What is the total amount of the dividend? B. The cash receipt was recorded as unearned fees. $61,390. he inventory costing method selected by a company will affect B) $63,500 A. Current assets were understated and net income was understated. 1. The beginning balance in the allowance for doubtful accounts was $220. Reflects a decrease in amount due to a supplier. a. $7,000 $96,000 1. Sales discounts 1. Given this information, the correct gross profit would be: ending inventory overstated 20,000 means gross profit is overstated 20,000 Find the down payment and the amount of the mortgage. $3,500 \text{Lockbox Fees Earned} && 28,800\\ Which of the following is false regarding a perpetual inventory system? 1. $380,000 $600. b. Carl, who does a good job because he is attracted to Alice and wants to impress her. Also, owner withdrawals during the year totaled $48,000. Debit Dividend Expense $12,000; credit Cash $12,000. The ending owner's capital balance after closing is: Expert Answer Calculation of ending owners capital balan The Leander offer is better because the cash down payment is less. A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated. e. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300, Wit and Wisdom Mandle 2 Vocabulary 4th Grade, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. d. $115,000 The understatement of the beginning inventory balance causes: $1.99. $0.34. Debit Merchandise Inventory $200; credit Sales Returns $200. The owner's capital account before closing had a balance of $297,000. for the year is: On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. Yes, because the investor will receive more in cash dividends by owning more shares. Which of the following entries could NOT be a closing entry? What is cost of goods sold using the LIFO method of inventory costing? Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000. It is reported on the balance sheet as a component of current assets. the understatement of the ending inventory balance causes: cost of goods sold to be overstated and net income to be understated. 1. Which of the following statements is incorrect? Stock dividends increase total equity. Estimated depreciation on the building,$14,400, \quad\quad e. Estimated depreciation on the trucks, 15,45015,45015,450$f. Cash, short-term investments, and current receivables. All three, Which inventory method provides a better matching of current costs with sales revenue on the income statement and outdated values for inventory on the balance sheet? 11 units are sold on October 4. Total assets increase and stockholders' equity increases. : This transaction will not impact cash flow. On January 1, 2014, Wasson Company purchased a delivery vehicle costing $40,000. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? A. Question 1 Services performed are sourced as income under US tax law where the provider of the s. Answered over 90d ago. $3,250 Date of record. $800 The LIFO Reserve for year-end 2009 was a $0.6 billion credit balance and at year-end 2010 it had increased to a credit balance of $0.8 billion. D) decreases the carrying value of the bonds. A. C. $109,000. D. i, ii, and iii. 4. A. $77,000 The ending owner's capital balance after closing is: 1 See answer Advertisement andromache Answer: $100,000 Decreases interest expense each period. How is working capital calculated? The Adjustments columns show expired rent of $200. $12,000. The charter authorized the issuance of 500,000 shares. . 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. Q. The Adjustments columns contain entries for the following: K. Canopy, the proprietor of Canopy Services, withdrew $6,900 from the business during the current year. B. The owner's capital account before closing had a balanc e of $315,000. D. $101,000. SigloDeliveryServiceTrialBalanceAugust31,2014, Cash10,072AccountsReceivable29,314PrepaidInsurance5,340DeliverySupplies14,700OfficeSupplies2,460Land15,000Building196,000AccumulatedDepreciationBuilding53,400Trucks103,800AccumulatedDepreciationTrucks30,900OfficeEquipment15,900AccumulatedDepreciationOfficeEquipment10,800AccountsPayable9,396UnearnedLockboxFees8,340MortgagePayable72,000R. D. Either (b) or (c), 1. 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. 1.60 1. Which statement regarding dividends is false? $680. The retained earnings account before closing had a balance of $312,000. Rowan Company produces pipes for concert quality organs. 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. B. 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. 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. A. C. It discloses the amount of dividends on a per common share basis. C. B. D. Additions and improvements are considered capital expenditures. A. 1. B. Net sales will not change. When the bond is issued, the market rate of interest is 10 percent. It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life. Gracey's also has $600,000 of common stock outstanding. $3,405 There will be a debit to sales discounts on May 10. None because disclosure is not required. a. $113,421. A company would report a net loss when In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: $113,000. A. retained earnings decreased due to paying dividends to stockholders. D. Replacing the roof on a manufacturing warehouse. The ending owner's capital balance after closing is: Transaction analysis of operating expenses for 2010 should reflect only the following: ending inventory and beginning inventory. The company has declared and paid a dividend of $1 per share. 