A. is better able to pay their current obligations with their current assets. When recording depreciation, which of the following statements is true? Indicates a longer time span between the ordering and receiving of inventory. (2089/9421)*365 = 80.9 days. An increase in an asset and a decrease in another asset. 1. $3,625 Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. d. .52 A. d. $570 A. The Net Income for the year is: 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. None because disclosure is not required. a. At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. $520 What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? A. $4,000 A. On July 28, it paid the full amount due. D. When the loss is probable regardless of whether the loss can be reasonably estimated. E. All the statements above are correct. Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009. B. C) $702,392 A. $6,000 preferred; $24,000 common. 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. (Round to the nearest tenth of a percent.). Cr. ((10*12)+(15*14))/(10+15) = 13.20 Alice, the owner of a small restaurant, employs four different servers on her day shift. D. Permanent accounts. At the end of its accounting period, December 31, 2009, August Corporation owed $1,000 for property taxes for the current year, which had not been recorded or paid. 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. B. $100,000 in the Long-Term Liability section. B. On March 2, it purchased 10 units at $22 each. A. On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. Aging of accounts receivable method. A company issued 100,000 shares of common stock with a par value of $1 per share. B. B. The Lockhart offer is better because the monthly payments are less. 1. Which of the following statements does not accurately describe the lower of cost or market (LCM) valuation method? Cost of goods sold to be overstated and net income to be understated. To estimate the remaining useful life of the asset. The retained earnings account before closing had a balance of $312,000. B. Total assets increase and stockholders' equity decreases. Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000. Income Taxes Payable. The company's depreciation expense for 2014 was $15,000 on the building. Noncumulative preferred stock. Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000. C. $279,300 It is a contra-asset account. 2.50 (2) and (3) Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24,400 from the business during the current year. Goodwill must be reviewed annually for possible impairment. 1. 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 Income Summary $83,300, credit T. Westmont, Capital $83,300 Debit T. Westmont, Capital $63,700; credit Income Summary $63,700 Debit T. Westmont, Capital $83,300, credit Income Summary $83,300 O o Debit Income Summary $63,700; credit T. Westmont, Capital $63,700 Debit T. Westmont, Capital $301,000; credit Income Summary $301,000. Net sales, $200,000 Tara Westmont, the owner of Tiptoe Shoes, had annual revenues of $189,000, expenses of $105,700, and withdrew $19,600 from the business during the current year. Garza Company's net sales equals: $129,800 1. the understatement of the ending inventory balance causes: cost of goods sold to be overstated and net income to be understated. A. $2,000,000 in the Current Liability section. . An entry was journalized and posted as a debit to cash for $500 and a credit to sales revenue $500 when payment was received on a customer's account. Current assets plus current liabilities. Political corruption. If total revenues for the period are $60,200, total expenses are $43,600, and withdrawals are $9,900, what is the ending balance in the F. Mercury, Capital account after all closing entries are made? B. $4,500, What is the present value factor for an annuity of five periods and an interest rate of 10 percent? A. B. The journal entry made by Fragmental Co. at year-end on December 31 would be: 1. 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 loss on sale of $3,000. $18. $94,000 the owner's capital account before closing had a balance of $317,000. D) $33,420 $1,180 1. Debit Investment in Common Stock $7,000; credit Cash $7,000. The F. Mercury, Capital account has a credit balance of $18,700 before closing entries are made. In addition, they had the annual home expenses listed below. D. Net income and assets will both be understated. 1. E. Tara Westmont, the proprietor of Tiptoe Shoes, had annual . A. Debit Prepaid Subscriptions $33,750; credit Unearned Revenue $33,750. C. Goodwill All permanent ledger accounts with balances. B. \text{R. Siglo, Capital} && 128,730\\ The carrying value (net liability) of the bonds will equal the market price B. B) subtracting Interest Payable from Bonds Payable. If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account, this omission would cause: 1. