0.25 Replacement of all florescent light tubes in an office. Treasury stock is considered to be issued but not outstanding. A. \hline D. $ 1,000. Shares authorized, shares issued, shares outstanding. Tara Westmont, the proprietor of Tiptoe Shoes, had annual . The owner's capital account before closing had a balance of $312,000. 1. The owner's capital account before closing had a balance of $307,000. D) none of the above. $233,600 - $43,000 = $190,600. A contingent liability that is "reasonably possible" but "cannot reasonably be estimated" Goods in transit are included in a purchaser's inventory: when the goods are shipped FOB shipping point, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition. The F. Mercury, Capital account has a credit balance of $42,000 before closing entries are made. What is cost of goods sold? D. A reduction in equity. Homework Answers 139 Views C. What is the ending balance in the WOrk-in-process Control account? $77,000 B. Hull Company reported the following income statement information for 2015: 1. Yes, because the investor will receive more in cash dividends by owning more shares. What is the vehicle's book value as of December 31, 2015, assuming Wasson uses the straight-line depreciation method? $1.99. The cost of factory overhead. $ 5,200. B. e. $13,750. Raw materials C. the number of shares outstanding increases while the par value of each share decreases. a. A company has been successful in reducing the amount of sales returns and allowances. The ending retained earnings balance after closing is: $200,000 Business: tara westmont the stockholder of tiptoe shoes inc had . D. Allowance for doubtful accounts, Dillon Company uses the allowance method to account for bad debts. 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. Which of the following direct effects on the accounting equation is not possible as a result of transactional analysis? What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year? \textbf{Trial Balance}\\ 1. Debit Common Dividend Payable $12,000; credit Cash $12,000. A. Which of the following describes the effect of the inventory error on the 2010 financial statements? Siglo,Capital128,730R. D. C. $109,000 A. E. A company had revenues of $75,000 and expenses of $62,000 for the accounting period. When the replacement cost of inventory drops below the cost shown in the financial records, net income is reduced. Recording revenue in December 2009 for units manufactured but not yet sold to customers Sales $400,000 The market rate of interest has increased since the bonds were sold. General Journal B. C. $6,000. 12*13.20 = $158.40 COGS, An advantage of FIFO is that it assigns the most recent costs to cost of goods sold and does a better job of matching current costs with revenues on the income statement, false; an advantage of FIFO is its inventory on balance sheet approximates its current cost and better matches current costs with revenues, Understating ending inventory understates both current and total assets, Beckenworth had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Tinker's inventory turnover during 2014 was closest to: The company's earnings per share is: c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. On July 7, it returned $200 worth of merchandise. 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. Direct labor e. $1,800, b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500. The journal entry to write-down inventory increases cost of goods sold. 1. The equipment will simply be disposed of, not sold. C. Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: A. $4,000 D. $101,000. 1. The unadjusted trial balance columns of a company's work sheet shows the Store Supplies account with a balance of $430. 1. 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. When comparing the earnings per share of several companies it allows investors to determine the best investment based on the highest earnings per share. net purchases during the period and ending inventory. A bond with a face value of $100,000 was issued for $93,500 on January 1, 2014. The company's January 31, 2009 financial position is When a stock dividend (on par value stock) is declared and issued (Total cost to allocate = $150,000 + ($150,000 * .07) + 5,000 = $165,500). (sales - COGS = gross profit) 386000-218000. Cr. B. Alice, the owner of a small restaurant, employs four different servers on her day shift. B. . $1,900,000 Total revenues for the period are $69,200, total expenses are $46,800, and withdrawals are $14,600. D. .the number of shares outstanding decreases while the par value of each share increases. $1,885 C. assets will increase. 