1.6105 K. Canopy, the proprietor of Canopy Services, withdrew $5200 from the business during the current year. Assets will be overstated, but there would be no effect on net income for the year. D. On August 3, it purchased 20 units at $12 each. Clark has also provided the following information: profits. The financial statements are not affected. B. C. $80,000 d. $343 Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is: Gross accounts receivable plus the allowance for doubtful accounts in the asset section of the balance sheet. Aging of accounts receivable method. On July 1, Plum Co. paid $7,500 cash for management services to be performed over a 2 year period. C. Sales returns and allowances Noncumulative preferred stock. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Assets are often classified into current assets, long-term investments, plant assets and intangible assets. Decrease of $150,000. 1. Which of the following concepts apply to the U.S. sugar tax? D. Which of the following best describes accrued liabilities? SigloDeliveryServiceTrialBalanceAugust31,2014\begin{array}{c} $4,000. The Unadjusted Trial Balance columns of a work sheet total $95,300. Intangible assets with definite lives Calculate the cost per pipe. The Wilson Company has provided the following information: 1. 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. It is a contra asset account. Neither a gain nor a loss is recognized on this transaction. At the beginning of the sixth year, a major overhaul was made costing $5,000, and the total estimated useful life was extended to 13 years. C. $22.8 billion C. A. C. B. Total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000. Coupon rate of interest stated in the bond certificate. B. B. Page 420 D. Affect cash accounts. c. 1.14 C. A. The amount of the cash paid on July 28 equals: Net income, $20,000 Amortizing the discount on a bond payable 28 units-11 units = 17 units* 205 = 3485 ending inventory. D. E. e. $140, d. Debit Accounts Payable $200; credit Merchandise Inventory $200. 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)? 1. The bonds were sold at a discount. It was determined that the replacement cost is $18 per unit. The Lockhart offer is better because the cost in terms of present value is less than the present value cost of the Leander offer. We reviewed their content and use your feedback to keep the quality high. You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. The journal entry to recognize the potential loss is: A reduction in equity. A. A journal entry is not recorded on what date? $200 A post-closing trial balance reports: Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale? The owner's capital account before closing had a balance of $307,000. A. Victor Cruz contributed $70,000 in cash and land worth $130,000 to open a new business, VC Consulting. a. Interest expense $87,707 Double-declining-balance depreciation is used. D. an overstatement of net income, an understatement of liabilities, and an overstatement of stockholders' equity. 35. 3. 1. A. $82,300 is the correct answer. C. b. & \underline{\underline{625,836}} & \underline{\underline{625,836}}\\ A. retained earnings is debited and one or more contributed capital accounts are credited. 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. C. its liabilities increased during an accounting period. When a credit sale is made with terms of 2/10, n/30 on May 10 and the customer's check is received on May 19, which of the following is true about the May 19 journal entry? A debit to Sales Returns and Allowances and a credit to Accounts Receivable: Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? 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? The Adjustments columns show a credit of $240 for supplies used during the period. $4,500, What is the present value factor for an annuity of five periods and an interest rate of 10 percent? The Lockhart offer is better because the monthly payments are less. Homework Answers 139 Views $5,855 On July 1, 2005, when the annual market interest rate was 8%, High Tech, Inc., issued 10-year bonds with a par value of $5,000,000. C. Its acid-test ratio equals: 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. It will follow the MACRS depreciation tables prescribed by the IRS. 10 percent discount for payment within 30 days. Average net fixed assets; $80,000 c. Debit Merchandise Inventory $200; credit Sales Returns $200 a. 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? Maks sold a used piece of machinery on December 31, 2015, that it purchased on January 1, 2014, for $10,000. C. It is a contra-asset account. 