tara westmont, the proprietor of tiptoe shoes net income

B. Its gross profit equals $168,000, true $77,000 C. C. Cash basis accounting. The Leander offer is better because the cost in terms of present value is less than the present value cost of the Lockhart offer. B. It is debited when uncollectible accounts are written off. Tara Westmont, the owner of Tiptoe Shoes, had annual revenues of $189,000, expenses of $105,700, and withdrew $19,600 from the business during the current year. A company estimates that warranty expense will be 4% of sales. E. After all of the closing entries are made, what will be the balance in the Zephyr, Capital account? D. 220, 1. 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. E. $400,000 1. $62,090. 1. Affect only balance sheet accounts. b. C. increase liabilities. $6,000. A. A. $120 $63,300 C. $81,300 D. $360,300 E. $378,300 C 1. D) credit to interest payable for $320,000. D. Allowance for doubtful accounts, Dillon Company uses the allowance method to account for bad debts. The asset will be depreciated using the straight-line method over its four-year useful life. B. A. Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800. Assets and stockholders' equity are both understated. D) $33,420 Operating cycle accounting. 1. 1. 1. All permanent ledger accounts with balances. The owner's capital account before closing had a balance of $313,000. C. Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000. C. \text{Annual Home Expenses}\\\begin{array}{|l|r|} $7,000 $5,000 a. Which is the correct order of the steps in the accounting cycle during the accounting period? General Journal The owner of an office building should report rent collected in advance as a debit to cash and a credit to E. (2089/9421)*365 = 80.9 days. Debit Lawsuit Payable $500,000, credit Contingent Legal Liability $500,000. 1. drives up the domestic price of sugar and increases their d. $11,500. What was Landseeker's accounts payable turnover ratio in 2008? Assets will be overstated, but there would be no effect on net income for the year. b. 10 percent discount for payment within 30 days a. $10,000 Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. \text{Accounts Payable} && 9,396\\ It is reported on the balance sheet as a component of current assets. $2,667. $1,060 $10,000 Require that cash be deposited daily at the bank. \hline the understatement of the ending inventory balance causes: cost of goods sold to be overstated and net income to be understated. Decreases interest expense each period. The anticipated interest rate and the present value of $1 table. Debit Prepaid Subscriptions $33,750; credit Unearned Revenue $33,750. $227,000 There are 100 units of Item A having a cost of $20 per unit and a replacement cost of $18 per unit. An increase in the expenses of the current period. Shares authorized, shares issued, shares outstanding. 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. 1. Current assets minus current liabilities. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Aging of accounts receivable method. Failure to record amortization expense on a patent during the current year will result in which of the following? c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. D. C. assets will increase. D. A disclosure note is required when the loss is remote and the amount can be reasonably estimated. Miga Company estimated a lower residual value, but both estimated the same useful life and both elected straight-line depreciation. Interest expense On July 7, it returned $200 worth of merchandise. 0.50. Jasper's total purchase price per unit will be: What amount should be reported on December 31 as the bond liability? Real accounts. 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. $1,000 debit. $7,480 1. C. the number of shares outstanding increases while the par value of each share decreases. 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. 1. It will select the lowest residual values for its assets. B. D. Only revenue and expense accounts. Yes, because the investor acquired additional shares without paying a brokerage fee. A. No entry is needed, since no interest is paid until the bond is due. $63,000 Goodwill is not reported unless purchased in an exchange. $61,390 For beginning stockholders equity, use the balance after RowanCompany,May2016DirectmaterialsDirectmanufacturinglaborJobM1$75.000275.000JobM2$56.000209.000. c. Debit Revenue accounts $55,200; credit F. Mercury, Capital $37,000. The entry to write-off a bad account (one that will never be collected) should be: E) on the date of issuance. Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. Discuss how the transaction below impact the accounting equation. The present value of a $10,000, 5-year bond, will be more than $10,000 if the Indicates a shorter time span between the ordering and receiving of inventory. A loss on sale of $3,000. e. A credit to gain on sale for $4,979. C) less than the market rate of interest. Young Company is involved in a lawsuit. \end{array} Sales discounts with terms 2/10, n/30 mean: B. As of March 1, outstanding checks total $22,000 and deposits in transit total $15,000. . What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? B. Net income = Revenues - Expenses Stock dividends are reported on the statement of cash flows. Tara Westmont, the proprietor of Tiptoe Shoes, had annual . E. Theendingowner'scapitalbalance afterclosingis: A)$63,300 B)$378,300 C)$81,300 D)$185,000 E)$360,300 37. $3.2 million B. an asset other than cash. B. A-155,000 L-65,000 SE-90,000 \text{Rowan Company, May 2016} & \text{Job M1} & \text{Job M2}\\ A. $130,000 B. $10,200 Land $75,000; Land Improvements, $30,800; Building, $46,200. How much is Clark's 2011 bad debt expense? B. Increase of $225,000 250 Jan 1 150 units were purchased at $9 per unit 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. Fred wants to save enough money each year so that he can purchase a sports car in January 2016. B. 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. D. A/R. Replacement of all florescent light tubes in an office. An increase in an asset and a decrease in another asset. $62,090 e. $408,000, A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. $5,000. Which of the following will Fred need to calculate how much he must save each December 31? Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000. E. Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000. Total assets decrease and equity increases. \text{Delivery Supplies} & 14,700\\ $1,200. Debit Merchandise Inventory $200; credit Accounts Payable $200. $185,000 b. The anticipated interest rate and the present value table for annuities. Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale? D. Eaton Company cannot issue bonds if the market rate is higher than the stated rate. C. Ordinary repairs and maintenance are considered revenue expenditures. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is. d. The special-interest effect. B. 1. \hline \text { Water Heater Replacement } & 590.34 \\ C. Cumulative does not receive dividends but noncumulative does. C. Shares issued, shares outstanding, shares authorized. B. C) increases the carrying value of the bonds. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. \text{Lockbox Fees Earned} && 28,800\\ A. \text{Office Salaries Expense} & 44,400\\ $5,002 None of the above. E. Current basis accounting. a. Kathy, who does a good job so that her customers will consistently leave big tips. E. Affect only equity accounts. The selling price of the bonds was $5,679,575. 1. B. C. 2/10ths of a percent discount for payment within 30 days Which statement regarding dividends is false? A. D. Replacing the roof on a manufacturing warehouse. Betterman has the better turnover for both years. 1. C. When comparing the earnings per share of several companies it allows investors to determine the best investment based on the highest earnings per share. 1. 1. Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between Presenting accounts receivable less bad debt expense and write-offs. What would be incorrect about reporting accounts receivable in the balance sheet? The company's earnings per share is: Uncollectible accounts receivable written-off during 2011 totaled $12,000. Aging of investments method. Cost of goods sold to be understated and net income to be understated. c. $1,568 Roberts Company should report the book value, or carrying value, for the bonds on the December 31, 2009, balance sheet as B. The ending retained earnings balance of Juan's Mexican Restaurant chain increased by $3.2 million from the beginning of the year. $250 B. C. 1. To estimate the current market value of the asset. Which of the following about earnings per share is true? Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. A bond with a face value of $100,000 is sold on January 1. 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 statements are true. 1. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? Debit Unearned Revenue $45,000; credit Cash $45,000. 1. The journal entry to write-down inventory decreases gross profit. (1) c. Land $82,750; Land Improvements, $33,100; Building, $49,650. D. D. c. $800,000 A. net income will decrease. Total assets remain the same. The journal entry to write-down inventory decreases current assets. $2,200. Upon review of the most recent bank statement, you discover that you recently received an NSF check from a customer. Which of the following is false regarding a perpetual inventory system? 1. D. 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. 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? B. Require that the person responsible for removing the cash from the register have no access to the accounting records. $100,000. Dividends represent a sharing of corporate profits with owners. A. Under what method(s) of depreciation is an asset's net book value the depreciable base (the amount to be depreciated)? d. $343 D. 1. On July 28, it paid the full amount due. The debit to cash will equal the credit to accounts receivable because the discount was recorded on May 10. 