$3,100. D. Replacing the roof on a manufacturing warehouse. The Net Income for the year is: $84,300 Revenues $191,000 - Expenses $106,700 = Net Income $84,300 Topic: Recording Closing Entries Question 5 0 out of 4 points 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. C. Formation of a partnership requires getting a charter from the state of incorporation. The owner withdrew $8,000 in cash during the same period. for the year is: b. Debit Estimated Warranty Liability $7,400; credit Cash $7,400. Percentage of sales method. A. The owner's capital account before closing had a balance of $297,000. Assets decrease and stockholders' equity decreases. 3.7908 On March 6 it purchased 6 units at $25 each. ((10*12)+(15*14))/(10+15) = 13.20 $185,000 b. 1. $2,920. Participating preferred stock. D. Revenue recognition accounting. On July 7, it returned $200 worth of merchandise. Par value and the market rate on the date the bond was issued. A contingent liability that is "reasonably possible" but "cannot reasonably be estimated" Assume the owner, Raul Siglo, made no additional investments. D. an increase in stockholders' equity and increase in an asset. Contessa Company collected $42,000 cash on its accounts receivable. B. C) $82,300 $67,101 B. 1. Each job is unique. General Journal c. $128 1. 1.91 180. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24. D. $19.2 billion. What effect will these changes have on the company's net sales, all other things equal? B. D. There is not enough information given to determine net income. Which of the following describes the correct action to be taken when preparing your bank reconciliation? $1,564 What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31? Recording revenue in December 2009 for units manufactured but not yet sold to customers The return on the investment is expected to be 10% and will be compounded semi-annually. By what amount does stockholders' equity increase? Debit Merchandise Inventory $200; credit Sales Returns $200. 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. The correct journal entry to record the merchandise return on August 11 is: B. e. $493, A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. e. Debit Accounts Payable $1,500; credit Purchase Returns $1,500. D. Additions and improvements are considered capital expenditures. $3,250 Gracey's also has $600,000 of common stock outstanding. A. D. A partnership is not considered to be a separate accounting entity. E. The bonds were issued at a premium. $4,000. Current assets were understated and net income was understated. Marlow Company purchased a point of sale system on January 1 for $3,400. If a period-end inventory amount is reported in error, it can cause a misstatement in all of the following except: D. A $25,000 overstatement of the 2010 ending inventory was discovered after the financial statements for 2010 were prepared. 1. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative? 1. Net income under the accrual basis of accounting is: d. Debit Income Summary $81,300, credit T. Westmont, Capital $81,300. B. If X produces more net utility than not doing X, then X is morally right. C. Ordinary repairs and maintenance are considered revenue expenditures. Annual interest expense for a single bond issue continues to increase over the life of the bonds. \hline \text { Internet & Phone Bundle } & 1,198.80 \\ E) None of the above is correct. $100,000. Which of the following describes the effect of the inventory error on the 2010 financial statements? Net income = Revenues - Expenses Assets will be overstated, but there would be no effect on net income for the year. $4,500 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. A. A. decrease stockholders' equity, $75,000; decrease assets, $75,000. Gain of $1,500 The purchase of supplies for cash would Manufacturing overhead costs are allocated at a budgeted rate of$22 per direct manufacturing labor-hour. 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. Requires a debit memorandum to recognize the customer's return. Betterman's turnover was 9.3 for this year and 9.3 for last year. Prepare journal entries to record these transactions. Interest expense reduces taxable income. In addition, they had the annual home expenses listed below. Interest expense Annual interest expense will exceed the company's actual cash payments for interest. The university spirit organization needs to buy a car to travel to football games. E. Current ratio can reveal challenges in covering short-term obligations if it is less than 1. Credit card discounts Its gross profit equals $168,000, true Gross accounts receivable plus the allowance for doubtful accounts in the asset section of the balance sheet. What is the effect on the 2014 financial statements when a capital expenditure during 2014 was incorrectly recorded as a repairs and maintenance expense? It is possible, but not probable, that the company will have to pay a settlement of approximately $2,000,000. $1.31. D. Eaton Company cannot issue bonds if the market rate is higher than the stated rate. A. Preferred shareholders have a preference with respect to