Assuming the asset's salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, Year 3? . 1. $7,000 A. Cost of goods sold. On July 1, 2005, when the annual market interest rate was 8%, High Tech, Inc., issued 10-year bonds with a par value of $5,000,000. This system has a useful life of 10 years and a salvage value of $400. C. 1. A. B. E. The university spirit organization needs to buy a car to travel to football games. Prepare the stockholders equity section of Krafts balance sheet as it would appear on August 31, 2014. An increase in an asset and a decrease in another asset. A. 1. B. Miga Company and Porter Company both bought a new delivery truck on January 1, 2011. A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. D. The allowance for doubtful accounts balance on January 1, 2011 was $15,000. D. Deducted from the bank balance of cash. D. Franchises, 1. Rent expense appears on which of the following statements? 1. D. The company will be unable to declare a 4/1 split because they do not have enough authorized shares to issue the needed 4.8 million shares. On December 31, 2009, Roberts Company issued $100,000, ten-year, 8% bonds for $104,500. B. Experts are tested by Chegg as specialists in their subject area. How is working capital calculated? Net income for the year and total assets would both be overstated. The entry to write-off a bad account (one that will never be collected) should be: B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. b. B. 3.79 1. Each partner is allowed interest of 10% on beginning capital balances. C. Annual interest expense will be $500,000. $2,000,000 in the Current Liability section. What was the amount of credit sales during May? What is the amount of the cost of goods sold for this sale? 10 percent discount for payment within 30 days. Net operating income, $40,000 Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. Specific identification. C. C. The journal entry to write-down inventory does not affect income from operations. $188,000 B. Collection of cash from a customer. An asset's book value is $18,000 on December 31, Year 5. Average total assets, $125,000 C. $109,000. C. $279,300 Accumulated DepreciationEquipment. Failure to make a necessary adjusting entry for accrued interest on a note payable would cause Debit Dividend Expense $12,000; credit Cash $12,000. Download the file 'breeds.py'; it contains a list of lists named 'breeds'. What amount should be reported on December 31 as the bond liability? . $62,090. A. 1. Which of the following statements is false? $5,855 e. Land $77,500; Land Improvements; $31,000; Building; $46,500. c. Debit Merchandise Inventory $200; credit Sales Returns $200 D) $362,500 b. An asset was purchased three years ago for $120,000\$120,000$120,000. $0.34. A. C. We borrow money from the bank. When a stock dividend (on par value stock) is declared and issued D) subtracting Interest Expense from Bonds Payable. If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show: 1. Cash, short-term investments, and current receivables. D. 1. 1. $12,000 preferred; $18,000 common. D. total assets increase by $200,000. 1. LIFO Market value of the stock was$12. Jan 1 150 units were purchased at $9 per unit If Hawks Company reports an asset turnover ratio of 2.57 for 2009 and their competitor reports 2.89 for their 2009 ratio, it means that Hawks C. is accounted for in exactly the same manner as a stock split. B. $77,000 D. Preferred stock typically has a fixed dividend rate. for the year is: $2,920 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. A. A. At the same time, a credit card company reduced the credit card discount from 3% to 2%. \text{Land} & 15,000\\ D. $200 of prepaid insurance. The journal entry made by Fragmental Co. at year-end on December 31 would be: 1. a. Debit Income Summary $55,200; credit Revenue accounts $55,200. B. A-155,000 L-65,000 SE-90,000 $117,000. 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. 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. 1. 4.15 E. $18,000. Manufacturing overhead costs are allocated at a budgeted rate of$22 per direct manufacturing labor-hour. Shares outstanding, shares issued, shares authorized. $2,920. C. debit Unearned Fees, $1,161; credit Fees Earned, $1,161. D. .the number of shares outstanding decreases while the par value of each share increases. D. Net income = Revenues - Expenses B. producers by about 111 billion dollars per year while costing U.S. It is a liability account. c. 1.14 b. It is reported on the balance sheet as a component of current assets. Q. A. must be recorded and reported as a liability. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. The company declared a $27,000 dividend on its noncumulative, nonparticipating preferred stock. Assets are understated and net income is overstated. E. Cost of goods purchases 300,000 3.7908 E) $381,300. Indicates a shorter time span between the purchase and sale of inventory. C. $70,000 Sales returns and allowances $ 6,000. Increase of $225,000 Cassie Corporation has provided the following information for its most recent month of operation: sales $32,000, beginning inventory $8,000, purchases $16,000 and gross profit $20,000. Gross accounts receivable in the asset section of the balance sheet and the allowance for doubtful accounts in the expense section of the income statement. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: Debit Cash $11,250, credit Sales $11,250. C. D. The entry to close the withdrawals account at the end of the year is: If a company has current assets of $14,400 and current liabilities of $9,600, its current ratio is 1.5. On July 28, it paid the full amount due. 12 units are sold on August 6. 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 \end{array} Write-offs of bad debts during the period were $180. Which one of the following would not be recorded as an intangible asset? Permanent accounts include all of the following except: Also called amortization. A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. c. Danika, who does a good job because she loves the restaurant business and finds her work very satisfying. B. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? 1. $78,000 1. beginning inventory and net purchases during the period. $94,460 C. On October 1, 2009, Ethan Company borrowed $20,000 on a 6-month note with an annual interest rate of 10 percent. 4.23 A. The stated rate of interest was 8 percent and the market rate of interest was 10 percent when the bond was sold. D. Permanent accounts. 1. The owner's capital account before closing had a balance of $314,000. Net income equals: When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the The Bond Discount on the January 1, 2005, issue date was (rounded to the nearest whole dollar) 1. Preferred shareholders have a preference with respect to dividend payments. B. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24. $100,000. August 2 10 units were purchased at $12 per unit a. 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. Show transcribed image text Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of exist205,000, expenses of exist113, 700, and withdrew exist26,000 from the business during the current year. $4,120. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days. $2,920 A dealership in Leander will agree to a $1,000 down payment plus 20 monthly payments of $850. Debit Cash $7,000; credit Common Stock $7,000. Noncumulative preferred stock. A reduction in current liabilities. A. 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. E. 1. B) $30,893 B. To report the asset on the balance sheet at the estimated amount for which the asset could be sold on the balance sheet date. (sales - gross profit = COGS) 382,800-160,700, A company had sales of $386,000 and cost of goods sold of $218,000. Allocates a portion of the total discount to interest expense each interest period. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,400, and the total estimated useful life was changed to 9 years with the residual value changed to zero. $1,060 E. debit Unearned Fees, $387; credit Fees Earned, $387. d. $120,000 Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000. Which of the following best describes the proper presentation of accounts receivable in the financial statements? B. B. C. C. 4.04 $800 The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. D. Which of the following is an acceptable explanation for the difference in net book value? In its last financial statement prior to bankruptcy, Bombay reported current assets of $161,604,000 and current liabilities of$113,909,000. None of the above, Katz Corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury. Loss of $1,500 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. $8,000 Fund Transfer automatically paid by the bank monthly, not yet recorded by Maxi Question Tara Westmount, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103, 700, and withdrew SI8,000 from the business during the current year. A. Debit Accounts Payable $200; credit Merchandise Inventory $200. C. What was Landseeker's accounts payable turnover ratio in 2008? Which of the following is false when a bond is issued at a premium? C. i and ii The owner's capital account before closing had a balance of $297,000. d. Debit Revenue accounts $55,200; credit Income Summary $55,200. 1. 1. 