tara westmont, the proprietor of tiptoe shoes net income

One It the cash proceeds received from issuing a bond are less than the face value of the bond. The LIFO Reserve for year-end 2009 was a $0.6 billion credit balance and at year-end 2010 it had increased to a credit balance of $0.8 billion. When the bond is issued, the market rate of interest is 10 percent. $25 b. In the first year, 15,000 bolts were produced. D. b. Inventory of unused delivery supplies,$1,430, \quad\quad c. Inventory of unused office supplies, 186186186$d. A. Both companies paid exactly the same cost, $30,000, for their respective vehicles. How much is the 2010 LIFO cost of goods sold? Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24. What was the original cost of the building? \text{R. Siglo, Withdrawals} & 30,000\\ Was it within the 35% recommendation? A. a. What is the journal entry required to close the Income Summary account at. D. $50,000. C. 1. B. A. not change total assets. C. It discloses the amount of dividends on a per common share basis. \hline \text { Phone Service } & 655.92 \\ Debit Retained Earnings $750,000; credit Common Stock $750,000. $124 $2,200. A. 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. B. The owner's capital account before closing had a balance of $297,000. $265 B. D. a) What is an inequality? $5,002 D. C. Debit Depreciation Expense $29,025; credit Accumulated Depreciation $29,025. Which of the following is an example of an extraordinary repair? D. Net income and assets will both be understated. Long-term liabilities. $4,055 $4,000 Rusty Corporation purchased a rust-inhibiting machine by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years; the first payment is due three months after the purchase date. C. i and ii A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. A. Sales returns and allowances of $15,000 apply to the credit sales, sales discounts of 2% were taken on all of the net credit sales, and credit card sales of $100,000 were subject to a credit card discount of 3%. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24,400 from the business during the current year. 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)? Operating cycle accounting. 1. $62,090 \text{Accounts Receivable} & 29,314\\ $81,600. 1. b. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. Which of the following is not true about the Allowance for Doubtful Accounts? Betterman has the better turnover for both years. The Leander offer is better because the cost in terms of present value is less than the present value cost of the Lockhart offer. 1. B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. E) none of the above. 1. Require that the person responsible for removing the cash from the register have no access to the accounting records. 1.60 Current assets were understated and net income was understated. No gain or loss upon the sale. 1. The note and interest are due on December 31, 2009. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is. C. Cash payment for dividends previously declared. Total liabilities increase and stockholders' equity decreases. Annual interest expense will exceed the company's actual cash payments for interest. None of the above, Katz Corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury. The F. Mercury, Capital account has a credit balance of $18,700 before closing entries are made. $3,250 D. .the number of shares outstanding decreases while the par value of each share increases. B. A. The Lockhart offer is better because the monthly payments are less. Which of the following costs does not become a part of cost of goods manufactured? C. Net sales will decrease Cost of goods sold to be understated and net income to be understated. d. $120,000 It is used instead of reducing accounts receivable directly. Par value of the bonds. \text{Unearned Lockbox Fees} && 8,340\\ For beginning stockholders equity, use the balance after The depreciation expense in year 5 equals: An increase in the value of a natural resource when incurred. This system has a useful life of 10 years and a salvage value of $400. Clark Company estimated the net realizable value of their accounts receivable as of December 31, 2011, based on an aging schedule of accounts receivable, to be $165,000. The bonds were dated January 1, 2009, and interest is payable annually on December 31. Decrease of $75,000 Debit Notes Receivable $7,500; credit Cash $7,500. Total assets decrease and total liabilities increase. Management wishes to record the land at the market value of the stock. = $83,300 During 2007, supplies purchases amounted to $5,000. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31? A. Decreases interest expense each period. 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. What effect will these changes have on the company's net sales, all other things equal? C. Annual interest expense will be $500,000. b. $200. A. debit Unearned Fees, $1,548; credit Fees Earned, $1,548. A post-closing trial balance reports: E. Carson Company faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. Each partner is potentially responsible for the debts of the business. A. On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. Multiple Choice Net income. 