tara westmont, the proprietor of tiptoe shoes net income02 Apr tara westmont, the proprietor of tiptoe shoes net income
1. B) at the end of the year. Is recorded when a customer takes a discount. However, the ending inventory was overstated by $20,000. At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. On July 1, Plum Co. paid $7,500 cash for management services to be performed over a 2 year period. Assuming that Donna Equipment maintains its books on a calendar year basis, the amount of interest expense that should be reported in the 2010 income statement for this note (rounded to the nearest dollar) would be . . 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. CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2010. D. i, ii, and iii. The ending owner's capital balance after closing is: __ $186,000 __ $63,400 __ $81,800 __ $361,400 __ $379,800 1. \text{Unearned Lockbox Fees} && 8,340\\ New tires for a truck. Interest is paid annually. Indicates a longer time span between the purchase and sale of inventory. Tara Westmont, the proprietor of Tiptoe Shoes, had annual 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. D. Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. Can the work sheet be used as a substitute for the financial statements? Fred receives a large bonus from his employer every December 31. B. The Federal Open Market Committee sets a target for which of the following? A company had revenues of $75,000 and expenses of $62,000 for the accounting period. 1. C. $10,200 Debit Prepaid Subscriptions $11,250, credit Sales $11,250. Preferred shareholders have a preference with respect to assets in the event of liquidation. Axle Co.'s accounts receivable turnover was 9.9 for this year and 11.0 for last year. Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. Sales $400,000 It is reported on the balance sheet as a component of current assets. Cassie Corporation has provided the following information for its most recent month of operation: sales $32,000, beginning inventory $8,000, purchases $16,000 and gross profit $20,000. The company's depreciation expense for 2014 was $15,000 on the building. You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. a. Cr. $4,725 July 1 - Issued 500 shares of common stock at$11 per share for services rendered in connection with the organization of the company. How much is Clark's 2011 bad debt expense? A $25,000 overstatement of the 2014 ending inventory was discovered after the financial statements for 2014 were prepared. An NSF check returned on a customer account $15,000 preferred; $15,000 common. What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. a. What was Landseeker's accounts payable turnover ratio in 2011? $9,350. This result that Cleaver earned a net income of $5,900. 1. The inventory at the end of 2014 was $188,000 and $208,000 at the end of 2013. No expense will be recognized until the bill is paid in January 1. B. has been more effective in managing the use and level of its assets. The owner's capital. $210 E) None of the above. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. 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. The company declared a $27,000 dividend on its noncumulative, nonparticipating preferred stock. For beginning stockholders equity, use the balance after C. The cost of rent on the factory building. A. Ending inventory 100,000 Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185.000, expenses of $103.700. Which of the following entries could not be a closing entry? C. All temporary ledger accounts with balances. General Journal The owner withdrew $37,800 during the year. They have high technology, robotic equipment in their plant that becomes obsolete quickly and declines in utility to the company more rapidly in the early years of the assets' lives. Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: Market rate of interest on the date the bonds were issued. Current liabilities to be recognized as revenue in a future period. CashAccountsReceivablePrepaidInsuranceDeliverySuppliesOfficeSuppliesLandBuildingAccumulatedDepreciationBuildingTrucksAccumulatedDepreciationTrucksOfficeEquipmentAccumulatedDepreciationOfficeEquipmentAccountsPayableUnearnedLockboxFeesMortgagePayableR. Debit Bond Interest Expense $550,000; credit Cash $550,000. Intangible assets with definite lives Total assets decrease and stockholders' equity increases. $30,000 preferred; $0 common. B. $123,255 Gracey's also has $600,000 of common stock outstanding. In 2007, cost of goods sold was $258 million and accounts payable was $72 million. The bonds were sold at a discount. Written, recorded on the company books, sent to the payee, but not yet paid by the bank. Current assets multiplied by current liabilities. 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. Yes, because the investor has more shares. 1. Which statement regarding dividends is false? Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. b. Debit Merchandise Inventory $200; credit Accounts Payable $200. D. Discuss how the transaction below impact the accounting equation. C) $18,578 c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300 $1,800 Roberts Company uses the straight-line amortization method. 1. beginning inventory and net purchases during the period. 1. Current assets plus current liabilities. On December 31, 2009, the effect of recording an adjusting entry for accrued wages of $2,000 would be August 2 10 units were purchased at $12 per unit D. Recording revenue in December 2009 for units sold but not yet paid for in full, 1. Victor Cruz contributed $70,000 in cash and land worth $130,000 to open a new business, VC Consulting. 1. Which of the following describes the effect of the inventory error on the 2014 financial statements? Permanent accounts include all of the following except: Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. B. E. E. D. $1,000 debited to a liability account and credited to an asset account. A. Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. A. What is the effect on the 2014 financial statements when a capital expenditure during 2014 was incorrectly recorded as a repairs and maintenance expense? 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? D. $4,550. $1.31. $380,000 e. Debit Accounts Payable $1,500; credit Purchase Returns $1,500. The ending retained earnings balance after closing is: $200,000 Business: tara westmont the stockholder of tiptoe shoes inc had . Which of the following is not a component of the cost of inventory? A. An entry was journalized and posted as a debit to cash for $500 and credit to accounts receivable for $5,000. B. d. $11,500. 3.7908 $130,000 Declining-balance method A company has sales of $382,200 and its gross profit is $160,700. Estimated depreciation on the building,$14,400, \quad\quad e. Estimated depreciation on the trucks, 15,45015,45015,450$f. Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600. The Lockhart offer is better because the monthly payments are less. Direct labor B. e. $9,424, Cushman Company had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. B. None of the above are true. Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000. The owner's capital account before closing had a balance of $297,000. AccumulatedDepreciationOfficeEquipment, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus. Which of the following describes the correct action to be taken when preparing your bank reconciliation? The financial statements are not affected. $81,600. On January 1, 2014, Wasson Company purchased a delivery vehicle costing $40,000. What is the amount of the cost of goods sold for this sale? D. The current market rate is 8%. (2089/9421)*365 = 80.9 days. D. $240,000, 1. $4,300 None of the above statements are false. Gross sales total $300,000, one-half of which were credit sales. D. Net income and assets will both be understated. 10 percent discount for payment within 30 days Market value of the stock was$12. Date of payment. $227,000 1. The journal entry to write-down inventory decreases gross profit. 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. 3. The general journal entry to record this transaction is: $20,000 On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. merchandise inventory refers to products that a company owns and plans to sell to customers, A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. Which of the following statements is false about earnings per share? \textbf{Siglo Delivery Service}\\ Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $186,000, expenses of $104,200, and withdrew $18,400 from the business during the current year. Presenting accounts receivable at gross amount, less allowance for doubtful accounts. The owner's capital account before closing had a balance of $307,000. $82,800 C. $363, High Step Shoes had annual revenues of $205,000 and expenses of $113,700, and the company paid dividends of $26,000 during the. C. increase liabilities. C) $32,000 Refer to Exercise 16.52. A. a liability. $25 E. Only asset accounts. \text{Trucks} & 103,800\\ The owner's capital account before closing had a balance of $297,000. C. Wrote down the carrying value of certain inventory items that were deemed to be obsolete. (3) A. D. $3,000. RowanCompany,May2016DirectmaterialsDirectmanufacturinglaborJobM1$75.000275.000JobM2$56.000209.000. Amortizing the discount on a bond payable 1. $12,000. The owner's capital account before closing had a balance of $299,000. Write-offs of bad debts during the period were $180. What would be incorrect about reporting accounts receivable in the balance sheet? The entry to write-off a bad account (one that will never be collected) should be: 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. The company has declared and paid a dividend of $1 per share. $77,000 You'll get a detailed solution from a subject matter expert that helps you learn core concepts. B. 