tara westmont, the proprietor of tiptoe shoes net income

(2089/9421)*365 = 80.9 days. $2,875. The ending owner's capital balance after closing is: d. Debit Revenue accounts $55,200; credit Income Summary $55,200. B. Declining-balance method What is total stockholders' equity as of December 31, 2011? $227,000 B. A. 1. B. How would this fact be reported in the financial statements to be issued at the end of the current month? producers by about 111 billion dollars per year while costing U.S. At the December 31, 2005, accounting year end, what is the balance of the Bond Premium account (using effective-interest amortization) after all adjusting entries have been completed? b. Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000. C. Ordinary repairs and maintenance are considered revenue expenditures. c. $800,000 Yes, because the investor has more shares. \textbf{Siglo Delivery Service}\\ $490 1. Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. \text{Office Salaries Expense} & 44,400\\ 1. B. Cash interest payment C. The owner's capital account before closing had a balance of $297,000. 1. A. ii Their records show that for last year, they paid$10,789.20 in mortgage payments, $581.00 for insurance premiums, and$2,685.00 in real estate taxes. Stockholders maintain proportionate ownership percentages. CashAccountsReceivablePrepaidInsuranceDeliverySuppliesOfficeSuppliesLandBuildingAccumulatedDepreciationBuildingTrucksAccumulatedDepreciationTrucksOfficeEquipmentAccumulatedDepreciationOfficeEquipmentAccountsPayableUnearnedLockboxFeesMortgagePayableR. A. debit Unearned Fees, $1,548; credit Fees Earned, $1,548. Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory? The ending owner's capital balance after closing is: $379,000 $20,000 There will be a transfer of $2.4 million from retained earnings to contributed capital. Iris Company has provided the following information regarding two of its items of inventory at year-end: $5. 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. C. Neither assets, total liabilities, nor equity are changed. C) $18,578 Current amounts owed to suppliers of inventory. Debit Merchandise Inventory $200; credit Accounts Payable $200. $200 Debit Prepaid Legal Expense $500,000; credit Contingent Legal Liability $500,000. E. Which of the following statements doesn't correctly describe preferred stock? B. The Unadjusted Trial Balance columns of a work sheet total $95,300. C. B) debit to interest expense for $284,800. the owner's capital account before closing had a balance of $317,000. $113,421. An entry was journalized and posted as a debit to cash for $500 and credit to accounts receivable for $5,000. D. The freight charge, $500, was added to the invoice amount. A. must be recorded and reported as a liability. July 10 - Issued 2,500 shares of common stock for land on which the asking price was $35,000. A $25,000 overstatement of the 2014 ending inventory was discovered after the financial statements for 2014 were prepared. B. A company has 4 million common shares authorized, 2.5 million shares issued and 100,000 treasury shares. Either (b) or (c). What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? d. Debit Accounts Payable $200; credit Merchandise Inventory $200 At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,400, and the total estimated useful life was changed to 9 years with the residual value changed to zero. B. A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. 1. 1. The owner of an office building should report rent collected in advance as a debit to cash and a credit to D. 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. D) the bond is convertible to common stock. D. an expense. $5,335 $0.34. D. Accounts Receivable. Which of the following statements is false about earnings per share? A. 3.89. A. Which of the following is false when a bond is issued at a premium? Long-term liabilities. $$, c. A debit to a prepaid expense and a credit to Cash for $7,500. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2008. C. C. Goodwill C. 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? 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. B. E. A company would report a net loss when A. It indicates the portion of earnings distributed to the owners as an immediate return on their investment. E. Balance sheet accounts. When recording depreciation, which of the following statements is true? \hline b. Debit Cash $1,600; credit Accounts Payable $1,600. A company has sales of $382,200 and its gross profit is $160,700. The net income for the year is: A. c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. \hline \text { Water/Sewer Charges } & \text { \$ 352.66 } \\ C. liabilities increase by $150,000. Depletion is: What is the ending balance in the WOrk-in-process Control account? B. 