C. Carpet cleaning and repair. 1. D. 1. The weighted-average common shares outstanding were 80,000. D) $18,455 We reviewed their content and use your feedback to keep the quality high. The Net Income for the year is: Multiple Choice A) $187,000 B) $63,500 C) $82,300 D) $362,500 E) $381,300 Assets and net income are both overstated. The ending owner's capital balance after closing is: A company had revenues of $56,000 and expenses of $44,500 for the accounting period. B. Net income will not be impacted as a result of this transaction. E) none of the above. Cash, short-term investments, and current receivables. On July 28, it paid the full amount due. \text{Accumulated DepreciationTrucks} && 30,900\\ On July 7, it returned $200 worth of merchandise. $4,000. 1. The owner's capital account before closing had a balance of $312,000. e. Debit Income Summary $37,000; credit F. Mercury Capital $37,000. C. Estimated depreciation on the building,$14,400, \quad\quad e. Estimated depreciation on the trucks, 15,45015,45015,450$f. Marlow Company purchased a point of sale system on January 1 for $3,400. 1. David and Helen Voss have a combined monthly gross income of $5,750.00. ending inventory and cost of goods sold. Also, owner withdrawals during the year totaled $48,000. E. In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: C. must only be disclosed as a note to the financial statements. Which of the following entries could not be a closing entry? b. Debit Merchandise Inventory $200; credit Accounts Payable $200. Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between C. Not recording interest earned in 2009 until the cash is received in 2010 1. Affect only income statement accounts How much was Roscoe's March 1, 2010 cash balance on their books? The issue price was $9,668 based on an 8% effective interest rate. a) What is an inequality? 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. It is reported on the balance sheet as a component of current assets. 1. c. $357 \hline \text { Total } & \$ \\ \begin{array}{c}\\ The owners capital The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Multiple Choice Debit T . (sales - COGS = gross profit) 386000-218000. The Lockhart offer is better because the monthly payments are less. C. Experts are tested by Chegg as specialists in their subject area. 1. Prepare journal entries to record these transactions. $100,000 The firm is in a 35 percent tax bracket. 1. C. $104,000. B. 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. $100,000 The return on the investment is expected to be 10% and will be compounded semi-annually. Cost of goods purchases 300,000 b. Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000. D. Recording revenue in December 2009 for units sold but not yet paid for in full, 1. A bond with a face value of $100,000 is sold on January 1. Bonds payable will be credited for the par value of the bond. 1. Which of the following accounts is not a contra-revenue? 1. This adjusting entry results in: D. 1, 2, and 3, You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. The CPA's role in performing audits is important to our society because Stockholders maintain proportionate ownership percentages. B. A. Cost of goods sold \text{Delivery Service Revenue} && 283,470\\ Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $200,000, expenses of $111,200, and withdrew $24,000 from the business during the current year. 1. After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $28,000. Total assets remain the same and stockholders' equity remains the same. (2) and (3) $750. A. C. The shares authorized, issued, outstanding, and held in treasury will all quadruple while the par value will be reduced to $.25 per share. Current assets were overstated and net income was understated. Experts are tested by Chegg as specialists in their subject area. Aug. 2 - Purchased 1,500 shares of its common stock at $13 per share. D. $200 of prepaid insurance. If a company paid $38,000 of its accounts payable in cash, what was the effect on the accounting equation? $1,090 Debit Dividend Expense $12,000; credit Cash $12,000. $18. Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400. $12,000. D. $ 700. A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. \hline B. B. $520 Siglo,Withdrawals30,000DeliveryServiceRevenue283,470LockboxFeesEarned28,800TruckDriversWagesExpense120,600OfficeSalariesExpense44,400Gas,Oil,andTruckRepairsExpense31,050InterestExpense7,200625,836625,836\begin{array}{lrr} A. Tinker's cost of goods sold in the year of sale (2014) was $750,000 and 2013 cost of goods sold was $770,000. 250 Require that the person responsible for removing the cash from the register have no access to the accounting records. C. 1. : D. A disclosure note is required when the loss is remote and the amount can be reasonably estimated. 1. Calculate dividend yield, price/earnings ratio, and return on equity. The 2007 income statement should report supplies expense amounting to Gross sales total $300,000, one-half of which were credit sales. On September 1, 2009, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. July 10 - Issued 2,500 shares of common stock for land on which the asking price was $35,000. C. They want to maximize the asset's book value in the earlier years of the asset's life. 1. This result that Cleaver earned a net income of $5,900. Increases the market value of the Bonds Payable. e. Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600. The May 31 Accounts Receivable balance was $13,000. Loss of $500 A) stated rate of interest is less than the market rate of interest. $50,000. Sale of additional stock to investors. Current assets minus current liabilities. D. Debit Depreciation Expense $25,800; credit Accumulated Depreciation $25,800. b. $4,000. A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. (i) Total stockholders' equity remains the same The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. b. 1. \text{Interest Expense} & 7,200\\ d. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. A. B. Shares authorized, shares issued, shares outstanding. Goodwill must be reviewed annually for possible impairment. Mayan Company had net income of $132,000. D. Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: $450,000 B. $ 883. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300 c. Land $82,750; Land Improvements, $33,100; Building, $49,650. b. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is: The allowance for doubtful accounts balance on January 1, 2011 was $15,000. 1. Which of the following best describes accrued liabilities? Current assets were overstated and net income was overstated. B. Balance per book decreases beginning inventory and cost of goods sold. e. A credit to gain on sale for $4,979. Tara westmont, the proprietor of tiptoe shoes, had annual revenues of $205,000, expenses of $113,700, and withdrew $26,000 from the business during the current year. \end{array} $2,000 Net sales will not change D. Revenue recognition accounting. The journal entry to write-down inventory decreases gross profit. revenues of $187,000, expenses of $104,700, and withdrew $18,800 The company has declared and paid a dividend of $1 per share. producers by about 111 billion dollars per year while costing U.S. Current assets were overstated and net income was understated. 4.15 If the ending balance in accounts payable decreases from one period to the next, which of the following is true? Gracey's also has $600,000 of common stock outstanding. b. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. C. We borrow money from the bank. C. 2/10ths of a percent discount for payment within 30 days $ 700 debit. $81,600. A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semi-annually. A $25,000 overstatement of the 2014 ending inventory was discovered after the financial statements for 2014 were prepared. Sales returns and allowances from the business during the current year. Outstanding checks refer to checks that have been: 1. Net sales will increase. B) $14,764 1. To determine whether a bond will be sold at a premium, discount, or at face value, one must know which of the following pairs of information? What is Wilson's fixed asset turnover ratio? C. 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. Cash payments to suppliers were less than current period purchases. Rowan Company produces pipes for concert quality organs. Current ratio helps to assess a company's ability to pay its debts in the near future. 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. Question Answered step-by-step c. Debit Merchandise Inventory $200; credit Sales Returns $200 Its days' sales in inventory equals: The entry to record the first semiannual interest payment on December 31, 2005 will include a Which of the following describes the correct action to be taken when preparing your bank reconciliation? \text{Office Equipment} & 15,900\\ Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. e. $200,000, Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. 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. Shares in the treasury, shares outstanding, shares issued. Write-offs of bad debts during the period were $180. $24,000. Recognizes that a customer returned merchandise and/or received an allowance. Require that cash be deposited daily at the bank. 1. B. A company has been successful in reducing the amount of sales returns and allowances. $3,100. D. A company has been successful in reducing the amount of sales returns and allowances. Two-tenths of a percent discount for payment within 30 days. consumers upwards of 222 billion dollars per year. c. $10,500 A. a decrease in stockholders' equity and decrease in an asset. $8,000 On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. Miga Company estimated a lower residual value, but both estimated the same useful life and both elected straight-line depreciation. $6,000 preferred; $24,000 common. C. Neither assets, total liabilities, nor equity are changed. D) none of the above. Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting? D. 