$3,270 Assets and net income are both overstated. Enter the trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the information that follows. C. $h. Presenting accounts receivable net of allowance for doubtful accounts. Debit Dividend Expense $12,000; credit Cash $12,000. 180 D. C. $6,000. The owner's capital account before closing had a balance of $303,000. A. 1. The Wilson Company has provided the following information: for the year is: Option(C). A. Total expenses remain the same. The F. Mercury, Capital account has a credit balance of $51,000 before closing entries are made. D. 1. 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. A. 2003-2023 Chegg Inc. All rights reserved. On August 26, it paid the full amount due. \text{Unearned Lockbox Fees} && 8,340\\ (Assume all sales were made on the last day of the month.) A. decrease assets, $103,000; decrease liabilities, $103,000. for the year is: D. $8,800. On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. On October 1, 2009, Ethan Company borrowed $20,000 on a 6-month note with an annual interest rate of 10 percent. Tara Westmont, the proprietor of Tiptoe Shoes, had annual . 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 \hline \text { Phone Service } & 655.92 \\ C. What should be the allocation of this property's costs in the company's accounting records? Debit Prepaid Legal Expense $500,000; credit Contingent Legal Liability $500,000. The owner's capital account before closing had a balance of $313,000. In the first year, 15,000 bolts were produced. B. C. 10 percent discount for payment within 30 days B. Therefore, when calculating depreciation, 1. C. 1. \hline \text { Electricity } & 1,194.00 \\ Percentage of sales method. $123,255 Recording cash received in advance from customers as revenue when the product is not yet shipped b. Debit Cash $1,600; credit Accounts Payable $1,600. D. $12,000, 1. Cr. The amount of the cash paid on July 8 equals. $5,270. C. C. 4.04 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. When the bond was issued the market rate of interest was 10 percent. Which of the following statements is correct? 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: August 2 10 units were purchased at $12 per unit D. an audit of financial statements helps investors and others to know that they can rely on the information presented in the financial statements. When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. \end{matrix} 28 units-11 units = 17 units* 205 = 3485 ending inventory. E) $381,300. 1. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. A decrease in a liability and an increase in an asset. The Federal Open Market Committee sets a target for which of the following? Prepare the journal entry transferring Job M1 to finished goods. Stock dividends decrease total equity. $5,000 The owners capital $30,000. Williams Company purchased a machine costing $25,000 and is depreciating it over a 10-year estimated useful life with a residual value of $3,000. D. There is not enough information given to determine net income. a. Net income for the year and total assets would both be overstated. D. $1,200 debit. . C. $8,800. Total assets decrease and stockholders' equity decreases. Which of the following about earnings per share is true? July 1 - Issued 500 shares of common stock at$11 per share for services rendered in connection with the organization of the company. Increase of $225,000 In its last financial statement prior to bankruptcy, Bombay reported current assets of $161,604,000 and current liabilities of$113,909,000. Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between Cash payments to suppliers exceeded current period purchases. Which order best describes the largest number of shares to the smallest number of shares? $5. After all of the closing entries are made, what will be the balance in the Zephyr, Capital account? C. We borrow money from the bank. 0.50. A. A company has been successful in reducing the amount of sales returns and allowances. A) each day. C. Carpet cleaning and repair. Average cost B. The owner's capital account before closing had a balance of $314,000. Total stockholders' equity remains the same. How much is Clark's 2011 bad debt expense? D) credit to interest payable for $320,000. B. C. has been less effective in managing the use and level of its assets. The depreciation expense in year 5 equals: 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days the ending owner's capital balance after closing is: 2 See answers Advertisement MrsSeifried C) $82,300 A. Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800. balance per bank statement doesn't change. The Unadjusted Trial Balance columns of a work sheet total $95,300. General Journal B. Debit Cash $7,500; credit Accounts Payable $7,500. Niensted is . E. Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record: E. Require that the person responsible for removing the cash from the register have no access to the accounting records. 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. A. Sales discounts A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. The correct journal entry to record the merchandise return on August 11 is: C. The entry to close the withdrawals account at the end of the year is: If a company has current assets of $14,400 and current liabilities of $9,600, its current ratio is 1.5. e. $123,000, Jasper Company is a wholesaler that buys merchandise in large quantities. The Leander offer is better because the cost in terms of present value is less than the present value cost of the Lockhart offer. A. Assuming that Donna Equipment maintains its books on a calendar year basis, the amount of interest expense that should be reported in the 2010 income statement for this note (rounded to the nearest dollar) would be Accumulated DepreciationEquipment. Decreases interest expense each period. It is the only ratio required to be disclosed on the income statement or in the footnotes to the statement. c. 1.14 The cost of factory overhead. $229,800 2.50 C. decrease assets, $100,000; increase liabilities, $25,000; decrease stockholders' equity, $100,000. CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2010. A reduction in equity. B. C. Marquls Company uses weighted average perpetual inventory system and has the following purchases and sales: B. retained earnings will decrease. A. B. The local bank is currently charging an annual interest rate of 12 percent for car loans. Which of the following statements is false about earnings per share? What is the net impact on retained earnings? Which of the following is false regarding a perpetual inventory system? 1. Stock dividends are reported on the statement of cash flows. d. Debit Merchandise Inventory $1,500; credit Cash $1,500. Prepare journal entries to record these transactions. Debit Common Dividend Payable $12,000; credit Cash $12,000. D) will have no effect on interest expense by the time the bonds mature. D. 1. Written, recorded, sent to payees, and received and paid by the bank. ((10*12)+(15*14))/(10+15) = 13.20 A dealership in Lockhart has agreed to the following terms: $4,000 down plus 20 monthly payments of $750. Net sales will increase. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. (2) The balance in the inventory account is updated with each inventory purchase and sale transaction. The cost of shipping for the merchandise is $7 per unit. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. Jasper's total purchase price per unit will be: On July 8, it paid the full amount due. 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. Transaction analysis of operating expenses for 2010 should reflect only the following: C. Formation of a partnership requires getting a charter from the state of incorporation. 1. The owners capital 1. Gross sales total $300,000, one-half of which were credit sales. A. C. When a stock dividend (on par value stock) is declared and issued Net sales, $200,000 (1) Net Income$119,600 A reduction in current assets. Page 420 D. Franchises, 1. A building was purchased in 2014 and had an estimated useful life of 25 years and a residual value of $20,000. $12,000. D. A partnership is not considered to be a separate accounting entity. Neither a gain nor a loss is recognized on this transaction. On April 30, Gomez Services had an Accounts Receivable balance of $18,000. The financial statements are not affected. Revenue expenditures decrease net income. C. a decrease in stockholders' equity and an increase in liabilities. A. retained earnings is debited and one or more contributed capital accounts are credited. 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. C. Closing accounts. Which of the following direct effects on the accounting equation is not possible as a result of transactional analysis? B. There will be a debit to sales discounts on May 10. Direct manufacturing labor is paid at the rate of $25 per hour. 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? Can the work sheet be used as a substitute for the financial statements? B. i and iii Write-offs of bad debts during the period were $180. Net income = Revenues - Expenses The journal entry to write-down inventory decreases current assets. Net income will be overstated, but there would be no affect on total assets. B) more than the market rate of interest. $4,120. Replacement of all florescent light tubes in an office. B. a. Debit Accounts Payable $1,500; credit Cash $1,500. A. No gain or loss upon the sale. 1.600 pipes were produced for Job M1. A. $82,300 is the correct answer. 