assets in the event of liquidation. a. A company has net income of $225,000 and declares and pays dividends in the amount of $75,000. C. C. A gain on sale of $12,000. A. All of the above are advantages associated with bonds. closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period. D. The Net Income for the year is $81.300.00 $185.000 $360300 $63.300 de Date of record. K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. D. $3,000. Require that the person responsible for removing the cash from the register have no access to the accounting records. Which of the following statements about stock dividends is true? C. 1. Lockbox fees earned but unrecorded and uncollected at the end of the accounting period,$816, \quad\quad i. The journal entry to write-down inventory decreases current assets. \textbf{August 31, 2014}\\ $94,460 1.60 $1,200 debit. Indicates a longer time span between the purchase and sale of inventory. $144,400. $5,270. 1. from the business during the current year. They want to maximize their net income during the earlier years of the assets life. B. The retained earnings account before closing had a balance of $312,000. This result that Cleaver earned a net income of $5,900. 1. Reflects an increase in amount due from a customer. C. $1,000 credited to a liability account and debited to an expense account. c. $171,000 Cost of goods sold to be overstated and net income to be understated. D. An entry was journalized and posted as a debit to cash for $1,110 and a credit to sales for $1,101. 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. 1, 2, and 3, You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. New tires for a truck. $87,562, When using the effective-interest method of amortization, the book value of the bonds changes by what amount on each interest payment date? What is cost of goods sold? RowanCompany,May2016DirectmaterialsDirectmanufacturinglaborJobM1$75.000275.000JobM2$56.000209.000. B. an asset other than cash. D. Temporary accounts. No journal entry is required. Cr. C. C. Preferred shareholders have voting rights on a per share basis. C. $4,750 $3,500 What amount should be reported on December 31 as the bond liability? Balance Sheet and Statement of Owner's Equity - credit; and Income Statement - credit. It is debited when uncollectible accounts are written off. . An asset's book value is $18,000 on December 31, Year 5. Workings: *Net income for the year= Total R. $2,000,000 in the Long-Term Liability section. B. $62,090. Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400 A. b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500 When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the C. Cash payment for dividends previously declared. 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. 1. B. $4,120. Which of the following concepts apply to the U.S. sugar tax? C. The ending owner's capital balance after closing is: A company had revenues of $56,000 and expenses of $44,500 for the accounting period. A. 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. C. Closing accounts. For a business organized as a general partnership, which statement is true? B. D. Preferred stock typically has a fixed dividend rate. A) $16,000 The owner's capital account before closing had a balance of $297,000. 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. Net income and assets will both be understated. The bond has a stated interest rate of 10 percent and matures in 10 years. B. a. On March 8, it sold 22 units for $54 each. C. It is reported on the balance sheet as a current liability. 1. A. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. 1. $63,300 C. $81,300 D. $360,300 E. $378,300 C 1. It is the only ratio required to be disclosed on the income statement or in the footnotes to the statement. 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. Which statement regarding treasury stock is false? Which of the following regarding the lower of cost or market rule for inventory are true? 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. There are 100 units of Item A having a cost of $20 per unit and a replacement cost of $18 per unit. A company has 4 million common shares authorized, 2.5 million shares issued and 100,000 treasury shares. Net sales. A. B) more than the market rate of interest. The owner's capital account before closing had a balance of $301,000. What amount would be recorded as bad debt expense for the current period? A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semi-annually. The following is an example of an error that will not be discovered on the trial balance: D. Both total assets and equity are unchanged and liabilities increase. July 1 - Issued 10,000 shares of common stock at $11 per share. C. D. B. Deducted from the book balance of cash. A. D. $1,000 debited to a liability account and credited to an asset account. D) $18,455 A. The anticipated interest rate and the present value table for annuities. What was Landseeker's accounts payable turnover ratio in 2011? Prepare an income statement, a statement of owners equity, and a balance sheet for the company. D. \text{Unearned Lockbox Fees} && 8,340\\ C. Debit Depreciation Expense $29,025; credit Accumulated Depreciation $29,025. What is total stockholders' equity as of December 31, 2011? Net sales will decrease. C. $ 4,800. 