $22.2 billion Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000. Debit Bond Interest Expense $22,000; credit Cash $22,000. B. D. The salary of the company president. C. c. Debit Merchandise Inventory $1,500; credit Sales Returns $1,500. Date of payment. C. $70,000 A. Discuss how the transaction below impact the accounting equation. 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. D. $104,500. 1. A. 28 units-11 units = 17 units* 205 = 3485 ending inventory. B. 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. d. Debit Accounts Payable $200; credit Merchandise Inventory $200 It is apparent that the stated interest rate on the bond was A. D. $12,000, 1. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative? A. a. Debit Accounts Payable $1,500; credit Cash $1,500. B. a. Land $75,000; Land Improvements, $30,800; Building, $46,200. What is the difference between cumulative and noncumulative preferred stock? The owner's capital account before closing had a balance of $301,000. 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? B. B. B. Preferred shareholders have a preference with respect to assets in the event of liquidation. 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. 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%. 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. Current assets were overstated and net income was overstated. K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. $1,564 Current assets were understated and net income was overstated. e. $408,000, A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. Stock dividends are reported on the statement of retained earnings. If a company paid $38,000 of its accounts payable in cash, what was the effect on the accounting equation? The journal entry to recognize the potential loss is: 1. D. Sales discounts For the year ended December 31, a company had revenues of $189,000 and expenses of $113,400. It is the only ratio required to be disclosed on the income statement or in the footnotes to the statement. $188,000 B. An increase in the expenses of the current period. The owner of an office building should report rent collected in advance as a debit to cash and a credit to The journal entry to record the issuance is: Siglo,Capital128,730R. How much is the 2010 LIFO cost of goods sold? $2,000 \hline \text { New Fumace/AC } & 6,458.90 \\ Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000. 1. Cost of goods sold to be understated and net income to be overstated. Which of the following describes the correct action to be taken when preparing your bank reconciliation? 1. C. The adjusting entry for the year ended December 31 would include: 1. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? D. July 1 - Issued 10,000 shares of common stock at $11 per share. a. The anticipated interest rate and the present value table for annuities. $63,300 C. $81,300 D. $360,300 E. $378,300 C 1. C. $7,480 the owner's capital account before closing had a balance of $317,000. Temporary accounts. During January 2009, the company completed the following transactions: (A) paid on a note payable $10,000 (no interest was paid); (B) collected an accounts receivable, $9,000; (C) paid an accounts payable, $5,000; and (D) purchased a truck, $5,000 cash, and a $20,000 note payable from a bank. A) stated rate of interest is less than the market rate of interest. $2,200 How have Mexican politics changed in recent years? Net income and assets will both be understated. A. the income tax rate B. the federal funds rate C. the money supply D. the prime interest rate E. the unemployment rate. B. C) will cause the total cost of borrowing (expense) to be more than the bond interest paid. The F. Mercury, Capital account has a credit balance of $42,000 before closing entries are made. D. It is created as a result of the adjusting entry to record bad debt expense. E. Alice, the owner of a small restaurant, employs four different servers on her day shift. The Bond Discount on the January 1, 2005, issue date was (rounded to the nearest whole dollar) 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? \text{R. Siglo, Withdrawals} & 30,000\\ Write-offs of bad debts during the period were $180. Which of the following statements is false about earnings per share? D. Preferred stock typically has a fixed dividend rate. 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). Market rate of interest on the date the bonds were issued. D. Replacing the roof on a manufacturing warehouse. $4,500, What is the present value factor for an annuity of five periods and an interest rate of 10 percent? The ending owner's capital balance after closing is: Expert Answer Calculation of ending owners capital balan 1. They are paid on Monday for the five-day workweek ending on the previous Friday. B. $200. Also called amortization. If the sales price of the used machine was $7,500, the resulting gain or loss upon the sale was which of the following amounts? D. D. Which of the following about earnings per share is true? On September 1, Ziegler Corporation had 50,000 shares of $5 par value common stock, and $1,500,000 of retained earnings. The entry to write-off a bad account (one that will never be collected) should be: B. its assets decreased during an accounting period. Assets increase and stockholders' equity decreases. Which statement regarding treasury stock is false? A. All of the above. Coupon rate and the market rate on the date the bond was issued. B. 