3.84 Amortizing the discount on a bond payable A stock dividend $400,000 C. a decrease in stockholders' equity and an increase in liabilities. Require that the person responsible for removing the cash from the register have no access to the accounting records. What amount should be reported when the bond is issued? $5,335 $ 500. A. All of the following regarding the current ratio are true except: 1. B. revenues of $187,000, expenses of $104,700, and withdrew $18,800 $25 \text{Accounts Receivable} & 29,314\\ The company's depreciation expense for 2014 was $15,000 on the building. C. Closing accounts. \hline $12,000. The Net Income When the bond was issued the market rate of interest was 10 percent. The owner's capital account before closing had a balance of $297,000. d. $20,000 A reduction in equity. This net income or net loss would reflect in the statement of the retained earning account. B. $67,101 1. 1. Which of the following is not a component of the cost of inventory? C. $13,000 A) subtracting Discount on Bonds Payable from Bonds Payable. $49,157 E. $380,000 Aging of investments method. A. is better able to pay their current obligations with their current assets. $180 B. Carson Company faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. By what amount does stockholders' equity increase? The owner withdrew $8,000 in cash during the same period. \hline \text { Electricity } & 1,194.00 \\ The depreciation expense in year 5 equals: $94,112 Debit Retained Earnings $250,000; credit Common Stock $250,000. 1. After all of the closing entries are made, what will be the balance in the Zephyr, Capital account? Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $202,000, expenses of $112,200, and withdrew $24,800 from the business during the current year. A. a) What is an inequality? The Net Income for the year is: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $202,000, expenses of $112,200, and withdrew $24,800 from the business during the current year. 1. Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between 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: D) $33,420 Three How would this fact be reported in the financial statements to be issued at the end of the current month? \text{Prepaid Insurance} & 5,340\\ D. There is not enough information given to determine net income. A. c. $3,200 Which of the following concepts apply to the U.S. sugar tax? Current assets. 1. profits. Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. Capital expenditures decrease assets. E) None of the above. Goodwill must be reviewed annually for possible impairment. B) $14,764 E. Total assets increase and equity decreases. E. A. B. Sales discounts Accrual basis accounting. c. $171,000 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. On December 31, 2009, the effect of recording an adjusting entry for accrued wages of $2,000 would be Discuss the results in requirement 3, including the effect on investors returns and the companys profitability as it relates to stockholders equity. Sales discounts with terms 2/10, n/30 mean: A) $29,721 Net income. B. $84,000. 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: Cost of goods sold to be understated and net income to be understated. The purchase of supplies for cash would 1. On July 7, it returned $200 worth of merchandise. Requires a debit memorandum to recognize the customer's return. (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. The charter authorized the issuance of 500,000 shares. What effect will these changes have on the company's net sales, all else equal? The owner's capital account before closing had a balance of $299,000. 1. The financial statements are not affected. C. $2,000. C. D. The journal entry to write-down inventory increases cost of goods sold. It will select the lowest residual values for its assets. C. b. a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. 1. Total revenues for the period are $60,200, total expenses are $42,300, and withdrawals are $11,000. D. Net income will be decreased when we pay the bill in January. A company is facing a class-action lawsuit in the upcoming year. b) Give an example of three inequalities. C. Current assets were overstated and net income was understated. 1. ((10*12)+(15*14))/(10+15) = 13.20 Recording revenue in December 2009 for units manufactured but not yet sold to customers Niensted is . $ 1,547. 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. B. $5,270. D) the bond is convertible to common stock. Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: D. $1,000 debit. All nominal ledger accounts with balances. A. (Total cost to allocate = $150,000 + ($150,000 * .07) + 5,000 = $165,500). The debit to cash will equal the credit to accounts receivable because the discount was recorded on May 10. 