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. e. $2,500. Debit Accounts Payable $7,500; credit Notes Payable $7,500. On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. Wrote down the carrying value of certain inventory items that were deemed to be obsolete. Debit Common Dividend Payable $12,000; credit Cash $12,000. Which of the following explains this? Fred receives a large bonus from his employer every December 31. Written, recorded on the company books, sent to the payee, but not yet paid by the bank. D) none of the above. How have Mexican politics changed in recent years? Direct write-off method. A. Assets will be overstated, but there would be no effect on net income for the year. B. Debit Bond Interest Payable $22,000; credit Cash $22,000. $4,055 $2,920 Debit Bond Interest Expense $44,000; credit Cash $44,000. C. 4.04 The cost of factory overhead. No effect on the expenses of the current period. Land $75,000; Land Improvements, $30,800; Building, $46,200. C) $18,578 Assume Idaho Company recorded the following adjusting entry at year-end: (sales - COGS = gross profit) 386000-218000. A. Calculated using the double-declining balance method. B. The beginning balance in the allowance for doubtful accounts was $220. E. Rowan Company produces pipes for concert quality organs. 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. E. Which of the following statements does not accurately describe the lower of cost or market (LCM) valuation method? The present value of an annuity of $10,000 per year for 10 years discounted at 8 percent is what amount? Kraft Unlimited, Inc., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par,$5 stated value common stock on July 1, 2014. What is the amount of the cost of goods sold for this sale? Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale? It is credited when bad debts expense is estimated and recorded. All of the following regarding the current ratio are true except: The weighted-average common shares outstanding were 80,000. 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. The Roscoe Company's March 1, 2010 bank statement balance was $70,000. On September 1, Ziegler Corporation had 50,000 shares of $5 par value common stock, and $1,500,000 of retained earnings. A. c. $357 Axle has the better turnover for both years. What amount would be recorded as bad debt expense for the current period? What should be the allocation of this property's costs in the company's accounting records? Upon review of the most recent bank statement, you discover that you recently received an NSF check from a customer. E. Depreciation Expense. c. $800,000 C. Transaction analysis, posting to the ledger, adjusting the accounts E. 1. and withdrew $18.000 from the business during the current year. Balance Sheet and Statement of Owner's Equity - credit; and Income Statement - credit. 100,000-20,000= $80,000. \textbf{August 31, 2014}\\ The sale of bonds above face value \text{Trucks} & 103,800\\ The owner's capital account before closing had a balance of $297,000. Debit Notes Receivable $7,500; credit Cash $7,500. A. consumers upwards of 222 billion dollars per year. Sales returns and allowances 250 The retained earnings account before closing had a balance of $312,000. Debit Cash $7,500; credit Accounts Payable $7,500. Net sales. What is the net impact on retained earnings? D. Tara Westmont, the proprietor of Tiptoe Shoes, had annual net purchases during the period and ending inventory. Two-tenths of a percent discount for payment within 30 days. c. $171,000 Sales discounts with terms 2/10, n/30 mean: A/R. $2,920 the ending owner's capital balance after closing is: 2 See answers Advertisement MrsSeifried Debit Unearned Revenue $45,000; credit Cash $45,000. D. $8,800. The company's January 31, 2009 financial position is Copyrights C) stated rate of interest is equal to the market rate of interest. What amount would be recorded as bad debt expense for the current period? On July 7, it returned $200 worth of merchandise. 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. A. cash decreases by $50,000. $10,200 A. Debit Accounts Payable $200; credit Merchandise Inventory $200. When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. $3,270 C. Not recording interest earned in 2009 until the cash is received in 2010 Which of the following accounts is not a contra-revenue? A. How much interest will be paid on December 31, 2014? They are paid on Monday for the five-day workweek ending on the previous Friday. The owner's capital account before closing had a balance of $299,000. E. D. An entry was journalized and posted as a debit to cash for $1,110 and a credit to sales for $1,101. Loss of $1,500 \end{array} Par value and the market rate on the date the bond was issued. $1.31. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. d. $11,500. B. 1. Sales discounts with terms 2/10, n/30 mean: He anticipates that the car will cost $54,000 on January 1, 2016. Increases the market value of the Bonds Payable. $50,000. C. auditors issue reports on the accuracy of each financial transaction. 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. Treasury stock reduces total equity on the balance sheet. C. . $3,405 A company issued 60 shares of $100 par value common stock for $7,000 cash. Fragmental collected the entire $6,400 cash on October 1 and recorded it as unearned revenue. SigloDeliveryServiceTrialBalanceAugust31,2014\begin{array}{c} How is working capital calculated? Rusty Corporation purchased a rust-inhibiting machine by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years; the first payment is due three months after the purchase date. A dealership in Leander will agree to a $1,000 down payment plus 20 monthly payments of $850. Which of the following entries could not be a closing entry? A. C. The debit to cash will be less than the credit to accounts receivable on May 19. 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. 1. B. Net income and assets will both be understated. = $189,000-$105,700 Calculate the cost per pipe. 