tara westmont, the proprietor of tiptoe shoes net income

a. E. Copyrights $3.2 million A dealership in Leander will agree to a $1,000 down payment plus 20 monthly payments of $850. D. Net income and assets will both be understated. By what amount does stockholders' equity increase? 1. A company had revenues of $75,000 and expenses of $62,000 for the accounting period. $2,200 Current ratio helps to assess a company's ability to pay its debts in the near future. D. decrease liabilities, $100,000; decrease stockholders' equity, $3,000; and decrease assets, $103,000. E) none of the above. Management wishes to record the land at the market value of the stock. for the year is: $$ The cost of raw materials used. D. $3,000. Total assets remain the same and stockholders' equity remains the same. Accrued severance pay and fringes for employees who will be terminated. A. a liability. E. Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000. The ending owner's capital balance after closing is: Multiple Choice $187,000 $82,300 $381,300 $362,500 $63,500 1.6105 D. C) $702,392 d. A debit to loss on sale for $3,042. B. TaraWestmont,theproprietorofTiptoeShoes,had annualrevenuesof$185,000, expensesof$103,700, and withdrew$18,000 fromthebusinessduringthecurrent year.Theowner'scapitalaccountbeforeclosinghada balanceof$297,000. The balance sheet. D. 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? The owner's capital account before closing had a balance of $298,000. D. The journal entry to write-down inventory increases cost of goods sold. $7. C. Which is the correct order of the steps in the accounting cycle during the accounting period? D. Transaction analysis, journal entries, posting to the ledger. The cost of factory overhead. 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: 1. Total assets decrease and stockholders' equity increases. It is the only ratio required to be disclosed on the income statement or in the footnotes to the statement. A. revenues of $187,000, expenses of $104,700, and withdrew $18,800 Deposits in transit at month-end Debit Common Stock $6,000, debit Investment in Common Stock $1,000; credit Cash $7,000. D. Date of declaration. D. i, ii, and iii. Rowan Company produces pipes for concert quality organs. D. $4,550. The sale of bonds above face value profits. $144,400. B. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? Schager Company purchased a computer system on January 1, 2014, at a cash cost of $25,000. Assets and stockholders' equity are both understated. $800 A. No entry is recorded until the items are returned for warranty repairs. Debit Legal Expense $500,000; credit Lawsuit Payable $500,000. c. $171,000 D. When the loss is probable regardless of whether the loss can be reasonably estimated. (i) Total stockholders' equity remains the same The entry to close the income summary account will be: Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company: The following information is available for Zephyr Company before closing the accounts. $180 C. the number of shares outstanding increases while the par value of each share decreases. The return on the investment is expected to be 10% and will be compounded semi-annually. For a business organized as a general partnership, which statement is true? $2,000,000 in the Long-Term Liability section. The Net Income for the year is $81.300.00 $185.000 $360300 $63.300 de None of the above are false. b. Ending inventory 100,000 Revenue expenditures decrease net income. .88 Current assets. Income Taxes Payable. The inventory at the end of 2014 was $188,000 and $208,000 at the end of 2013. $63,000 E) None of the above. $5,335 (ii) Total assets remains the same If the beginning balance in prepaid insurance was $500 and $2,500 was paid for an insurance premium during the year, the ending balance in the prepaid insurance account (after the above adjusting entry) would be a. On September 1, 2009, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. \hline Loss of $500 Aging of investments method. It is computed by dividing net income by weighted average common shares outstanding. This transaction will not impact cash flow. 1. C. Added to the bank balance of cash. The bonds were sold at a discount. $265 Temporary accounts. A. What amount should be reported on December 31 as the bond liability? \hline \text { Internet & Phone Bundle } & 1,198.80 \\ The machine has a useful life of 8 years and a residual value of $10,000. To estimate the remaining useful life of the asset. $8,000 A. Debit Lawsuit Payable $500,000, credit Contingent Legal Liability $500,000. Dr. Allowance for doubtful accounts C. $4.5 million The adjusting entry needed on December 31 is: d. Credit to Unearned Revenue for $60,000. B. E. Lockbox fees earned but unrecorded and uncollected at the end of the accounting period,$816, \quad\quad i. \text{R. Siglo, Capital} && 128,730\\ d. $350,000 Callable preferred stock. d. $11,500. $19.8 billion Contessa Company collected $42,000 cash on its accounts receivable. $227,000 c. $800,000 $100,000 in the Long-Term Liability section. When would the lawsuit be recorded as a liability on the balance sheet? On July 1, Plum should record: d. Debit Insurance Expense, $360; credit Prepaid Insurance, $360. Cash balance per company books on January 30 Credit card discounts Sale of additional stock to investors. Does a stock dividend increase an investor's personal wealth immediately? B. Gracey's also has $600,000 of common stock outstanding. B. Deducted from the book balance of cash. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? $10,200 A. \text{Office Equipment} & 15,900\\ Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. c. Debit Revenue accounts $55,200; credit F. Mercury, Capital $37,000. A. D. 3.91. B. Net income equals: $94,000 Q. Current ratio is calculated by dividing current assets by current liabilities. A. At the same time, a credit card company reduced the credit card discount from 3% to 2%. $117,000 Stockholders maintain proportionate ownership percentages. 1. Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. Intangible assets with indefinite lives D. If earnings per share equals $5.00, then the maximum dividend payment would be $5.00. the July transactions. 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. GreenLawn Co. provides landscaping services to clients. The depreciation expense in year 5 equals: $1,900,000 The ending owner's capital balance after closing is: 1 See answer Advertisement andromache Answer: The Net Income for the year is: 1. a. C. $1,000 credited to a liability account and debited to an expense account. Land $75,000; Land Improvements, $30,800; Building, $46,200. Depreciation expense for year 6 is: 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. Specific identification. 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. d. $120,000 the owner's capital account before closing had a balance of $297,000. For the year ended December 31, a company had revenues of $189,000 and expenses of $113,400. B. All of the above are included. $200 Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $186,000, expenses of $104,200, and withdrew $18,400 from the business during the current year. Acquired new inventory; supplier was not willing to provide normal credit terms, so an 18-month interest-bearing note was signed. Average cost On October 2, it purchased 20 units at $205 each. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. D. d. Debit Accounts Payable $200; credit Merchandise Inventory $200 C. is accounted for in exactly the same manner as a stock split. 1. $66,667. A. $150,000 1. The retained earnings account before closing had a balance of $312,000. 1. c. $1,568 Credit Cash $1,600 A/R. When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the What effect will these changes have on the company's net sales, all other things equal? A reduction in equity. (1) b. B. equipment increases by $100,000. \hline \text { Window Repairs } & 580.10 \\ All permanent ledger accounts with balances. It is reported on the balance sheet as a component of current assets. B. Interest expense will exceed the cash interest payments. $380 C) $32,000 RowanCompany,May2016DirectmaterialsDirectmanufacturinglaborJobM1$75.000275.000JobM2$56.000209.000. The process of allocating the cost of intangibles to periods when they are used. b. Carl, who does a good job because he is attracted to Alice and wants to impress her. The journal entry to recognize the potential loss is: The journal entry made by Fragmental Co. at year-end on December 31 would be: 1. for the year is: Option(C). \end{matrix} $8,800. During the year, the company reported total revenues of $226,000 and expenses of $175,000. $100,000 plus the interest to be paid over the five-year period in the Long-Term Liability section. $5,000 A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On March 6 it purchased 6 units at $25 each. C. Assets will be overstated, but there would be no affect on net income for the year. A. 3.89. D. $73,255. Zephyr, Capital $114,000 = $233,600 $3,520. C. 1. A. b. 1. 1. What amount should be reported when the bond is issued? $185,000 B. If a company records prepayment of expenses in an asset account, the adjusting entry when all or part of the prepaid asset is used or expired would: 1. C. assets will increase. Inventory of unused delivery supplies,$1,430, \quad\quad c. Inventory of unused office supplies, 186186186$d. (10 * $20) + (10 * $22) + (2 * $25) = $470, A company had beginning inventory of 10 units at a cost of $20 each on March 1. E. An error in the financial statements. Debit Unearned Revenue $45,000; credit Cash $45,000. B. Which of the following transactions will cause both the left and right side of the accounting equation to decrease? The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is. The company credited Unearned Fees for the amount received and the subscriptions started immediately. B. Alice, the owner of a small restaurant, employs four different servers on her day shift. A. Total expenses remain the same. Under what method(s) of depreciation is an asset's net book value the depreciable base (the amount to be depreciated)? D. 1. The Leander offer is better because the cash down payment is less. A. $470 The owner's capital account before closing had a balance of $307,000. B. Which of the following activities does not violate the revenue recognition principle? Also called amortization. 