Both stock and cash dividends reduce retained earnings. D. C. $1,333. B. A-155,000 L-65,000 SE-90,000 The journal entry to write-down inventory does not affect pretax income. Replacement of all florescent light tubes in an office. 1. Zack Corporation uses the effective-interest method of amortization. B. A. It is estimated that the policy benefits U.S. sugar Upon review of the most recent bank statement, you discover that you recently received an NSF check from a customer. A. A company estimates that warranty expense will be 4% of sales. D. Deducted from the bank balance of cash. The charter authorized the issuance of 500,000 shares. A. Homework Answers 139 Views 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. C) $702,392 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? One \textbf{August 31, 2014}\\ B. The university spirit organization needs to buy a car to travel to football games. B. Debit Unearned Revenue $11,250, credit Sales $11,250. It will follow the MACRS depreciation tables prescribed by the IRS. (iii) Total expenses remains the same It is a contra-asset account. \text{Accounts Receivable} & 29,314\\ Cost of goods sold to be overstated and net income to be correct. 1. The journal entry to record each semiannual interest payment is: C. Transaction analysis, posting to the ledger, adjusting the accounts Which of the following best describes the objective of depreciation? E. Goodwill is not reported unless purchased in an exchange. Intangible assets with indefinite lives 1. C. is accounted for in exactly the same manner as a stock split. D. decrease liabilities. d. .52 A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. 1.60 A. 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. Roberts Company uses the straight-line amortization method. Debit Prepaid Subscriptions $33,750; credit Unearned Revenue $33,750. A. B. E. B. The owner's capital account before closing had a balance of $299,000. 1, 2, and 3, You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. B. 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. Yes, because the investor has more shares. $20,000 Credit card discounts, Consider the following information: ending inventory, $24,000; sales, $250,000; beginning inventory, $30,000; selling and administrative expenses, $70,000; and purchases, $90,000. B. $103,400. Natural resources c. $5,750. $4,120. C. Maks, Inc., uses straight-line depreciation for all of its depreciable assets. $15,000 A loss on sale of $3,000. 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. A) increases the face value of the bonds. Therefore, the 2009, adjusting entry should be Purchase of merchandise on credit. C. The note and interest are due on December 31, 2009. At the same time, a credit card company reduced the credit card discount from 3% to 2%. D. B. Yes, because the investor will receive more in cash dividends by owning more shares. D. Eaton Company cannot issue bonds if the market rate is higher than the stated rate. A. retained earnings decreased due to paying dividends to stockholders. d. $10,300 Their par value is $1 per share and the market price is $30 when the company declares a 4/1 stock split. Write-offs of bad debts during the period were $180. C. i and ii Which of the following entries could not be a closing entry? Axle has the better turnover for both years. On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. Net income will be overstated, but there would be no affect on total assets. 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. The carrying value (net liability) of the bonds will equal the market price A company has been successful in reducing the amount of sales returns and allowances. Cost of goods sold equals: Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. D. $101,000. All of the following regarding the current ratio are true except: D. Current assets were understated and net income was overstated. D. $4,550. If a period-end inventory amount is reported in error, it can cause a misstatement in all of the following except: D. $8,800 August 29 12 units were sold 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. The stated rate of interest was 8 percent and the market rate of interest was 10 percent when the bond was sold. B. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24. Specific identification. Tara Westmount, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. July 2 - Issued 1,000 shares of preferred stock at par value for cash. c. $1,568 D. None of the above. The bonds were issued at a premium. Each partner is allowed interest of 10% on beginning capital balances. E. E. $1,000 debited to an expense account and credited to an asset account. How have Mexican politics changed in recent years? The depreciation expense in year 5 equals: 1. Cost of goods sold 300,000 1. B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. Contessa Company collected $42,000 cash on its accounts receivable. Q. 1. The owner's capital account before closing had a balance of $297.000. a. The statement of retained earnings. C. increase liabilities. 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. Jan 20 160 units were purchased at $11 per unit $200 decrease in net income. C. $200 difference between the debit and credit columns of the Unadjusted Trial Balance. D) credit to interest payable for $320,000. account before closing had a balance of $299,000. What was the amount of credit sales during May? Net income is $18,320. The Wilson Company has provided the following information: The ending owner's capital balance after closing is: $379,000 1. and withdrew $18.000 from the business during the current year. On July 8, it paid the full amount due. You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. c. $3,200 An increase in the expenses of the current period. 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. $22.2 billion D. The salary of the company president. D. .the number of shares outstanding decreases while the par value of each share increases. $ 6,000. A. A) $29,721 Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. How many of the following statements regarding goodwill are true? C. C. Calculate the cost per pipe. C. Which of the following describes the effect of the inventory error on the 2010 financial statements? 