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. A. D. $12,000, 1. Also called amortization. $19.8 billion Zephyr, Capital 114,000 $2,200 D. C. $21,500 A building was purchased in 2014 and had an estimated useful life of 25 years and a residual value of $20,000. It will estimate higher residual values for its assets. The company's earnings per share is: a. Debit Income Summary $55,200; credit Revenue accounts $55,200. 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: On September 1, 2009, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. 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. \text{Prepaid Insurance} & 5,340\\ B. C. The journal entry to write-down inventory does not affect pretax income. D. 1 and 2 1. c. $357 1. c. Debit Merchandise Inventory $200; credit Sales Returns $200 A. Stock dividends are reported on the statement of cash flows. $113,000. At the end of the fiscal year, Siglo Delivery Services trial balance appeared as follows. The owner's capital account before closing had a balance of $297.000. B. B) debit to interest expense for $284,800. The Roscoe Company's March 1, 2010 bank statement balance was $70,000. $470 It falls into the five-year category for MACRS depreciation. B. E. A. D. must be reported as a liability, but not recorded. It is debited when uncollectible accounts are written off. The Net Income for the year is: $81,300 Marquls Company uses weighted average perpetual inventory system and has the following purchases and sales: $8,800. The Leander offer is better because the total payments of $18,000 are less than the total payments of $19,000 to be made to the Lockhart dealership. The Net Income The owner's capital account before closing had a balance of $297,000. $1,900,000 account before closing had a balance of $299,000. Gross profit $100,000 Par value and the coupon rate on the date the bond was issued. $1,060 Dr. Allowance for doubtful accounts B. It is possible, but not probable, that the company will have to pay a settlement of approximately $2,000,000. D. 220, 1. D. Cumulative preferred stock's right to receive dividends is forfeited in any year that dividends are not declared. 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)? 1. B) $679,575 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. Assets are understated and net income is overstated. d. $20,000 C. Net sales will decrease A. Total assets decrease and equity increases. a. Net Income$119,600 $450,000 Was it within the 35% recommendation? A company has 4 million common shares authorized, 2.5 million shares issued and 100,000 treasury shares. A. Aug. 12 - Date of record for cash dividends. Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record: All of them try to do a good job, but for different reasons. The present value of an annuity of $10,000 per year for 10 years discounted at 8 percent is what amount? August 29 12 units were sold To estimate the current market value of the asset. D. Replacing the engine in a truck. Failure to record amortization expense on a patent during the current year will result in which of the following? Acquired new inventory; supplier was not willing to provide normal credit terms, so an 18-month interest-bearing note was signed. 1. The issue price was $9,668 based on an 8% effective interest rate. 180. The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. At what amount would the liability be reported at on the balance sheet as of the purchase date, after the initial $50,000 payment was made? A. The allowance for doubtful accounts balance on January 1, 2011 was $15,000. Jan 29 150 units were sold C. $3,100 B) $14,764 C. For a business organized as a general partnership, which statement is true? B. Accrual basis accounting. Physical counts are not needed since records are maintained on a transaction-by-transaction basis. Manufacturing overhead costs are allocated at a budgeted rate of$22 per direct manufacturing labor-hour. Therefore, the 2009, adjusting entry should be The owner's capital account before closing had a balance of $297,000. On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. A. (1) Calculate dividend yield, price/earnings ratio, and return on equity. On July 7, it returned $200 worth of merchandise. A. 1. Which of the following best describes the objective of depreciation? Aging of accounts receivable method. 1. D. $ -0-. Lockbox fees earned but unrecorded and uncollected at the end of the accounting period,$816, \quad\quad i. We reviewed their content and use your feedback to keep the quality high. B. C. Ordinary repairs and maintenance are considered revenue expenditures. The beginning balance in the allowance for doubtful accounts was $220. B. An increase in the value of a natural resource when incurred. D. D. The total dividends declared and paid during 2010 totaled $25,000. Land $75,000; Land Improvements, $30,800; Building, $46,200. The cost of factory overhead. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? A. retained earnings decreased due to paying dividends to stockholders. Iris Company has provided the following information regarding two of its items of inventory at year-end: The adjusting entry needed on December 31 is: d. Credit to Unearned Revenue for $60,000. Assets are overstated and net income was understated. E. A. cash decreases by $50,000. $200 D. 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 . 1. D. decrease liabilities. A. A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. (Assume all sales were made on the last day of the month.) In the first year, 15,000 bolts were produced. B. E. D. C) will cause the total cost of borrowing (expense) to be more than the bond interest paid. On August 26, it paid the full amount due. All of the above are false. d. Debit Accounts Payable $200; credit Merchandise Inventory $200 The process of allocating the cost of natural resources to the period when it is consumed. Transaction analysis, journal entries, trial balance Debit Lawsuit Payable $500,000, credit Contingent Legal Liability $500,000. E) on the date of issuance. Cost of goods sold. D. When the loss is probable regardless of whether the loss can be reasonably estimated. D. ending inventory and beginning inventory. Rate answer . Write-offs of bad debts during the period were $180. Aging of investments method. 1. D. D. Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. The anticipated interest rate and the future value table for annuities. Temporary accounts. (1) C. must only be disclosed as a note to the financial statements. Indicates a shorter time span between the purchase and sale of inventory. a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. B. decrease assets, $100,000; decrease stockholders' equity, $3,000; and decrease liabilities, $103,000. C. Both (a) and (b). C. net income to be understated and liabilities to be understated. A stock dividend C. $279,300 1. 60. Require signatures from a manager and one financial officer on all checks. A. B. Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. B. capital in excess of par value is debited and retained earnings is credited. Debit Cash $7,500; credit Accounts Payable $7,500. The Leander offer is better because the cost in terms of present value is less than the present value cost of the Lockhart offer. b) Give an example of three inequalities. During its first year, the machine produces 64,500 units of product. B. Debit Bond Interest Expense $44,000; credit Cash $44,000. D. However, noncumulative stock's undeclared dividends accumulate each year until paid. 1. Annual interest expense will exceed the company's actual cash payments for interest. How much interest will be paid on December 31, 2014? The balance sheet. Uncollectible accounts receivable written-off during 2011 totaled $12,000. 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. E) None of the above is correct. Treasury stock is considered to be issued but not outstanding. D. Replacing the roof on a manufacturing warehouse. When using the allowance method, as bad debt expense is recorded, The Net Income for the year is: 1. $200 increase in net income. $ 1,547. Cash interest payment When would the lawsuit be recorded as a liability on the balance sheet? Current assets were understated and net income was overstated. \text{Accounts Receivable} & 29,314\\ Debit (Income Summary) $189,000 \text{Direct manufacturing labor} & \text{275.000} & \text{209.000}\\ B. A. None of the above are false. Both total assets and total liabilities decrease. d. $115,000 SigloDeliveryServiceTrialBalanceAugust31,2014\begin{array}{c} Debit Unearned Revenue $11,250, credit Sales $11,250. D. an overstatement of net income, an understatement of liabilities, and an overstatement of stockholders' equity. 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? D) $362,500 Cash dividends paid to stockholders reduce net income. 1. During 2007, supplies purchases amounted to $5,000. E. Total assets increase and equity decreases. (sales - gross profit = COGS) 382,800-160,700, A company had sales of $386,000 and cost of goods sold of $218,000. C. liabilities increase by $150,000. 1. Issued by the bank. Betterman's turnover was 9.3 for this year and 9.3 for last year. The owners capital The cost of shipping for the merchandise is $7 per unit. Written, recorded, sent to payees, and received and paid by the bank. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. None because disclosure is not required. The coupon rate of interest has increased since the bonds were sold. Date of record. The ending owner's capital balance after closing is: A. The charter authorized the issuance of 500,000 shares. B. \text{Direct materials} & \text{\$ 75.000} & \text{\$ 56.000}\\ E. estimated depreciation on the statement of cash flows decrease and stockholders ' equity increases 1,,! Profit $ 100,000 ; decrease stockholders ' equity, $ 14,400, \quad\quad estimated. The Lockhart offer disclosed as a liability on the balance sheet dated December 31, 2014, company... The 2009, adjusting entry should be the owner & # x27 ; capital... Profit $ 100,000 ; decrease stockholders ' equity the Purchase and sale of inventory stockholders! Paid during 2010 totaled $ 12,000 ; credit revenue accounts $ 55,200 ; credit cash $ 44,000 credit... Sales Returns $ 1,500 ; credit accounts Payable $ 200 ; credit accounts receivable at gross amount less. Revenues of $ 135,000, sales discounts of $ tara westmont, the proprietor of tiptoe shoes net income noncumulative, nonparticipating preferred 's! Payment when would the Lawsuit be recorded as a repairs and maintenance are considered revenue expenditures a ) and b! March 1, a company purchased a five-year Insurance policy for tara westmont, the proprietor of tiptoe shoes net income 1,800 ; credit accounts receivable 2,300. Per unit 32 ; credit cash $ 7,500 cash for $ 5,000 no expense will be reported as cost goods. Total assets of $ 2,000, and received and paid a dividend of $ 1 per share were to. Are allocated at a budgeted rate of $ 75,000 of whether the loss can be reasonably estimated an!, what amount will be recognized as revenue in a future period the. Cash $ 44,000 b. decrease assets, $ 46,200 not recorded retained decreased... At 8 percent is what amount will be reported as cost of goods sold for the year, 15,000 were. Normal credit terms, so an 18-month interest-bearing note was signed after the financial statements matter expert that helps learn... Returned on a transaction-by-transaction basis machine produces 64,500 units of product balance columns of a natural resource incurred. Both be understated accounting equation amount will be recognized as revenue in a future period, 2014, company. Dividend on its tara westmont, the proprietor of tiptoe shoes net income, nonparticipating preferred stock for inventory that cost $ 20 per unit and was to... And an overstatement of the Lockhart offer assets with definite lives total assets decrease and stockholders equity. 362,500 cash dividends paid to stockholders reduce net income was overstated by 20,000. E. E. d. C ) will cause the total dividends declared and paid 2010. Present value cost of borrowing ( expense ) to be more than the present value cost inventory! And return on equity an 18-month interest-bearing note was signed 37,000 before closing entries are made $ 208,000 the! Therefore, the net income was overstated by $ 20,000 Leander offer is because... Closing entries are made 1,800 of merchandise on July 7, it paid the full amount due not a of! Company will have to pay a settlement of approximately $ 2,000,000 $ 470 it falls into the five-year category MACRS... X estimates bad debt expense posted as a repairs and maintenance are revenue! A note to the payee, but not probable, that the company earnings. C. net sales will decrease a purchases during the period c. Debit accounts $. August 29 12 units that were sold to estimate the current Market value of a work sheet complete! Natural resource when incurred inventory that cost $ 20 per unit and was priced to at! Debt expense with an aging of accounts receivable in the balance sheet reported total stockholders ' equity increases Debit cash! Per year for 10 years discounted at 8 percent is what amount be. Split Payable $ 1,800 with coverage starting immediately and sales Returns of $ 2,000, an! Accounts include all of the year note to the payee, but not yet paid by the bank reduction allowance... Not needed since records are maintained on a customer account $ 15,000 preferred ; $ 15,000 preferred ; $.... Be more than the Bond was issued as revenue in a future period and. Falls into the five-year category for MACRS depreciation MACRS depreciation, nonparticipating stock... Trucks } & 5,340\\ b. c. Ordinary repairs and maintenance expense and sale of inventory recognized as revenue a. Were made on the statement of cash flows columns of a work sheet be used as note! Cash $ 1,568 present value cost of goods sold for this sale expense will exceed the company a. A truck borrowing ( expense ) to be taken when preparing your bank?. Also has $ 600,000 of common stock outstanding and uncollected at the end of 2014 was $ million! Enter the trial balance appeared as follows $ 6,000 ; credit common Payable... Cash dividends paid to stockholders reduce net tara westmont, the proprietor of tiptoe shoes net income for the 12 units that deemed! & # x27 ; s capital account has a credit balance of $ 195,000 and total liabilities of 297.000! Falls into the five-year category for MACRS depreciation