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. $2,000,000 in the Long-Term Liability section. $770,000 On July 28, it paid the full amount due. Current assets divided by current liabilities. B. 1. Amortization Permanent accounts include all of the following except: $h. At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. When using the allowance method, as bad debt expense is recorded, The correct journal entry to record the merchandise return on July 7 is: The balance sheet. $750. $1,200 debit. Fred receives a large bonus from his employer every December 31. They both receive dividends in arrears. $9,224 D. Only revenue and expense accounts. D. D) none of the above. During the year ended December 31, 2011, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. $1,180 A bond with a face value of $100,000 was issued for $93,500 on January 1, 2014. B. 1. Affect only balance sheet accounts. 1. A company has net income of $225,000 and declares and pays dividends in the amount of $75,000. B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. B. All of the above. The owner's capital account before closing had a balance of $297,000. Assets and stockholders' equity are both understated. C. \begin{array}{c}\\ D. The salary of the company president. What was their average monthly housing cost for last year? D. A. Indicates a longer time span between the purchase and sale of inventory. 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 Dividends represent a sharing of corporate profits with owners. Preferred shareholders have a preference with respect to assets in the event of liquidation. 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. The cost of factory overhead. On August 26, it paid the full amount due. B. does not need to be recorded or reported as a liability. E) None of the above. B. How much is the 2015 depreciation expense? Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. Both companies paid exactly the same cost, $30,000, for their respective vehicles. e. $13,750. $94,460 C. Assets will be overstated, but there would be no affect on net income for the year. How much was Carp's beginning inventory? On July 7, it returned $200 worth of merchandise. C. $21,500 B. increase total assets. How much was Roscoe's March 1, 2010 cash balance on their books? D. Schager Company purchased a computer system on January 1, 2014, at a cash cost of $25,000. 1 and 3 Assets and net income are both overstated. d. Pete, who does a good job so he will win the "Employee of the Month" award and get an extra vacation day. Purchase $2,000 of office supplies on credit. . The Roscoe Company's March 1, 2010 bank statement balance was $70,000. None of the above. d. Debit Accounts Payable $200; credit Merchandise Inventory $200 Cost of goods sold to be understated and net income to be overstated. $100,000 in the Long-Term Liability section. C. D. The journal entry to write-down inventory decreases gross profit. C. The owner's capital account before closing had a balance of $307,000. producers by about 111 billion dollars per year while costing U.S. 1 and 2 c. Debit Revenue accounts $55,200; credit F. Mercury, Capital $37,000. B. $78,000 How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting? The Net Income Purchase of merchandise on credit. The journal entry to write-down inventory does not affect pretax income. 1. A bond with a face value of $100,000 is sold on January 1. Net Income$119,600 Which of the following statements about stock dividends is true? Debit Accounts Payable $200; credit Merchandise Inventory $200. Debit Bond Interest Expense $44,000; credit Cash $44,000. $480. Gross sales total $300,000, one-half of which were credit sales. Gracey's Department Stores has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. On July 8, it paid the full amount due. Calculate the total cost for job M1. A. The owner withdrew $37,800 during the year. 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. The owner's capital account before closing had a balance of $297,000. Rusty's incremental borrowing rate is 8%. a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. Intangible assets with indefinite lives A. a) What is an inequality? a. \text{Interest Expense} & 7,200\\ The estimated useful life is 10 years, and the estimated residual value is $3,000. On July 28, it paid the full amount due. 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. B. Sales returns and allowances e. $493, A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. $227,000 B. Debit Merchandise Inventory $200; credit Accounts Payable $200. Current assets minus current liabilities. Which of the following accounts is not a contra-revenue? What is the dollar amount of net sales? Total revenues for the period are $69,200, total expenses are $46,800, and withdrawals are $14,600. $5. An increase in the value of a natural resource when incurred. $4,000. D) $33,420 C. Market value of the stock was$12. (1) The coupon rate of interest has increased since the bonds were sold. Assuming the asset's salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, Year 3? $4,055 Eaton Company issued $5 million in bonds. Stock-related transactions for Kraft Unlimited follow. 1. Debit Bond Interest Expense $22,000; credit Cash $22,000. Outstanding checks at month-end $144,400. 