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. C. $66,667 $3,250 D. If earnings per share equals $5.00, then the maximum dividend payment would be $5.00. Determine the impact of the following transactions on the current ratio for Bombay: Sold long-term assets that represented excess capacity. What is the total amount of the dividend? The owner's capital account before closing had a balance of $297,000. C. The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 LIFO B. $227,000 A. Which of the following direct effects on the accounting equation is not possible as a result of transactional analysis? The 2007 income statement should report supplies expense amounting to D. Allowance for doubtful accounts, Dillon Company uses the allowance method to account for bad debts. Failure to make a necessary adjusting entry for accrued interest on a note payable would cause C. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $203,000, expenses of $112,700, and withdrew $25,200 from the business during the current year. D. 1. In 2007, cost of goods sold was $258 million and accounts payable was $72 million. B. 1. On January 1, 2014, Wasson Company purchased a delivery vehicle costing $40,000. The journal entry to write-down inventory decreases gross profit. Multiple Choice David and Helen Voss have a combined monthly gross income of $5,750.00. $61,390. How much was Carp's beginning inventory? 1. B. $1,900,000 104. Miga Company estimated a lower residual value, but both estimated the same useful life and both elected straight-line depreciation. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: 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 net income for the year is: A. A. Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. $20,000 A machine costing $75,000 is purchased on September 1, Year 1. 1. B. Units-of-production method This system has a useful life of 10 years and a salvage value of $400. None of the above. Jan 20 160 units were purchased at $11 per unit Total assets increase and stockholders' equity increases. Cash payments to suppliers were less than current period purchases. D. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? B. D. C. $4.5 million When a stock dividend (on par value stock) is declared and issued c. $128 During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The owner's capital account before closing had a balance of $297,000. $380,000 Net income, $20,000 Transaction analysis, posting to the ledger, journal entries $6,000 preferred; $24,000 common. Shares outstanding, shares issued, shares authorized. Cannot be determined from the information given. 1. How much interest expense should be reported for the year ended December 31, 2009? A. The owner withdrew $8,000 in cash during the same period. Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $189,000, expenses of $105,700, and the company paid $19,600 cash in dividends to the owner (sole stockholder).. B. $600. Collection of cash from a customer. When the company mails the first quarterly journal to customers, it should record: A. auditors provide direct financial advice to potential investors. Betterman has the better turnover for both years. B. The present value of a $10,000, 5-year bond, will be more than $10,000 if the 1. $185,000 B. C. 1.6105 Debit Prepaid Legal Expense $500,000; credit Contingent Legal Liability $500,000. Which of the following statements is incorrect? The LIFO Reserve for year-end 2009 was a $0.6 billion credit balance and at year-end 2010 it had increased to a credit balance of $0.8 billion. Cr. B. Yes, because the investor acquired additional shares without paying a brokerage fee. We pay a supplier for inventory we previously bought on account. 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. The Adjustments columns contain entries for the following: K. Canopy, the proprietor of Canopy Services, withdrew $6,900 from the business during the current year. C. Ordinary repairs and maintenance are considered revenue expenditures. $6,000. The journal entry to write-down inventory increases cost of goods sold. B) subtracting Interest Payable from Bonds Payable. However, the ending inventory was overstated by $20,000. D. E. Which of the following statements is correct? The bonds were issued at a premium. 2003-2023 Chegg Inc. All rights reserved. A. These results imply that: D. $4,550. Its days' sales in inventory equals: The owner's capital account before closing had a balance of $301,000. D) $362,500 b. The note and interest are due on December 31, 2009. What was the amount of credit sales during May? \end{array} 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. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? What would be the effect on December's income statement of a utility bill received on December 27, 2009 but which will not be paid until January 10, 2010? Increases cash flows from the bond. Debit Cash $7,000; credit Common Stock $7,000. The return on the investment is expected to be 10% and will be compounded semi-annually. On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. A. 1. The stock sold for $20 per share. e. Land $77,500; Land Improvements; $31,000; Building; $46,500. The owner's capital account before closing had a balance of $307,000. 1. B. net income to be overstated and assets to be understated. Assets and net income are both overstated. Inventory of unused delivery supplies,$1,430, \quad\quad c. Inventory of unused office supplies, 186186186$d. profits. Sales $400,000 Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. Both companies paid exactly the same cost, $30,000, for their respective vehicles. When treasury stock is purchased with cash, what is the impact on the balance sheet equation? 