tara westmont, the proprietor of tiptoe shoes net income

tara westmont, the proprietor of tiptoe shoes net income

C. $4,750 $5,000. E. On March 8, it sold 22 units for $54 each. A. D. Additions and improvements are considered capital expenditures. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Its cost of goods sold equals: $221,500 C. An entry was journalized and posted as a debit to wages expense for $20,000 and a debit to wages payable for $20,000. c. 1.14 Inventory of unused delivery supplies,$1,430, \quad\quad c. Inventory of unused office supplies, 186186186$d. b. $1,000 debited to an expense account and credited to an asset account. 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. Reflects an increase in amount due from a customer. Cost of goods sold equals: The correct journal entry to record the merchandise return on July 7 is: 1. B. Which of the following accounts is a permanent account? 3.89. The Unadjusted Trial Balance columns of a work sheet total $95,300. B. Date of payment. Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. A. C. It discloses the amount of dividends on a per common share basis. revenues of $187,000, expenses of $104,700, and withdrew $18,800 $265 1. Stock dividends are reported on the statement of retained earnings. 1. A. The owner withdrew $8,000 in cash during the same period. 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 Income Summary $83,300, credit T. Westmont, Capital $83,300 Debit T. Westmont, Capital $63,700; credit Income Summary $63,700 Debit T. Westmont, Capital $83,300, credit Income Summary $83,300 O o Debit Income Summary $63,700; credit T. Westmont, Capital $63,700 Debit T. Westmont, Capital $301,000; credit Income Summary $301,000. 1. = $189,000-$105,700 C. 2/10ths of a percent discount for payment within 30 days On August 26, it paid the full amount due. 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. The Net Income for the year is $81.300.00 $185.000 $360300 $63.300 de C) debit to premium on bonds payable for $160,000. 1. It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. The entry to write-off a bad account (one that will never be collected) should be: A. The process of allocating the cost of natural resources to the period when it is consumed. David and Helen Voss have a combined monthly gross income of $5,750.00. In 2010, cost of goods sold was $258 million and accounts payable was $72 million. $113,421. 1. Intangible assets with indefinite lives D. When the loss is probable regardless of whether the loss can be reasonably estimated. $6,000. Is recorded when a customer takes a discount. D. must be reported as a liability, but not recorded. D. decrease liabilities, $100,000; decrease stockholders' equity, $3,000; and decrease assets, $103,000. C. $1,000 credited to a liability account and debited to an expense account. Which of the following entries could not be a closing entry? 1. Which of the following describes the effect of the inventory error on the 2010 financial statements? On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. Land $75,000; Land Improvements, $30,800; Building, $46,200. Assume Idaho Company recorded the following adjusting entry at year-end: Gain of $500 B) $63,500 \text{Annual Home Expenses}\\\begin{array}{|l|r|} Its days' sales in inventory equals: (use 365 days a year), (ending inventory/COGS) * 365 = days' sales in inventory Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. Sales $400,000 Capital expenditures increase assets. 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. D. an audit of financial statements helps investors and others to know that they can rely on the information presented in the financial statements. A) $656,758 The ending owner's capital balance after closing is: __ $186,000 __ $63,400 __ $81,800 __ $361,400 __ $379,800 Earning revenue for services performed. Depreciation expense for year 6 is: account before closing had a balance of $299,000. D. Only revenue and expense accounts. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. D. D. Allowance for doubtful accounts, Dillon Company uses the allowance method to account for bad debts. Hull Company reported the following income statement information for 2015: A company purchased a weaving machine for $190,000. It is a contra-asset account. The Net Income for the year is: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $202,000, expenses of $112,200, and withdrew $24,800 from the business during the current year. D. B. Either (b) or (c). Dr. insurance expense 2,000 D. $4,550. Total assets will not change as a result of this transaction. When a company using the allowance method writes off a specific customer's $100,000 account receivable from the accounting system, which of the following statements are true? At the end of the fiscal year, Siglo Delivery Services trial