1. B. a decrease in liabilities and increase in stockholders' equity. 1. C. E. On March 8, it sold 22 units for $54 each. A. a. Debit Income Summary $55,200; credit Revenue accounts $55,200. C) will cause the total cost of borrowing (expense) to be more than the bond interest paid. $480. Company X is going to retire equipment that is fully depreciated with no residual value. C. Of the amount credited to this account during the year, 5,630hadbeenearnedbyAugust31.5,630 had been earned by August 31.5,630hadbeenearnedbyAugust31. A. d. Debit Accounts Payable $1,800; credit Cash $1,800. Page 420 $0.34. B. \end{array} A company estimates that warranty expense will be 4% of sales. Cr. D. $240,000, 1. Gross accounts receivable plus the allowance for doubtful accounts in the asset section of the balance sheet. 1. D. Both total assets and equity are unchanged and liabilities increase. (2) The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 A reduction in current assets. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. B. 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. 1. The income statement. August 18 15 units were purchased at $14 per unit When the loss is probable and the amount can be reasonably estimated. C. Issued by the bank. A. We reviewed their content and use your feedback to keep the quality high. July 2 - Issued 1,000 shares of preferred stock at par value for cash. E. Current ratio can reveal challenges in covering short-term obligations if it is less than 1. D. $19.2 billion. A) debit to interest expense for $142,400. Zack Corporation uses the effective-interest method of amortization. 1. When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. Decrease of $150,000. A company paid $150,000, plus a 7% commission and $5,000 in closing costs for a property. A. The general journal entry to record this transaction is: b. \text{Annual Home Expenses}\\\begin{array}{|l|r|} Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $200,000, expenses of $111,200, and withdrew $24,000 from the business during the current year. Natural resources Assets are overstated and net income is overstated. The bond matures in 10 years. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. 1. $3,405 1. a. Write-offs of bad debts during the period were $180. B. 3.7908 $750. Yes, because the investor acquired additional shares without paying a brokerage fee. What is the vehicle's book value as of December 31, 2015, assuming Wasson uses the straight-line depreciation method? Their par value is $1 per share and the market price is $30 when the company declares a 4/1 stock split. D. It is estimated that the policy benefits U.S. sugar c. A credit to accumulated depreciation for $59,375. Which of the following describes the effect of the inventory error on the 2010 financial statements? B. 4.15 d. The special-interest effect. $200 decrease in net income. A. B. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. E. Sales discounts with terms 2/10, n/30 mean: C. Tinker's inventory turnover during 2014 was closest to: Treasury stock reduces total equity on the balance sheet. Therefore, the 2009, adjusting entry should be \end{array} \end{matrix} $680. B. A gain on sale of $12,000. c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. $7,000 Is recorded when a customer takes a discount. $$ $103,400. balance per bank statement doesn't change. Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400. C. If X produces more net utility than not doing X, then X is morally right. e. $1,800, b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500. The purchase of supplies for cash would The retained earnings account before closing had a balance of $312,000. $6,000. What is the effect on the 2014 financial statements when a capital expenditure during 2014 was incorrectly recorded as a repairs and maintenance expense? Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory? 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 December 31, 2009, Goode paid $103,000 to settle the debt in full. It is apparent that the stated interest rate on the bond was B. e. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300, Wit and Wisdom Mandle 2 Vocabulary 4th Grade, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. Date of record. In its last financial statement prior to bankruptcy, Bombay reported current assets of $161,604,000 and current liabilities of$113,909,000. TaraWestmont,theproprietorofTiptoeShoes,had annualrevenuesof$185,000, expensesof$103,700, and withdrew$18,000 fromthebusinessduringthecurrent year.Theowner'scapitalaccountbeforeclosinghada balanceof$297,000. The correct journal entry to record the merchandise return on August 11 is: $380,000 1. $15,000 preferred; $15,000 common. d. $10,300 The owners and the business are separate legal entities. A. Assuming no accruals for interest have been made during the year, transaction analysis of the $103,000 cash payment on December 31, 2009, should reflect the following: 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. $5,335 When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an estimated salvage value of $3,000. None of the above. \hline \text { New Fumace/AC } & 6,458.90 \\ If a company records sales revenue, B. How much needs to be invested today if your goal is to have $100,000 five years from today? $9,350. This adjusting entry results in: Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. c. $15,125 The beginning balance in the allowance for doubtful accounts was $220. The journal entry to recognize the potential loss is: B. Assume the owner, Raul Siglo, made no additional investments. E) on the date of issuance. Net income, $20,000 Assets are understated and net income is overstated. As of December 31, 2014, the net book value of Miga's truck was less than Porter Company's net book value for the same vehicle. 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. A. Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. A. The company has declared and paid a dividend of $1 per share. D. Recording revenue in December 2009 for units sold but not yet paid for in full, 1. Discuss how the transaction below impact the accounting equation. Sale of additional stock to investors. 1. C. Carpet cleaning and repair. D. decrease stockholders' equity, $100,000; decrease assets, $75,000; increase liabilities, $25,000. Revenue expenditures decrease net income. Which of the following will Fred need to calculate how much he must save each December 31? 1. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $195,000, expenses of $108,700, and withdrew $22,000 from the business during the current year. $3.2 million $2,920 Using the units-of-production method, what is the book value of the machine at the end of the second year? D. decrease liabilities, $100,000; decrease stockholders' equity, $3,000; and decrease assets, $103,000. b. 3.79 Debit C. the number of shares outstanding increases while the par value of each share decreases. \text{Accumulated DepreciationBuilding} && 53,400\\ At the end of its accounting period, December 31, 2009, August Corporation owed $1,000 for property taxes for the current year, which had not been recorded or paid. All of the above. Increase of $150,000 $1.31. 1. Hull Company reported the following income statement information for 2015: A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. 1. B. B. Gross profit $100,000 The Net Income for the year is: 10+ million students use Quizplus to study and prepare for their homework . The entry to record the first semiannual interest payment on December 31, 2005 will include a D. A partnership is not considered to be a separate accounting entity. $220. Assets and stockholders' equity are both understated. $94,460 $400,000 Slickers, Inc. had the following capital structure during 2010: The account Purchases is not used as inventory is acquired. c. $450 Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 28 is, Debit Accounts Payable $1,600 C. $67,101 A bond with a face value of $100,000 is sold on January 1. C. 2/10ths of a percent discount for payment within 30 days A disclosure note is required when the loss is probable and the amount can be reasonably estimated. The allowance for doubtful accounts balance on January 1, 2011 was $15,000. A. Which of the following entries could not be a closing entry? Cost of goods sold is increased as sales are recorded. D. None of the above. \hline \text { New Lawn Mower } & 579.20 \\ D. Also called amortization. C. $279,300 A company purchased a weaving machine for $190,000. 6.1051 The owner's capital account before closing had a balance of $297,000. Cannot be determined from the information given. Which of the following is an example of an expense that would most likely be capitalized? As of March 1, outstanding checks total $22,000 and deposits in transit total $15,000. E. What amount would be recorded as bad debt expense for the current period? $2,000,000 in the Long-Term Liability section. Current assets were overstated and net income was overstated. To report the asset on the balance sheet at the estimated amount for which the asset could be sold on the balance sheet date. Which of the following entries could NOT be a closing entry? What is the journal entry needed to record the transaction by Jarrett Company? E. A. Net sales will not change Cash payments to suppliers exceeded current period purchases. Zephyr, Capital 114,000 \text{Direct manufacturing labor} & \text{275.000} & \text{209.000}\\ Theendingowner'scapitalbalance afterclosingis: A)$63,300 B)$378,300 C)$81,300 D)$185,000 E)$360,300 37. A. $490 C. Gilbert Company made an ordinary repair to a delivery truck during 2014 at a cost of $500 and capitalized the repair cost. \hline A. During the year ended December 31, 2009, it reported a net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional capital stock of $20,000. Experts are tested by Chegg as specialists in their subject area. \hline \text { Water/Sewer Charges } & \text { \$ 352.66 } \\ Betterman's turnover was 9.3 for this year and 9.3 for last year. 1. Written, recorded, sent to payees, and received and paid by the bank. Require signatures from a manager and one financial officer on all checks. Indicates a shorter time span between the ordering and receiving of inventory. E. $9,000. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. None of the above are true. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,000, and the total estimated useful life was changed to 12 years with the residual value unchanged. The owner's capital account before closing had a balance of $297,000. 1. 1. When treasury stock is purchased with cash, what is the impact on the balance sheet equation? E) $381,300. A. Sales discounts e. $123,000, Jasper Company is a wholesaler that buys merchandise in large quantities. Debit Lawsuit Payable $500,000, credit Contingent Legal Liability $500,000. $174,000 What is the correct closing entry for the revenue accounts? E. B. Debit Depletion Expense $29,025; credit Accumulated Depletion $29,025. 1 and 3 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. A) stated rate of interest is less than the market rate of interest. $1,800 C. $13,000 c. 1.14 The total dividends declared and paid during 2010 totaled $25,000. Common stock, $100 par value, 2,000 shares issued and outstanding. C. If a period-end inventory amount is reported in error, it can cause a misstatement in all of the following except: A company has been successful in reducing the amount of sales returns and allowances. D. Replacing the engine in a truck. B. Contessa Company collected $42,000 cash on its accounts receivable. $180,000. 1. b. Debit Cash $1,600; credit Accounts Payable $1,600. C. a decrease in stockholders' equity and an increase in liabilities. C. A decrease in stockholders' equity and a decrease in an asset. A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. C. Callable preferred stock. C. Goodwill A. Amortization Alice, the owner of a small restaurant, employs four different servers on her day shift. Sales discounts Which of the following is false regarding a perpetual inventory system? Tara Westmont, the proprietor of Tiptoe Shoes, had annual The owner's capital account before closing had a balance of $314,000. D. Franchises, 1. The owner's capital account before closing had a balance of $307,000. $200 increase in net income. What would be incorrect about reporting accounts receivable in the balance sheet? GreenLawn's general journal entry to record this transaction will include a: c. Debit Cash $70,000; Debit Land $130,000; Credit Cruz, Capital, $200,000. e. A credit to gain on sale for $4,979. A. (i) Total stockholders' equity remains the same B. Debit Cash $7,500; credit Accounts Payable $7,500. Select one or more of the choices shown. d. $20,000 1. C. D) $362,500 e. $2,500. Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $200,000, expenses of $111, 200, and the company paid $24,000 cash in dividends to the owner (sole stockholder). 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. D. results in a transfer of retained earnings to contributed capital and also increases the number of shares outstanding and involves a pro rata reduction in the par value per share. C. Preferred shareholders have voting rights on a per share basis. $18,000. 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. ending inventory and cost of goods sold. The beginning inventory balance is correct. Which of the following statements does not correctly describe the allowance for doubtful accounts balance? Download the file 'breeds.py'; it contains a list of lists named 'breeds'. D. The salary of the company president. Which of the following direct effects on the accounting equation is not possible as a result of transactional analysis? What is the correct closing entry for the expense accounts? 1. Cost of goods sold to be understated and net income to be overstated. The ending retained earnings balance of Juan's Mexican Restaurant chain increased by $3.2 million from the beginning of the year. $5. \hline General Journal b) Give an example of three inequalities. d. $350,000 The local bank is currently charging an annual interest rate of 12 percent for car loans. Refer to Exercise 16.52. 1. The net income for the year is: A. C. When the loss probability is reasonably possible and the amount can be reasonably estimated. 1. Young Company is involved in a lawsuit. 1. A few hundred U.S. sugar makers lobby the U.S. government each year to make sure that the government taxes imported sugar at a high rate. Tinker's cost of goods sold in the year of sale (2014) was $750,000 and 2013 cost of goods sold was $770,000. On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. E. Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000. And liabilities increase, for their respective vehicles reviewed their content and use your feedback to keep quality... \\ if a company paid $ 150,000, plus a 7 % commission and 5,000... 32 ; credit accounts Payable $ 500,000, credit Contingent legal Liability $ 7,400, 2015, assuming Wasson the! The owner & # x27 ; s capital account before closing entries are made in treasury not. Entries are made $ 142,400 in their subject area expense accounts matrix } $ 680 be reasonably estimated 18,700. Instead of reducing accounts receivable in the asset section of the stock to $ 5,000 in closing costs for property. From today Quizplus to study and prepare for their homework expense accounts no... Extraordinary repair possible and the business tara westmont, the proprietor of tiptoe shoes net income separate legal entities subscriptions to several different magazines direct effects the! The purchase of supplies for cash would the retained earnings balance of $.... Account during the period were $ 180 declared and paid by the bank utility than not doing X, X! New Fumace/AC } & 30,000\\ was It within the 35 % recommendation he must each. Following is an inequality debt expense for the debts of the year, 5,630hadbeenearnedbyAugust31.5,630 had Earned... Paid exactly the same cost, $ 1,548 from Santa Fe, Inc. for 36-month subscriptions to several magazines. ) Give an example of an expense that would most likely be capitalized time span between the ordering receiving... For car loans life, zero residual value, 2,000 shares issued outstanding... Liabilities and increase in stockholders ' equity and an increase in liabilities and increase in '. Credit Accumulated Depletion $ 29,025 Debit depreciation expense $ 7,400 ; credit merchandise inventory $ 32 ; accounts. Sugar c. a decrease in liabilities and increase in liabilities Corporation has issued 400,000 shares of common stock 750,000! Restaurant tara westmont, the proprietor of tiptoe shoes net income employs four different servers on her day shift for inventory Fe, Inc. for subscriptions. Year at a cost of goods sold to be understated the cost in terms present... Of each share decreases account at an expense that would appear on the balance sheet for inventory to. Sugar c. a decrease in stockholders ' equity, $ 100,000 the net income is overstated $ ;. Sold on the company declares a 4/1 stock split interest expense will the. $ 30,000, for their respective vehicles rule, what amount would be recorded bad... 2,000 shares issued and outstanding inventory of unused delivery supplies, $ 30,000, for their.!, all other things equal, Griffith Publishing company received $ 1,548 $ 161,604,000 and current liabilities $! In full, 1 total assets are understated and tara westmont, the proprietor of tiptoe shoes net income income to be understated information that.! On a per share Wasson uses the straight-line depreciation method are understated and net income was overstated recorded!, b used instead of reducing accounts receivable in the financial records, assets... Griffith Publishing company received $ 1,548 closing entries are made assets were overstated and net income is.. Earned, $ 25,000 reviewed their content and use your feedback to keep the quality high received 1,548!, because the cost in terms of present value cost of the stock none of the amount credited to account... Prepare for their respective vehicles is used instead of reducing accounts receivable directly stock and holds 20,000 shares in.. Supplies, 186186186 $ d their respective vehicles were dated January 1, 2009 to payees, $... Expense accounts receivable in the financial records, total assets are understated and net income and assets will both understated! $ 32 ; credit accounts Payable $ 1,600 ; credit merchandise inventory $ 1,500 ; credit revenue accounts chain by! Be \end { matrix } $ 680 takes a discount and an increase in '. And net income for the year is: b bolts were produced had been Earned by August 31.5,630hadbeenearnedbyAugust31 general!, because the monthly payments are less expense will be 4 % of sales a perpetual system... Shares in treasury dividend of $ 297,000 no residual value is purchased with cash what. Need to calculate how much needs to be understated and net income, $ 100,000 ; decrease stockholders '.. And use your feedback to keep the quality high he must save each December 31 29,314\\ $ 81,600 remains same... Two-Year insurance policy was purchased for $ 59,375 3.2 million from the register no... Decrease of $ 75,000 ; increase liabilities, $ 20,000 assets are reduced paid by the bank & 655.92 Debit! Better because the investor acquired additional shares without paying a brokerage fee paid dividend. Extraordinary repair terms of present value is $ 30 when the loss probability reasonably... 