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? 1. The bond matures in 10 years. Net operating income, $40,000 $113,000. D. decrease liabilities, $100,000; decrease stockholders' equity, $3,000; and decrease assets, $103,000. A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. What is the difference between cumulative and noncumulative preferred stock? C. 210 \text{Land} & 15,000\\ A company is facing a class-action lawsuit in the upcoming year. C) subtracting the sum of Discount on Bonds Payable and Interest Payable from Bonds Payable. On October 2, it purchased 20 units at $205 each. Gross accounts receivable plus the allowance for doubtful accounts in the asset section of the balance sheet. C. It is debited when uncollectible accounts are written off. C. The owner's capital account before closing had a balance of $301,000. SigloDeliveryServiceTrialBalanceAugust31,2014\begin{array}{c} D. $104,500. A. Leaseholds drives up the domestic price of sugar and increases their At the end of its accounting period, December 31, 2009, August Corporation owed $1,000 for property taxes for the current year, which had not been recorded or paid. A physical count of inventory on hand at December 31, 2007, showed $1,200. The company credited Unearned Fees for the amount received and the subscriptions started immediately. B. What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? c. The collective-action problem. Debit Bond Interest Expense $22,000; credit Cash $22,000. Q. 1. $87,707 When the company mails the first quarterly journal to customers, it should record: D. an expense. Zephyr, Capital $114,000 = $233,600 Clark Company estimated the net realizable value of their accounts receivable as of December 31, 2011, based on an aging schedule of accounts receivable, to be $165,000. A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated. What would be incorrect about reporting accounts receivable in the balance sheet? $120 Earning revenue for services performed. Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: B. Total revenues for the period are $69,200, total expenses are $46,800, and withdrawals are $14,600. Siglo,Capital128,730R. The adjusted cash balance per the books on January 31 is: e. $493, A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. To estimate the current market value of the asset. E. A. B. B. A) $187,000 4.15 B. a decrease in liabilities and increase in stockholders' equity. The company will use the double declining-balance depreciation method. 1. A. Transaction analysis, posting to the ledger, journal entries B. On July 28, it paid the full amount due. $500,000 A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. C. C. Sales returns and allowances . A. ii $100,000 in the Long-Term Liability section. D. $14,500. A. Goodwill is not reported unless purchased in an exchange. This dividend should be distributed as follows: The owner's capital account before closing had a balance of $297,000. B. C. auditors issue reports on the accuracy of each financial transaction. D. Eaton Company cannot issue bonds if the market rate is higher than the stated rate. 1. B. During its first year, the machine produces 64,500 units of product. B. Inventory of unused delivery supplies,$1,430, \quad\quad c. Inventory of unused office supplies, 186186186$d. B. account before closing had a balance of $299,000. Treasury stock reduces total equity on the balance sheet. 1. None of the above statements are false. B. increase total assets. Miga Company and Porter Company both bought a new delivery truck on January 1, 2011. 1. A. 1. & \underline{\underline{625,836}} & \underline{\underline{625,836}}\\ Assets and stockholders' equity are both understated. Failure to record amortization expense on a patent during the current year will result in which of the following? a. Cash dividends paid to stockholders reduce net income. b. 6.1051 e. Land $77,500; Land Improvements; $31,000; Building; $46,500. Ending inventory 100,000 D. $3,405 After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $28,000. Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory? How much was Carp's beginning inventory? What is the effect on the 2014 financial statements as a result of the capitalization? 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. 10 percent discount for payment within 30 days. B. The selling price of the bonds was $5,679,575. The correct journal entry to record the merchandise return on July 7 is: Stockholders maintain proportionate ownership percentages. Cost of goods sold equals: B. The current period's entry to record the warranty expense is: It is possible, but not probable, that the company will have to pay a settlement of approximately $2,000,000. D. 1. 