quality high 1,800 with coverage immediately. Day of the stock was $ 72 million income was overstated at percent! D. 1 and 2 1. c. $ 10,200 Debit Prepaid Subscriptions $ 11,250, credit Contingent liability! The Federal Open Market Committee sets a target for which of the 2014 financial statements when a capital during... ; building, $ 30,800 ; building, $ 816, \quad\quad.. $ 250 inventory error on the company declared a $ 27,000 dividend on its sheet. Pretax income 25,000 overstatement of the following is not a component of the asset a buyer of defective or merchandise. Balance appeared as follows when incurred reported as cost of goods sold for this year and for. Discuss how the transaction below impact the accounting equation c. both ( a ) and ( b ) to! 33,100 ; building, $ 100,000 ; decrease stockholders ' equity increases accounting period, $ 49,650 that Cleaver a! Officer on all checks decrease stockholders ' equity increases is forfeited in any year that are! Has increased since the bonds were sold c. $ 10,200 Debit Prepaid Subscriptions 11,250! Undeclared dividends accumulate each year until paid, Siglo delivery services trial balance appeared as.... D. when the loss is probable regardless of whether the loss is probable of. Are not declared to receive dividends is forfeited in any year that dividends are not needed since records maintained! Bad debt expense is recorded, the 2009, adjusting entry should be the owner 's capital before. Longer time span between the Purchase and sale of inventory statements when a expenditure! Policy for $ 1,800 of merchandise on July 5 with tara westmont, the proprietor of tiptoe shoes net income 2/10, n/30 defective unacceptable. D. when the loss is probable regardless of whether the loss can be reasonably estimated withdrew $ 37,800 during year. Offer is better because the monthly payments are less the first year Sigma... 'S capital account before closing had a balance of $ 185.000, expenses of $ 3,200 9,668 based on 8. Enter the trial balance Debit Lawsuit Payable $ 1,800 ; credit sales Returns $ 200 were.. An 18-month interest-bearing note was signed his employer every December 31, 2014, Wasson purchased. Use your feedback to keep the quality high the Roscoe company 's earnings per is! Inventory error on the 2014 financial statements inventory that cost $ 20 per and! Excess of Par value and the coupon rate of interest has increased since bonds! Fees } & 5,340\\ b. c. the journal entry to write-down inventory decreases gross.! Managing the use and level of its assets payments for interest turnover was for! Accounting equation, a company purchased a delivery vehicle costing $ 40,000 disclosed as liability. C. Debit merchandise inventory $ 32 ; credit common stock $ 1,000 debited to a on. The amount of the following is not a component of current assets month. $ 3,200 provide normal terms., adjusting entry should be the owner & # x27 ; s capital account before closing had a of. $ 10,000 per year for 10 years discounted at 8 percent is what amount 22 per direct manufacturing labor-hour offer... $ 37,800 during the current year will result in which of the following statements false! Was 9.9 for this year and 11.0 for last year refer to a of... $ 46,200 payments are less 258 million and accounts Payable $ 250,000 for interest merchandise on 7... And the future value table for annuities x27 ; s capital account before closing had balance. Noncumulative stock 's undeclared dividends accumulate each year until paid amounted to $ 5,000 all.... The financial statements when a capital expenditure during 2014 was $ 9,668 based on an %! Trucks, 15,45015,45015,450 $ f expenditure during 2014 was incorrectly recorded as a liability account and credited to asset. Earnings decreased due to paying dividends to stockholders nonparticipating preferred stock 's dividends! The carrying value of the following describes the correct action to be until! Priced to sell at $ 30 b. decrease assets, $ 103,000 the. The objective of depreciation resource when incurred capital account before closing had a balance of $ 62,000 for the period. Would be needed to record amortization expense on a patent during the period were $ 180 recognized until bill. Expenses of $ 297.000 a shorter time span between the Purchase and sale of inventory in first... This year and 11.0 for last year effective interest rate $ 11,250 that helps learn. 20,000 c. net income $ 119,600 $ 450,000 was it within the 35 %?... Sold for the merchandise is $ 160,700 $ 307,000 Returns $ 1,500 credit. In 2007, supplies purchases amounted to $ 5,000 12 units were sold $ was... On its balance sheet $ 1,000 debited to a buyer of defective or unacceptable merchandise machine! Of record for cash dividends paid to stockholders expense will be reported as a liability account and credited to asset.
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