1. c. $3,200 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. The owner's capital account before closing had a balance of $297,000. Total assets decrease and stockholders' equity decreases. Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. $18,000. A. B. The issue price was $9,668 based on an 8% effective interest rate. Debit Unearned Revenue $11,250, credit Sales $11,250. The ending owner's capital balance after closing is: 1 See answer Advertisement andromache Answer: $480. 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. Which of the following general journal entries will VC Consulting make to record this transaction? $200 decrease in net income. $520 1. B. During 2007, supplies purchases amounted to $5,000. \text{Office Supplies} & 2,460\\ C. $109,000 None of the above are false. 1. Which of the following transactions will cause both the left and right side of the accounting equation to decrease? Aug. 2 - Purchased 1,500 shares of its common stock at $13 per share. $380,000 Presenting accounts receivable at gross amount, less allowance for doubtful accounts. . 1. D) decreases the carrying value of the bonds. A company has been successful in reducing the amount of sales returns and allowances. None of the above, Katz Corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury. A company wishes to report the highest earnings possible for financial reporting purposes. $800 In 2010, cost of goods sold was $258 million and accounts payable was $72 million. Both total assets and total liabilities decrease. Was it within the 35% recommendation? Which of the following statements is false? The ending owner's capital balance after closing is: __ $186,000 __ $63,400 __ $81,800 __ $361,400 __ $379,800 B. 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. Failure to record amortization expense on a patent during the current year will result in which of the following? Net income for July was zero and August was $11,500. $2,920 Each partner is potentially responsible for the debts of the business. The Adjustments columns show a credit of $240 for supplies used during the period. A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: It is reported on the balance sheet as a component of current assets. When a company using the allowance method writes off a specific customer's $100,000 account receivable from the accounting system, which of the following statements are true? David and Helen Voss have a combined monthly gross income of $5,750.00. Political corruption. The anticipated interest rate and the present value of $1 table. $395,000 The journal entry made by Fragmental Co. at year-end on December 31 would be: 1. A company paid $150,000, plus a 7% commission and $5,000 in closing costs for a property. 1. B. Direct labor Which of the following is false regarding a perpetual inventory system? A) $656,758 The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 account before closing had a balance of $299,000. C. Goodwill C. 1. A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. How much is the 2010 LIFO cost of goods sold? The owner's capital account before closing had a balance of $301,000. C. 1. The adjusting entry needed on December 31 is: d. Credit to Unearned Revenue for $60,000. All nominal ledger accounts with balances. Which of the following accounts is not a contra-revenue? Only the shares outstanding will quadruple to 4.8 million and the par value will be reduced to $.25 per share. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2011. C. Given this information, the correct gross profit would be: ending inventory overstated 20,000 means gross profit is overstated 20,000 $279,300 $507 Cost of goods sold. $96,000 4.23 If a company records sales revenue, SigloDeliveryServiceTrialBalanceAugust31,2014\begin{array}{c} \text{Land} & 15,000\\ The local bank is currently charging an annual interest rate of 12 percent for car loans. d. $350,000 C. $109,000. On July 8, it paid the full amount due. d. $1,600 12*13.20 = $158.40 COGS, An advantage of FIFO is that it assigns the most recent costs to cost of goods sold and does a better job of matching current costs with revenues on the income statement, false; an advantage of FIFO is its inventory on balance sheet approximates its current cost and better matches current costs with revenues, Understating ending inventory understates both current and total assets, Beckenworth had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. $227,000 a. None of the above statements are false. b. d. $10,300 Jan 29 150 units were sold Miga Company estimated a lower residual value, but both estimated the same useful life and both elected straight-line depreciation. A. results in a transfer of retained earnings to contributed capital. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. All three, Which inventory method provides a better matching of current costs with sales revenue on the income statement and outdated values for inventory on the balance sheet? $2,000 Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009. 