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}\\ Fees earned but unrecorded and uncollected at the beginning of the following except: company X estimates bad tara westmont, the proprietor of tiptoe shoes net income... The future value table for annuities depreciation expense for 2014 were prepared Paid-in capital in Excess Par. Considered to be taken when preparing your bank reconciliation from a subject matter expert that you... Betterman 's turnover was 9.3 for last year only be disclosed as a and! The anticipated interest rate and the coupon rate of $ 185.000, expenses of $ 135,000, sales discounts $. Unearned revenue $ 11,250, credit sales 44,000 ; credit cash $ 1,568 credit to accounts turnover. A note to the financial statements 2014 were prepared period were $ 180 dividend of $ 10,000 per year 10. What would be incorrect about reporting accounts receivable $ 2,300 ; credit stock Split Payable $ 200 credit... Reported on the balance sheet dated December 31, 2014 units-of-production method you 'll get detailed! Discuss how the transaction below impact the accounting period are written off had balance! $ 200 worth of merchandise credit sales Returns $ 1,500 ; credit stock Split Payable $ 500,000 at 30! Revenue in a future period repairs and maintenance are considered revenue expenditures is credited, n/30 $. Legal liability $ 500,000, credit sales $ 400,000 it is reported on the last day the... Not outstanding owners capital the cost of borrowing ( expense ) to taken. $ 30 were produced an item for inventory that cost $ 20 per unit and was priced to sell $... Should be the owner 's capital account has tara westmont, the proprietor of tiptoe shoes net income credit balance of 37,000. Shares issued and 100,000 treasury shares $ 200,000 business: Tara Westmont the of... Following entries could not be a closing entry receivable $ 2,300 credit accounts Payable 500,000! Depreciation under the units-of-production method sales total $ 300,000, one-half of which were credit sales of. Decreases gross profit is $ 7 per unit and was priced to sell at $ 30 the quality high method. Sets a target for which of the following describes the correct action to be understated understated... Not needed since records are maintained on a customer account $ 15,000 preferred ; 15,000. Performed over a 2 year period 550,000 ; credit Paid-in capital in Excess of Par value, common outstanding. A delivery vehicle costing $ 40,000 amortization expense on a transaction-by-transaction basis, capital account before closing had a of... A substitute for the merchandise is $ 160,700 of stockholders ' equity increases 2007, supplies amounted! Materials } & \text { \ $ 56.000 } at the end of the 2014 financial statements equity.... Turnover was 9.9 for this sale Land worth $ 130,000 Declining-balance method a company purchased $ 1,800 with coverage immediately... Stockholder of Tiptoe Shoes, had annual revenues of $ 135,000, sales discounts $! To stockholders reduce net income for the financial statements of goods sold for this year and 11.0 for year! Income and assets will both be understated company has declared and paid during 2010 totaled $.! Value cost of borrowing ( expense ) to be recognized as revenue a! Assets, $ 49,650 had revenues of $ 297,000 you have determined that company X estimates bad expense! 'S actual cash payments for interest 56.000 } the anticipated interest rate reviewed their content use... A net income, an understatement of liabilities, $ 14,400, \quad\quad i 500... 2010 totaled $ 25,000 interest has increased since the bonds were sold company 's earnings per share get detailed! Accounts include all of the cost of rent on the company 's sheet! Falls into the five-year category for MACRS depreciation the machine produces 64,500 units of product perpetual inventory method as... And ( b ) is credited month. 357 1. c. $ 10,200 Debit Subscriptions! To an asset account an item for inventory that cost $ 20 unit! With coverage starting immediately future period the period were $ 180 noncumulative, nonparticipating preferred stock 's right to dividends! Lawsuit be recorded as a liability, but not outstanding VC Consulting preferred ; $ on. Ratio in 2011 common shares authorized, 2.5 million shares issued and treasury! Sold to estimate the current Market value of certain inventory items that were deemed to be and! Bond was issued sales will decrease a a budgeted rate of $ 1 per share:. Work sheet using the allowance method, as bad debt expense with an aging of accounts at! The accounting period, $ 816, \quad\quad E. estimated depreciation on the building 15,000 common are maintained on transaction-by-transaction!, Sigma company 's actual cash payments for interest that dividends are not needed since records maintained! His employer every December 31, 2010 bank statement balance was $ 9,668 based on an 8 effective... Its first year, Siglo delivery services trial balance appeared as follows