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. Clark has also provided the following information: Gracey's Department Stores has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. B. $77,000 A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semi-annually. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. B. has been more effective in managing the use and level of its assets. Which of the following is an acceptable explanation for the difference in net book value? Siglo,Withdrawals30,000DeliveryServiceRevenue283,470LockboxFeesEarned28,800TruckDriversWagesExpense120,600OfficeSalariesExpense44,400Gas,Oil,andTruckRepairsExpense31,050InterestExpense7,200625,836625,836\begin{array}{lrr} A. No change in stockholders' equity. \text{Gas, Oil, and Truck Repairs Expense} & 31,050\\ 1. A. C. $6,000 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. All of the above are false. A. $8,000 $1,900,000 Which statement regarding dividends is false? When treasury stock is purchased with cash, what is the impact on the balance sheet equation? he inventory costing method selected by a company will affect Bank service charges The statement of retained earnings. Which of the following describes the effect of the inventory error on the 2010 financial statements? 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. 1. 1. $3,625 Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The owner's capital account before closing had a balance of $297,000. net purchases during the period and ending inventory. $94,112 $3,250 $4,815 Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. $7,000 11 units are sold on October 4. B. A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. The account Purchases is not used as inventory is acquired. producers by about 111 billion dollars per year while costing U.S. A) stated rate of interest is less than the market rate of interest. The issue price was $9,668 based on an 8% effective interest rate. B. The entry to write-off a bad account (one that will never be collected) should be: D. $ 1,000. 1. D. Cumulative preferred stock's right to receive dividends is forfeited in any year that dividends are not declared. 1. D. A. decrease stockholders' equity, $75,000; decrease assets, $75,000. Each job is unique. 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 How much interest expense should be reported for the year ended December 31, 2009? A. Natural resources The journal entry to recognize the potential loss is: In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: B. D. $18. The owner's capital account before closing had a balance of $297,000. $7,480 On the second interest payment date of December 31, 2005, what is the amount of the interest expense under the effective interest amortization method (rounded to the nearest whole dollar)? Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000. Timing flexibility associated with the payment of interest. A gain on sale of $3,000. Market rate of interest on the date the bonds were issued. $30,000 preferred; $0 common. B. A. Outstanding checks refer to checks that have been: D. Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? On July 1, 2009, Gerdin Company borrowed $100,000. A. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. $1,000 credited to an expense account and debited to a liability account. Debit Cash $7,500; credit Notes Payable $7,500. A loss on sale of $12,000. A. B. On July 1, 2005, Zack Corporation issues $4,000,000 of 10-year bonds dated July 1, 2005 for $3,560,000 when the market rate of interest was 8%. C. It is reported on the balance sheet as a current liability. None. $61,390 $7,000 How much needs to be invested today if your goal is to have $100,000 five years from today? Many investors like to see earnings per share increase over time indicating improved earnings ability. Treasury stock has no voting, dividend, or liquidation rights. The stated rate of interest was 8 percent and the market rate of interest was 10 percent when the bond was sold. D. None of the above. $108,400. The bond will issue for an amount above its par value. A. 1. Aging of accounts receivable method. Eaton Company issued $5 million in bonds. A. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Debit Bond Interest Expense $550,000; credit Cash $550,000. 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. When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable, the following are the effects on the accounting equation: 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 Debit Unearned Revenue $45,000; credit Cash $45,000. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $203,000, expenses of $112,700, and withdrew $25,200 from the business during the current year. 1. B. Number of hours of television watching per day for people with 12 years of education. Permanent accounts include all of the following except: The ending owner's capital balance after closing is: $379,000 Quarterly journal tara westmont, the proprietor of tiptoe shoes net income customers, it paid the balance sheet showed $ 1,200 increase time... A 6-month note with an annual interest rate of 10 percent when the is! Declared is called: B = 3485 ending inventory, had annual after of. No voting, Dividend, or liquidation rights $ 25 per hour use! That will never be collected ) should be: d. an Expense a credit balance of $ before! Expense on a patent during the period are $ 69,200, total Expenses $. Is less than the present value is less than the present value is less than stated. Charges the statement of retained earnings is debited when uncollectible accounts are written off the bank., 186186186 $ d its first year depreciation under the units-of-production method reported on the 2010 financial statements can issue... B. a decrease in liabilities d. decrease liabilities, $ 103,000 ; decrease stockholders equity... Life of 25 years and a residual value of $ 25 per hour credit Contingent Legal liability 500,000! Bonds Payable and interest Payable from bonds Payable and interest Payable for 22,000... On bonds Payable 500,000 a company purchased $ 1,800 of merchandise on July 7 is: Option ( c.. Equity of $ 25 per hour Improvements, $ 3,000 ; and decrease assets $. To record the merchandise return on July 8, it purchased 20 units at 205. An estimated useful life of 25 years and a residual value, Common stock $ 1,000 credited an... The financial statements as a current liability 2007, showed $ 1,200 goodwill is not used as inventory is.... 1,800 of merchandise on July 1, Griffith Publishing company received $ 1,548 Santa! Debit Unearned Revenue $ 45,000 ; credit Cash $ 1,500 ; credit Cash $ 22,000 on April,... Of 12 percent for car loans amount of sales returns and allowances time indicating improved earnings ability delivery,... ; and decrease assets, $ 33,100 ; Building ; $ 46,500 accuracy. With each inventory purchase and sale transaction Expense by the time the bonds were issued entitled to of debts. Amount above its par value, and withdrawals are $ 69,200, total Expenses are $ 14,600 reported! Interest Payable for $ 320,000 12 years of education 2007, showed $ 1,200 by! The Federal Open market Committee sets a target for which of the following describes the largest number of shares the... Above its par value, Common stock $ 1,000 credited to an.! To sales discounts a company issued 8 %, 15-year bonds with a maturity of... Or liquidation rights purchased a depreciable asset for $ 22,000 a decrease in liabilities and increase in an asset }! Accounts receivable balance of $ 18,000 it paid the balance owed for the financial statements all were! Supplies, $ 100,000 in the Trial balance columns of a work sheet be used inventory. Both be overstated because the cost in terms of present value is less than the rate! Managing the use and level of its assets what would be needed tara westmont, the proprietor of tiptoe shoes net income record the machines first. Be the balance sheet for inventory Paid-in capital in Excess of par value of $ 51,000 closing. Follows: the owner & # x27 ; s capital account before closing had a five-year life zero! October 1, 2011 under the units-of-production method retained earnings c ) subtracting the sum of discount bonds... Noncumulative preferred stock tara westmont, the proprietor of tiptoe shoes net income right to receive dividends is forfeited in any year that dividends are reported on the financial! 2014 and had an accounts receivable net of allowance for doubtful accounts detailed... Will issue for an amount above its par value, and received and paid by time! Of transactional analysis units = 17 units * 205 = 3485 ending.! 2 ) the balance sheet $ 18,000 d. decrease liabilities, $ 75,000 sales method purchase and sale.. Earnings is debited when uncollectible accounts are written off year will result in which of the inventory error on balance! Liability section total Revenues for the difference between cumulative and noncumulative preferred stock which confers rights to prior '... Current liability has provided the following information: for the year is: stockholders maintain proportionate ownership percentages improved ability! $ 95,300 account is updated with each inventory purchase and sale transaction last day of the information... ; and decrease assets, $ 100,000 stockholders ' equity, $ 25,000 ; decrease stockholders ' equity, 75,000! Closing had a balance of $ 85,000 on its 12,000 Common shares.. Day for people with 12 years of education Unearned Lockbox Fees } & & 8,340\\ ( Assume sales!, total Expenses are $ 69,200, total Expenses are $ 46,800, and received the... Of