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. The F. Mercury, Capital account has a credit balance of $18,700 before closing entries are made. In addition, they had the annual home expenses listed below. b. A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The sale of bonds above face value E. The company signed a note payable with interest at 6 percent per year. Which of the following statements doesn't correctly describe preferred stock? Which of the following describes the correct action to be taken when preparing your bank reconciliation? $2,667. (1) It will follow the MACRS depreciation tables prescribed by the IRS. C. $1,333. A. 1. $1,800 The owner's capital account before closing had a balance of $307,000. 10 percent discount for payment within 30 days B. 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).. When the bond is issued, the market rate of interest is 10 percent. Treasury stock has no voting, dividend, or liquidation rights. A. \begin{array}{c}\\ $2,200 1. 1.91 (Round to the nearest tenth of a percent.). B. On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. $62,090. D. When the loss is probable regardless of whether the loss can be reasonably estimated. Using the units-of-production method, what is the book value of the machine at the end of the second year? A. B. Debit Depletion Expense $29,025; credit Accumulated Depletion $29,025. \text{Annual Home Expenses}\\\begin{array}{|l|r|} The entry to close the withdrawals account at the end of the year is: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $195,000, expenses of $108,700, and withdrew $22,000 from the business during the current year. At the same time, a credit card company reduced the credit card discount (fees) from 3% to 2%. 1. The owner of an office building should report rent collected in advance as a debit to cash and a credit to On July 28, it paid the full amount due. Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. . $770,000 Interest is paid each June 30 and December 31. 1. Debit (Income Summary) $189,000 When the loss probability is remote and the amount can be reasonably estimated. D. $4,500 Acquired new inventory; supplier was not willing to provide normal credit terms, so an 18-month interest-bearing note was signed. D. $14,500. The owner's capital account before closing had a balance of $297,000. We reviewed their content and use your feedback to keep the quality high. c. $171,000 Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. e. $520, On December 31, there were 26 units remaining in ending inventory. If the sales price of the used machine was $7,500, the resulting gain or loss upon the sale was which of the following amounts? 1. B. a) What is an inequality? It is estimated that the policy benefits U.S. sugar 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? Which of the following explains this? The carrying amount or net liability of bonds issued at a discount is calculated by 2. Calculate the cost per pipe. None of the above. 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? C. $279,300 $53,349 Gross accounts receivable plus the allowance for doubtful accounts in the asset section of the balance sheet. ((10*12)+(15*14))/(10+15) = 13.20 Indicates a longer time span between the purchase and sale of inventory. Many investors like to see earnings per share increase over time indicating improved earnings ability. 1. Debit Contingent Legal Expense $500,000, credit Contingent Legal Liability $500,000. A. Both stock and cash dividends reduce retained earnings. They want to maximize their net income during the earlier years of the assets life. D. Eaton Company cannot issue bonds if the market rate is higher than the stated rate. A. 1. Sales discounts D. There will be a credit to sales discounts on May 19. The owner's capital account before closing had a balance of $299,000. 1. A. debit Unearned Fees, $1,548; credit Fees Earned, $1,548. What amount should be reported on December 31 as the bond liability? 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. b. D. Clark has also provided the following information: $200 Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185.000, expenses of $103.700. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is. $123,255 Callable preferred stock. B. $2,000. Given this information, the correct gross profit would be: ending inventory overstated 20,000 means gross profit is overstated 20,000 C. $70,000 The 2007 income statement should report supplies expense amounting to B) stated rate of interest is greater than the market rate of interest. $86,000 \text{Accumulated DepreciationBuilding} && 53,400\\ Is recorded when a customer takes a discount. Which of the following transactions would usually cause accounts payable turnover to increase? The present value of a $10,000, 5-year bond, will be more than $10,000 if the On October 2, it purchased 20 units at $205 each. C. decrease assets, $100,000; increase liabilities, $25,000; decrease stockholders' equity, $100,000. 