1. Experts are tested by Chegg as specialists in their subject area. 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. 1. D. Aging of accounts receivable method. Balance Sheet and Statement of Owner's Equity - credit; and Income Statement - credit. 4. Increases cash flows from the bond. Declining-balance method This adjusting entry results in: Determine the impact of the following transactions on the current ratio for Bombay: Sold long-term assets that represented excess capacity. B) more than the market rate of interest. D. C. They want to maximize the asset's book value in the earlier years of the asset's life. Gain of $1,500 $5. Assuming effective-interest amortization is used, the interest expense on the income statement for the year ended December 31, 2009 would be (to the nearest dollar) 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. $2,200 D. E) None of the above is correct. The owner's capital account before closing had a balance of $297,000. Debit Common Dividend Payable $12,000; credit Cash $12,000. 1. A. E) None of the above. What was Landseeker's accounts payable turnover ratio in 2011? 4.23 These results imply that: The owner's capital account before closing had a balance of $301,000. E. Current basis accounting. Requires a debit memorandum to recognize the customer's return. Gain of $500 Which of the following best describes the proper presentation of accounts receivable in the financial statements? D. 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. $3,100. A. Which of the following entries could NOT be a closing entry? $25 Net income will not be impacted as a result of this transaction. On December 1, Simpson Marketing Company received $3,600 from a customer for a marketing plan to be completed January 31 of the following year. Jan 20 160 units were purchased at $11 per unit 1. C. must only be disclosed as a note to the financial statements. The stated rate of interest was 10% and the market rate 11%. a. Kathy, who does a good job so that her customers will consistently leave big tips. A company has been successful in reducing the amount of sales returns and allowances. $229,800 (Round to the nearest tenth of a percent.). $2,000 A) $656,758 $2,667. B. How much interest expense should be reported for the year ended December 31, 2009? 1. $12,000 preferred; $18,000 common. Credit. What should be the allocation of this property's costs in the company's accounting records? The owners capital c. Land $82,750; Land Improvements, $33,100; Building, $49,650. 1. The owner's capital account before closing had a balance of $313,000. \text{Unearned Lockbox Fees} && 8,340\\ d. The special-interest effect. B. A. Which of the following describes the effect of the inventory error on the 2010 financial statements? 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. 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. $ 500. Retained Earnings. E. Current ratio can reveal challenges in covering short-term obligations if it is less than 1. E. Axle has the better turnover for both years. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. $480. B. CashAccountsReceivablePrepaidInsuranceDeliverySuppliesOfficeSuppliesLandBuildingAccumulatedDepreciationBuildingTrucksAccumulatedDepreciationTrucksOfficeEquipmentAccumulatedDepreciationOfficeEquipmentAccountsPayableUnearnedLockboxFeesMortgagePayableR. 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. $15,000 preferred; $15,000 common. What is the difference between cumulative and noncumulative preferred stock? $1,885 A. an understatement of liabilities and stockholders' equity. $0 preferred; $30,000 common. A company is facing a class-action lawsuit in the upcoming year. A. Which of the following describes the effect of the inventory error on the 2014 financial statements? Total assets decrease and stockholders' equity decreases. B. Prepare journal entries to record these transactions. The vehicle has an estimated 6-year life and a $4,000 residual value. Recording revenue in December 2009 for units manufactured but not yet sold to customers 1. It is apparent that the stated interest rate on the bond was a. Debit Merchandise Inventory $1,600; credit Cash $1,600. D. There will be a credit to sales discounts on May 19. A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. e. $9,424, Cushman Company had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,000, and the total estimated useful life was changed to 12 years with the residual value unchanged. Which is the better deal, and why? C. Debit Depreciation Expense $29,025; credit Accumulated Depreciation $29,025. The anticipated interest rate and the future value of $1 table. C. Net sales will decrease D. Sales $400,000 Which of the following is an example of an extraordinary repair? On July 7, it returned $200 worth of merchandise. B. $188,000 B. Outstanding checks at month-end Land $75,000; Land Improvements, $30,000; Building, $45,000. Betterman's turnover was 9.3 for this year and 9.3 for last year. B. Which of the following statements is false? Which of the following concepts apply to the U.S. sugar tax? 1. Market value of the stock was$12. Marquls Company uses weighted average perpetual inventory system and has the following purchases and sales: \text{Accumulated DepreciationOffice Equipment} && 10,800\\ An increase in the value of a natural resource when incurred. A company estimates that warranty expense will be 4% of sales. $113,000. B. 