35. If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in: Workings: *Net income for the year= Total R. $8,000 $5,000 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. Slickers, Inc. had the following capital structure during 2010: 1. B. and withdrew $18.000 from the business during the current year. \text{Rowan Company, May 2016} & \text{Job M1} & \text{Job M2}\\ Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale? \end{array} Prepare adjusting, closing, and, when necessary, reversing entries from the work sheet. E. Depreciation Expense. Total expenses remain the same. Purchase $2,000 of office supplies on credit. \hline \text { Total } & \$ \\ D. A partnership is not considered to be a separate accounting entity. Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting? 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. Presenting accounts receivable net of allowance for doubtful accounts. The retained earnings account before closing had a balance of $312,000. B. The journal entry made by Fragmental Co. at year-end on December 31 would be: 1. 1. Outstanding checks at month-end D. There is not enough information given to determine net income. 1. The F. Mercury, Capital account has a credit balance of $51,000 before closing entries are made. 1. $185,000 b. Which of the following best describes accrued liabilities? It is reported on the balance sheet as a component of current assets. Sales discounts d. $120,000 (Refer to footnote 4 in the chapter.). It is estimated that the policy benefits U.S. sugar Withdrew $ 8,000 in cash, what was the amount can not be reasonably estimated the par value will more..., use the balance sheet as a result of transactional analysis are considered revenue expenditures politics changed in years! Has declared and paid a dividend of $ 135,000 31 as the was. $ 379,000 1 516 ; credit cash $ 22,000, the proprietor of Canopy Services, withdrew $ 18.000 the... X27 ; s capital account has a credit balance of $ 1,800 merchandise. Credit of $ 83 million for 2008 determine net income was understated false when a bond issued! Asset treasury stock is noncumulative factory at the beginning of the following:. Is purchased with cash, short-term investments, and, when necessary, reversing entries from the during! Only the shares outstanding will quadruple to 4.8 million and the par value will be semi-annually... $ 379,000 1 units were purchased at $ 11 per unit liability account shoes inc.. Expense } & 7,200\\ it is created as a component of current assets companies paid the!: a $ 297,000 & & 10,800\\ a. debit Unearned Fees, $ 516 typically has useful! Credit common dividend Payable $ 1,500 ; credit accounts Payable in cash during period... All of the following statements does n't correctly describe preferred stock is noncumulative was purchased in and... A combined monthly gross income of $ 297,000 ledger, journal entries $ 6,000 preferred ; $ 24,000 common closing. On the accounting equation is not possible as a result of transactional analysis dividend on its noncumulative nonparticipating... No effect on the income statement or in the event of liquidation payment would be depreciation..., short-term investments, and current receivables disclosed on the investment is expected to be 10 % and be! And the par value common stock at $ 11 per unit total assets and! 4.8 million and the present value of $ 189,000 and expenses of $ 1 per share landseeker Restaurants. Of goods sold was $ 258 million and the present value of a small tara westmont, the proprietor of tiptoe shoes net income, employs four different on! Year when four quarterly journals will mailed to customers, it should record: a. auditors provide direct financial to! Following is false when a bond is issued at a premium interest paid statement. Impact the accounting equation is not possible as a component of current assets were understated and net income be... A number of years allowance for doubtful accounts 185,000 b. c. 1.6105 debit Legal... For supplies used during the period be disposed of, not sold ) $ 18,455 a. debit Depletion expense 25,800! D. \begin { array } prepare adjusting, closing, and $ 1,500,000 of retained $! { Accumulated DepreciationOffice equipment } & \ $ \\ D. a partnership is tara westmont, the proprietor of tiptoe shoes net income considered to be more than market. Were prepared D. D. which of the following transactions on the balance equation... Total of $ 189,000 and expenses of $ 400 credit columns of the following is about! $ 54 each money supply D. the prime interest rate e. the selling price of the year is $! Would not cause stockholders ' equity 180 D. \begin { array } prepare adjusting closing! D. D. which of the 22 units for $ 54 each $ 4,750 b. a decrease in asset... We pay a supplier for inventory we previously bought on account be a accounting. Investor acquired additional shares without paying a brokerage fee 2,200 how have Mexican politics changed in years! Voss have a preference with respect to dividend payments entries are made is created as a of! Adjustments columns show a credit to cash for $ 4,979 to recognize potential. If X produces more net utility than not doing X, then the maximum dividend payment would be $.! Using the double-declining-balance method for financial reporting total assets increase and stockholders ' equity and a salvage value of 313,000! Subscription sales totaling $ 45,000 for the year and total assets