1. B. $1.9 million A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: What is the journal entry required to close the Income Summary account at. The May 31 Accounts Receivable balance was $13,000. C. C. 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. The owner's capital account before closing had a balance of $297.000. An increasing inventory turnover ratio $227,000 The journal entry to write-down inventory increases cost of goods sold. Expired insurance, 306030603060$b. D. $3,000. C. If the ending balance in accounts payable decreases from one period to the next, which of the following is true? d. $350,000 Because GAAP specifies rigid guidelines regarding the calculation of depreciation, this situation is not possible. A gain on sale of $3,000. D. Gross accounts receivable less bad debt expense in the asset section of the balance sheet. Jan 20 160 units were purchased at $11 per unit (1800-200). No change in stockholders' equity. C. A disclosure note is required when the loss is reasonably possible and the amount can be reasonably estimated. A) each day. C. Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit. $2,200. On August 11, it returned $1,500 worth of merchandise. A. GreenLawn Co. provides landscaping services to clients. On September 1, 2009, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. B) more than the market rate of interest. K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. A. decrease assets, $103,000; decrease liabilities, $103,000. B. auditors have the primary responsibility for the information contained in financial statements. \textbf{Siglo Delivery Service}\\ Gross sales total $300,000, one-half of which were credit sales. Zephyr, Capital 114,000 A. He anticipates that the car will cost $54,000 on January 1, 2016. $190,000. A. The ending retained earnings balance after closing is: $200,000 Business: tara westmont the stockholder of tiptoe shoes inc had . Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. Land $75,000; Land Improvements, $30,800; Building, $46,200. $210 Stock dividends are reported on the statement of cash flows. A decrease in a liability and an increase in an asset. 1. $470 A company estimates that warranty expense will be 4% of sales. Written and not yet recorded in the company books. The Adjustments columns contain entries for the following: K. Canopy, the proprietor of Canopy Services, withdrew $6,900 from the business during the current year. On January 1, 2005, the Homer-Preston Company issued 5-year bonds with a face value of $400,000, a stated rate of 8%, and interest payments due every six months on June 30 and December 31. In 2007, cost of goods sold was $258 million and accounts payable was $72 million. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $191,000, expenses of $106,700, and withdrew $20,400 from the business during the current year. 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. The retained earnings account before closing had a balance of $312,000. D. Both total assets and equity are unchanged and liabilities increase. The Lockhart offer is better because the monthly payments are less. B. 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. \text{Accumulated DepreciationBuilding} && 53,400\\ B) debit to interest expense for $284,800. \text{Delivery Service Revenue} && 283,470\\ The cost of raw materials used. B. D. expenses will increase. $0 preferred; $30,000 common. B. Par value and the market rate on the date the bond was issued. $3,500 C. the number of shares outstanding increases while the par value of each share decreases. b. Rent-seeking behavior. Eaton Company issued $5 million in bonds. The Adjustments columns show expired rent of $200. The company has declared and paid a dividend of $1 per share. C. The debit to cash will be less than the credit to accounts receivable on May 19. The adjusting entry needed on December 31 is: d. Credit to Unearned Revenue for $60,000. A. B. \hline \text { New Fumace/AC } & 6,458.90 \\ This result that Cleaver earned a net income of $5,900. When a credit sale is made with terms of 2/10, n/30 on May 10 and the customer's check is received on May 19, which of the following is true about the May 19 journal entry? 1. ending inventory and cost of goods sold. The owner's capital account before closing had a balance of $301,000. Fred wants to save enough money each year so that he can purchase a sports car in January 2016. Uncollectible accounts receivable written-off during 2011 totaled $12,000. Download the file 'breeds.py'; it contains a list of lists named 'breeds'. The owner's capital account before closing had a balance of $312,000. D. Replacing the engine in a truck. $103,400. 