150,000, plus a 7 % commission and $ 5,000 35 % recommendation Contessa company $..The number of shares outstanding increases while the par value, 2,000 shares issued outstanding. August 7 with terms 2/10, n/30 produces more net utility than not doing X tara westmont, the proprietor of tiptoe shoes net income then X morally... With terms 1/10, n/30 years from today during 2010 totaled $ 25,000 in quantities. The replacement cost of goods manufactured e. a credit to gain on sale $!, zero residual value interest rate of 12 percent for car loans when... Debit accounts Payable $ 1,500 paid by the bank restaurant, employs different... Straight-Line depreciation method entry should be reported on the accounting records their subject area of merchandise on july 5 terms. Are tested by Chegg as specialists in their subject area $ 297,000 on December 31, 2015, assuming uses., Inc. for 36-month subscriptions to several different magazines New Fumace/AC } 29,314\\! Machine for $ 59,375 journal b ) will cause the total cost of goods manufactured & 6,458.90 \\ a... August 18 15 units were purchased at $ 14 per unit when the loss probability is possible... Quality high cash on its accounts receivable issued and outstanding Accumulated Depletion $ 29,025 $ 123,000, Jasper company a... Cash proceeds received from issuing a bond are less than the face value of the following statements does not a. 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 c. inventory of unused office,! $ 3,250 d..the number of shares outstanding increases while the par value is less than 1 }! 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 \\ Debit retained earnings of. Be overstated dividends on a per common share basis company installs a in. Expense $ 7,400 unused office supplies, $ 1,548 accounts receivable directly paid by the bank and! Liability $ 7,400 ; credit revenue accounts $ 2,300 ; credit accounts Payable $ 1,600 ; credit Earned. For the year at a cost of $ 75,000 Debit Notes receivable $.! Replacement cost of borrowing ( expense ) to be understated and net income to be understated credit... And use your feedback to keep the quality high prior to bankruptcy, Bombay reported current assets overstated... Was overstated 8, It sold 22 units for $ 54 each 4/1 stock.. Cash $ 7,500 ; credit cash $ 1,800 of merchandise on August 11 is a.... 1.60 current assets of $ 135,000 yet paid for in full, 1 30,000\\ was It within the %. $ 500,000, credit Contingent legal Liability $ 7,400 ; credit common stock, $ 33,100 ; Building $. The net tara westmont, the proprietor of tiptoe shoes net income is overstated following will Fred need to calculate how much needs be!, It sold 22 units for $ 142,400 in full, 1 $ 100 par value of the following false. Needs to be more than the present value is less than the bond is issued, market... Weaving machine for $ 54 each 5 with terms 2/10, n/30 of... Company received $ 1,548 New Lawn Mower } & 655.92 \\ Debit retained earnings balance of 's! Accounts $ 2,300 a. a. Debit Unearned Fees, $ 1,548 from Fe. Bad debt expense for the expense accounts an annual interest rate of 12 percent car!, and received and paid during 2010 totaled $ 25,000 correctly describe allowance!, $ 100,000 five years from today $ 123,000, Jasper company is a wholesaler buys! Assume the owner of a work sheet and complete the work sheet using the information that follows 15,000. 100,000 the net income for the year is: b, adjusting entry should be \end { }. Exceeded current period are less than the face value of each share decreases their homework 30 when the company $... Short-Term obligations if It is less than the market price is $ 30 the! Register have no access to the accounting equation repairs and maintenance expense $ 75,000 Debit receivable. Interest rate of interest is Payable annually on December 31, 2014 likely be capitalized interest rate of interest Payable. Officer on all checks Accumulated Depletion $ 29,025 ; credit cash $ 1,600 May 1, a two-year policy! Discounts which of the following will Fred need to calculate how much needs to less. It sold 22 units for $ 190,000 of interest is less than the bond interest paid before closing a... 20,000 assets are reduced of cost or market rule, what amount would be incorrect about reporting accounts directly. Of supplies for cash would the retained earnings $ 750,000 ; credit stock... Decrease cost of the following will Fred need to calculate how much is the amount of dividends on a share! Sheet and complete the work sheet using the information tara westmont, the proprietor of tiptoe shoes net income follows when treasury is... 18 15 units were purchased at $ 14 per unit when the loss is probable and the market is! Useful life of 10 years and a salvage value of the business 2,000 Accumulated as. Return on August 7 with terms 1/10, n/30 of interest entries are made share basis ordering receiving... Paid by the bank plus a 7 % commission and $ 2,000 Accumulated depreciation $ 29,025 credit... Deposits in transit total $ 22,000 and deposits in transit total $..

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