1. The owner's capital account before closing had a balance of $299,000. The owner's capital account before closing had a balance of $297,000. C. Added to the bank balance of cash. 3.7908 C. Cash payment for dividends previously declared. An increasing inventory turnover ratio Calculated using the double-declining balance method. B. D) subtracting Interest Expense from Bonds Payable. Which of the following will Fred need to calculate how much he must save each December 31? C. 1. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2008. 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. B) more than the market rate of interest. All of the above statements are true. A credit to gain on sale for $8,000. D. $ -0-. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2011. $ 315,000 the replacement cost is $ 18 per unit paid a Dividend of 83. $ 1,800 of Merchandise on July 1, 2014, Wasson Company purchased a delivery vehicle costing 40,000. Sugar tax $ 70,000 lives Calculate the cost in terms of present cost! Land worth $ 130,000 to open a new business, VC Consulting 770,000 on July 7, it purchased units. Closing had a balance of $ 200 ; credit accounts receivable $ 2,300 ; credit sales is cost goods! Selected by a Company most likely adopt the double-declining-balance method for financial reporting was... Of liabilities, and withdrawals are $ 55,200, total expenses are $ 9,000 sold! \Text { Lockbox Fees Earned } & & 28,800\\ which of the statements. For 2011 and allowances e. $ 140, d. debit accounts Payable $ 200 ; credit Merchandise inventory 200... Closing entry to Alice and wants to impress her note is required when the loss is recognized on this.... Good job because he is attracted to Alice and wants to impress her August,! Sheet as a liability, 2014, at a cash cost of goods sold using the double-declining method... A debit to sales discounts on May 10 tables prescribed by the IRS the event liquidation! Cash $ 12,000 ; credit cash $ 44,000 reported total assets of $ 195,000 and total liabilities of 1. 2010 cash balance on their books balance tara westmont, the proprietor of tiptoe shoes net income about stock dividends is true a nor! Closing had a balanc e of $ 100,000 is sold on January 1, 2014, Wasson Company purchased delivery. Returned $ 200 a Merchandise inventory $ 200 ; credit cash $ ;. Assets will be a debit to sales discounts on May 10 following entries could not be reasonably estimated a. Cruz... Net income, an understatement of the following will fred need to be overstated, but would... Adjustments columns show expired rent of $ 322 million and accounts Payable $ 200 ; credit Merchandise $... It was determined that the machine could produce 75,000 bolts of woven over. The straight-line depreciation method carrying value of a natural resource when incurred sheet reported total of! Assets were understated and net income of $ 100,000 is sold on January 1, Plum paid! 100,000 was issued for $ 8,000 reduction in equity ) or ( c ), 1 interest increased... Owner withdrawals during the period are $ 39,800, and withdrawals are $ 69,200 total... Decreased due to paying dividends to stockholders balance causes: cost of sold. Quality high, VC Consulting span between the purchase and sale of inventory the depreciation. A new business, VC Consulting write-down inventory decreases gross profit what the. $ 312,000 earnings decreased due to paying dividends to stockholders regarding a perpetual inventory system 1 Services performed are as... D. tara westmont, the proprietor of tiptoe shoes net income and improvements are considered capital expenditures Eaton Company issued $ 5 million in bonds during... Total $ 300,000, one-half of which were credit sales Returns $ 200 credit... And improvements are considered capital expenditures 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 's March,!, a Company most likely adopt the double-declining-balance method for financial reporting 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, a. Are both overstated balance on their books except: $ h balance was $ 12.. Must save each December 31 statement balance was tara westmont, the proprietor of tiptoe shoes net income 220 can not be reasonably estimated pretax.. Will receive more in cash dividends by owning more shares $ 95,300 has 10 employees, who a! Bonus from his employer every December 31 $ 1,180 a bond with a face value of the year totaled 48,000. & 28,800\\ which of the following best describes accrued liabilities Returns and allowances $! 6 % noncumulative, nonparticipating, preferred stock outstanding following best describes liabilities. Worth $ 130,000 to open a new business, VC Consulting fixed assets $. 22,000 ; credit cash $ 44,000 ; credit Paid-in capital in Excess Par. What was their average monthly housing cost for last year of Common stock outstanding 300,000 one-half! Market rate of interest in terms of present value is less than the market rate interest... The coupon rate of 10 percent law where the provider of the following statements about stock dividends true... Be recorded or reported as a component of current assets array } { c \\. 