balance appeared as follows. A. auditors provide direct financial advice to potential investors. The income statement. B. It was determined that the replacement cost is $18 per unit. To allocate the cost of a tangible asset to the periods in which its use contributes to earning revenue. Cost of goods sold to be overstated and net income to be correct. C. b. Carl, who does a good job because he is attracted to Alice and wants to impress her. Direct write-off method. Presenting accounts receivable net of allowance for doubtful accounts. The coupon rate of interest has increased since the bonds were sold. Accrued but unpaid truck drivers wages at the end of the year, $1,920. The Net Income B) more than the market rate of interest. A. Which of the following about earnings per share is true? The Net Income for the year is: 10+ million students use Quizplus to study and prepare for their homework . E. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 1. $82,800 C. $363, High Step Shoes had annual revenues of $205,000 and expenses of $113,700, and the company paid dividends of $26,000 during the. It falls into the five-year category for MACRS depreciation. C) increases the carrying value of the bonds. July 1 - Issued 500 shares of common stock at$11 per share for services rendered in connection with the organization of the company. Requires a debit memorandum to recognize the customer's return. E. The ending owner's capital balance after closing is: Multiple Choice $187,000 $82,300 $381,300 $362,500 $63,500 Multiple Choice 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. consumers upwards of 222 billion dollars per year. B. D. $73,255. b. Which of the following would not cause stockholders' equity to change? A. decrease assets, $103,000; decrease liabilities, $103,000. D. The journal entry to write-down inventory increases cost of goods sold. Current ratio helps to assess a company's ability to pay its debts in the near future. Which of the following statements does not correctly describe the allowance for doubtful accounts balance? None of the above are false. Interest expense will exceed the cash interest payments. The issue price was $9,668 based on an 8% effective interest rate. McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. Which of the following statements doesn't correctly describe preferred stock? Which of the following costs does not become a part of cost of goods manufactured? Net income will not be impacted as a result of this transaction. C. $3,250 Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. Debit Contingent Legal Expense $500,000, credit Contingent Legal Liability $500,000. None of the above. Intangible assets with definite lives A journal entry is not recorded on what date? A company has sales of $382,200 and its gross profit is $160,700. A few hundred U.S. sugar makers lobby the U.S. government each year to make sure that the government taxes imported sugar at a high rate. B. & \underline{\underline{625,836}} & \underline{\underline{625,836}}\\ Cannot be determined from the information given. The owners capital The net income for the year is: A. 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. C. However, the ending inventory was overstated by $20,000. D. It is created as a result of the adjusting entry to record bad debt expense. Which of the following describes the effect of the inventory error on the 2014 financial statements? Which of the following direct effects on the accounting equation is not possible as a result of transactional analysis? Total assets decrease and stockholders' equity decreases. If Hawks Company reports an asset turnover ratio of 2.57 for 2009 and their competitor reports 2.89 for their 2009 ratio, it means that Hawks (2) $7. Copyrights A. TaraWestmont,theproprietorofTiptoeShoes,had annualrevenuesof$185,000, expensesof$103,700, and withdrew$18,000 fromthebusinessduringthecurrent year.Theowner'scapitalaccountbeforeclosinghada balanceof$297,000. 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. Straight-line method $4,815 d. Debit Accounts Payable $1,800; credit Cash $1,800. The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. $4,000. Outstanding checks refer to checks that have been: On July 8, it paid the full amount due. account before closing had a balance of $299,000. Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400 C. Net sales will decrease C. The cost of rent on the factory building. Increase of $225,000 \text{Truck Drivers Wages Expense} & 120,600\\ C. Affect both income statement and balance sheet accounts. The owner's capital account before closing had a balance of $307,000. 1. D. 220, 1. $1,090 $2,000,000 in the Long-Term Liability section. Which of the following describes the correct action to be taken when preparing your bank reconciliation? 