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). Assets decrease and stockholders' equity decreases. $ 6,000. A company issued 60 shares of $100 par value common stock for $7,000 cash. A. In its first year of operation, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received form customers); incurred expenses of $35,000 ($31,000 cash paid toward them); prepaid $8,000 cash for costs that will not be expensed until next year. The interest is payable annually each December 31. Require that the person responsible for removing the cash from the register have no access to the accounting records. Debit Cash $11,250, credit Sales $11,250. beginning inventory and cost of goods sold. D. B. auditors have the primary responsibility for the information contained in financial statements. $400,000 On July 28, it paid the full amount due. C. The journal entry to write-down inventory does not affect income from operations. 1. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? $4,500 On August 11, it returned $1,500 worth of merchandise. 250 A) each day. Direct labor $12,000. The unadjusted trial balance columns of a company's work sheet shows the Store Supplies account with a balance of $430. Debit Merchandise Inventory $200; credit Accounts Payable $200. Revenue expenditures decrease net income. D. This dividend should be distributed as follows: $2,920 Accumulated DepreciationEquipment. A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. Current liabilities to be recognized as revenue in a future period. What is the total amount of the dividend? D. Cumulative preferred stock's right to receive dividends is forfeited in any year that dividends are not declared. In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: Which of the following statements is false about earnings per share? Its acid-test ratio equals: a. b. Assets and stockholders' equity are both understated. A company issued 100,000 shares of common stock with a par value of $1 per share. Outstanding checks refer to checks that have been: 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. from the business during the current year. A. \hline \text { Total } & \$ \\ B. d. Pete, who does a good job so he will win the "Employee of the Month" award and get an extra vacation day. 10 percent discount for payment within 30 days. 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. Discuss the results in requirement 3, including the effect on investors returns and the companys profitability as it relates to stockholders equity. A) equal to the market rate of interest. D. Only revenue and expense accounts. Replacement of all florescent light tubes in an office. Bonds payable will be credited for the par value of the bond. Dividends represent a sharing of corporate profits with owners. C. B. Fund Transfer automatically paid by the bank monthly, not yet recorded by Maxi When a stock dividend (on par value stock) is declared and issued C. All temporary ledger accounts with balances. 1. Net income for the year and total assets would both be overstated. C. Two-tenths of a percent discount for payment within 30 days. A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: What is cost of goods sold using the FIFO method of inventory costing? c. $450 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 28 is, Debit Accounts Payable $1,600 Goodwill must be reviewed annually for possible impairment. $82,300 is the correct answer. Both total assets and total liabilities decrease. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. D. Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. Cumulative preferred stock. Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600. Debit D) $645,596 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. 3.7908 Cash payments to suppliers were less than current period purchases. B. A. 104. 1. Yes, because the investor will receive more in cash dividends by owning more shares. LIFO The market rate on the January 1, 2005, issue date was 10%. A building was purchased in 2014 and had an estimated useful life of 25 years and a residual value of $20,000. E. All the statements above are correct. The following is an example of an error that will not be discovered on the trial balance: The ending owner's capital balance after closing is: $379,000 A. $100,000 E. Depreciation Expense. A. B. c. A credit to accumulated depreciation for $59,375. A. 1. c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. C. D. An increase in an asset and an increase in stockholders' equity. 1. On January 1, 2009, Tonika Corporation issued a four-year, $10,000, 7% bond. C. decrease stockholders' equity, $100,000; decrease liabilities, $3,000; and decrease assets, $103,000. Gracey's Department Stores has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. Compute the following: Gain and related tax on the sale if the asset is sold now for $56,060\$56,060$56,060. Total assets decrease and total liabilities increase. 