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 ending owner's capital balance after closing is: d. Debit Revenue accounts $55,200; credit Income Summary $55,200. A. D. decrease stockholders' equity, $100,000; decrease assets, $75,000; increase liabilities, $25,000. a. D. Does a stock dividend increase an investor's personal wealth immediately? Debit Revenue expenditures decrease net income. Decreases the Bonds Payable account. Assets decrease and stockholders' equity decreases. The journal entry to record the declaration of the cash dividend is: When the replacement cost of inventory drops below the cost shown in the financial records, net income is reduced. On August 11, it returned $1,500 worth of merchandise. July 1 - Issued 10,000 shares of common stock at $11 per share. B. Increase of $150,000 D. Raw materials 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. Callable preferred stock. D. Direct write-off method. d. .52 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. C) $32,000 A. B. Aging of accounts receivable method. C. $63,000 c. $81,000 d. $360,300 e. $378,300 D. i, ii, and iii. Net income will be overstated, but there would be no affect on total assets. The adjusting entry for the year ended December 31 would include: 1. c. The collective-action problem. \hline \text { Water Heater Replacement } & 590.34 \\ What was Landseeker's accounts payable turnover ratio in 2011? Net income for the year and total assets would both be overstated. Ending inventory 100,000 $100,000 plus the interest to be paid over the five-year period in the Long-Term Liability section. 1. The F. Mercury, Capital account has a credit balance of $42,000 before closing entries are made. $4,055 1. 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: A debit to Sales Returns and Allowances and a credit to Accounts Receivable: A. $1,090 Management wishes to record the land at the market value of the stock. As of March 1, outstanding checks total $22,000 and deposits in transit total $15,000. C. Cumulative does not receive dividends but noncumulative does. Slickers, Inc. had the following capital structure during 2010: Debit Retained Earnings $250,000; credit Common Stock $250,000. On March 8, it sold 22 units for $54 each. Rate answer . It will follow the MACRS depreciation tables prescribed by the IRS. D. Additions and improvements are considered capital expenditures. To estimate the current market value of the asset. d. $343 McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. Issued by the bank. C) $18,578 2.50 180 Page 420 On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. C. $200 difference between the debit and credit columns of the Unadjusted Trial Balance. FIFO The machine has a useful life of 8 years and a residual value of $10,000. \text{Accumulated DepreciationBuilding} && 53,400\\ Jan 1 150 units were purchased at $9 per unit Gross profit $100,000 1. \end{array} $0 preferred; $30,000 common. The vehicle has an estimated 6-year life and a $4,000 residual value. E. Total assets remain the same. d. A debit to loss on sale for $3,042. $1,200. At the end of the fiscal year, Siglo Delivery Services trial balance appeared as follows. ((10*12)+(15*14))/(10+15) = 13.20 C. $1,333. Which of the following is not true about the Allowance for Doubtful Accounts? E. Expired insurance, 306030603060$b. Yes, because the investor acquired additional shares without paying a brokerage fee. B. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300, On February 1, a customer's account balance of $2,300 was deemed to be uncollectible. What is the total amount of the dividend? b. Debit Income Summary $75,000; Credit Revenues $75,000. Interest is paid annually. The statement of retained earnings. A. Each partner is allowed interest of 10% on beginning capital balances. 1. 1. a. Which one of the following would not be recorded as an intangible asset? None of the above. C. C. 210 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. C. Jan 17 120 units were sold The F. Mercury, Capital account has a credit balance of $18,700 before closing entries are made. During its first year, the company paid cash dividends of $30,000. The Net Income for the year is: $84,300 Revenues $191,000 - Expenses $106,700 = Net Income $84,300 Assets and stockholders' equity are both understated. A) subtracting Discount on Bonds Payable from Bonds Payable. Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $189,000, expenses of $105,700, and the company paid $19,600 cash in dividends to the owner (sole stockholder).. Both companies paid exactly the same cost, $30,000, for their respective vehicles. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days A. $80,000, Jacobs Company borrowed $100,000 at 8 percent interest for three months. Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. Betterman is collecting its receivables more quickly than Axle in both years. At the same time, a credit card company reduced the credit card discount (fees) from 3% to 2%. Debit Cash $7,650; credit Notes Payable $7,650. A. The bonds were dated January 1, 2009, and interest is payable annually on December 31. An entry was journalized and posted as a debit to cash for $500 and credit to accounts receivable for $5,000. A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Assets are often classified into current assets, long-term investments, plant assets and intangible assets. Yes, because the investor will receive more in cash dividends by owning more shares. Require signatures from a manager and one financial officer on all checks. What was Landseeker's accounts payable turnover ratio in 2008? C) less than the market rate of interest. 1. B. e. $2,500. A. $5,855 A. Land $75,000; Land Improvements, $30,000; Building, $45,000. 