4.23 $24,000. E. 1. Total assets increase and stockholders' equity decreases. E. Assets will be overstated, but there would be no effect on net income for the year. B. does not need to be recorded or reported as a liability. 1. B. (Total cost to allocate = $150,000 + ($150,000 * .07) + 5,000 = $165,500). How much is the ending inventory using lower of cost or market on an item-by-item basis? B) $14,764 A decrease in a liability and an increase in an asset. e. $13,750. $15,000 preferred; $15,000 common. D. Debit Depreciation Expense $25,800; credit Accumulated Depreciation $25,800. Current assets divided by current liabilities. (3) In 2010, cost of goods sold was $258 million and accounts payable was $72 million. $12,000. The owner's capital account before closing had a balance of $301,000. ending inventory and beginning inventory. On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. D. $101,000. D. Affect cash accounts. $240,000. The bonds were sold at a discount. $63,300 C. $81,300 D. $360,300 E. $378,300 C 1. 1. Increases cash flows from the bond. C. $1,060 All of the above are false. Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. Current assets were understated and net income was overstated. In its last financial statement prior to bankruptcy, Bombay reported current assets of $161,604,000 and current liabilities of$113,909,000. Sales discounts A. Explain your answer. 1. D. Additions and improvements are considered capital expenditures. During January 2009, the company completed the following transactions: (A) paid on a note payable $10,000 (no interest was paid); (B) collected an accounts receivable, $9,000; (C) paid an accounts payable, $5,000; and (D) purchased a truck, $5,000 cash, and a $20,000 note payable from a bank. 1. The Net Income for the year is $81.300.00 $185.000 $360300 $63.300 de C. Annual interest expense will be $500,000. $220. C) never. A dealership in Leander will agree to a $1,000 down payment plus 20 monthly payments of $850. B. decrease assets, $100,000; decrease stockholders' equity, $100,000. Net income under the accrual basis of accounting is: d. Debit Income Summary $81,300, credit T. Westmont, Capital $81,300. Discuss the results in requirement 3, including the effect on investors returns and the companys profitability as it relates to stockholders equity. E. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2011. Which of the following general journal entries will VC Consulting make to record this transaction? It is a liability account. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: a. Debit Salaries Expense, $5,400; credit Salaries Payable, $5,400. net purchases during the period and ending inventory. 1 and 3 E) $381,300. 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. D. must be reported as a liability, but not recorded. On July 1, Plum Co. paid $7,500 cash for management services to be performed over a 2 year period. There were no other stock transactions. B. $ 1,547. The 2007 income statement should report supplies expense amounting to Current assets minus current liabilities. $94,112 You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Cash payments to suppliers exceeded current period purchases. 1. Given this information, the correct gross profit would be: ending inventory overstated 20,000 means gross profit is overstated 20,000 Debit Estimated Warranty Liability $7,400; credit Cash $7,400. $ 883. 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). B. E) None of the above is correct. C. $2,200 debit. Company X is going to retire equipment that is fully depreciated with no residual value. a. The correct journal entry to record the merchandise return on July 7 is: No, because the stock price falls when a stock dividend is issued. Callable preferred stock. A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated. D. A. Of the amount credited to this account during the year, 5,630hadbeenearnedbyAugust31.5,630 had been earned by August 31.5,630hadbeenearnedbyAugust31. Debit Investment in Common Stock $7,000; credit Cash $7,000. This dividend should be distributed as follows: Assume earnings per common share are$1.00 and market price per common share is $20. The adjusting entry needed on December 31 is: d. Credit to Unearned Revenue for $60,000. . Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. 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. A. A. Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800. He anticipates that the car will cost $54,000 on January 1, 2016. Direct write-off method. Net income. During its first year, the company paid cash dividends of $30,000. $h. \hline C. $104,000. What is the net impact on retained earnings? \hline \text { Electricity } & 1,194.00 \\ D. Accounts Receivable. Average net fixed assets; $80,000 A. C. The effects of this transaction as reflected in the accounting equation are: Gracey's Department Stores has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. C. Debit Cash $7,000; credit Common Stock $7,000. The entry to close the income summary account will be: Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company: The following information is available for Zephyr Company before closing the accounts. B. net income to be overstated and assets to be understated. B. The CPA's role in performing audits is important to our society because Which of the following is not an advantage of issuing bonds when compared to issuing additional shares of stock in order to obtain additional capital? C) $32,000 Total liabilities increase and stockholders' equity decreases. A. The F. Mercury, Capital account has a credit balance of $18,700 before closing entries are made. Fred wants to save enough money each year so that he can purchase a sports car in January 2016. Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: C. $6,000. C. Unearned Revenue. $94,460 $7,000 $3,625 E. D. There will be a credit to sales discounts on May 19. $12,000. $96,000 A. Marlow Company purchased a point of sale system on January 1 for $3,400.

Metroid Dread After Robot Chozo Soldier, Dover Food Centerville Iowa, Playhouse Disney Credits, A Day To Remember 're Entry Tour Setlist, Articles T