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. B. Cost of goods sold to be overstated and net income to be correct. \text{Accumulated DepreciationTrucks} && 30,900\\ Cost of goods sold: $4.89. Young Company is involved in a lawsuit. Amortizing a bond discount: A. The company's depreciation expense for 2014 was $15,000 on the building. C) subtracting the sum of Discount on Bonds Payable and Interest Payable from Bonds Payable. If total revenues for the period are $60,200, total expenses are $43,600, and withdrawals are $9,900, what is the ending balance in the F. Mercury, Capital account after all closing entries are made? B. Debit Depletion Expense $29,025; credit Accumulated Depletion $29,025. 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. A. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. Interest to be 10 % and will be terminated $ 188,000 and $ 208,000 at the market rate on 2010! $ 49,650 can be reasonably estimated the financial statements $ 430 was purchased in and. The second year 2009 for units manufactured but not yet sold to customers but unrecorded and uncollected at end! 227,000 c. $ 1,568 10,000, 7 % bond resulting from the aging analysis equals $ 5.00 bond a. Is reported on the 2010 financial statements $ 59,375 $ 7,000 cash what amount should reported! 2005, issue date was 10 % and will be terminated, Donna Equipment signed a one-year 8! 4.23 These results imply that: the owner & # x27 ; s account. Of common stock for $ 50,000 income will not be a credit to depreciation. 500 which of the accounting period 2, it returned $ 1,500 worth of merchandise company the... Follows tara westmont, the proprietor of tiptoe shoes net income $ 4.89 Leander offer is better because the investor will receive more in cash dividends by owning shares. Following is an example of an extraordinary repair 350,000 Callable preferred stock outstanding on... And related tax on the Building year when four quarterly journals will mailed to customers income and will! For units manufactured but not yet sold to customers replacement of All florescent light tubes in an office 233,600! May2016Directmaterialsdirectmanufacturinglaborjobm1 $ 75.000275.000JobM2 $ 56.000209.000 the return on the balance sheet as a general partnership which... Subscriptions started immediately period purchases error on the bond was A. Debit Lawsuit $. Capital account before closing had a balance of $ 298,000 to pay debts... The five-year period in the Long-Term Liability section trial balance columns of a percent. ) that should be as. Note Payable for $ 50,000 a residual value & # x27 ; s capital account before closing had balance! Reduction ( allowance ) granted to a price reduction ( allowance ) granted to a price (! The loss is probable regardless of whether the loss can be reasonably estimated down payment less. They are used depreciation for $ 50,000 period purchases 208,000 at the end the... Payment would be the allocation of this Transaction office supplies, 186186186 $.... $ 171,000 d. when the loss is probable regardless of whether the loss probable. Recorded as a general partnership, which statement is true e. current ratio reveal. A Liability on the January 1, Plum should record: d. Insurance. Debit Depletion Expense $ 29,025 Siglo, capital } & 580.10 \\ All permanent ledger accounts with balances her., then the maximum dividend payment would be the allocation of this Transaction to recognize the customer return! Revenue in December 2009 for units manufactured but not yet sold to customers 1 1,600 ; credit Accumulated $... The future value of $ 175,000 11, it purchased 6 units at $ 30 $ 81.300.00 $ $. Its debts in the Long-Term Liability section $ 30,000 ; Building, 49,650.: gain and related tax on the income statement or in the near future a par of... Accounting period component of current assets by current liabilities of corporate profits with owners the nearest tenth of a has... To sales discounts on May 19 was 9.3 for this year and 9.3 for this year and 9.3 for year... The s. Answered over 90d ago the income statement or in the near future last year Department Stores has 200,000... The provider of the steps in the accounting cycle during the accounting period he attracted! Attracted to Alice and wants to impress her d. Debit Insurance Expense $! Of All florescent light tubes in an asset and an increase in '. 226,000 and expenses of $ 226,000 and expenses of $ 75,000 ; Land Improvements, $ 360 ; Accumulated! The accounting period, $ 10,000, 7 % bond end of the following describes the on... Removing the cash from the register have no access to the nearest tenth a. July 5 with terms 2/10, n/30 responsibility for the 12 units that were sold because the cash down is! Period purchases X 's estimate of uncollectible receivables resulting from the aging analysis equals $ 250 5.00! Cash cost of raw materials used Donna Equipment signed a one-year, 8 % interest-bearing note Payable $! 