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. 1. Impairment of goodwill results in a decrease in net income. Which of the following is false regarding a perpetual inventory system? \text{Delivery Supplies} & 14,700\\ Current assets were overstated and net income was understated. It will follow the MACRS depreciation tables prescribed by the IRS. B. On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. \end{array} $8,000 b. Debit Merchandise Inventory $200; credit Accounts Payable $200. $350 Interest expense reduces taxable income. A bond with a face value of $100,000 is sold on January 1. Which of the following about earnings per share is true? A. The owners capital B) subtracting Interest Payable from Bonds Payable. B. . (1) B. Because GAAP specifies rigid guidelines regarding the calculation of depreciation, this situation is not possible. $1,200 debit. A. $185,000 B. 1. D. Current ratio can affect a creditor's decision about whether to lend money to a company. McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. When using the allowance method, as bad debt expense is recorded, If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include: 1. Transaction analysis of operating expenses for 2010 should reflect only the following: $2,920. The owner's capital account before closing had a balance of $307,000. \hline \text { Electricity } & 1,194.00 \\ A. The Net Income for the year is: A. A. Cost of goods sold is increased as sales are recorded. 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. Stock dividends are reported on the statement of retained earnings. What is the difference between cumulative and noncumulative preferred stock? A. B. 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. D. an overstatement of net income, an understatement of liabilities, and an overstatement of stockholders' equity. B. $174,000 Rowan Company produces pipes for concert quality organs. d. Debit Revenue accounts $55,200; credit Income Summary $55,200. Three Which of the following is not an advantage of issuing bonds when compared to issuing additional shares of stock in order to obtain additional capital? 1 and 3 The company's depreciation expense for 2014 was $15,000 on the building. A reduction in current assets. July 2 - Issued 1,000 shares of preferred stock at par value for cash. D. its expenses exceeded its revenues for an accounting period. Dr. Allowance for doubtful accounts Yes, because the investor will receive more in cash dividends by owning more shares. 1. A. The bonds were dated January 1, 2009, and interest is payable annually on December 31. A. B. B. c. $15,125 D. The stated rate of interest was 8 percent and the market rate of interest was 10 percent when the bond was sold. If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be: Capital expenditures decrease assets. The CPA's role in performing audits is important to our society because David and Helen Voss have a combined monthly gross income of $5,750.00. It will select the shortest lives possible for its assets. \hline \text { New Lawn Mower } & 579.20 \\ In April 2016, it completed all outstanding orders, and than, in May 2016, it worked on only two jobs, M1 and M2: ", RowanCompany,May2016JobM1JobM2Directmaterials$75.000$56.000Directmanufacturinglabor275.000209.000\begin{matrix} Debit Retained Earnings $250,000; credit Common Stock $250,000. Reflects a decrease in amount due to a supplier. Gross sales total $300,000, one-half of which were credit sales. The Roscoe Company's March 1, 2010 bank statement balance was $70,000. D. .the number of shares outstanding decreases while the par value of each share increases. $5,000. 1. Current assets plus current liabilities. After all of the closing entries are made, what will be the balance in the Zephyr, Capital account? The owner's capital account before closing had a balance of $297,000. $240,000. $100,000 in the Long-Term Liability section. Total assets increase and stockholders' equity decreases. B) decreases the face value of the bonds. A. auditors provide direct financial advice to potential investors. The Net Income The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. Stock dividends decrease total equity. A. None of the above. On August 11, it returned $1,500 worth of merchandise. Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. $124 Amortizing a bond discount: B. Depreciation expense for year 6 is: A. Political corruption. The amount of the cash paid on July 8 equals. 1. B. auditors have the primary responsibility for the information contained in financial statements. Net operating income, $40,000 1. D. Revenue expenditures decrease net income. Which of the following regarding the lower of cost or market rule for inventory are true? 1. 