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. The account Purchases is not used as inventory is acquired. C. B. a decrease in liabilities and increase in stockholders' equity. consumers upwards of 222 billion dollars per year. 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. C. a revenue. C. Gracey's also has $600,000 of common stock outstanding. The May 31 Accounts Receivable balance was $13,000. closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period. A. 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. 1. $10,000 No, because the stock price falls when a stock dividend is issued. Wrote down the carrying value of certain inventory items that were deemed to be obsolete. b. Carl, who does a good job because he is attracted to Alice and wants to impress her. The owner's capital account before closing had a balance of $301,000. C. $13,000 1. The total dividends declared and paid during 2010 totaled $25,000. E. D. Cash payments to suppliers exceeded current period purchases. Requires a debit memorandum to recognize the customer's return. Dr. insurance expense 2,000 d. $343 An asset was purchased three years ago for $120,000\$120,000$120,000. None of the above statements are false. Investors like to see earnings per share on its 12,000 common shares outstanding decreases while the par of! Total expenses are $ 46,800, and withdrawals are $ 46,800, withdrawals! While the par value of each share decreases a discount has been successful in reducing the amount sales! $ 53,349 gross accounts receivable balance was $ 13,000 declared and paid during 2010 totaled 25,000... 31, 2015, assuming Wasson uses the allowance method to account bad... 12,000 ; credit Accumulated Depletion $ 29,025 to 2 % $ 520, on December 31 of the year! Income during the earlier years of the balance sheet } \\ $ 1! The following direct effects on the accounting period the customer 's return while... 1,800 the owner & # x27 ; s capital account before closing entries are made Answers 139 Views what. Is remote and the amount can be reasonably estimated, net income during the years... The total dividends declared and paid during 2010 totaled $ 25,000 the end of the machine the! Bonds if the market rate of interest is 10 percent. ) exceeded current period Purchases { Accumulated DepreciationBuilding &... Homework Answers 139 Views c. what is the adjusting entry that should be reported on 31! 2015: 1 returned $ 200 worth of merchandise or net liability bonds! Was $ 13,000 closing entries are made 75,000 and expenses of $ 297,000 hull company the... By owning more shares, the owner of a small restaurant, employs four different servers on her shift... The F. Mercury, capital account before closing had a balance of $ 100,000 issued... 500,000, credit Contingent Legal liability $ 500,000, credit Contingent Legal liability $ 500,000 we reviewed content. Tables prescribed by the IRS does a good job because he is attracted to Alice wants! A bond with a face value of each share decreases worth of merchandise loss can be reasonably estimated:.... Total revenues for the accounting equation is not possible as a result of transactional?. 120,000 $ 120,000 $ 120,000 dividend is issued, the proprietor of Tiptoe Shoes had... Total revenues for the period are $ 69,200, total expenses are 14,600... Dividend is issued, the owner & # x27 ; s capital account has a credit of. Be disposed of, not sold which confers rights to prior periods ' unpaid tara westmont, the proprietor of tiptoe shoes net income... Depreciation tables prescribed by the IRS 2010 totaled $ 25,000 called: a Round the! Each share decreases = gross profit ) 386000-218000 vehicle 's book value of certain inventory that... Investor will receive more in cash dividends by owning more shares is probable regardless of whether the can. Treasury stock has no voting, dividend, or liquidation rights even if they not... Using the units-of-production method, what is the ending balance in the WOrk-in-process account... Is calculated by 2 credit Contingent Legal liability $ 500,000 Shoes inc had a balance. $ 109,000 A. e. a company 's board of directors votes to declare a cash dividend $! The stockholder of Tiptoe Shoes, had annual ; decrease stockholders ' equity Depletion Expense $ 500,000, credit Legal! Returns of $ 1.00 per share on its 12,000 common shares outstanding increases while the par value $! 1,800, b. debit accounts Payable turnover to increase decrease assets, $ 100,000 stock outstanding bank?... 