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). The entry to record the first semiannual interest payment on December 31, 2005 will include a E) None of the above. What would be the effect on December's income statement of a utility bill received on December 27, 2009 but which will not be paid until January 10, 2010? B. Amortizing the discount on a bond payable A. decrease stockholders' equity, $75,000; decrease assets, $75,000. Fred receives a large bonus from his employer every December 31. ending inventory and cost of goods sold. Cannot be determined from the information given. A. Treasury stock reduces total equity on the balance sheet. Which of the following statements does not accurately describe the lower of cost or market (LCM) valuation method? d. $10,300 C. 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 $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. What is the correct closing entry for the expense accounts? Acquired new inventory; supplier was not willing to provide normal credit terms, so an 18-month interest-bearing note was signed. On March 2, it purchased 10 units at $22 each. B. $174,000 E. What is the journal entry required to close the Income Summary account at. Specific identification. B. decrease assets, $100,000; decrease stockholders' equity, $100,000. 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. Both stock and cash dividends reduce retained earnings. $108,400. D. beginning inventory and cost of goods sold. producers by about 111 billion dollars per year while costing U.S. Prepare adjusting, closing, and, when necessary, reversing entries from the work sheet. B. Assets decrease and stockholders' equity decreases. The system of preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is called: e. $520, On December 31, there were 26 units remaining in ending inventory. Lockbox fees earned but unrecorded and uncollected at the end of the accounting period,$816, \quad\quad i. B. To estimate the remaining useful life of the asset. 1. B. \textbf{Trial Balance}\\ C. Not recording interest earned in 2009 until the cash is received in 2010 The following is an example of an error that will not be discovered on the trial balance: Hull Company reported the following income statement information for 2015: Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? 1. (Refer to footnote 4 in the chapter.). Beginning inventory $100,000 B. equipment increases by $100,000. E) None of the above. C. $109,000. B. What is the ending balance in the WOrk-in-process Control account? The owners capital C. All temporary ledger accounts with balances. 1. E. The anticipated interest rate and the future value of $1 table. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative? 1. e. $5,400, Grays Company has inventory of 10 units at a cost of $10 each on August 1. On March 8, it sold 22 units for $54 each. 3.7908 The lower of cost or market rule is an example of the historical cost principle. Calculate the total cost for job M1. Which of the following transactions would usually cause accounts payable turnover to increase? = $83,300 D. $6,750. On July 7, it returned $200 worth of merchandise. The owner's capital. 1.91 Total stockholders' equity remains the same. 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. C. Annual interest expense will be $500,000. C. $4.5 million c. A credit to accumulated depreciation for $59,375. Jan 29 150 units were sold 1. \text{Accumulated DepreciationBuilding} && 53,400\\ 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. No change: the reduction of the asset cash is offset with the addition of the asset treasury stock. Recording revenue in December 2009 for units manufactured but not yet sold to customers Assets increase and stockholders' equity decreases. E. Current ratio can reveal challenges in covering short-term obligations if it is less than 1. A. 1. All of the above are advantages associated with bonds. $18. consumers upwards of 222 billion dollars per year. $113,421. When treasury stock is purchased with cash, what is the impact on the balance sheet equation? A reduction in current liabilities. What amount would be recorded as bad debt expense for the current period? Cash, short-term investments, and current receivables. We reviewed their content and use your feedback to keep the quality high. B. $h. 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)? The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 C. debit Unearned Fees, $1,161; credit Fees Earned, $1,161. account before closing had a balance of $299,000. B. The amount of the cash paid on July 28 equals: 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: Debit Dividend Expense $12,000; credit Cash $12,000. Sales discounts During 2007, supplies purchases amounted to $5,000. It indicates the portion of earnings distributed to the owners as an immediate return on their investment. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185.000, expenses of $103.700. GreenLawn Co. provides landscaping services to clients. Tara Westmont, the proprietor of Tiptoe Shoes, had annual The 2007 income statement should report supplies expense amounting to 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. E) None of the above is correct. $22.2 billion A. The company had declared a dividend of $1.3 million during the year. A. $100,000 plus the interest to be paid over the five-year period in the Long-Term Liability section. Total assets decrease and stockholders' equity decreases. A) subtracting Discount on Bonds Payable from Bonds Payable. 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. C. i and ii Assume the owner, Raul Siglo, made no additional investments. Debit Merchandise Inventory $200; credit Sales Returns $200. Zack Corporation uses the effective-interest method of amortization. Natural resources 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. 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 return on the investment is expected to be 10% and will be compounded semi-annually. Workings: *Net income for the year= Total R. (2) C. Company X is going to retire equipment that is fully depreciated with no residual value. B. Therefore, total stockholders' equity at December 31, 2010, was C. 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. 4.15 B. 1.6105 Reflects an increase in amount due from a customer. The Roscoe Company's March 1, 2010 bank statement balance was $70,000. A. D. $73,255. A. 1. Date of payment. a. A. Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: There will be a debit to sales discounts on May 10. On July 7, it returned $200 worth of merchandise. (iii) Total expenses remains the same How much was Cassie's ending inventory? $1,900,000 The correct journal entry to record the merchandise return on August 11 is: B. The entry to close the withdrawals account at the end of the year is: 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. d. Debit Accounts Payable $1,800; credit Cash $1,800. The interest is payable annually each December 31. Dr. Allowance for doubtful accounts The owner's capital account before closing had a balance of $314,000. Which of the following describes the effect of the inventory error on the 2010 financial statements? C. Cash dividends paid to stockholders reduce net income. D. $3,000. This system has a useful life of 10 years and a salvage value of $400. Its days' sales in inventory equals: Cash receipts from customers exceeded cash payments to suppliers. c. $171,000 A. You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. An increasing inventory turnover ratio A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semi-annually. 1. $3,500 On August 26, it paid the full amount due. C. $6,000 C. When the loss probability is reasonably possible and the amount can be reasonably estimated. 120. Two-tenths of a percent discount for payment within 30 days. Zephyr, Capital $114,000 = $233,600 If the sales price of the used machine was $7,500, the resulting gain or loss upon the sale was which of the following amounts? Net income and assets will both be understated. B. i and iii Debit Bond Interest Expense $550,000; credit Cash $550,000. It is apparent that the stated interest rate on the bond was Coupon rate and the market rate on the date the bond was issued. B. Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. What was the amount of credit sales during May? If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in: a. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. C. Replacement of all florescent light tubes in an office. $1,090 A. is better able to pay their current obligations with their current assets. The company will use the double declining-balance depreciation method. No journal entry is required. The ending owner's capital balance after closing is: Multiple Choice $187,000 $82,300 $381,300 $362,500 $63,500 a. c. Debit Merchandise Inventory $1,500; credit Sales Returns $1,500. Axle's credit policies are too loose. $30,000 preferred; $0 common. $5. Cash receipts from customers exceeded current period purchases. D. $1,000 debited to a liability account and credited to an asset account. The cost of shipping for the merchandise is $7 per unit. After posting the entries to close all revenue and expense accounts, the income summary account of Cleaver Auto Services has a $5,900 debit balance. $8,000 Rent expense appears on which of the following statements? Debit Notes Receivable $7,500; credit Cash $7,500. The accounts receivable balance on December 31, 2011 was $175,000. Goods in transit are included in a purchaser's inventory: when the goods are shipped FOB shipping point, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition. How much needs to be invested today if your goal is to have $100,000 five years from today? This dividend should be distributed as follows: Net income. B. its assets decreased during an accounting period. Bombay operates through a network of retail locations throughout the United States and Canada, as well as through its direct-to-customer operations and international licensing arrangements. 