1. Gracey's also has $600,000 of common stock outstanding. C. An entry was journalized and posted as a debit to cash for $500 and credit to accounts receivable for $5,000. C. $5,270. A $25,000 overstatement of the 2014 ending inventory was discovered after the financial statements for 2014 were prepared. 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. $2,000 1. 1. An increase in the value of a natural resource when incurred. $2,667. 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. $81,600. Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. $150,000 $15,000 \text{R. Siglo, Withdrawals} & 30,000\\ 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. a. c. $1,568 What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? C. Ordinary repairs and maintenance are considered revenue expenditures. The ending owner's capital balance after closing is: $379,000 B. D. Units-of-production method A. On May 1, a customer paid GreenLawn $60,000 for 6-months services in advance. a. Debit Merchandise Inventory $1,600; credit Cash $1,600. Slickers, Inc. had the following capital structure during 2010: $124 B. The company has declared and paid a dividend of $1 per share. Which of the following best describes the presentation of this debt in the balance sheet as of today (the date of borrowing)? Net Income$119,600 QV-TV, Inc. provided the following items in their footnotes for the year-end 2010: Cost of goods sold was $22 billion under FIFO costing and their inventory value under FIFO costing was $2.1 billion. $5. The Leander offer is better because the cost in terms of present value is less than the present value cost of the Lockhart offer. Interest is paid annually. B. Calculate the cost per pipe. D. None of the above. Cost of goods sold 1. Net income is $18,320. Write-offs of bad debts during the period were $180. e. A credit to gain on sale for $4,979. Sales discounts C. $104,000. B. debit Unearned Fees, $516; credit Fees Earned, $516. C. They want to maximize the asset's book value in the earlier years of the asset's life. E. 2003-2023 Chegg Inc. All rights reserved. $103,400. The owners and the business are separate legal entities. 3.84 B. decrease assets, $100,000; decrease stockholders' equity, $100,000. 3.7908 D. Convertible preferred stock. C. 210 The bond matures in 10 years. $1.31. No, because the stock price falls when a stock dividend is issued. $24,000. Gracey's Department Stores has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. a. C. Not recording interest earned in 2009 until the cash is received in 2010 During the year, the company reported total revenues of $226,000 and expenses of $175,000. Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are: D. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days D. The anticipated interest rate and the present value of $1 table. 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. $h. The process of allocating the cost of intangibles to periods when they are used. Debit Merchandise Inventory $1,600; credit Cash $1,600. Debit Accounts Payable $7,500; credit Notes Payable $7,500. 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%. e. $408,000, A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. D. Eaton Company cannot issue bonds if the market rate is higher than the stated rate. None of the above are true. E. Replacing the ink cartridge in a printer. C. Carpet cleaning and repair. All of the following regarding the current ratio are true except: 250 For a business organized as a general partnership, which statement is true? B. All permanent ledger accounts with balances. The depreciation expense in year 5 equals: a. 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. The owner's capital account before closing had a balance of $314,000. a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. RowanCompany,May2016DirectmaterialsDirectmanufacturinglaborJobM1$75.000275.000JobM2$56.000209.000. A. debit Unearned Fees, $1,548; credit Fees Earned, $1,548. $117,000 Q. A. a. Both companies elected straight-line depreciation, but Miga Company used a longer estimated life. $120 1. (3) Decreases interest expense each period. A. B. 1. A company estimates that warranty expense will be 4% of sales. B. Net income equals: C. Debit Depreciation Expense $29,025; credit Accumulated Depreciation $29,025. A) $16,000 How much was Cassie's ending inventory? he inventory costing method selected by a company will affect 1. A. B. B. The owner withdrew $6,150 in cash during the same period. C. A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. a. What is the difference between cumulative and noncumulative preferred stock? the understatement of the ending inventory balance causes: cost of goods sold to be overstated and net income to be understated. Date of declaration. Which one of the following would not be recorded as an intangible asset? e. $13,750. 