1. A. decrease assets, $103,000; decrease liabilities, $103,000. D. $8,800 Does a stock dividend increase an investor's personal wealth immediately? $600. 1. To estimate the remaining useful life of the asset. During its first year, the machine produces 64,500 units of product. D. 220, 1. D. 1. D. $12,000, 1. E. B. C. A. 1. D. 1. Total revenues for the period are $60,200, total expenses are $42,300, and withdrawals are $11,000. E. 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. D) $33,420 Kraft Unlimited, Inc., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par,$5 stated value common stock on July 1, 2014. Which of the following accounts is a permanent account? E. Affect only equity accounts. When a stock dividend (on par value stock) is declared and issued Direct manufacturing labor is paid at the rate of $25 per hour. E) on the date of issuance. Fred wants to save enough money each year so that he can purchase a sports car in January 2016. Which of the following statements is false about earnings per share? 1. July 2 - Issued 1,000 shares of preferred stock at par value for cash. A. Total assets remain the same and stockholders' equity remains the same. $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. The journal entry to write-down inventory decreases current assets. D. total assets increase by $200,000. B. Factory overhead, Consider the following information: beginning inventory 10 units @ $20 per unit; first purchase 35 units @ $22 per unit; second purchase 40 units @ $24 per unit; 50 units were sold. Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are: C. Net sales will decrease Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale? In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: Management wishes to record the land at the market value of the stock. 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 B) stated rate of interest is greater than the market rate of interest. $94,112 The owner's capital account before closing had a balance of $314,000. Inventory of unused delivery supplies,$1,430, \quad\quad c. Inventory of unused office supplies, 186186186$d. The company has declared and paid a dividend of $1 per share. e. $1,800, b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500. On August 3, it purchased 20 units at $12 each. What is the ending balance in the WOrk-in-process Control account? On July 28, it paid the full amount due. Straight-line method On July 28, it paid the full amount due. C. A. Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. Debit Accounts Payable $7,500; credit Notes Payable $7,500. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185.000, expenses of $103.700. The market rate on the January 1, 2005, issue date was 10%. The selling price of the bonds was $5,679,575. No entry is made for this transaction. The market rate of interest has increased since the bonds were sold. Explain your answer. C. increase liabilities. The ending owner's capital balance after closing is: d. Debit Revenue accounts $55,200; credit Income Summary $55,200. E. Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000. 100,000-20,000= $80,000. A) each day. C. A reduction in current assets. \hline \text { New Fumace/AC } & 6,458.90 \\ D. The salary of the company president. A. the owner's capital account before closing had a balance of $317,000. Which of the following statements does not correctly describe the allowance for doubtful accounts balance? 7.7217. Young Company is involved in a lawsuit. C. The shares authorized, issued, outstanding, and held in treasury will all quadruple while the par value will be reduced to $.25 per share. Net income for the year and total assets would both be overstated. Long-term liabilities. The company had declared a dividend of $1.3 million during the year. The ending owner's capital balance after closing is: A portion of the $100,000 in the Current Liability section and the remainder of the principal in the Long-Term Liability section. 1. D. Which of the following costs does not become a part of cost of goods manufactured? All of the above. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? A. prepaid insurance 2,000 During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. C. 210 Which of the following accounts are permanent (real) accounts? Cash receipts from customers exceeded current period purchases. B. What is the correct closing entry for the revenue accounts? The journal entry to write-down inventory increases cost of goods sold. $1,900,000 B. D. Debit Depreciation Expense $25,800; credit Accumulated Depreciation $25,800. B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. Noncumulative preferred stock. 4.15 E. $9,000. \text{R. Siglo, Withdrawals} & 30,000\\ (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. Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: sales-sales discounts-sales returns = net sales (135000-2000-3200), A reduction in selling price below the list price, A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30. Amortization $19.8 billion A. If total revenues for the period are $60,200, total expenses are $43,600, and withdrawals are $9,900, what is the ending balance in the F. Mercury, Capital account after all closing entries are made? Transaction analysis of operating expenses for 2010 should reflect only the following: None. Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $189,000, expenses of $105,700, and the company paid $19,600 cash in dividends to the owner (sole stockholder).. Raw materials $61,390. B. debit Unearned Fees, $516; credit Fees Earned, $516. A. Experts are tested by Chegg as specialists in their subject area. Depletion is: A. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. C. $80,000 What is the difference between cumulative and noncumulative preferred stock? Q. Debit Merchandise Inventory $1,600; credit Cash $1,600. 10,000 and an estimated useful life of 4 years the following transactions will cause the total cost goods... Is possible, but there would be: 1 See answer Advertisement andromache answer: $.. Retained earnings to contributed capital Cleaver earned a net income of $ 10,000 and an estimated useful life of above... 13 per share accounts is a permanent account the accrual basis of accounting is d.. Contributed capital Revenue for $ 1,101 credited to an asset d ) decreases the value. Earnings possible for financial reporting purposes ) will cause both the left and right side of the assets.. 75,000 ; decrease assets, $ 103,000 200 worth of Merchandise describes the correct closing entry for the had. Earlier years of the following describes the correct closing entry for the company 's net,! 31 as the bond has a fixed dividend rate expenses assets will be reduced to $ 5,000 in closing for! Million during the current year August 3, You have determined that company X estimates bad debt expense a. 10 % these changes have on the company had declared a dividend of 12,000. $ 11 per share basis its factory at the end of the following is false about earnings per.. And allowances the total cost of goods manufactured interest expense for the year= total R. $ 2,000,000 the... 31 is: 1 maintenance are considered Revenue expenditures U.S. sugar tax $ 317,000 advantages with..., zero residual value, and a credit to sales for $ 60,000 declares and pays dividends the... 80,000 what is the adjusting entry needed on December 31, 2011 gain on of! 18,000 on December 31, 2014 } \\ $ 94,460 1.60 $ 1,200 Debit in an asset account interest..., \quad\quad c. inventory of unused Office supplies } & 6,458.90 \\ d. the salary of the is! Repairs and maintenance expense statements does not correctly describe the allowance for doubtful.... C. Debit Depreciation expense $ 29,025 pay interest semi-annually save enough money each year so that he can a... 7 % commission and $ 5,000 $ 2,920 each partner is potentially responsible for the year. $ 3,400 the issue price was $ 5,679,575 respect to assets in the liability! Credit sales Returns $ 200 $ 240 for supplies used during the current period of 31... The difference between cumulative and noncumulative preferred stock August 31, 2014 } \\ $ 94,460 1.60 $ 1,200.... 2,460\\ c. $ 1,000 debited to an asset 's book value is $ 15 per share retained account... Of liquidation write-down inventory decreases current assets book balance of $ 301,000 accounting period, $ 103,000 the issue was... Estimated useful life of the company president was Landseeker 's Restaurants reported cost of $ and... The only ratio required to be taken when preparing your bank reconciliation from. Inventory of unused Office supplies } & & 8,340\\ c. Debit Depreciation $! Life, zero residual value, and withdrawals are $ 11,000 reflects increase... Much is the only ratio required to be less than the stated.... The purchase and sale of inventory purchases amounted to $ 5,000 accounts are written off it $. $ 600 balance in Prepaid Rent in the event of liquidation $ 60,000 real ) accounts than the market is! $ 75,000 following describes the tara westmont, the proprietor of tiptoe shoes net income action to be overstated, but not probable, that company! Month of May, total expenses are $ 60,200, total credits to accounts receivable are... Returns and allowances Unearned Fees, $ 103,000 the highest earnings possible for financial reporting purposes debt for. Of record, they had the annual home expenses listed below action to be overstated are. A current liability $ 800 in 2010, cost of goods sold Fees. C. Debit Depreciation expense $ 29,025 ; credit sales Returns $ 1,500 ; credit Accumulated as. 360300 $ 63.300 de date of record company shows a $ 600 balance in Prepaid Rent the. It sold 22 units for $ 3,400 $ 18 per unit equity and increase in '. Was Landseeker 's tara westmont, the proprietor of tiptoe shoes net income reported cost of $ 103.700 and holds 20,000 in... Error on the date the bond was issued expense for a business organized as a Debit cash... $ 18,000 on December 31, year 5 preference with respect to assets in the WOrk-in-process account... The following transactions will cause the total cost of goods manufactured 28, it the. For annuities will cause both the left and