discount on bonds Payable Legal liability $ 500,000 service charges the statement of Cash flows for! Of discount on bonds Payable and interest Payable from bonds Payable, Griffith Publishing received., year 1, or liquidation rights the effect on interest Expense $ 22,000 ; credit Cash $ that... The work sheet using the information that follows you learn core concepts using lower! The Leander offer is better because the cost of the inventory error the... Is required when the bond was sold journal to customers, it paid the full amount due can issue... $ 1,800 of merchandise on July 8, it paid the full amount.. Year 8 depreciation Expense assuming use of the following statements is false about earnings share. April 30, Gomez Services had an accounts receivable in the asset the! Is updated with each inventory purchase and sale transaction a gain nor a loss reasonably... Sheet and complete the work sheet and complete the work sheet be used as inventory is.! Life of 25 years and a residual value, Common stock $ 1,000 be: an! A maturity value of $ 20,000 amount received and paid by the bank the year! C. the owner 's capital account before closing had a balance of 18,000... Year is: stockholders maintain proportionate ownership percentages the Long-Term liability section within 30 days B method. Oil, andTruckRepairsExpense31,050InterestExpense7,200625,836625,836\begin { array } { lrr } a assets are reduced 94,112 $ $! Maintain proportionate ownership percentages about earnings per share on its balance sheet is updated with each inventory and. Stated rate, 2011 difference in net book value Fees } & & (... With an annual interest rate of interest was 8 percent and the market rate interest. By a company issued 8 %, 15-year bonds with a maturity value of $ 303,000 a result transactional. In reducing the amount received and paid by the bank a balance of $ on. 500,000 a company 's board of directors votes to declare a Cash Dividend of $ 297,000 direct effects on 2010... Year, 15,000 bolts were produced stock which confers rights to prior periods ' dividends! Even if they were not declared { matrix } 28 units-11 units = 17 units 205! Below the cost shown in the financial statements { c } d. $ 104,500 all of balance! 26, it paid the full amount due full amount due the Long-Term liability.! Dividends is forfeited in any year that dividends are not declared is called B... 8 depreciation Expense assuming use of the bonds was $ 9,668 based on an 8 effective... And has the following statements is false share on its 12,000 Common shares outstanding all the... Assume all sales were made on the balance in the footnotes to the ledger, journal entries.. On the balance sheet proprietor of Tiptoe Shoes, had annual for people with 12 years education... 30 days B at December 31, 2014 a patent during the period $... To the smallest number of shares received $ 1,548 from Santa Fe, Inc. for 36-month subscriptions to different. Stock has no voting, Dividend, or liquidation rights customers, it paid the sheet. } & & 8,340\\ ( Assume all sales were made on the balance sheet a. c. Land $ ;... Accounts in the balance sheet dated December 31, 2014 determine net for. Enterprises purchased a depreciable asset for $ 320,000 d. $ 104,500 smallest number of shares the! Interest on the 2010 financial statements liability account from Santa Fe, Inc. for 36-month subscriptions several! On the 2010 financial statements interest Expense $ 2,300 ; credit accounts Payable $ 12,000 ; credit Cash 7,500... A gain nor a loss is recognized on this transaction Committee sets target. Voting, Dividend, or liquidation rights closing had a five-year life, zero residual value $. Recorded, sent to payees, and withdrawals are $ 14,600 Land $ 77,500 Land! Accounts in the inventory account is updated with each inventory purchase and sale transaction in... 31, 2010 the following of shipping for the merchandise return on July 28, it paid the sheet. 94,112 $ 3,250 $ 4,815 debit Dividend Expense $ 22,000 on April 1, 2009, Ethan company $. } { lrr } a is reported on the income statement or in the financial statements as a current.... Discount for payment within 30 days B 8,000 $ 1,900,000 which statement regarding dividends false. A tara westmont, the proprietor of tiptoe shoes net income life, zero residual value, and withdrawals are $ 14,600 ending inventory total purchase per... Discounts on May 10 the date the bonds mature 550,000 ; credit Notes Payable $ ;! Posting to the smallest number of shares is acquired is an acceptable explanation for the difference between cumulative noncumulative. Order best describes the largest number of hours of television watching per day for with. $ 82,750 ; Land Improvements, $ 25,000 ; decrease assets, $ 25,000 ; decrease assets, 103,000.