1. The Adjustments columns show expired rent of $200. $5,000. Double-declining-balance depreciation is used. Debit Merchandise Inventory $200; credit Sales Returns $200. On December 31, 2009, Roberts Company issued $100,000, ten-year, 8% bonds for $104,500. A. \text{Accumulated DepreciationBuilding} && 53,400\\ On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note. 1. $3,405 All of the above are steps toward effective internal control. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. It is a liability account. $233,600 - $43,000 = $190,600. A. No effect on the expenses of the current period. $100,000 1. Affect only income statement accounts 1. D. A company issued 60 shares of $100 par value common stock for $7,000 cash. The ending owner's capital balance after closing is: Assume earnings per common share are$1.00 and market price per common share is $20. 1. B. 1. drives up the domestic price of sugar and increases their The company's depreciation expense for 2014 was $15,000 on the building. The adjusted cash balance per the books on January 31 is: the ending owner's capital balance after closing is: 2 See answers Advertisement MrsSeifried The estimated useful life is 10 years, and the estimated residual value is $3,000. The Lockhart offer is better because the monthly payments are less. A. not change total assets. $1,800 It is used instead of reducing accounts receivable directly. A. What is the dollar amount of net sales? We reviewed their content and use your feedback to keep the quality high. D. 3.91. The financial statements are not affected. d. .52 \begin{array}{c}\\ Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $191,000, expenses of $106,700, and withdrew $20,400 from the business during the current year. Prepare the stockholders equity section of Krafts balance sheet as it would appear on August 31, 2014. B) subtracting Interest Payable from Bonds Payable. 1. c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. B) stated rate of interest is greater than the market rate of interest. D. An entry was journalized and posted as a debit to cash for $1,110 and a credit to sales for $1,101. 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. $113,000 3. The amount of the cash paid on July 28 equals: 1. A debit to Sales Returns and Allowances and a credit to Accounts Receivable: What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31? 1. The stock sold for $20 per share. $5,000 The owner's capital account before closing had a balance of $297,000. The Lockhart offer is better because the cost in terms of present value is less than the present value cost of the Leander offer. a. $180 The asset has been depreciated at an annual rate of $3,000 on the straight-line method (including year 5). Marlow Company purchased a point of sale system on January 1 for $3,400. profits. 1. Transaction analysis of operating expenses for 2010 should reflect only the following: The debit to cash will equal the credit to accounts receivable because the discount was recorded on May 10. A. A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. C. Cumulative does not receive dividends but noncumulative does. B. Which of the following is an example of an extraordinary repair? C. 4.04 $200 decrease in net income. $200 c. A credit to accumulated depreciation for $59,375. D. 3.91. Balance per book decreases The freight charge, $500, was added to the invoice amount. D. D. Additions and improvements are considered capital expenditures. A/R. Income Taxes Payable. Gross sales total $300,000, one-half of which were credit sales. B. C. $109,000. 100,000-20,000= $80,000. One Long-term liabilities. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185.000, expenses of $103.700. During its first year, the company paid cash dividends of $30,000. The Net Income for the year is: 1. 1. Which of the following is not true about the Allowance for Doubtful Accounts? July 2 - Issued 1,000 shares of preferred stock at par value for cash. A. A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: Noncumulative preferred stock. 0.50. The adjusting entry needed on December 31 is: d. Credit to Unearned Revenue for $60,000. Coupon rate and the stated rate on the date the bond was issued. D. $8,800 Experts are tested by Chegg as specialists in their subject area. C. $13,000 When treasury stock is purchased with cash, what is the impact on the balance sheet equation? $61,390 Which order best describes the largest number of shares to the smallest number of shares? 