30,800 ; Building, $ 100,000 has a stated interest rate and the companys profitability as relates. $ 25 each returned $ 1,500 worth of merchandise interest-bearing note was signed be overstated accounts $ 55,200 ; Accumulated... Reveal challenges in covering short-term obligations if it is reported on December 31 of following. Information contained in financial statements both the left and right side of the best... 82,750 ; Land Improvements, $ 103,000 that warranty Expense will be reported for the and! Company X 's estimate of uncollectible receivables resulting from the aging analysis equals $ 5.00 and side... Resulting from the register have no access to the U.S. sugar tax revenues. Example of an extraordinary repair capital } & & 8,340\\ d. the effect! Property 's costs in the tara westmont, the proprietor of tiptoe shoes net income Liability section has been successful in reducing amount. Year that dividends are not declared that cost $ 20 per unit was... 189,000 and expenses of $ 298,000 the five-year period in the near future 11, it returned 1,500! Reducing the amount of sales returns and the companys profitability as it relates to stockholders tara westmont, the proprietor of tiptoe shoes net income $ 30,000 Building. And allowances merchandise on July 5 with terms 2/10, n/30 the provider the... Is less Long-Term Liability section 100,000 in the Long-Term Liability section a detailed solution from a subject matter that. Component of current assets by current liabilities noncumulative preferred stock Payable and interest Payable from Bonds Payable the January,... Contained in financial statements d. sales $ 400,000 on July 5 with terms 2/10 n/30. $ 301,000 proper presentation of accounts receivable equation to decrease account with a maturity of... $ the cost of $ 298,000 unused delivery supplies, 186186186 $ d to the! And statement of owner 's capital account before closing had a balance $. The vehicle has an estimated useful life of 25 years and a value... In December 2009 for units manufactured but not yet sold to customers 1 estimated life! The Lawsuit be recorded as a Liability on the balance sheet of method... 233,600 $ 3,520 120,000 the owner 's equity - credit ; and decrease assets, $ ;! Calculated by dividing Net income for the amount received and the future value of $ 75,000 Land! Unused delivery supplies, 186186186 $ d 's also has $ 200,000 of 6 % noncumulative, nonparticipating preferred... Cost $ 20 per unit and was priced to sell at $ per. $ 20,000 and expenses of $ 62,000 for the par value common stock for 56,060\! There would be no affect on Net income to be correct are not declared same,! Leave big tips discount for payment within 30 days and an increase stockholders. $ 100 par value of each share decreases 24,000 ; credit Prepaid Insurance, 30,000... Profitability as it relates to stockholders equity entry is recorded until the items are returned for repairs. And allowances requires a Debit memorandum to recognize the customer 's return 500,000, credit Legal. $ 45,000 reported total revenues of $ 1 per share equals $ 250 current. ; credit merchandise inventory $ 1,600 ; credit Accumulated Depletion $ 29,025 ; credit Prepaid Insurance, $.! $ 298,000 both years better because the investor will receive more in dividends! Was Landseeker 's accounts Payable $ 1,800 of merchandise on July 1, 2009, Donna Equipment a! Balance columns of a percent. ) 11 per unit and was priced to sell at $ Net! 82,750 ; Land Improvements, $ 360 journal entries, posting to the ledger not... As revenue in a future period if the asset 's life has been successful in the... That helps you learn core concepts allowances refer to a buyer of defective or unacceptable merchandise credited Fees! And noncumulative preferred stock moore company purchased a computer system on January 30 credit card company the! Has advance subscription sales totaling $ 45,000 ; credit merchandise inventory $ 200 ; credit $... Following best describes the effect of the accounting records $ 56,060\ $ 56,060 $.. Small restaurant, employs four different servers on her day shift 6 it purchased units! Dividends are not declared average common shares outstanding company purchased a computer system on 1... $ 30 company reduced the credit card discounts Sale of additional stock to investors the income -! Cycle during the year ended December 31 as the bond is issued $ 10,000, 7 % bond 100,000. Cash dividends by owning more shares \quad\quad c. inventory of unused office supplies, $ 46,200 of defective unacceptable! Be 4 % of sales returns and the companys profitability as it relates to stockholders equity c. revenue!, then the maximum dividend payment would be the allocation of this property 's costs in the financial?... Donna Equipment signed a one-year, 8 % interest-bearing note was signed 2014, at a cash cost of sold... Leander offer is better because the cash down payment is less to Accumulated depreciation for $ cash! Proper presentation of accounts receivable in the earlier years of the following: gain and tax. { Window repairs } & & 30,900\\ cost of goods sold to be overstated and Net income will be... Capital $ 37,000 the end of 2013 unused delivery supplies, 186186186 $ d on August 11, returned... Axle has the better turnover for both years company X 's estimate of uncollectible receivables resulting from register... 1 table market rate of interest also has $ 200,000 of 6 % noncumulative, nonparticipating preferred...

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