tara westmont, the proprietor of tiptoe shoes net incometara westmont, the proprietor of tiptoe shoes net income

The ending owner's capital balance after closing is: d. Debit Revenue accounts $55,200; credit Income Summary $55,200. 1. $1,000 credited to an expense account and debited to a liability account. Raw materials A. The Net Income for the year is: $81,300 1. e. 1.41, a. The financial statements are not affected. When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the No entry is recorded until the items are returned for warranty repairs. E. B. A. not change total assets. D. Either (b) or (c), 1. 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 $25,000 overstatement of the 2014 ending inventory was discovered after the financial statements for 2014 were prepared. $5,002 1. $86,000 Cost of goods sold. TaraWestmont,theproprietorofTiptoeShoes,had annualrevenuesof$185,000, expensesof$103,700, and withdrew$18,000 fromthebusinessduringthecurrent year.Theowner'scapitalaccountbeforeclosinghada balanceof$297,000. A. The asset has been depreciated at an annual rate of $3,000 on the straight-line method (including year 5). For the year ended December 31, a company had revenues of $189,000 and expenses of $113,400. $750. B. A. Balance per book decreases $3,100. $10,000 Cumulative preferred stock. Which of the following is false regarding a perpetual inventory system? $ 700 debit. c. 1.14 An entry was journalized and posted as a debit to cash for $500 and credit to accounts receivable for $5,000. A. 1. Natural resources A. C. $2,000. \text{Unearned Lockbox Fees} && 8,340\\ When the replacement cost of inventory drops below the cost shown in the financial records, net income is reduced. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. \text{Cash} & 10,072\\ C. a decrease in stockholders' equity and an increase in liabilities. e. $123,000, Jasper Company is a wholesaler that buys merchandise in large quantities. $4,000. The Net Income for the year is: 10+ million students use Quizplus to study and prepare for their homework . C. If a company records sales revenue, $20,000 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. In its first year of operation, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received form customers); incurred expenses of $35,000 ($31,000 cash paid toward them); prepaid $8,000 cash for costs that will not be expensed until next year. $250 Require signatures from a manager and one financial officer on all checks. E. Depreciation Expense. 1. \text{Accounts Payable} && 9,396\\ D. $12,000, 1. A. Because GAAP specifies rigid guidelines regarding the calculation of depreciation, this situation is not possible. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. Betterman has the better turnover for both years. D. $8,800 A company has net income of $225,000 and declares and pays dividends in the amount of $75,000. Jan 29 150 units were sold A) is a rare occurrence. Calculate the cost per pipe. Discuss how the transaction below impact the accounting equation. How would this fact be reported in the financial statements to be issued at the end of the current month? \hline \text { Water Heater Replacement } & 590.34 \\ You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Axle Co.'s accounts receivable turnover was 9.9 for this year and 11.0 for last year. Total assets will not change as a result of this transaction. What is the ending balance in the WOrk-in-process Control account? None because disclosure is not required. C) $702,392 An increase in an asset and a decrease in another asset. CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2010. 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. E. It is debited when uncollectible accounts are written off. Credit Cash $1,600 B) stated rate of interest is greater than the market rate of interest. The accounts receivable balance on December 31, 2011 was $175,000. A) $16,000 C. its liabilities increased during an accounting period. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300 $3,405 Preferred shareholders have a preference with respect to dividend payments. C. Neither assets, total liabilities, nor equity are changed. Calculated using the double-declining balance method. C. 7.7217. (Supplement) Irish Industries purchased a machine for $65,000 and is depreciating it with the straight-line method over a life of 10 years, using a residual value of $3,000. $94,460 It the cash proceeds received from issuing a bond are less than the face value of the bond. Total assets increase and stockholders' equity decreases. Decreases the Bonds Payable account. The coupon rate of interest has increased since the bonds were sold. B. 1. 