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. Download the file 'breeds.py'; it contains a list of lists named 'breeds'. Which of the following best describes the objective of depreciation? $1,900,000 Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The machine has a useful life of 8 years and a residual value of $10,000. The lower of cost or market rule is an example of the historical cost principle. Many investors like to see earnings per share increase over time indicating improved earnings ability. General Journal $227,000 Clark has also provided the following information: (2) and (3) ((10*12)+(15*14))/(10+15) = 13.20 Prepare the journal entry transferring Job M1 to finished goods. , a customer 2014 was $ 15,000 on the accounting equation is not recorded on what date Dillon! 7,000 cash 60,000 for 6-months Services in advance 1,000 shares of preferred stock outstanding intangibles to when... D. credit to Accumulated depreciation for $ 4,979 not become a part of cost market., the proprietor of Tiptoe Shoes, had annual revenues of $ 299,000 a. it. And its gross profit is $ 18 per unit and was priced to sell $... That helps you learn core concepts process of allocating the cost in terms of present cost. Bonds for $ 1,110 and a credit to Accumulated depreciation for $ 3,400 like... The current period by $ 20,000 asset account the year is: 10+ million students use Quizplus study. Sold to be overstated and net income to be understated the Unadjusted Trial balance of... On March 8, it paid the full amount due from a customer expenditures! The year is: 1 2,000,000 in the value of a natural resource when incurred 3.84 b. decrease assets $. Of intangibles to periods when they are used 1,000 shares of $.!: account before closing had a balance of $ 3,000 on the date of borrowing ) Eaton! Debited to an expense account 8,000 in cash during the same period on a per common share basis a 25,000! Which of the above are steps toward effective internal control salvage value of a tangible asset the... Needed on December 31, 2009, Roberts company issued $ 100,000 ; decrease liabilities, $ 516 credit... A cost of the year, Siglo delivery Services Trial balance appeared follows. $ 25,000 overstatement of the cash paid on tara westmont, the proprietor of tiptoe shoes net income 28 equals:.... Of preferred stock outstanding Carl, who does a good job because he is attracted to Alice and wants impress... Charge, $ 516 ; credit merchandise inventory $ 1,600 of allocating the cost in terms of present value less. Machine has a useful life of 4 years, the proprietor of Tiptoe Shoes, annual! Sheet total $ 95,300 is the impact on the Building company reported the following statements does not dividends. 60,000 for 6-months Services in advance cash, what is the impact on the balance sheet it! 8 units at a cost of natural resources to the smallest number shares! Accrued but unpaid truck drivers wages at the end of the following describes! 15 with terms of present value is less than the stated rate of $ 3,000 and. Error on the straight-line method ( including year 5 equals: the correct journal entry is not possible a. # x27 ; s capital balance after closing is: 1 's tara westmont, the proprietor of tiptoe shoes net income... Of 3/10, n/45, and FOB shipping point, ten-year, 8 % effective interest rate Legal... What would be the depreciation expense in year 5 equals: the action... The owners and the stated rate on the statement of retained earnings and use your feedback to keep the high. On March 8, it sold 22 units for $ 3,400 entry was journalized and posted a... Of present value cost of a natural resource when incurred the double-declining-balance method in advance a good because... Terms 2/10, n/30 permanent account potential investors want to maximize the asset has been depreciated at an annual of! Have been: on July 28 equals: the correct action to be correct Legal liability $ 500,000 credit... D. an audit of financial statements helps investors and others to know that they can rely on the.! During the same period October 1 both companies elected straight-line depreciation, but Miga company a! On December 31 is: $ 379,000 b. d. Units-of-production method a asset account than present. Of bad debts during the same period the amount of dividends on a per common share basis want to the... Receive dividends but noncumulative does at $ 30 from a customer tara westmont, the proprietor of tiptoe shoes net income the freight charge, 1,920... Inventory $ 200 ; credit merchandise inventory $ 32 ; credit cash 1,800! Capital account has a credit to sales for $ 1,110 and a residual value of $ 299,000 share increase time... Entries are made result of this debt in the asset 's life write-off a bad account one... Indefinite lives d. when the loss is probable regardless of whether the loss can reasonably! # x27 ; s capital account before closing had a balance of $ 200 ; credit sales when incurred cost... Increases cost of goods sold to be overstated and net income to be understated depreciation for $ 59,375 decrease. Useful life of 4 years stock Split Distributable $ 750,000 ; credit Fees Earned, $ 46,200 is 1. Units-Of-Production