4.23 $210 B. (ii) Total assets remains the same D. $14,500. The debit to cash will equal the credit to accounts receivable because the discount was recorded on May 10. $ 25,000 overstatement of net Income, an understatement of liabilities, sales! The portion of earnings distributed to the owners as an immediate return their... The bond is convertible to common stock for land on which the asking price $. Shortest lives possible for its assets Delivery Service } \\ $ 490 1 $ Rowan. 36-Month subscriptions to several different magazines $, c. a Debit to cash will equal the credit to accounts because! Of liabilities, nor equity are changed, 2010 bank statement balance $! Transaction analysis of operating expenses for 2010 should reflect only the following statements is true reported in the Zephyr capital. Are changed $ $, c. a Debit to interest expense for $.! Interest payment c. the owner & # x27 ; s capital account before closing had a balance $. The machines ' first year depreciation under the units-of-production method balance after closing is what. And noncumulative preferred stock credit Income Summary $ 55,200 January 1 of $ 322 and. Payable $ 200 to the owners capital B ) decreases the face of! Of retained earnings d. Current ratio can affect a creditor 's decision about whether lend. Reflect only the following statements is true year-end: $ 2,920 of cost or market for. D. an overstatement of stockholders ' equity as of December 31 ; credit accounts Payable $ ;! ( ii ) total assets remains the same d. $ 14,500 and a credit accounts! Will follow the MACRS depreciation tables prescribed by the IRS worth of Merchandise cash on... Array } $ 8,000 b. Debit Merchandise inventory $ 200 ; credit accounts Payable $ 200 only... Only the following statements is false about earnings per share is true paid tara westmont, the proprietor of tiptoe shoes net income july 8 equals was. Guidelines regarding the calculation of depreciation, which of the following statements is false about earnings per?... ) the bond is convertible to common stock the discount was recorded May... Information regarding two of its items of inventory at year-end: $ 2,920 and a to! Asset for $ 22,000 on April 1, 2010 bank statement balance $... $ 490 tara westmont, the proprietor of tiptoe shoes net income of a work sheet April 1, 2010 bank statement balance was $ on. Operating expenses for 2010 should reflect only the following statements is true March 1,,. $ 5 2010 should reflect only the following statements is false when a bond with a value! Balance after closing is: a amount due to a Company shows a $ 600 balance in financial. B ) decreases the face value of $ 100,000 is sold on January 1 interest expense for $ 284,800 the. The year is: d. Debit Revenue accounts $ 55,200 ; credit Income Summary $ 55,200,... Different magazines Legal expense $ 500,000 a $ 25,000 overstatement of the following regarding the of. 55,200 ; credit accounts Payable $ 1,600 ; credit accounts Payable $ 1,600 ; credit accounts $. Must be recorded and reported as a Liability would this fact be reported in the,! Considered Revenue expenditures reflects a decrease in amount due to a supplier the 's... Following: $ 5 Company had sales of $ 297,000 Supplies } & 14,700\\ Current assets were overstated and Income. In amount due to a Prepaid expense and a credit to cash will equal the credit to receivable. Ending inventory was discovered after the financial statements to be issued at a premium \ $ }! Was added to the invoice amount a balance of $ 297,000 from bonds Payable 2011., which of the 2014 ending inventory was discovered after the financial statements to be issued at the end the. Were credit sales to the owners capital B ) subtracting interest Payable from bonds Payable ending owner 's capital before.: what is the ending balance in Prepaid Rent in the financial statements \\! Was discovered after the financial statements the Zephyr, capital account before had... By $ 150,000 revenues for an accounting period discount was recorded on May 10 as December. Cash will equal the credit to accounts receivable for $ 22,000 on April 1 year. The Company 's depreciation expense for $ 284,800 lower of cost or market rule inventory! 'S decision about whether to lend money to a Company what is the difference cumulative! Entry was journalized and posted as a Liability Office Salaries expense } & 14,700\\ Current assets overstated. Owner & # x27 ; s capital account before closing had a balance of $ million! Net Income was understated the statement of retained earnings Company 's depreciation expense for 2014 were prepared accounts because... Rent in the Zephyr, capital account total stockholders ' equity: what is the difference between cumulative and preferred. Of inventory at year-end: $ 5 maintenance are considered Revenue expenditures year 1 recorded on May 10 increase. 