1. Depletion is: This dividend should be distributed as follows: The ending owner's capital balance after closing is: a. $62,090 A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated. a) What is an inequality? If the beginning balance in prepaid insurance was $500 and $2,500 was paid for an insurance premium during the year, the ending balance in the prepaid insurance account (after the above adjusting entry) would be Date of record. D. Additions and improvements are considered capital expenditures. Direct labor Total liabilities increase and stockholders' equity decreases. Noncumulative preferred stock. Uncollectible accounts receivable written-off during 2011 totaled $12,000. $113,000 d. .52 On July 7, it returned $200 worth of merchandise. A. What is the net impact on retained earnings? A debit to Sales Returns and Allowances and a credit to Accounts Receivable: Sales $400,000 If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in: The owner's capital account before closing had a balance of $297,000. B. A. C. C. The owner's capital account before closing had a balance of $297,000. Question Answered step-by-step Cumulative stock's undeclared dividends accumulate each year until paid, while noncumulative stock's right to receive dividends is forfeited in any year that dividends are not declared. A. c. A credit to accumulated depreciation for $59,375. C. 1.60 Wrote down the carrying value of certain inventory items that were deemed to be obsolete. $1,180 The stated rate of the bonds is 10%, interest payments are due semi-annually on December 31 and June 30, and the principal is due at maturity. a. D. Jan 1 150 units were purchased at $9 per unit $395,000 On June 20, it returned $800 of that merchandise. B. C. Closing accounts. b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500 Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is: . Par value of the bonds. d. Debit Accounts Payable $1,800; credit Cash $1,800. 1. The ending owner's capital balance after closing is: 1 See answer Advertisement andromache Answer: Credit (Revenues) $189,000, Accounting Week 4 (Adjusting and Closing Proc, Accounting: Chapter 5: Adjustments ad the wor, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Q. B. i and iii D. If earnings per share equals $5.00, then the maximum dividend payment would be $5.00. What was the net income earned during the year? 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. Which of the following statements doesn't correctly describe preferred stock? Which one of the following would not be recorded as an intangible asset? A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. \text{Office Supplies} & 2,460\\ A. c. $390,000 The journal entry to record the declaration of the cash dividend is: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. $130,000 B. increases the number of shares outstanding and involves a pro rata reduction in the par value per share. E) None of the above. D. B. E. 1. e. Debit Income Summary $37,000; credit F. Mercury Capital $37,000. C. A decrease in stockholders' equity and a decrease in an asset. None of the above, Katz Corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury. None of the above. 1. The ending retained earnings balance of Juan's Mexican Restaurant chain increased by $3.2 million from the beginning of the year. The bond will issue for an amount above its par value. $61,390. b. Debit Cash $1,600; credit Accounts Payable $1,600. What is the effect on the 2014 financial statements when a capital expenditure during 2014 was incorrectly recorded as a repairs and maintenance expense? (ii) Total assets remains the same August 2 10 units were purchased at $12 per unit C. i and ii D. is less able to pay off their current obligations with their current assets. Amortizing the discount on a bond payable What is Wilson's fixed asset turnover ratio? Presenting accounts receivable net of allowance for doubtful accounts. 1. B. What is the journal entry required to close the Income Summary account at. a. C. $ 4,800. Average cost The company's sales for the current period are $185,000. b. Debit Merchandise Inventory $200; credit Accounts Payable $200. D. expenses will increase. d. $350,000 Cr. New tires for a truck. In April 2016, it completed all outstanding orders, and than, in May 2016, it worked on only two jobs, M1 and M2: ", RowanCompany,May2016JobM1JobM2Directmaterials$75.000$56.000Directmanufacturinglabor275.000209.000\begin{matrix} Expired insurance, 306030603060$b. 2003-2023 Chegg Inc. All rights reserved. McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. Both (a) and (b). After posting the entries to close all revenue and expense accounts, the income summary account of Cleaver Auto Services has a $5,900 debit balance. The 2007 income statement should report supplies expense amounting to Ending inventory 100,000 $1,090 Debit Cash $7,500; credit Notes Payable $7,500. Two d. $11,500. $520 Debit Contingent Legal Expense $500,000, credit Contingent Legal Liability $500,000. a. A. retained earnings decreased due to paying dividends to stockholders. Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: On January 1, 2014, Wasson Company purchased a delivery vehicle costing $40,000. B. D. A disclosure note is required when the loss is remote and the amount can be reasonably estimated. Affect only balance sheet accounts. B. 1. c. $1,568 $500,000. Niensted is . B. The current period's entry to record the warranty expense is: A. A. B) $14,764 D) will have no effect on interest expense by the time the bonds mature. Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory? D. Debit Depreciation Expense $25,800; credit Accumulated Depreciation $25,800. Siglo,WithdrawalsDeliveryServiceRevenueLockboxFeesEarnedTruckDriversWagesExpenseOfficeSalariesExpenseGas,Oil,andTruckRepairsExpenseInterestExpense10,07229,3145,34014,7002,46015,000196,000103,80015,90030,000120,60044,40031,0507,200625,83653,40030,90010,8009,3968,34072,000128,730283,47028,800625,836, \quad\quad a. Cash receipts from customers exceeded cash payments to suppliers. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. It is used instead of reducing accounts receivable directly. Debit Unearned Revenue $45,000; credit Cash $45,000. Select one or more of the choices shown. D. Transaction analysis, journal entries, posting to the ledger. C. a revenue. B. 1. $67,101 1. In addition, they had the annual home expenses listed below. Cash interest payment A. results in a transfer of retained earnings to contributed capital. d. $120,000 Cost of goods sold to be overstated and net income to be overstated. C. $80,000 C. $104,000. What is the effect on the 2014 financial statements as a result of the capitalization? Number of hours of television watching per day for people with 12 years of education. A company has been successful in reducing the amount of sales returns and allowances. for the year is: 3.99 The owner's capital account before closing had a balance of $314,000. Debit Common Stock $6,000, debit Investment in Common Stock $1,000; credit Cash $7,000. E. Balance sheet accounts. $0.34. When recording depreciation, which of the following statements is true? b. Which of the following about earnings per share is true? D. As of March 1, outstanding checks total $22,000 and deposits in transit total $15,000. $94,000 B. debit Unearned Fees, $516; credit Fees Earned, $516. The owner's capital account before closing had a balance of $301,000. 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. A. D. A. ii The interest is payable annually each December 31. Net Income$119,600 b. C) subtracting the sum of Discount on Bonds Payable and Interest Payable from Bonds Payable. (sales - gross profit = COGS) 382,800-160,700, A company had sales of $386,000 and cost of goods sold of $218,000. On August 26, it paid the full amount due. 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. B. The market rate of interest has increased since the bonds were sold. The anticipated interest rate and the present value of $1 table. B. B. Increases the market value of the Bonds Payable. 1. B. 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. Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000. Treasury stock is considered to be issued but not outstanding. The carrying amount or net liability of bonds issued at a discount is calculated by The owner's capital account before closing had a balance of $297,000. B. We pay a supplier for inventory we previously bought on account. On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. 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. C. 4.04 A. Assets are overstated and net income was understated. Which of the following statements does not accurately describe the lower of cost or market (LCM) valuation method? a. Was it within the 35% recommendation? Indicates a longer time span between the ordering and receiving of inventory. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. B. If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include: D. Preferred stock typically has a fixed dividend rate. It is the only ratio required to be disclosed on the income statement or in the footnotes to the statement. What is the amount of the cost of goods sold for this sale? Payment of cash to a supplier for merchandise previously purchased on credit. a. A. retained earnings is debited and one or more contributed capital accounts are credited. The correct journal entry to record the merchandise return on July 7 is: The bonds were dated January 1, 2009, and interest is payable annually on December 31. The owner's capital account before closing had a balance of $312,000. Sales discounts Shares authorized, shares issued, shares outstanding. An asset's book value is $18,000 on December 31, Year 5. Carp Corporation has provided the following information for its most recent month of operation: sales $16,000; ending inventory $4,000, purchases $8,000 and gross profit $10,000. C. They want to maximize the asset's book value in the earlier years of the asset's life. D) the bond is convertible to common stock. There will be a transfer of $2.4 million from retained earnings to contributed capital. A. It is computed by dividing net income by weighted average common shares outstanding. On December 31, the market rate of interest increased to 11 percent. 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. Aging of investments method. 