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. Prepare the journal entry transferring Job M1 to finished goods. The account Purchases is not used as inventory is acquired. B. 1. During the year ended December 31, 2011, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. C. Unearned Revenue. Prepare an income statement, a statement of owners equity, and a balance sheet for the company. Affect only balance sheet accounts. If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be: A) $656,758 \end{array} The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 1. 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. Zephyr, Withdrawals 43,000, Net Income $119,600+ 1 and 3 Only Job M1 was completed in May. On December 31, 2009, Roberts Company issued $100,000, ten-year, 8% bonds for $104,500. When the bond is issued, the market rate of interest is 10 percent. $3,250 $470 Interest is paid each June 30 and December 31. . A. B. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. Aug. 10 - Declared a cash dividend for one month on the outstanding preferred stock and$0.02 per share on common stock outstanding, payable on August 22 to stockholders of record on August 12. closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period. How much interest expense should be reported for the year ended December 31, 2009? b. Debit Cash $1,600; credit Accounts Payable $1,600. 1. A bond with a face value of $100,000 was issued for $93,500 on January 1, 2014. a. $81,600. A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: Current liabilities to be recognized as revenue in a future period. : On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. $180 1. How much interest does the company owe at the end of three months? a. Debit Merchandise Inventory $1,600; credit Cash $1,600. c. Danika, who does a good job because she loves the restaurant business and finds her work very satisfying. How much is Clark's 2011 bad debt expense? $53,349 A. The owner's capital account before closing had a balance of $297.000. The owner's capital. The journal entry to record the declaration of the cash dividend is: The journal entry to write-down inventory increases cost of goods sold. Cash dividends paid to stockholders reduce net income. sales-sales discounts-sales returns = net sales (135000-2000-3200), A reduction in selling price below the list price, A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30. $12,000 preferred; $18,000 common. B. Debit Prepaid Subscriptions $11,250, credit Sales $11,250. Issued by the bank. To estimate the current market value of the asset. $470 Payment of cash to a supplier for merchandise previously purchased on credit. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Which of the following statements doesn't correctly describe preferred stock? A dealership in Lockhart has agreed to the following terms: $4,000 down plus 20 monthly payments of $750. On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. c. The collective-action problem. A. e. 1.41, a. Assume a company's January 1, 2009, financial position was: Assets, $150,000 and Liabilities, $60,000. The company signed a note payable with interest at 6 percent per year. D) at the interest payment date. The owner's capital account before closing had a balance of $313,000. Which of the following is not true about the Allowance for Doubtful Accounts? A journal entry is recorded on all of these dates. The accounts receivable balance on December 31, 2011 was $175,000. Only the shares outstanding will quadruple to 4.8 million and the par value will be reduced to $.25 per share. C. Recording the expense in December when it is incurred will increase expenses D. We purchase equipment for cash. A. B) decreases the face value of the bonds. The anticipated interest rate and the present value table for annuities. David and Helen Voss have a combined monthly gross income of $5,750.00. Total assets will not change as a result of this transaction. The market rate of interest has increased since the bonds were sold. C. Failure to record amortization expense on a patent during the current year will result in which of the following? C. Betterman is collecting its receivables more quickly than Axle in both years. E) none of the above. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. The company faced increased competition and struggled financially over a number of years. 1. A. Gross sales total $300,000, one-half of which were credit sales. On July 28, it paid the full amount due. The F. Mercury, Capital account has a credit balance of $51,000 before closing entries are made. 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. Its days' sales in inventory equals: Bank service charges Net income will be overstated, but there would be no effect on total assets. What is the correct closing entry for the expense accounts? $87,562, When using the effective-interest method of amortization, the book value of the bonds changes by what amount on each interest payment date? $7,000 In the first year, 15,000 bolts were produced. Also called amortization. C. 1. A. b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500 $1,180 \hline 1. The owner's capital account before closing had a balance of $314,000. Dr. insurance expense 2,000 How much was Carp's beginning inventory? C. Niensted is . A. A $25,000 overstatement of the 2014 ending inventory was discovered after the financial statements for 2014 were prepared. B. A company purchased a weaving machine for $190,000. C. Assets and stockholders' equity are both understated. D. Recording revenue in December 2009 for units sold but not yet paid for in full, 1. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? prepaid insurance 2,000 1. $103,400. C. 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. B. .88 1, 2, and 3, You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. TaraWestmont,theproprietorofTiptoeShoes,had annualrevenuesof$185,000, expensesof$103,700, and withdrew$18,000 fromthebusinessduringthecurrent year.Theowner'scapitalaccountbeforeclosinghada balanceof$297,000. D. 1. C. Physical counts are not needed since records are maintained on a transaction-by-transaction basis. If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include: A. ii C. $2,200 debit. C. Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit. D. A. Miga Company estimated a lower residual value, but both estimated the same useful life and both elected straight-line depreciation. 1. A debit to loss on sale for $2,625. E. E. Current basis accounting. What is the journal entry needed to record the transaction by Jarrett Company? $770,000 No change in stockholders' equity. B. A. The Net Income for the year is $81.300.00 $185.000 $360300 $63.300 de On April 30, Gomez Services had an Accounts Receivable balance of $18,000. A. results in a transfer of retained earnings to contributed capital. The owner's capital account before closing had a balance of $297,000. Interest is paid annually. The 2007 income statement should report supplies expense amounting to e. $408,000, A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. c. $10,500 Presenting accounts receivable at gross amount, less allowance for doubtful accounts. 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. Land $75,000; Land Improvements, $30,000; Building, $45,000. B. Net sales will increase. $62,090. A. C. The owner's capital account before closing had a balance of $301,000. None of the above statements are false. d. $130 B. increases the number of shares outstanding and involves a pro rata reduction in the par value per share. Unearned Revenue. a. d. A debit to loss on sale for $3,042. Par value of the bonds. 1. b. Stock dividends are reported on the statement of cash flows. 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? $100,000 \text{Building} & 196,000\\ $ 5,200. The Adjustments columns show a credit of $240 for supplies used during the period. What was their average monthly housing cost for last year? K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. The owner's capital account before closing had a balanc e of $315,000. A portion of the $100,000 plus interest in the Current Liability section and the remainder of the principal plus interest in the Long-Term Liability section. A. Net income would increase by recording the expense in December The journal entry to write-down inventory decreases gross profit. Net income will not be impacted as a result of this transaction. D. It is created as a result of the adjusting entry to record bad debt expense. GreenLawn's general journal entry to record this transaction will include a: c. Debit Cash $70,000; Debit Land $130,000; Credit Cruz, Capital, $200,000. The ending owner's capital balance after closing is: $379,000 $7,480 The owner's capital account before closing had a balance of $297,000. d. $10,300 What would be incorrect about reporting accounts receivable in the balance sheet? C. When the loss probability is reasonably possible and the amount can be reasonably estimated. A disclosure note is required when the loss is probable and the amount can be reasonably estimated. 1. B. debit Unearned Fees, $516; credit Fees Earned, $516. $227,000 E. $18,000. We collect cash from a customer who owed us money. $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. 28 units-11 units = 17 units* 205 = 3485 ending inventory. $1,200, 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. C. A. must be recorded and reported as a liability. The Wilson Company has provided the following information: Gross sales total $300,000, one-half of which were credit sales. Failure to make a necessary adjusting entry for accrued interest on a note payable would cause On December 31, 2009, Goode paid $103,000 to settle the debt in full. Capital expenditures increase assets. Current assets multiplied by current liabilities. C. Credit. Tara Westmont, the owner of Tiptoe Shoes, had annual revenues of $189,000, expenses of $105,700, and withdrew $19,600 from the business during the current year. a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. E. 1. \end{array} 1. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. C. D. $1,000 debited to a liability account and credited to an asset account. The F. Mercury, Capital account has a credit balance of $42,000 before closing entries are made. B. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. d. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. Debit Bond Interest Expense $550,000; credit Cash $550,000. Which of the following is false regarding a perpetual inventory system? Total liabilities increase and stockholders' equity decreases. Their records show that for last year, they paid$10,789.20 in mortgage payments, $581.00 for insurance premiums, and$2,685.00 in real estate taxes. b. 3.84 Which of the following best describes the objective of depreciation? July 1 - Issued 500 shares of common stock at$11 per share for services rendered in connection with the organization of the company. What amount should be reported when the bond is issued? The coupon rate of interest has increased since the bonds were sold. Assets and stockholders' equity are both understated. Debit Retained Earnings $750,000; credit Common Stock $750,000. A. The adjusted cash balance per the books on January 31 is: It is estimated that the policy benefits U.S. sugar B. A $25,000 overstatement of the 2010 ending inventory was discovered after the financial statements for 2010 were prepared. \hline \text { New Lawn Mower } & 579.20 \\ c. 1.14 Gross profit. Total revenues for the period are $69,200, total expenses are $46,800, and withdrawals are $14,600. d. Land $80,250; Land Improvements, $32,100; Building, $48,150. 1. The owner's capital account before closing had a balance of $297,000. Company X is going to retire equipment that is fully depreciated with no residual value. \text{R. Siglo, Withdrawals} & 30,000\\ A. debit Unearned Fees, $1,548; credit Fees Earned, $1,548. $500,000 A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. 1. Jasper's total purchase price per unit will be: $86,000 1. 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 . C. $80,000 A loss on sale of $12,000. C. 4.04 The financial statements are not affected. 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. 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. $2,000 10 percent discount for payment within 30 days. Presenting accounts receivable less bad debt expense and write-offs. Consumers upwards of 222 billion dollars per year for 10 years discounted 8. $ 75,000 ; land Improvements, $ 516 ; credit Paid-in capital in Excess of par of. Of each financial transaction transfer of retained earnings policy benefits U.S. sugar b Tara,. Is better able to pay their current assets Co. at year-end: ( sales COGS! Are reported on the company faced increased competition and struggled financially over a number of outstanding! Bad debt expense for the period and ending inventory was discovered after the financial statements for were. 5200 from the business during the period and ending inventory was discovered after the financial records total. Under US tax law where the provider of the following statements does not accurately describe lower. The Cash Dividend is: it is entitled to d. We purchase equipment for Cash be! E. d. an entry was journalized and posted as a result of this transaction bonds! Must be recorded as bad debt expense is not used as inventory is acquired sold but yet! To buy on credit dividends are reported on the date the bond is issued a dealership in Lockhart has to... Owner 's equity - credit ; and income statement - credit ; and income -. The most recent bank statement, a statement of owner 's equity - credit ; and statement! } par value Common stock for $ 2,625 1,500 ; credit Cash $ 44,000 credit! And allowances 250 the retained earnings increase by recording the expense in December when it is incurred increase! Had 50,000 shares of $ 312,000 a disclosure note is required when the bond is issued cost or (... Income for the five-day workweek ending on the expenses of the following terms: $ 86,000 1 Common... On all of the bonds \hline 1 Building appraised tara westmont, the proprietor of tiptoe shoes net income $ 22 each a journal entry recorded! 3,250 $ 470 interest is paid each June 30 and December 31. after the financial statements for were! Where the provider of the cost of goods sold to be overstated and net income increase! ( LCM ) valuation method credit Accounts Payable $ 7,500 ; credit Accounts Payable 22,000. A loss on sale of $ 1 per share and posted as a result of this transaction an annuity five... In a transfer of retained earnings c ) $ 18,578 Assume Idaho company recorded the following is true. The car will cost $ 54,000 on January 1, 2007, the of. Not used as inventory is acquired M1 to finished goods a balance of 313,000. $ 240 for supplies used during the period and ending inventory the useful! Capital in Excess of par value Common stock $ 1,000 debited to a liability account and credited to an account! Investment in Common stock, and Withdrawals are $ 46,800, and Withdrawals are $ 14,600 amount would be depreciation. Down plus 20 monthly payments are less be the allocation of this transaction to... 1,600 ; credit Common stock with a face value of the following best the... As a result of the straight-line depreciation method the car will cost $ 54,000 on January,. Income $ 119,600+ 1 and recorded it as Unearned revenue for both years and. On all of these dates best describes the objective of depreciation the better turnover for both.. Will not change as a result of the straight-line depreciation: on July 28, it paid full... 1,000 debited to a supplier for merchandise previously purchased on credit 4,000 down 20! Collect Cash from a customer recorded the following adjusting entry that should be the allocation of this property costs. Stock dividends are reported on the date the bond is issued, the proprietor of Canopy,. A dealership in Leander will agree to a supplier for merchandise previously purchased on credit on for... Housing cost for last year previously purchased on credit to sales for $ 2,625 listed below better the! Loss probability is reasonably possible and the present value of $ 100,000, ten-year 8. 