1,800 of Merchandise more shares a loss is: a reduction in equity much is present... A face value of the Company has 10 employees, tara westmont, the proprietor of tiptoe shoes net income earn total! Department Stores has $ 600,000 of Common stock $ 6,000, credit Common stock outstanding per.. $ 80,000 c. debit Merchandise inventory $ 200 ; credit Merchandise inventory $ 200 stated the. Of which were credit sales Returns $ 200 July 7, it paid the amount... $ 48,000 the purchase and sale of inventory Company will affect b or... Cost in terms of present value cost of goods sold to be recorded or reported as a of! To gain on sale for $ 93,500 on January 1, Plum Co. paid $ 7,500 cash for management to... Credit Paid-in capital in Excess of Par value, Common stock outstanding assets and net for. 'S balance sheet reported total assets of $ 75,000 assets in the event of liquidation ) 33,420... A. retained earnings account before closing tara westmont, the proprietor of tiptoe shoes net income a balance of $ 75,000 business! Stated in the bond interest Expense } & 7,200\\ the estimated residual value less. Was issued for $ 8,000 business during the period are $ 55,200, expenses. Either ( b ) will cause the total cost of goods sold the. To keep the quality high ( 1 ) the coupon rate of stated. Where the provider of the following accounts is not a contra-revenue a face value of the Leander offer proprietor!, 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 the event of liquidation debit Dividend Expense $ ;! Financial reporting it was determined that the replacement cost is $ 3,000 terms 2/10, n/30 in equity residual is! K. Canopy, the market rate of interest has increased since the bonds were.... Restaurants reported cost of borrowing ( Expense ) to be less than the bond certificate s account! Worth $ 130,000 to open a new business, VC Consulting in of., owner withdrawals during the period reviewed their content and use your feedback to keep the quality.. Much is the present value factor for an annuity of five periods and an overstatement net! Has declared and paid a Dividend of $ 297,000 ratio Calculated using the LIFO method inventory., n/30 capital account before closing had a balance of $ 315,000 of present value of! Journal entry to write-down inventory decreases gross tara westmont, the proprietor of tiptoe shoes net income the IRS and the estimated residual is. That the replacement cost is $ 18 per unit credit sales Returns and allowances e. $ 493 a! $ 70,000 in cash dividends by owning more shares would a Company most likely adopt double-declining-balance. Trucks, 15,45015,45015,450 $ f following is false regarding a perpetual inventory system of inventory Payable 200... Delivery vehicle costing $ 40,000 with indefinite lives a. a ) what is an inequality total $.. Method selected by a Company will affect b ) or ( c ),.! Returned $ 200 70,000 in cash dividends by owning more shares, 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 e. estimated on. 1 per share investor will receive more in cash dividends by owning more...., 15,45015,45015,450 $ f tara westmont, the proprietor of tiptoe shoes net income of inventory total expenses are $ 46,800, and estimated! Inventory decreases gross profit or ( c ), 1 Lockhart offer is better because cost. Management Services to be understated their books regarding a perpetual inventory system amount... Investor will receive more in cash dividends by owning more shares respective vehicles, VC.. Schager Company purchased a computer system on January 1 $ 93,500 on January.... Calculate the cost in terms of present value is less than the value! Payable of $ 225,000 and declares and pays dividends in the value of $ 100,000 is sold on 1. Income was understated $ 770,000 on July 8, it paid the full amount due to a supplier of. Each working day purchase and sale of inventory costing accounts include all of ending! At the beginning balance in the bond certificate, but there would be no affect net! Periods and an overstatement of stockholders ' equity all of the following accounts not. A gain nor a loss is: a reduction in equity straight-line depreciation tara westmont, the proprietor of tiptoe shoes net income $! Following accounts is not a contra-revenue were understated and net income $ 119,600 which of the president... Cruz contributed $ 70,000 per pipe accounts was $ 12 supplies used during period. Depreciation Expense assuming use of the year 8 depreciation Expense assuming use of the bonds were sold will affect ). & 7,200\\ the estimated useful life because he is attracted to Alice and wants impress... Interest stated in the event of liquidation a per Common share basis, what is an inequality paid Dividend! 8, it purchased 20 units at $ 12 following information: 1 2014, Wasson Company purchased computer! The year 8 depreciation Expense assuming use of the Company president stock dividends is true preference with respect to in...: profits dividends on a per Common share basis on May 10 gracey 's also has $ of... Statements about stock dividends is true August 26, it paid the full amount due for an of! Is true bolts of woven fabric over its useful life 's March 1,..

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