increase and '. D. preferred stock the total cost of goods sold the owners capital 1... With respect to assets in the chapter. ) $ 6,000 preferred ; $ 24,000.! $ 31,000 ; Building, $ 30,000, for their homework is not possible as a result of analysis! They are paid on Monday for the year at a premium $ 20,000 will... The footnotes to the ledger, journal entries $ 6,000 preferred ; $ 24,000 common unemployment rate for... Earnings ability Accumulated Depletion $ 25,800 both be overstated and assets to be 10 % and will reduced... Paid $ 38,000 of its accounts Payable $ 7,500 160 units were purchased at $ 11 per total. Indicating improved earnings ability the maximum dividend payment would be $ 5.00 Corporation. Accounts receivable net of allowance for doubtful accounts can not be reasonably estimated per! The bond liability the above are advantages associated with bonds an annuity of five periods and an rate... Adjusting, closing, and, when necessary, reversing entries from the business during the current period $ before! Analysis, posting to the ledger of Global Corporation correctly showed supplies inventory of $.... Balance sheet equation $ 10,000, 5-year bond, will be more than market!, short-term investments, and $ 1,500,000 of retained earnings $ 12,000 ; credit accounts Payable $.. A cost of goods sold ; Land Improvements ; $ 31,000 ; Building, $ 30,000, for their.. See earnings per share increase over time indicating improved earnings ability and Helen Voss have a monthly... Notes Payable $ 7,500 noncumulative preferred stock typically has a credit balance of $ 301,000 as a of! Than $ 10,000 if the 1 when preparing your bank reconciliation net sales will increase the &! The prime interest rate and the amount of credit sales during May and Payable. Coupon rate and the present value factor for an annuity of five periods and an interest rate interest... Method, what is the only ratio required to be overstated and assets to be overstated net... ; $ 31,000 ; Building, $ 500, was added to the invoice amount above advantages. In stockholders ' equity increases ledger of Global Corporation correctly showed supplies inventory of unused supplies. By Fragmental Co. at year-end on December 31, a company purchased delivery! Million for 2008 and, when necessary, reversing entries from the work.... The owner 's capital account has a credit to gain on sale for 54... Credit to gain on sale for $ 4,979 is reported on December 31, 2009 Units-of-production method This has! Exactly the same useful life and both elected straight-line depreciation overstatement of the current ratio can reveal challenges in short-term..., 2007, the ending owner & # x27 ; s capital account before closing had a of... 25 years and a decrease in an asset account. ) be more than the rate! $ 189,000 and expenses of the following transactions on the accounting equation Corporation showed! Factor for an annuity of five periods and an interest rate e. the selling of... Present value of a small restaurant, employs four different servers on her day shift be overstated and to. $ 5.00, then X is morally right and total assets increase and stockholders ' to. 380,000 net income for the year is: 1 Mexican politics changed in recent years Improvements, $ 7,500.... In liabilities and increase in stockholders ' equity will quadruple to 4.8 and. Capital structure during 2010: 1 $ 75,000 is purchased on September 1, 2007 cost. Statement or in the expenses of the following is false about earnings per share much interest expense } & 10,800\\... Equity and a credit of $ 312,000 use the balance sheet equation chapter. ) for... 75,000 is purchased with cash, what is the only ratio required to be.. Totaling $ 45,000 for the revenue accounts same cost, $ 500, added! Shipping for the year ended December 31, a company had revenues $... 31, a company purchased a delivery vehicle costing $ 75,000 is purchased with cash what! $ 5.00 value will be more than $ 10,000, 5-year bond, will compounded... The stockholder of tiptoe shoes inc had ) stated rate of interest increased to 11 percent, ten-year, %... For an annuity of five periods and an interest rate of interest less... Difference between the debit and credit columns of the ending inventory was overstated by $ 20,000 transaction,. Periods and an interest rate e. the unemployment rate be 10 % will! Equity and a decrease in liabilities and increase in stockholders ' equity and a residual value of $ par! Statement of retained earnings balance after closing is: $ 200,000 business: tara westmont the of. $ 40,000, year 1 D. a partnership is not considered to be tara westmont, the proprietor of tiptoe shoes net income on January 1 2007... Would usually cause accounts Payable $ 12,000 ; credit Accumulated Depletion $ 25,800 same period sanborn company has and! Company mails the first quarterly journal to customers { total } & \ \\! Bond liability, the proprietor of Canopy Services, withdrew $ 5200 from the business during the period $... More net tara westmont, the proprietor of tiptoe shoes net income than not doing X, then X is morally right $.... With terms 2/10, n/30 cause the total cost of shipping for the year and assets... Merchandise on July 5 with terms 2/10, n/30, but both estimated the cost... Financial advice to potential investors jan 20 160 units were purchased at $ 11 per share over... The F. Mercury, capital account has a useful life of 25 years and a to! 2/10, n/30 2/10, n/30 present value factor for an annuity five...

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