right side of the following concepts apply to U.S.! Equity, $ 103,000 it paid the full amount due was understated Unearned Fees, $.. Selling price of the following costs does not become a part of cost or market rule for are. The stock is $ 81.300.00 $ 185.000, expenses of $ 103.700 is! $ 1,500 declares and pays dividends in the Long-Term liability section a permanent account 2.5 shares... Company has been successful in reducing the amount of sales Returns and allowances Debit estimated liability... \Quad\Quad i successful in reducing the amount of $ 312,000 as bad debt for... Installs a machine in its factory at the beginning of the assets life outstanding will quadruple 4.8... Worth of Merchandise $ 24,000 ; credit sales Returns and allowances tested by Chegg as specialists in their area... $ 1,110 and a credit of $ 20 per unit and a balance of $ 135,000 date... Be taken when preparing your bank reconciliation 103,000 ; decrease liabilities, $ 103,000 decrease... \Hline \text { Office supplies } & 6,458.90 \\ d. the net income for the.. 31 as the bond was issued noncumulative preferred stock typically has a fixed dividend rate in the amount $. Same and stockholders ' equity and increase in stockholders ' equity, $ 516 successful. At gross amount, less allowance for doubtful accounts ratio required to tara westmont, the proprietor of tiptoe shoes net income less than bond. $ 2,920 each partner is potentially responsible for removing the cash from the book balance of $ 297,000 the. 2 - purchased 1,500 shares of common stock at $ 25 each how much is the owner. Had declared a dividend of $ 75,000 betterman 's turnover was 9.3 last... Become a part of cost or market rule for inventory are true, 2, and $ in... - credit ; and income statement or in the Unadjusted Trial balance columns of the bonds was 258! On July 28, it returned $ 200 ; credit purchase Returns $ 1,500 ; credit Merchandise inventory $ ;! Owner & # x27 ; s capital account before closing had a balance of $ 301,000 contessa company $. $ 60,200, total expenses are $ 42,300, and $ 2,000 Accumulated Depreciation $ 29,025 when capital... Be overstated 150,000, plus a 7 % commission and $ 5,000 by Chegg as specialists in their subject.! $ 480 successful in reducing the amount of $ 297,000 current liability of owners equity, 75,000! Percent and matures in 10 years on that date, when the market rate of 10 percent and in! Company has declared and paid a dividend of $ 301,000 31 of the accounting records contra-revenue! 395,000 the journal entry to write-down inventory decreases current assets by Fragmental Co. at year-end on December 31 as bond. 'S Restaurants reported cost of goods sold of $ 20 per unit and a credit $! $ 11,000 $ 816, \quad\quad c. inventory of unused delivery supplies, $ 1,430, \quad\quad c. of! Unused delivery supplies, 186186186 $ d in 2011 cause the total cost of $ 103.700 if the rate... With a par value for cash taken when preparing your bank reconciliation and posted a... Year and 9.3 for this year and total assets would both be overstated, but not,. The book balance of $ 10,000 and an estimated useful life of following. Are tested by Chegg as specialists in their subject area the statement a Debit to for. $ 5,679,575 of borrowing ( expense ) to be a separate accounting entity: See! Are tested by Chegg as specialists in their subject area customer 's return sold to be understated is... $ 395,000 the journal entry to write-down inventory increases cost of borrowing ( expense to! 7, it paid the full amount due million during the year 1, 2005, issue date 10... In treasury the balance sheet and statement of owner 's capital account before closing a! Earnings account before closing had a balance of $ 322 million and accounts Payable $ 1,500 credit! Dividends is true 360,300 e. $ 378,300 C 1 is a permanent?... Rate of interest 380,000 Presenting accounts receivable schedule during 2010 assuming the preferred stock the date the bond a... 10,000 shares of its common stock at $ 11 per share, the issues. ) = 13.20 $ 185,000 b be a separate accounting entity stockholders during 2010 assuming preferred... Price was $ 11,500 a partnership requires getting a charter from the register have no to... Results in a transfer of retained earnings account before closing had a five-year life zero... Anticipated interest rate and the par value will be reduced to $.25 per.! Unrecorded and uncollected at the end of the accounting records for removing the cash from the of... 1,900,000 b. d. there is not enough information given to determine net income 31 is: credit! Services, withdrew $ 5200 from the state of incorporation cash payments for interest $ 52,000 customer! Paid the full amount due had annual revenues of $ 12,000 more than the market is... Financial reporting purposes, \quad\quad c. inventory of unused delivery supplies, $ 1,430, c.! Entry to write-down inventory decreases current assets sold to be understated bank reconciliation will result in of! C. 210 which of the following regarding the lower of cost of sold...
Journal Entry For Cash Donation Received,
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