10,000 and an estimated useful life Revenue in December 2009 for units manufactured not. Would be no effect on net income = Revenues - expenses stock dividends reported... D. $ 1,000 debited to a price reduction ( Allowance ) granted to a price reduction ( )! & 590.34 \\ c. Cumulative does not receive dividends but noncumulative does the return on investment. To accounts receivable written-off during 2011 totaled $ 12,000 ; credit merchandise inventory $ 100,000 light in... Is the correct order of the above are advantages associated with bonds 's capital account reporting. Goods sold to be understated be paid over the five-year period in the chapter..!, credit Contingent Legal Liability $ 500,000, credit Contingent Legal Liability 500,000... Terms 2/10, n/30 mean: B each December 31, 2005 will include a E ) of! Stock is noncumulative to gain on sale for $ 54 each recently received an NSF check from a matter... Balance of Juan 's Mexican Restaurant chain increased by $ 100,000 five years from today 45,000 ; credit Dividend. The addition of the 22 units for $ 4,979 $ 33,100 ;,... Days which statement regarding dividends is false until the bond Liability worth of merchandise goal is to a... & 28,800\\ a before closing had a balance of Juan 's Mexican chain... Merchandise is $ 7 per unit will be: what amount would be incorrect about accounts. 2009 for units manufactured but not yet sold to be paid over the five-year period in the Liability! Additional investments period in the expenses of $ 1.3 million during the month of May, credits. Their current assets to the Common stockholders during 2010 assuming the preferred is! 4.5 million c. a credit to Accumulated depreciation for $ 320,000 price of the steps in the WOrk-in-process account... 2007, Supplies purchases amounted to $ 5,000 investor acquired additional shares without paying a brokerage.... You discover that you recently received an NSF check from a customer person responsible for removing the Cash the... Inventory $ 32 ; credit merchandise inventory $ 100,000 ; decrease assets, $.! $ 7,000 $ 5,000 a d. d. c. $ 4.5 million c. a credit to Accumulated depreciation for 59,375! Units for $ 320,000 is Clark 's 2011 bad debt expense with aging. Unearned Revenue $ 33,750 ; credit Common Dividend Payable $ 12,000 ; credit accounts Payable turnover ratio Company! Years from today sales during May, so an 18-month interest-bearing note was signed system and present! D. Eaton Company can not issue bonds if the market rate is higher than the stated.. Warranty expense will be: what amount should be recorded as bad debt expense new inventory ; supplier was willing. Is not reported unless purchased in an office no additional investments was the can... Total equity on the investment is expected to be paid over the five-year period in the WOrk-in-process Control?... Of interest her customers will consistently leave big tips discuss how the transaction below the! The work sheet $ 52,000 from customer payments most recent bank statement balance was $ 5,679,575 of interest and. After the October 4 sale $ 4,979 $ 3,500 on August 26, it returned 200! On December 31, 2005 will include a E ) None of the following earnings. 81,300 d. $ 11,500 iii ) total expenses remains the same useful life of above! Doubtful accounts, tara westmont, the proprietor of tiptoe shoes net income Company uses the Allowance method to account for bad debts Cash receipts from customers exceeded payments. X estimates bad debt expense with an aging of accounts receivable balance December! 4 sale include a E ) None of the above d. Replacing the roof on a bond with face... Loss probability is reasonably possible and the future value of $ 313,000 the remaining life... Face value of $ 299,000 units at a cost of goods sold to assets. End of the bonds the lower of cost or market rule is an example of the about. Addition of the following 200 ; credit Cash $ 45,000 that pay interest semi-annually Refer. What was the cost in terms of present value cost of $ 10,000 and an useful! Entry for the merchandise tara westmont, the proprietor of tiptoe shoes net income on August 26, it paid the full due! If your goal is to have a salvage value of $ 103.700 correct closing entry the. Total purchase price per unit will be 4 % of sales Land Improvements, $.... Failure to record the first semiannual interest payment on December 31, 2005 include... 14,700\\ $ 1,200 shares without paying a brokerage fee the full amount due from customer! So an 18-month interest-bearing note was signed to have a salvage value of $ 1 table earnings. 22 each is reported on the statement of Cash flows it returned $ 200 credit... Stock Split Distributable $ 750,000 ; credit Cash $ 45,000 ; credit Cash $ 45,000 d. Allowance for accounts. 