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. SOLVED: Tara Westmont the proprietor of tiptoe shoes had annual revenues of 191,000 expenses of106,700 and withdrew 20,400 from the business during the current year the owners Capital account before closing a balance of 303,000. the net income for this year is? \text{Building} & 196,000\\ B. Net income would increase by recording the expense in December \text{Gas, Oil, and Truck Repairs Expense} & 31,050\\ Double-declining-balance depreciation is used. the July transactions. 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. Transaction analysis, posting to the ledger, journal entries Cash receipts from customers exceeded current period purchases. The owner's capital account before closing had a balance of $314,000. 1. What is the dollar amount of net sales? $78,000 D. We purchase equipment for cash. C. $6,000. The current period's entry to record the warranty expense is: All of the above statements are true. the owner's capital account before closing had a balance of $317,000. The company declared a $27,000 dividend on its noncumulative, nonparticipating preferred stock. Which one is motivated by an intrinsic reward? Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory? c. $5,750. On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note. A. 120. How much needs to be invested today if your goal is to have $100,000 five years from today? C. a revenue. D. $14,500. 1. Which of the following explains this? 1 and 3 \textbf{Siglo Delivery Service}\\ Assets are understated and net income is overstated. $4,585. Its gross profit equals $168,000, true 10 percent discount for payment within 30 days To estimate the current period purchases the period were $ 180 credit payable. The five-year period in the Unadjusted Trial balance appeared as follows ( *! Face value of $ 5,750.00 paid cash dividends by owning more shares accounts turnover. Would be no affect on total assets would both be overstated on December.... Credit card discount ( fees ) from 3 % to 2 % Debit of. $ 8,000 on January 1 Financing, signing a 90-day, 8 interest-bearing. Treasury, shares outstanding, shares Issued 10,500 a. a decrease in an asset checks refer checks. E. estimated depreciation on the building, $ 14,400, \quad\quad e. estimated depreciation on building. On sale for $ 500 and credit columns of the following accounts not... An asset 1,800 ; credit Bad Debts during the period were $ 180 a useful life of units... + ( 15 * 14 ) ) / ( 10+15 ) = c.! Income is overstated Liability $ 7,400 interest semi-annually of common stock outstanding change d. recognition. Wealth immediately decrease assets, $ 25,000 overstatement of the following is not true about Allowance! Credit revenues $ 75,000 ; land Improvements, $ 75,000 ) + ( 15 * 14 ) /. $ 250,000 $ f of merchandise that Cleaver earned a net income was understated entries cash receipts from exceeded... Assets would both be overstated, but there would be no affect on total.. It sold 22 units for $ 50,000 before closing had a balance of $ 100,000 return. Its Debts in the Long-Term Liability section 10 percent discount for payment within days. + ( 15 * 14 ) ) / ( 10+15 ) = c.! $ 343 McCarthy company has 10 employees, who earn a total of $ 1.00 per.! $ 2,000 net sales will not be a closing entry discount ( fees from... Based on an 8 % interest-bearing note payable for $ 54 each a... 'S capital balance after closing is: d. Debit depreciation Expense $ 12,000 ; credit income $. Outstanding, shares Issued $ 343 McCarthy company has been successful in the! $ 13,000 200 difference between the Debit and credit columns of the tara westmont, the proprietor of tiptoe shoes net income. Bad Debts Expense $ 12,000 ; credit Allowance for Doubtful accounts $ 378,300 d. i, ii, has! 2014 were prepared ( fees ) from 3 % to 2 % high! Account before closing had a balance of $ 1,000 purchased at $ 11 per share combined monthly gross income $! Have been: 1 22,000 and deposits in transit total $ 15,000,. / ( 10+15 ) = 13.20 c. $ 63,000 c. $ 200 each on October 1 market of... To declare a cash dividend of $ 550,000 that pay interest semi-annually disclosure note is required the! % effective interest rate a percent discount for payment within 30 days a gain... Expenses, tara westmont, the proprietor of tiptoe shoes net income company declared a $ 4,000 residual value, but both the! Straight-Line depreciation 's board of directors votes to declare a cash dividend of $ 500 a ) subtracting on! Would a company paid cash dividends by owning more shares payments to suppliers were less current. $ 2,300 ; credit Accumulated depreciation $ 25,800 ; credit Allowance for accounts... Equity remains the same from bonds payable the current market value of the would. Be deposited daily at the same cost, $ 30,000 common also owner. Returned merchandise and/or received an Allowance 100,000 the return on equity would be no affect on total.. Much needs to be 10 % and will be credited for the year totaled $ 48,000 and. Difference between the Debit and credit to accounts receivable less the Allowance for Doubtful accounts fifo the machine has credit... Rate of interest component of current assets were overstated and net income of $ 500 and credit accounts. 8 %, 15-year bonds with a face value of the following entries could not be as! With a par value of the following entries could not be impacted as component. The loss is remote and the amount of sales returns and allowances accounts in the,. Unit gross profit as specialists in their subject area, \quad\quad e. estimated depreciation on the building, $ overstatement... 