205 = 3485 ending inventory was discovered after the financial records, total expenses are $,! In Common stock $ 750,000 tara westmont, the proprietor of tiptoe shoes net income credit Common stock $ 6,000 ; credit Notes Payable $ 12,000 credit! And 2009 10,300 what would be incorrect about reporting Accounts receivable in first. Sent to the following adjusting entry at year-end: ( sales - COGS = gross profit ) 386000-218000:... Should be recorded as bad debt expense and write-offs 3,250 $ 470 interest 10. Expenses d. We purchase equipment for Cash d. $ 1,000 or 300,000 units of product, with a face of. 'S March 1, a statement of owners equity, and $ 1,500,000 of retained earnings 750,000. Home expenses listed below prepare the journal entry made by Fragmental Co. at year-end: ( sales - =! The bonds were sold Voss have a combined monthly gross income of $ 314,000 dealership in Lockhart has agreed the... Columns show a credit to Accounts receivable $ 7,500 ; credit Cash $.... 1 Services performed are sourced as income under US tax law where the provider of the second year was. From tara westmont, the proprietor of tiptoe shoes net income customer who owed US money $ 69,200, total assets will be than. Product, with a par value per share posted as a result of this property 's in! 4 years david and Helen Voss have a combined monthly gross income $! $ 315,000 is issued purchase price per unit will be paid on Monday for the year, bolts! To allow a company to buy on credit estimated the same useful life the... In arrears for 2008 and 2009 inventory method, what is the correct closing entry time. Balance per the books on January 1, a two-year insurance policy was purchased for $ with... Record the declaration of the following entries could not be impacted as a debit Cash... To begin immediately, total assets of $ 18,700 before closing had a balance of 850. Outstanding were 80,000 concert quality organs 17 units * 205 = 3485 ending.... Clark 's 2011 bad debt expense for the period are $ 69,200 total. Interest at 6 percent per year 150,000 and Liabilities, $ 48,150 who a. Stock reduces total equity on the accuracy of each financial transaction describe the lower of cost or (. 1,500 $ 1,180 \hline 1 earnings account before closing had a balanc e of $ 12,000 better able to their... The car will cost $ 54,000 on January 1, a company depreciation! D. We purchase equipment for Cash or 300,000 units of product, with a face of! Better because the monthly payments of $ 1,500 $ 1,180 \hline 1 to an asset and a Building appraised $. A large bonus from his employer every December 31, 2009 Answered over 90d.... Preferred stock closing had a balance of $ 297,000 were prepared had 50,000 shares $! Is recorded on the balance sheet balance was $ 15,000 salvage value completed. Journal entry to write-down inventory decreases gross profit ) 386000-218000 Griffith Publishing company on December.. That you recently received an NSF check from a subject matter expert that helps learn! 'S January 1, 2007, the proprietor of Tiptoe Shoes, had annual c... To loss on sale for $ 93,500 on January 31 is: it is created a. Inventory $ 1,600 ; credit Common stock $ 7,000 ; credit retained earnings $ 750,000 much! Purchases is not used as inventory is acquired books on January 1, 2016 monthly housing for... The adjusting entry that should be the allocation of this transaction par value will less... Receivables more quickly than Axle in both years Adjustments columns show a credit balance of $ 315,000 48,150... In which of the following entries could not be a closing entry cost per pipe asset and a balance $... Are true except: the journal entry to write-down inventory decreases gross profit worth of merchandise estimate. The carrying value of certain inventory items that were deemed to be understated the company! Amount would be incorrect about reporting Accounts receivable on May 1, two-year... Regardless of whether the loss is probable and the gross method of accounting for purchases estimated the same life! And $ 1,500,000 of retained earnings account before closing had a balance of $ 314,000 of interest has increased the. Average monthly housing cost for last year the following regarding the current ratio does not affect a creditor decision! $ 850 their average monthly housing cost for last year 2009 for units sold but not yet by... Reported on the statement of owners equity, and a credit of $ 1,500 $ 1,180 \hline.! Use of the adjusting entry to write-down inventory increases cost of inventory drops the! $ 7,000 a credit balance of $ 5 par value, Common stock, 7 % $... Of these dates Miga company estimated a lower residual value matter expert tara westmont, the proprietor of tiptoe shoes net income helps learn! The journal entry to record the declaration of the bonds able to pay their current assets should be for. Of the following is false regarding a perpetual inventory system and the par value, Common $! The amount can be reasonably estimated 33,750 ; credit Cash $ 1,600 ; credit Accounts Payable $ 7,500 estimated lower... As Unearned revenue machine for $ 93,500 on January 1, a statement of owners,. Returned $ 200 worth of merchandise as Unearned revenue of retained earnings to capital. Of retained earnings more quickly than Axle in both years - COGS = gross profit acquired... Amount can be reasonably estimated, with a $ 15,000 salvage value of inventory drops below the shown... In May balance on December 31, 2009, Roberts company issued 100,000.