1. Which of the following best describes accrued liabilities? Loss of $1,500 A. The entry to record the first semiannual interest payment on December 31, 2005 will include a D. $104,500. D) subtracting Interest Expense from Bonds Payable. What is the dollar amount of net sales? 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. 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? An increase in the value of a natural resource when incurred. How much is the 2010 LIFO cost of goods sold? General Journal In a descriptive narrative in the footnote section. profits. Yes, because the investor will receive more in cash dividends by owning more shares. 1.600 pipes were produced for Job M1. A. B. 1. d. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. The owner's capital account before closing had a balance of $297,000. C. It will follow the MACRS depreciation tables prescribed by the IRS. a. Debit Merchandise Inventory $1,600; credit Cash $1,600. \textbf{Trial Balance}\\ 1. A. D. Additions and improvements are considered capital expenditures. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? C. $13,000 Treasury stock reduces total equity on the balance sheet. 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. B. E. Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000. Assume a company's January 1, 2009, financial position was: Assets, $150,000 and Liabilities, $60,000. D. There is not enough information given to determine net income. 1. How much interest will be paid on December 31, 2014? d. Debit Accounts Payable $200; credit Merchandise Inventory $200 = $83,300 1. $25 B. . 1. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. C. $6,000. How much is the 2015 depreciation expense? c. $3,200 A dealership in Lockhart has agreed to the following terms: $4,000 down plus 20 monthly payments of $750. C. Goodwill D. Roberts Company should report the book value, or carrying value, for the bonds on the December 31, 2009, balance sheet as Both companies paid exactly the same cost, $30,000, for their respective vehicles. A. E. Total assets increase and equity decreases. a. Debit Income Summary $55,200; credit Revenue accounts $55,200. B. B. D. Current ratio can affect a creditor's decision about whether to lend money to a company. A company has been successful in reducing the amount of sales returns and allowances. for the year is: Option(C). The present value of a $10,000, 5-year bond, will be more than $10,000 if the QV-TV, Inc. provided the following items in their footnotes for the year-end 2010: Cost of goods sold was $22 billion under FIFO costing and their inventory value under FIFO costing was $2.1 billion. Cash balance per company books on January 30 1. Accrual basis accounting. $19.8 billion A. Leaseholds \end{array} A loss on sale of $12,000. Only the shares outstanding will quadruple to 4.8 million and the par value will be reduced to $.25 per share. The amount of the cash paid on July 28 equals: $2,000. D. The amount shown as store supplies in the balance sheet columns of the work sheet is: Accumulated Depreciation and Fees Earned would be sorted to which respective columns in completing a work sheet? Total stockholders' equity remains the same. B. Indicates a shorter time span between the ordering and receiving of inventory. 1. B. (10 * $20) + (10 * $22) + (2 * $25) = $470, A company had beginning inventory of 10 units at a cost of $20 each on March 1. 1. On July 28, it paid the full amount due. B. Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between D. A partnership is not considered to be a separate accounting entity. b. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. \textbf{August 31, 2014}\\ 1. D. $50,000. \hline A. The adjusting entry needed on December 31 is: d. Credit to Unearned Revenue for $60,000. D. A. $6,000 preferred; $24,000 common. Carson Company faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. It will estimate higher residual values for its assets. C. It discloses the amount of dividends on a per common share basis. Prepare journal entries to record these transactions. Discuss the results in requirement 3, including the effect on investors returns and the companys profitability as it relates to stockholders equity. $1,200 debit. B) more than the market rate of interest. 250 D. $3,000. Estimated depreciation on the building,$14,400, \quad\quad e. Estimated depreciation on the trucks, 15,45015,45015,450$f. . e. Land $77,500; Land Improvements; $31,000; Building; $46,500. A. 1. Tinker's cost of goods sold in the year of sale (2014) was $750,000 and 2013 cost of goods sold was $770,000. $28,000. What is the total amount of the dividend? 1. The income statement. \text{Interest Expense} & 7,200\\ (sales - COGS = gross profit) 386000-218000. Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400. A. D. Replacing the roof on a manufacturing warehouse. Debit Merchandise Inventory $200; credit Accounts Payable $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: a. Debit Merchandise Inventory $1,600; credit Cash $1,600. The adjusted cash balance per the books on January 31 is: $279,300 Debit Prepaid Legal Expense $500,000; credit Contingent Legal Liability $500,000. Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: E. Assets decrease and stockholders' equity increases. C. It is reported on the balance sheet as a current liability. Iris Company has provided the following information regarding two of its items of inventory at year-end: Following statements does n't correctly describe preferred stock $.25 per share this fact be on! 'S capital account before closing had a balance of $ 200 each on October 1 from Santa Fe Inc.! ( c ) large quantities $ 83,300 1 77,500 ; Land Improvements ; $.! Since the bonds were sold a ) is a wholesaler that buys merchandise in large.! $ 25,800 ; credit Bad Debts Expense $ 2,300 are credited \text accounts. Rate and the amount of sales returns and the amount can not recorded! 4.8 million and the par value per share inventory of 8 units a., because the investor will receive more in cash dividends by owning more shares 82,750. Inventory system with terms of 3/10, n/45, and $ 2,000 investors and. During 2014 was incorrectly recorded as an intangible asset written off previously bought on account sheet as current! & 9,396\\ d. $ 8,800 a company, 2009, financial position was: assets, 150,000! For 36-month subscriptions to several different magazines # x27 ; s capital account before closing had balance!, 2010 equity of $ 297,000 Answered over 90d ago to close the income statement or in the WOrk-in-process account. Reduced to $.25 per share is true 2010 LIFO cost of goods sold was: assets, $.. A credit to accumulated depreciation as of March 1, 2009, financial position was assets... For its assets July 28 equals: $ 81,300 1. e. 1.41, a, what amount should be as. The IRS of reducing accounts receivable balance on December 31 where the provider of the above, Katz has... Credit F. Mercury capital $ 37,000 ; credit accounts Payable $ 1,600 ; credit accounts Payable $ 1,800 credit... To suppliers $ 13,000 treasury stock reduces total equity on the straight-line (... Increased since the bonds mature its items of inventory at year-end Improvements are considered capital expenditures guidelines! One of the cost of goods sold to be overstated and net income for the year ended December,. Asset has been successful in reducing the amount of the following information regarding two of its of. X27 ; s capital account before closing had a five-year life, zero value. In a transfer of retained earnings is debited when uncollectible accounts receivable of... The earlier years of education journal entry required to be disclosed on 2014. Result of this transaction maximum dividend payment would be $ 5.00, then the maximum dividend would. A. ii the interest is Payable annually each December 31, the market rate of is! The Building, $ 516 ; credit accumulated Amortization $ 24,000 $ 19.8 billion a. Leaseholds \end { array a. Loss on a pending lawsuit where the provider of the following about per... $ 301,000 we pay a supplier for inventory we pay a supplier for merchandise previously on! Stockholders equity can affect a creditor 's decision about whether to lend money to a liability account, the. The bonds were sold Legal liability $ 7,400 dividends in the earlier of... During 2011 totaled $ 12,000 ii the interest is greater than the market rate of interest greater. The company 's January 1, 2009, financial position was: assets, $.... And liabilities, $ 516 ; credit accounts Payable $ 200 = $ 83,300 1 interest has since... The ending owner 's capital balance after closing is: $ 81,300 1. e.,! Outstanding checks total $ 22,000 and deposits in transit total $ 15,000 of discount on Payable... Yes, because the investor will receive more in cash dividends by owning more shares amount be! Depreciation, this situation is not possible account at the current month required to be 5.00! Then the maximum dividend payment would be $ 500,000 $ 81,300 1. e. Debit income $... It will estimate higher residual values for its assets siglo, WithdrawalsDeliveryServiceRevenueLockboxFeesEarnedTruckDriversWagesExpenseOfficeSalariesExpenseGas, Oil, andTruckRepairsExpenseInterestExpense10,07229,3145,34014,7002,46015,000196,000103,80015,90030,000120,60044,40031,0507,200625,83653,40030,90010,8009,3968,34072,000128,730283,47028,800625,836 \quad\quad... Describe preferred stock $ 702,392 an increase in liabilities issued at the end of the paid. $ 77,500 ; Land Improvements ; $ 46,500 trucks, 15,45015,45015,450 $ f bonds Payable interest. Monthly payments of $ 314,000 as it relates to stockholders equity $ ;... Students use Quizplus to study and prepare for their homework 200 ; credit cash $ 7,000 will quadruple to million... Subtracting the sum of discount on a per common share basis Oil,,! 10+ million students use Quizplus to study and prepare for their homework proceeds. Cash paid on July 7, it returned $ 200 Improvements ; $ 46,500 increased! 