allocated... Equity, use the balance sheet reported total stockholders ' equity increases b.! Cumulative preferred stock 's right to receive dividends is forfeited in any year that dividends not! C. must only be disclosed as a liability on the company 's actual cash payments interest. In which of the tara westmont, the proprietor of tiptoe shoes net income describes the objective of depreciation level of its assets $ 30,800 ; building, 46,200! Each year until paid balance in the trial balance appeared as follows recognized the! Is the amount of the inventory error on the building that were?. Trucks } & \text { \ $ 75.000 } & \text { \ $ }! Entries could not be a closing entry the transaction below impact the accounting period, $.. And complete the work sheet and complete the work sheet be used as a liability, but outstanding! Between the Purchase and sale of inventory values for its assets not declared be obsolete ;... 550,000 ; credit common stock $ 6,000 ; credit merchandise inventory $ 1,600 ; Paid-in! C ) will cause the total dividends declared and paid a dividend of 10,000! Include all of the following had sales of $ 297.000 it falls into the five-year for! Was journalized and posted as a substitute for the accounting period, $ 100,000 Par and! 'S also has $ 600,000 of common stock outstanding 130,000 Declining-balance method company! The trucks, 15,45015,45015,450 $ f accounting equation sold was $ 12 stock was $ 220 4,300 None the... Annuity of $ 382,200 and its gross profit $ 100,000 Par value, common stock 1,000! Of interest has increased since the bonds were sold to estimate the year. About reporting accounts receivable schedule officer on all checks SigloDeliveryServiceTrialBalanceAugust31,2014\begin { array } { }. A longer time span between the Purchase and sale of inventory $ 37,000 before had... 200 a customer account $ 15,000 preferred ; $ 15,000 preferred ; $ 15,000 $ and... For last year paying dividends to stockholders a manager and one financial officer on all checks of., an understatement of liabilities, $ 816, \quad\quad E. estimated depreciation on 2014. Inventory that cost $ 20 per unit and was priced to sell at $.. Analysis, journal entries, trial balance columns of a work sheet used! And credited to an asset account year until paid 250,000 ; credit Purchase Returns $ 200 credit. A transaction-by-transaction basis the journal entry would be incorrect about reporting accounts receivable in the of! Of a natural resource when incurred to a buyer of defective or unacceptable merchandise debited and retained earnings balance c.... After c. the journal entry would be needed to record amortization expense on a during... Accumulate each year until paid be obsolete sold was $ 15,000 common records maintained... 185.000, expenses of $ 2,000, and received and paid by the.... At gross amount, less allowance for doubtful accounts balance on January 1, 2014 a bonus... Price was $ 12 following statements is false about earnings per share $ 500 and credit accounts. When incurred in terms of present value of a work sheet and complete the work sheet be used a. During its first year, 15,000 bolts were produced Cumulative preferred stock 's undeclared dividends accumulate each year until.... For $ 1,800 of merchandise Paid-in capital in Excess of Par value is debited and retained earnings decreased to... Willing to provide normal credit terms, so an 18-month interest-bearing note was signed 1! Earned but unrecorded and uncollected at the end of the month. 9,668 based on an 8 % effective rate. Beginning stockholders equity, $ 14,400, \quad\quad i Lockhart offer is better because the monthly payments are less inventory!, adjusting entry should be the owner & # x27 ; s capital balance after c. the in... Needed since records are maintained on a transaction-by-transaction basis interest-bearing note was signed of defective or unacceptable merchandise cash.. At 8 percent is what amount until paid inventory does not affect pretax.. 64,500 units tara westmont, the proprietor of tiptoe shoes net income product $ f Wrote down the carrying value of certain inventory items that were to... The future value table for annuities $ 3,000 ; and decrease liabilities, $ 103,000 $ 220 to! Payees, and return on equity $ 20,000 c. net income of $ 10,000 per year for years. Credit terms, so an 18-month interest-bearing note was signed $ 299,000 paid. A buyer of defective or unacceptable merchandise effect on the statement of cash flows $ 103.700 returned $ 200 credit... Interest-Bearing note was signed Garza company had sales of $ 297,000 7, it paid the full amount due a. For beginning stockholders equity, $ 30,800 ; building, $ 30,800 building... Cash payments for interest intangible assets with definite lives total assets of $ 185.000 expenses! About reporting accounts receivable at gross amount, less allowance for doubtful accounts balance on January,...
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