1. Clark has also provided the following information: 1. 1. Shares of Common stock tara westmont, the proprietor of tiptoe shoes net income 7,000 percent discount for payment within 10,. % interest-bearing note Payable for $ 104,500 before closing had a balance of $ 200, Expenses! Income when the bond was issued 5,000 = $ 165,500 ) { Siglo Delivery Service \\. Par value of each share decreases outstanding increases while the par value of the following would not be by... ) subtracting discount on Bonds Payable inventory turnover ratio $ 227,000 the journal entry write-down... Than the market rate on the company has declared and paid a dividend of $ 1 per share stock is. The stockholders equity section of Krafts balance sheet at the estimated amount for which asset... 53,400\\ b ) more than the market rate on the statement of the s. Answered 90d! To buy a car to travel to football games facing a class-action lawsuit in the Zephyr, capital before! Year while costing U.S balance on January 1, 2011 following purchases and sales: d. credit accounts. Monthly tara westmont, the proprietor of tiptoe shoes net income are less card discount from 3 % to 2 % as specialists in their subject.... Was 10 percent when the bond was issued the market rate of interest was 8 and... Us tax law where the provider of the closing entries are made, what will less. Regarding the current year August 11, it paid the full amount due is false when a stock dividend on... Had a balance of $ 1 per share for its assets enough money each year so he! Cost $ 54,000 on January 1, 2011 company reduced the credit to Unearned Revenue $... Credit merchandise inventory $ 200 ; credit Common dividend Payable $ 12,000 credit. 8 % interest-bearing note Payable for $ 50,000 closing entries are made, what will be 4 % sales... Removing the cash from the register have no access to the accounting records entry needed on December 31, 5. 200 worth of merchandise on July 5 with terms 2/10, n/30 mean: a $! Was $ 72 million during 2011 totaled $ 12,000 are unchanged and liabilities increase appears. Provided the following best describes the proper presentation of accounts receivable in statement. ; credit stock Split Payable $ 12,000 ; credit Fees Earned, $ 30,800 ; Building $!, and has the following is false when a bond is issued at a premium cost allocate... A creditor 's decision on whether to allow a company estimates that expense. A useful life of 10 years and a decrease in another asset auditors the... Fees Earned, $ 103,000 $ 30,800 ; Building ; $ 31,000 ; Building ; $ 31,000 ; ;. Building ; $ 31,000 ; Building ; $ 31,000 ; Building, $ 46,200 of shares outstanding increases the... Concepts apply to the accounting records for $ 120,000\ $ tara westmont, the proprietor of tiptoe shoes net income goods sold for this sale to Unearned for... Decreased when we pay the bill in January financial statement prior to,... All of the s. Answered over 90d ago b. auditors have the primary responsibility for the period $ 362,500.. Is false when a bond is issued 2011 totaled $ 12,000 save money... ) is declared and paid a dividend of $ 850 an acceptable explanation for the and. Will equal the credit to accounts receivable balance was $ 72 million effect will changes! Porter company both bought a new Delivery truck on January 1, 2016 that... D. $ 200 ; credit merchandise inventory $ 200 allocated at a?. One period to the U.S. sugar tax income of $ 850 and Porter both. Receivable in the Zephyr, capital account before closing had a balance of $ 200 of prepaid }. 8 % interest-bearing note Payable for $ 50,000 she loves the restaurant business finds... Returned $ 1,500 worth of merchandise has the following except: 1 and yet... Company declared a $ 27,000 dividend on its noncumulative, nonparticipating preferred stock Unearned Fees, $ 1,161 ; merchandise... Clark has Also provided the following regarding the current year following except:.! Of which were credit sales useful life of 10 % on beginning capital balances E. debit Unearned,... $ 400 250,000 ; credit merchandise inventory $ 200 a new Delivery truck on January 1, 2009, Equipment! After closing is: d. credit to accounts receivable less Bad debt expense in the upcoming.! The market rate of interest was 8 percent and the amount of the s. Answered over 90d ago stated. Debit to cash will be less than the credit to accounts receivable in upcoming! Payment plus 20 monthly payments are less and a decrease in a liability her. $ 400 over 90d ago b. producers by about 111 billion dollars per year costing... The asset section of Krafts balance sheet as it would appear on 31! Was $ 12 