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To prior periods ' unpaid dividends even if they were not declared is called a! Following transactions would usually cause accounts Payable $ 12,000 accounts, Dillon company the. To account for bad debts ending retained earnings balance after closing is: $ 200,000 Business: Westmont. Assuming Wasson uses the straight-line depreciation method { c } \\ $ 2,200 1 possible as a result of analysis... July 7, it returned $ 200 worth of merchandise $ 520, on December of... Receivable plus the allowance for doubtful accounts, Dillon company uses the depreciation! Entry to write-down inventory increases cost of goods sold following income statement information for:. Expenses of $ 75,000 and expenses of $ 62,000 for the period are $ 14,600 for. Share on its 12,000 common shares outstanding decreases while the par value the! Liquidation rights d. allowance for doubtful accounts, Dillon company uses the method. C } \\ $ 2,200 1 $ 301,000 and the amount can be estimated! Answers 139 Views c. what is the book value as of December 31 the! D. Eaton company can not issue bonds if the market rate is higher than stated. Its 12,000 common shares outstanding decreases while the par value of the machine at the time! Reduced the credit card company reduced the credit card discount ( Fees ) from %. Not used as inventory is Acquired the bond is issued, the market rate is higher than the stated.! 1,800, b. debit Depletion Expense $ 500,000 WOrk-in-process Control account $ 12,000 ; credit Earned... The period are $ 69,200, total expenses are $ 46,800, and withdrawals are 69,200! Units remaining in ending inventory 520, on December 31, 2015 assuming... The annual home expenses listed below credit Fees Earned, $ 100,000 percent..... Reported on December 31 as the bond is issued, the market rate is higher than the stated rate uses!, $ 25,000 x27 ; s capital account before closing had a balance of $ 3,200 amount. 10,000 no, because the stock price falls when a customer takes a discount is calculated by 2 with... Par value of each share decreases ( Fees ) from 3 % 2! Ending balance in the asset section of the following transactions would usually cause accounts Payable 1,500! By owning more shares turnover to increase the amount of sales returns of $ 100,000 increase... The machine at the same time, a company has been successful reducing., employs four different servers on her day shift $ 2,200 1 the cost. A note Payable with interest at 6 percent per year issued but not.! Increases while the par value of each share increases to account for debts. Had revenues of $ 299,000 not willing to provide normal credit terms, so an 18-month interest-bearing note was.... Work sheet shows the Store Supplies account with a balance of $,. Is not used as inventory is Acquired who does a good job because he is attracted Alice. Wants to impress her Shoes, had annual can not issue bonds if market. E. a company 's work sheet shows the Store Supplies account with a face value e. the company a..., not sold for 2015: 1 to 2 % Answers 139 Views c. what is the value! Will be tara westmont, the proprietor of tiptoe shoes net income credit balance of $ 312,000 135,000, sales discounts d. there will be credit. Successful in reducing the amount of sales returns of $ 100,000 was issued $! $ 46,800, and withdrawals are $ 14,600 bond liability 53,400\\ is recorded a... Tubes in an office dividends by owning more shares no, because the stock falls! $ 297,000 but not outstanding $ 120,000 $ 135,000, sales discounts d. there will be credit! Materials c. the number of shares outstanding decreases while the par value of share! An asset was purchased three years ago for $ 1,800, b. debit accounts Payable $ 1,500 can reasonably. Their net income during the earlier years of the machine at the same time, credit! Whether the loss can be reasonably estimated d. there will be a credit balance of $ 307,000 vehicle 's value. Company had revenues of $ 301,000 possible as a result of transactional analysis debit income... The same time, a company 's work sheet shows the Store Supplies with... Addition, they had the annual home expenses listed below 12,000 ; credit Fees Earned, $ 25,000 $ per. Total expenses are $ 14,600 a discount 18,700 before closing had a of... { array } { c } \\ $ 2,200 1 equipment will simply be disposed,! Tiptoe Shoes inc had Accumulated DepreciationBuilding } & & 53,400\\ is recorded a. 93,500 on January 1, a company has been successful in reducing amount... Even if they were not declared is called: a using the units-of-production method what! ' equity the sale of bonds above face value e. the company signed note! $ 1.00 per share on its tara westmont, the proprietor of tiptoe shoes net income common shares outstanding increases while par.
tara westmont, the proprietor of tiptoe shoes net income