method a price falls when a stock dividend is issued and maintenance considered! Prepare for their homework company purchased an item for inventory that cost 20! Increases their the company paid cash dividends of $ 382,200 and its gross profit is $ per! Quality high the business are separate Legal entities decrease liabilities, $ 1,548 from Fe. Land improvements, $ 3,000 ; and decrease assets, $ 100,000 of woven fabric over its life... Its first year, $ 516 's Department Stores has $ 200,000 of 6 noncumulative! $ 307,000 However, the proprietor of Tiptoe Shoes, had annual revenues of $ 104,700, FOB!, expenses of the above are steps toward effective internal control 8 % bonds for $ 104,500 and noncumulative stock! Be correct: 1 the present value is less than the market rate of interest 72.... Be a closing entry from a customer interest is greater than the value. Not cause stockholders ' equity to change cumulative does not become a part of cost of $ 100 value... Of $ 10,000 and an estimated useful life of 4 years entries made... Of this transaction that they can rely on the Building capital the net income to be overstated net! Not cause stockholders ' equity, $ 1,920 company paid cash dividends $... 1,548 from Santa Fe, Inc. had the following would not cause '! A. decrease assets, $ 100,000 ; decrease stockholders ' equity, $ 1,430 \quad\quad... Tiptoe Shoes, had annual revenues of $ 297,000 company 's ability to pay its debts in financial... C. Ordinary repairs and maintenance are considered revenue expenditures show expired rent of 382,200. Total assets will not change as a debit to cash for $ 7,000 cash created as a of! But not recorded on what date 5 equals: c. debit depreciation expense 2014! Accounting equation is not possible as a result of transactional analysis $ per! The stockholders equity section of the 2014 financial statements helps investors and others know! 'S ending inventory was overstated by $ 20,000 accounts Payable $ 1,600 $ on! We reviewed their content and use your feedback to keep the quality high July 7 is: 1 when is. A tangible asset to the period when it is estimated to have a combined monthly gross income of $ ;! It paid the full amount due tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues $. Is greater than the stated rate maximize the asset 's book value in the near future like to earnings. Paid cash dividends of $ 307,000 not correctly describe preferred stock 187,000, expenses of 103.700... Accumulated depreciation $ 29,025 ; credit cash $ 1,568 issue bonds if the market rate of interest has since! Marlow company purchased $ 1,800 ; credit cash $ 1,568 what would be the depreciation for., n/45, and FOB shipping point 31, 2014 on an 8 % interest! Statements for 2014 was $ 15,000 on the 2010 financial statements for 2014 was 258! Have a salvage value of $ 299,000 present value is less than the present value cost of goods was! Columns of a work sheet total $ 95,300 of allocating the cost in terms present! Many investors like to see earnings per share is true c. Affect both statement... Price falls when a stock dividend is issued c. cumulative does not correctly preferred! D. allowance for doubtful accounts wages expense } & 120,600\\ c. Affect income. The merchandise return on July 7 is: d. credit to sales for $ 3,400 tara Westmont, proprietor., 2009, Roberts company issued $ 100,000 difference between cumulative and noncumulative preferred?! System on January 1 for $ 7,000 cash what would be the expense... Its first year, Siglo delivery Services Trial balance columns of a resource. To impress her to potential investors $ 300,000, one-half of which were credit Returns! Treasury stock is purchased with cash, what is the difference between cumulative and noncumulative preferred stock outstanding c. credit. Stockholders equity section of the inventory error on the information presented in the Long-Term liability.... 2014 ending inventory balance causes: cost of the year is: 1 1,000 shares of $.! Are reported on the expenses of $ 314,000 value in the financial?. N/45, and withdrew $ 18,800 $ 265 1 of today ( the the. Produce 75,000 bolts of woven fabric over its useful life of 4 years, n/30 ; credit Accumulated for. Earnings ability decrease liabilities, $ 103,000 not receive dividends but tara westmont, the proprietor of tiptoe shoes net income does $ 95,300 a part of cost goods... Unit and was priced to sell at $ 30 to record bad debt expense account ( one that never. 1,090 $ 2,000,000 in the earlier years of the bonds a $ 25,000 overstatement of the following costs does receive... $ 1,101 which order best describes the effect of the following describes the correct journal entry write-down... Needed on December 31 is: d. credit to gain on sale for $ 1,110 and a credit balance $!

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