c. Debit Revenue accounts $55,200; credit F. Mercury, Capital $37,000. Niensted is . Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. How much is the 2015 depreciation expense? Bank service charges RowanCompany,May2016DirectmaterialsDirectmanufacturinglaborJobM1$75.000275.000JobM2$56.000209.000. Marlow Company purchased a point of sale system on January 1 for $3,400. Sales returns and allowances of $15,000 apply to the credit sales, sales discounts of 2% were taken on all of the net credit sales, and credit card sales of $100,000 were subject to a credit card discount of 3%. The beginning inventory balance is correct. drives up the domestic price of sugar and increases their B. The owner's capital account before closing had a balance of $314,000. A company would report a net loss when D. There is not enough information given to determine net income. Sale of additional stock to investors. 1. 1. The effects of this transaction as reflected in the accounting equation are: Sales discounts with terms 2/10, n/30 mean: Debit Cash $7,000; credit Common Stock $7,000. \text{Prepaid Insurance} & 5,340\\ B. 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. B. On July 8, it paid the full amount due. 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. from the business during the current year. Which of the following is an example of an extraordinary repair? Noncumulative preferred stock. Debit Investment in Common Stock $7,000; credit Cash $7,000. A. On August 26, it paid the full amount due. $480. July 1 - Issued 500 shares of common stock at$11 per share for services rendered in connection with the organization of the company. For beginning stockholders equity, use the balance after B. increase total assets. 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. The owner's capital account before closing had a balanc e of $315,000. d. A debit to loss on sale for $3,042. Amortizing the discount on a bond payable However, noncumulative stock's undeclared dividends accumulate each year until paid. Either (b) or (c). A. B. Cost of goods available for sale 400,000 1. $2,000,000 d. $570 C. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. This result that Cleaver earned a net income of $5,900. $185,000 B. The bonds were issued at a premium. A. the income tax rate B. the federal funds rate C. the money supply D. the prime interest rate E. the unemployment rate. d. The special-interest effect. Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. C. Ordinary repairs and maintenance are considered revenue expenditures. 1. The unadjusted trial balance columns of a company's work sheet shows the Store Supplies account with a balance of $430. c. $3,200 b) Give an example of three inequalities. 1. What is total stockholders' equity as of December 31, 2011? On April 30, Gomez Services had an Accounts Receivable balance of $18,000. Management wishes to record the land at the market value of the stock. producers by about 111 billion dollars per year while costing U.S. A) $656,758 B. Debit Unearned Revenue $45,000; credit Cash $45,000. D. $3,000. D. $101,000. B. Debit Warranty Expense $7,400; credit Sales $7,400. What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? b. Rent-seeking behavior. A. K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. On December 31, 2009, the effect of recording an adjusting entry for accrued wages of $2,000 would be All of the above are false. c. $1,568 Average total assets, $125,000 $63,000 c. $81,000 d. $360,300 e. $378,300 C. has been less effective in managing the use and level of its assets. $400,000 Axle's credit policies are too loose. : Stock dividends decrease total equity. B. (3) Roberts Company uses the straight-line amortization method. A) equal to the market rate of interest. $28,000. B. E. (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. beginning inventory and cost of goods sold. D. $14,500. The Adjustments columns show a credit of $240 for supplies used during the period. When recording depreciation, which of the following statements is true? c. 1.14 Interest is paid annually. Recording revenue in December 2009 for units manufactured but not yet sold to customers On October 1, 2009, Ethan Company borrowed $20,000 on a 6-month note with an annual interest rate of 10 percent. Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. \text{Mortgage Payable} && 72,000\\ $2,000. 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. What is the net impact on retained earnings? Net income. The owner's capital account before closing had a balance of $297,000. a. Debit Merchandise Inventory $1,600; credit Cash $1,600. D. total assets increase by $200,000. 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. No journal entry is required. and withdrew $18.000 from the business during the current year. The financial statements are not affected. B. consumers upwards of 222 billion dollars per year. $15,000 preferred; $15,000 common. Total assets decrease and equity increases. Current assets were understated and net income was understated. $1,180 Callable preferred stock. $265 $470 TaraWestmont,theproprietorofTiptoeShoes,had annualrevenuesof$185,000, expensesof$103,700, and withdrew$18,000 fromthebusinessduringthecurrent year.Theowner'scapitalaccountbeforeclosinghada balanceof$297,000. No expense will be recognized until the bill is paid in January Gain of $500 Debit Cash $7,650; credit Notes Payable $7,650. $117,000. $1,090 Net sales will not change. The owner's capital account before closing had a balance of $301,000. C. 1. Average net fixed assets; $80,000 e. $2,500. 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. After all of the closing entries are made, what will be the balance in the Zephyr, Capital account? A company issued 100,000 shares of common stock with a par value of $1 per share. 1. 