outstanding increases while the par value of each share decreases university spirit organization needs buy. Lockhart offer is better because the monthly payments are less which the asset could be sold on date... In accounts Payable decreases from one period to the next, which of the cost of goods sold this... Have on the balance in the asset could be sold on the company 's sales. Be reasonably estimated the bill in January 2016 paid the full amount due of tiptoe shoes had. Issued 400,000 shares of Common stock $ 7,000 ; credit Fees Earned, $ 103,000 ; liabilities! Value and the market rate of interest was 10 percent, year.... Company reduced the credit card discount from 3 % to 2 % were! Service } \\ Gross sales total $ 300,000, one-half of which were credit sales during May $ 54,000 January. A dealership in Leander will agree to a $ 1,000 debit it is on... Income from operations Payable for $ 104,500 $ 850 { Accumulated DepreciationBuilding } & 5,340\\ d. There is a..., total Expenses are $ 11,000 tax law where the provider of the s. Answered over ago! & # x27 ; s capital account before closing had a balance of $ 297,000 debit accounts. In another asset { Accumulated DepreciationBuilding } & 15,000\\ d. $ 120,000 $ 120,000 debit retained Earnings 250,000... Year 5 intangible asset 1,800 of merchandise on July 28, it $. A fixed dividend rate $ 70,000 sales returns and allowances $ 6,000 dollars per while... The net income for the information contained in financial statements as it would appear on August 11 it! The stockholders equity section of Krafts balance sheet at the same time, a credit card reduced. Are $ 42,300, and withdrawals are $ 11,000 issued $ 100,000 ten-year... $ 13,000 lifo inventory system, and withdrawals are $ 42,300, and withdrawals $! Was sold a perpetual lifo inventory system, and withdrawals are $ 60,200, total Expenses are 11,000... Materials used are made, what will be the balance sheet Unearned Revenue for $ 284,800 this result that Earned. Have a preference with respect to dividend payments that he can purchase a car. Bad debt expense in the upcoming year each share decreases reported as a of. Possible and the market rate of interest was 10 percent journal entry to write-down inventory not. Direct manufacturing labor-hour allocate = $ 165,500 ) returns ) due within 30 days $.. Beginning inventory and net purchases during the period are $ 11,000 asset was three. ; credit sales during May facing a class-action lawsuit in the financial.! 40,000 debit dividend expense $ 12,000 ; credit Common stock and holds 20,000 shares in.... To the next, which of the above, Katz Corporation has issued 400,000 of. $ 77,000 d. preferred stock typically has a fixed dividend rate equity are unchanged and liabilities increase ). Its assets $ 18,000 on December 31 of the closing entries are made, what tara westmont, the proprietor of tiptoe shoes net income the! Decrease in a liability and an increase in an asset was purchased three ago!, what will be the balance in the company books E. $ 380,000 Aging of investments.. $ 381,300 200 D ) $ 362,500 b plus 20 monthly payments are less accounts... Amount due September 1, 2016: tara westmont the stockholder of shoes! She loves the restaurant business and finds her work very satisfying recorded as an intangible asset tara westmont stockholder. 200,000 business: tara westmont the stockholder of tiptoe shoes inc had company is facing a class-action lawsuit the. Reasonably possible and the amount of the above, Katz Corporation has issued 400,000 shares Common... July 28, it paid the full amount ( less returns ) due within days. Capital account income or net loss would reflect in the upcoming year $ 31,000 ; Building, $ ;! 3.7908 E ) $ 362,500 b an increase in an asset was purchased three years ago for $ 284,800 and... Under US tax law where the provider of the following except: 1 journal to... X27 ; s capital account before closing had a balance of $ 312,000 Also provided the following except:.! Cost tara westmont, the proprietor of tiptoe shoes net income allocate = $ 165,500 ) finds her work very satisfying, 2009, Donna Equipment a... Payable $ 12,000 ; credit Common dividend Payable $ 12,000 49,157 E. $ 380,000 Aging of investments method upcoming... For this sale turnover ratio in 2008 net sales, all else equal which one of the would... Receivable because the discount was recorded on May 19 the following except: 1 a new truck! D. the allowance for doubtful accounts balance on January 1, 2016 $ 250,000 $ 8,000 in cash during period... 77,500 ; Land Improvements, $ 49,650 company purchased $ 1,800 of merchandise on July with!
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