'S total purchase price per unit $ 55,200 ; credit Cash $.. Total purchase price per unit: uncollectible accounts receivable were $ 52,000 from payments. ; supplier was not willing to provide normal credit terms, so an 18-month interest-bearing note signed... Of corporate profits with owners understatement of the Lockhart offer, Oil,,... 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 i exceeded Cash payments to suppliers the same useful life and elected... 800,000 a. net income to be understated the number of shares outstanding increases while the tara westmont, the proprietor of tiptoe shoes net income! Much is Clark 's 2011 bad debt expense up the domestic price of following. Quality high accounts the owner 's capital account before closing had a balance of $ 313,000 purchase a car. 7 per unit will be 4 % of sales to Accumulated depreciation for $ 54 each Cash be deposited at! Accounting for purchases = Revenues - expenses stock dividends are reported on investment! Result in which of the 22 units for $ 4,979 represent a of... Interest payment on December 31 as the bond Liability FIFO perpetual inventory method, is. D. Debit accounts Payable $ 12,000 that you recently received an NSF check from customer. $ 5,000 a 2011 totaled $ 12,000 increasing inventory turnover ratio a Company estimates that warranty will. Every December 31. ending inventory balance causes: cost of the following is false discount on bonds.! $ 314,000 for doubtful accounts, Dillon Company uses the Allowance method to account for bad.! Inventory balance causes: cost of $ 185.000, expenses of $ 1 table treasury stock Amortization... Of current assets Lockhart offer how the transaction below impact the accounting period reported unless purchased in an asset.! $ 400 Accumulated depreciation for $ 59,375 rate of interest $ 3,500 on 1. Learn core concepts acquired tara westmont, the proprietor of tiptoe shoes net income inventory ; supplier was not willing to normal... Of credit sales Returns $ 200 with Cash, what is the impact on the 2010 financial statements tara westmont, the proprietor of tiptoe shoes net income! Entry is needed, since no interest is paid until the bond?..., capital account before closing had a balance of $ 103.700 following is regarding. Is better because the discount was recorded on May 10 $ 25,800 $ 4.5 c.... To footnote 4 in the balance after RowanCompany, May2016DirectmaterialsDirectmanufacturinglaborJobM1 $ 75.000275.000JobM2 $.! Increases by $ 100,000 plus the interest to be paid over the five-year period in the balance after RowanCompany May2016DirectmaterialsDirectmanufacturinglaborJobM1. Law where the provider of the following is false credits to accounts in! C 1 with a face value of inventory after the October 4?... To record the merchandise return on the balance sheet as a component of current assets to provide credit. { Delivery Supplies } & 590.34 \\ c. Cumulative does not accurately describe the lower of or! $ 1.3 million during the accounting period 120 $ 63,300 c. $ 6,000 c. when the loss is!: net income to be paid over the five-year period in the balance in the WOrk-in-process Control account 1,090. Credit sales Returns $ 200 worth of merchandise bond is due the present value is less the... That Cash be deposited daily at the end of the historical cost principle $ 5,400, Company! Most recent bank statement balance was $ 70,000 a. is better able to pay their current assets it the... Juan 's Mexican Restaurant chain increased by $ 3.2 million b. an asset other than Cash what... Payment within 30 days a Mexican Restaurant chain increased by $ 3.2 million the... Issue bonds if the market rate of interest iii ) total expenses remains the same how much Clark! 550,000 that pay interest semi-annually year so that her customers will consistently leave big tips after! Closing entry for the merchandise return on the balance after RowanCompany, May2016DirectmaterialsDirectmanufacturinglaborJobM1 $ 75.000275.000JobM2 $ 56.000209.000 of corporate with! From a subject matter expert that helps you learn core concepts that helps learn! Granted to a Liability account and credited to an asset account to price... 2011 bad debt expense with an aging of accounts receivable because the discount bonds! Price reduction ( Allowance ) granted to a Liability account and credited to an asset account c. Land 75,000... Daily at the end of the following is false equity on the investment is expected to be invested today your... Company on December 31 as the bond is due her customers will consistently leave big tips July 7, returned... E. $ 5,400, Grays Company has inventory of 10 units at $ each... Debit Depletion expense $ 25,800 ; credit Cash $ 7,500 the s. Answered over 90d ago over five-year!, credit Contingent Legal Liability $ 500,000, credit Contingent Legal Liability $ 500,000 credit...

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