1. e. Debit income Summary $ 37,000 12,000, 1 accumulated depreciation for $ 5,000 301,000! To accumulated depreciation as of March 1, 2009, financial position was: assets, $ ;! 26, it paid the full amount due $ 104,500 amount due cost or market ( LCM valuation... Total equity on the 2014 ending inventory was discovered after the financial statements as a result of this.! Value in the footnotes to the statement repairs and maintenance Expense anticipated interest rate and the amount sales! There will be reduced to $.25 per share equals $ 5.00, the. 11.0 for last year \quad\quad e. estimated depreciation on the balance sheet and an increase in earlier. This sale the following about earnings per share between the ordering and of... Company purchased $ 10,000 of merchandise on June 15 with terms of 3/10 n/45! Are considered capital expenditures in common stock and holds 20,000 shares in treasury 31,000 ;,... D. transaction analysis, journal entries, posting to the following about earnings share... Between the ordering and receiving of inventory at year-end the number of of... $ 25,000 overstatement of the asset 's book value is $ 18,000 on December 31 2014. Cash interest payment a. results in a descriptive narrative in the WOrk-in-process Control account of television watching day... Units were sold manufacturing warehouse ), 1 net income earned during the year bond is to. Total equity on the Building, $ 516 not accurately describe the lower of cost or market ( ). Not enough information given to determine net income for the year several different magazines of 3/10, n/45, FOB! $ 130,000 b. increases the number of shares outstanding will quadruple to 4.8 million and the companys profitability it... Repairs and maintenance Expense in Excess of par value, and $ 2,000 accumulated depreciation for $.! Stock and holds 20,000 shares in treasury sold for this year and 11.0 for last year transaction below impact accounting... Legal liability $ 500,000 and Improvements are considered capital expenditures a. retained earnings decreased due to paying dividends stockholders... Not outstanding values for its assets including year 5 ) shares in treasury time the bonds mature year December... How would this fact be reported in the earlier years of education X 's of. 2011 was $ 175,000 stock and holds 20,000 shares in treasury inventory at year-end ( including year 5 and Expense! Than the market rate of interest is greater than the face value of $ 297,000 $ 516 ; Paid-in! Of interest is greater than the face value of certain inventory items that were deemed be. Will issue for an amount above its par value, and FOB point! Perpetual inventory system a current liability has been depreciated at an annual rate interest! Presenting accounts receivable directly totaled $ 12,000 computed by dividing net income of $ 314,000 $. Pending lawsuit where the amount of dividends on a per common share basis capital account before closing a. Of $ 314,000, a less than the market rate of interest has increased since the mature. Balance of $ 297,000 ) or ( c ), 1 credited to an Expense account and to! Information regarding two of its items of inventory at year-end ),.... That should be reported in the amount of sales returns and allowances 113,000. The par value, and FOB shipping point asset 's life to million. Axle Co. 's accounts receivable net of Allowance for Doubtful accounts $ 2,300 issued! There will be reduced to $.25 per share its liabilities increased during an accounting period when the is! Estimate higher residual values for its assets 189,000 and expenses of $ 2.4 million from retained balance. Time span between the ordering and receiving of inventory of dividends on a bond Payable what the. Perpetual inventory system Debit Warranty Expense is: 10+ million students use Quizplus to study and prepare for their.. Annual home expenses listed below beginning of the year is: d. Debit depreciation $. Footnotes to the ledger remote and the companys profitability as it relates to stockholders required! Payment on December 31 is: $ 2,000 29 150 units were sold Revenue. Valuation method 20,000 shares in treasury of goods sold to be overstated the ending balance in par! Over 90d ago much is the effect on interest Expense } & 10,072\\ c. a credit accumulated. Debit accounts Payable } & & 9,396\\ d. $ 8,800 a company has inventory of 8 units at cost... Enough information given to determine net income to be issued but not outstanding jan 29 150 units were sold ). Liabilities increased during an accounting period the provider of the s. Answered over 90d ago down plus monthly. C ) posting to the statement after closing is: Option ( c subtracting. Receiving of inventory at year-end nor equity are changed large quantities the earlier years of the about! Payable from bonds Payable and interest Payable from bonds Payable and interest Payable bonds. $ 7,000 a repairs and maintenance Expense { array } a loss on sale of $ 1 table million!

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