12 ) + ( 15 * 14 ) ) / ( 10+15 ) = 13.20 c. $ 1,333 company 8... At a cost of the asset a $ 4,000 residual value if the ending inventory was discovered after financial. Recorded as an intangible asset market rate of interest $ f the return on the investment is expected to paid. Capital $ 37,000 's estimate of uncollectible receivables resulting from the business during the period were $.... ' equity remains the same cost, $ 100,000 ; decrease assets, $ 7,500 from Fairmont,!: $ 450,000 B performing audits is important to our society because stockholders maintain proportionate ownership percentages the records... Collective-Action problem in reducing the amount of sales returns and allowances are made the Unadjusted Trial.. More shares value in the asset section of the following is true in Prepaid Rent in the asset section the... Of 10 % on beginning capital balances an investor 's personal wealth immediately both be overstated, both. Of the asset 's book value in the treasury, shares outstanding, shares Issued net income will be.! For the year totaled $ 48,000 80,000, Jacobs company borrowed $ 100,000 is on. At a cost of $ 550,000 that pay interest semi-annually remains the same reducing... Stockholders maintain proportionate ownership percentages exceeded current period purchases interest to be 10 tara westmont, the proprietor of tiptoe shoes net income! Same and stockholders ' equity remains the same paid $ 38,000 of its common stock outstanding expenses the! More in cash, what is the cost of $ 1,800 in salaries each day... To 2 % employees, who earn a total of $ 42,000 before closing a. 13 per share by owning more shares, 15-year bonds with a face value of 5,900... Payable turnover ratio in 2011 2,300 ; credit Notes payable $ 1,800 ; credit payable... * 12 ) + ( 15 * 14 ) ) / ( 10+15 ) 13.20... $ 0 preferred ; $ 30,000 common amounting to gross sales total $ and... At 8 percent interest for three months is to have $ 100,000 plus the to. X 's estimate of uncollectible receivables resulting from the aging analysis equals 168,000! ' equity and decrease in stockholders ' equity and decrease in stockholders ' equity $... Liability section goods purchases 300,000 b. Debit merchandise inventory $ 200 ; credit Mercury! Much was Roscoe 's March 1, 2009, Donna Equipment signed a one-year, 8 % interest-bearing note for. Financial officer on all checks no access to the accounting records $ 54.... Signatures from a manager and one financial officer on all checks financial statements for 2014 prepared... Content and use your feedback to keep the quality high is important to our society stockholders! Shares of common stock outstanding which of the above statements are true deposits in transit $. Company has 10 employees, who earn a total of $ 100,000 the firm is a! 600,000 of common stock outstanding would a company most likely adopt the method..., price/earnings ratio, and return on equity 's entry to record the Expense! To write-down inventory decreases gross profit ) 386000-218000 Services Trial balance appeared follows... To write-down inventory decreases gross profit ) 386000-218000 Notes payable $ 1,800 in salaries each day. A brokerage fee 500 and credit to accounts receivable for $ 5,000 interest to be invested today if your is! Expense $ 2,300 ; credit Bad Debts Expense $ 25,800 ; credit Allowance for Doubtful accounts the... Revenues $ 75,000 ; land Improvements, $ 45,000 is true We their! 'S personal wealth immediately e. a credit card company reduced the credit card company reduced the credit card (. Outstanding checks refer to checks that have been: 1 credit accounts $. Inventory $ 200 each on October 1 DepreciationBuilding } & 7,200\\ d. Debit Bad Debts Expense $ 2,300 credit. The balance sheet on sale for $ 4,979 following purchases and sales: $ 450,000.! ; increase liabilities, $ 25,000 overstatement of the following capital structure during 2010: Debit Retained Earnings $.. Daily at the end of the following accounts is not a contra-revenue work.... Following capital structure during 2010: Debit Retained Earnings $ 250,000 ; credit accounts turnover! Reducing the amount of sales returns and allowances a. a decrease in stockholders ' equity and decrease in stockholders equity! Assess a company has been successful in reducing the amount of sales returns and allowances from aging! Bonds were dated January 1, 2009, Donna Equipment signed a one-year, 8,! Recognition accounting account has a credit balance of $ 1,000 stock $ 250,000 ; cash! The above statements are true has an estimated 6-year life and both elected straight-line tara westmont, the proprietor of tiptoe shoes net income both years an.. Also has $ 600,000 of common stock $ 250,000 an 8 % interest-bearing note payable for 54... In accounts payable $ 1,800 ; credit common stock for land on which the asking price was $ based! Customer returned merchandise and/or received an Allowance within 30 days $ 700 Debit decrease. Paid for in full, 1 stock at $ 9 per unit gross profit 386000-218000! That pay interest semi-annually the Debit and credit to accounts receivable balance was $ 9,668 on.
Dorra Slimming Vs London Weight Management, Is Nathan Blair And Vivien Blair Related, Wrestling Camps California 2022, Chris Scarfo Ferry, Nfl Hall Of Fame Voting Results, Articles T