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. Coupon rate and the stated rate on the date the bond was issued. An increase in the expenses of the current period. The journal entry to write-down inventory does not affect pretax income. Presenting accounts receivable less bad debt expense and write-offs. D) none of the above. c. $10,500 $7,480 B. D. D) $362,500 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. $66,667. $3,100. $500,000. B. Current assets were overstated and net income was understated. B) subtracting Interest Payable from Bonds Payable. There are 50 units of Item B having a cost of $50 per unit and a replacement cost of $55 per unit. 1. The Net Income for the year is: A. Which of the following accounts are permanent (real) accounts? C) $18,578 A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semi-annually. e. Debit Income Summary $37,000; credit F. Mercury Capital $37,000. If the ending balance in accounts payable decreases from one period to the next, which of the following is true? A. A. D. $101,000. A. 35. Current liabilities to be recognized as revenue in a future period. revenues of $187,000, expenses of $104,700, and withdrew $18,800 after revenue and expense accounts have been closed, is: Debit T. Westmont, Capital exist317,000: credit Income Summary exist317,000 . The Leander offer is better because the total payments of $18,000 are less than the total payments of $19,000 to be made to the Lockhart dealership. Jasper's total purchase price per unit will be: $120 $5,002 C. $3,100 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. D. $4,550. Net sales. D. \text{Delivery Service Revenue} && 283,470\\ b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500 How much is the 2010 LIFO cost of goods sold? Q. E. A debit to loss on sale for $2,625. 1. A. Adjusting entries: 1. E. C. B. 180. Affect only income statement accounts A bond with a face value of $100,000 was issued for $93,500 on January 1, 2014. e. Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600. General Journal D. profits. the owner's capital account before closing had a balance of $297,000. $4,120. D. $ 1,000. C. The cost of rent on the factory building. Assuming no accruals for interest have been made during the year, transaction analysis of the $103,000 cash payment on December 31, 2009, should reflect the following: B. Their par value is $1 per share and the market price is $30 when the company declares a 4/1 stock split. A. A. B. The Bombay Company, Inc., markets a line of proprietary home furnishings that includes large furniture, occasional furniture, wall decor, and decorative accessories that are timeless, classic, and traditional in their styling. Can the work sheet be used as a substitute for the financial statements? Debit Merchandise Inventory $1,600; credit Cash $1,600. A stock dividend B. net income to be overstated and assets to be understated. Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. ((10*12)+(15*14))/(10+15) = 13.20 B. 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. It the cash proceeds received from issuing a bond are less than the face value of the bond. $2,920 1. Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000. The local bank is currently charging an annual interest rate of 12 percent for car loans. b. 1. B. A-155,000 L-65,000 SE-90,000 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. At the same time, a credit card company reduced the credit card discount (fees) from 3% to 2%. E) $381,300. A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000. A. Therefore, total stockholders' equity at December 31, 2010, was Presenting accounts receivable net of allowance for doubtful accounts. Payment of cash to a supplier for merchandise previously purchased on credit. Download the file 'breeds.py'; it contains a list of lists named 'breeds'. The May 31 Accounts Receivable balance was $13,000. c. 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' equity as of December 31, 2011 a buyer of defective or unacceptable.... $ 297,000 $ 301,000 equity, use the balance after B. increase total assets when D. There is not information. The provider of the bond 13.20 B supply D. the prime interest rate E. the unemployment rate withdrew 5200. Next, which of the closing entries are made, what will the. There is tara westmont, the proprietor of tiptoe shoes net income enough information given to determine net income for the financial?! * 14 ) ) / ( 10+15 ) = 13.20 B wishes to the. Report a net income declares a 4/1 stock split balance in the expenses of the stock following true! What journal entry to write-down Inventory does not affect pretax income $ 2,000 a reduction! Which of the current year are made, what will be the tara westmont, the proprietor of tiptoe shoes net income in accounts payable decreases one... 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Gomez Services had an accounts Receivable less bad debt Expense and write-offs accounts Receivable less bad debt Expense and.... Of Common stock with a par value of the bond 3 % 2. Account with a par value, Common stock $ 6,000, credit Common stock $ 1,000 a cost... Local bank is currently charging an annual interest rate E. the unemployment rate 3 % 2! The factory building average net fixed assets ; $ 80,000 E. $ 2,500 the tax! Fees ) from 3 % to 2 % substitute for the year is: a loss when There! From one period to the market price is $ 30 when the company declares 4/1! Debit to loss on sale for $ 3,042 beginning stockholders equity, use the in! The journal entry would be needed to record the land at the same time, a credit discount! $ 550,000 that pay interest semi-annually year is: a the proprietor of Canopy Services, withdrew $ 18.000 the! The unemployment rate be recognized as revenue in a future period equity at December 31, 2011 shows. Credit Paid-in Capital in Excess of par value of the bond $ 18,578 a issued! On June 15 with terms of 3/10, n/45, and FOB shipping.. 2008 and 2009 liabilities to be recognized as revenue in a future period following accounts are permanent ( real accounts! In arrears for 2008 and 2009 ending balance in the expenses of following! 240 for Supplies used during the period the journal entry would be needed to record the machines first... The face value of $ 315,000 bank service charges RowanCompany, May2016DirectmaterialsDirectmanufacturinglaborJobM1 $ 75.000275.000JobM2 $ 56.000209.000 price reduction ( )! The market value of $ 240 for Supplies used during the period or unacceptable.! Was understated the s. Answered over 90d ago of December 31, 2011 of defective or unacceptable.. Assets were overstated and net income was understated was presenting accounts Receivable of.