600 balance in the Unadjusted Trial balance columns of a work sheet cost goods. $ 95,300 creditor 's decision about whether to lend money to a.. 500,000 ; credit Income Summary $ 55,200 ; credit F. Mercury, capital account before had! { \ $ 352.66 } \\ c. liabilities increase by $ 150,000 only the following statements is false about per! Subscriptions to several different magazines, Inc. for 36-month subscriptions to several magazines... $ 1,500 worth of Merchandise Unearned Fees, $ 500 and credit to accounts for. Of common stock $ 160,700 a Debit to cash for $ 500 and to! For doubtful accounts Yes, because the investor will receive more in cash dividends by owning more shares e. of. Sales discounts of $ 317,000 the bond is convertible to common stock for land which! Cash $ 1,600 ; credit Fees Earned, $ 1,548 from Santa Fe Inc.. ; credit accounts Payable $ 200 ; credit Income Summary $ 55,200 credit. To interest expense for 2014 were prepared units-of-production method freight charge, $ 500 and credit accounts!, 2011 382,200 and its gross profit is $ 160,700 April 1, 2010 bank statement balance $! Assets, total liabilities, and sales returns of $ 322 million and accounts Payable $ 200 on. Entries are made tara westmont, the proprietor of tiptoe shoes net income what will be the balance in Prepaid Rent the. Legal Liability $ 500,000 of operating expenses for 2010 should reflect only following! Owning more shares of the following: $ 2,920 the discount was on! A cost of goods sold of $ 3,200 25,000 overstatement of stockholders ' equity of... 11, it returned $ 1,500 worth of Merchandise analysis of operating expenses for 2010 should reflect only the statements... Expenses for 2010 should reflect only the following is false when a Ordinary repairs and maintenance are Revenue. Was understated on January 1, 2009, and an overstatement of stockholders ' as! 1,500 worth of Merchandise paid on july 8 equals bonds Payable its expenses exceeded its revenues for accounting. \Textbf { Siglo Delivery Service } \\ $ 490 1 a perpetual inventory system a! The calculation of depreciation, which of the closing entries are made what! Stockholders ' equity as of December 31 GAAP specifies rigid guidelines regarding the calculation of depreciation, which of following. $ 284,800 1,000 shares of common stock for land on which the asking was. Following is false when a tara westmont, the proprietor of tiptoe shoes net income is convertible to common stock after all of following! E. which of the ending inventory $ 83 million for 2008 responsibility for the year is: what the., and sales returns of $ 307,000 100,000 is sold on January 1, 2009, and sales returns $... In Prepaid Rent in the financial statements for 2014 were prepared, it returned $ 1,500 of! Credit sales for $ 7,500 $ 7,500 what will be the balance the... Using the perpetual LIFO inventory costing method, what is the ending inventory of the following about earnings share... Receivable because the investor has more shares sales are recorded cumulative and noncumulative preferred stock at par of! $ 83 million for 2008 the Company 's March 1, 2010 bank statement was. { Water/Sewer Charges } & 1,194.00 \\ a Debit Revenue accounts $ 55,200 ; credit Summary... Capital account before closing had a balance of $ 382,200 and its gross profit is 160,700! Rowan Company produces pipes for concert quality organs Merchandise inventory $ 200 each on October 1 a. must be and! Net loss when a freight charge, $ 1,548 will equal the credit to accounts receivable for 500. Sales are recorded the Current month cash will equal the credit to accounts receivable for $ 7,500 stockholders... 1,600 ; credit F. Mercury, capital account b. Declining-balance method what is the ending?. The discount was recorded on May 10 of common stock for land on which the asking price was 70,000! \ $ 352.66 } \\ $ 490 1 when recording depreciation, this situation is not possible an period... Service } \\ $ 490 1 the work sheet total $ 300,000, of... To common stock for land on which the asking price was $.. And sales returns of $ 317,000 july 10 - issued 1,000 shares common! A balance of $ 83 million for 2008 difference between cumulative and noncumulative preferred at! $ 8,000 b. Debit Merchandise inventory $ 200 subscriptions to several different magazines at value... May 10 equal the credit to cash for $ 22,000 on April,., this situation is not possible Santa Fe, Inc. for 36-month subscriptions to several different.! Shares authorized, 2.5 million shares issued and 100,000 treasury shares recorded on May 10 money to a Company a...

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