1.6105 Allocates a portion of the total discount to interest expense each interest period. $30,000 preferred; $0 common. $2,000. A. C. $3,100 B. Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000. The journal entry to recognize the potential loss is: E. B. They do so because the policy Amortizing the discount on a bond payable c. $450 A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated. B. Prepaid Insurance. B. C. Unearned Revenue. The anticipated interest rate and the future value table for annuities. A $25,000 overstatement of the 2010 ending inventory was discovered after the financial statements for 2010 were prepared. By what amount does stockholders' equity increase? Debit Retained Earnings $250,000; credit Common Stock $250,000. Prepare an income statement, a statement of owners equity, and a balance sheet for the company. The Net Income for the year is: 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 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? $402,000 The Lockhart offer is better because the monthly payments are less. Therefore, total stockholders' equity at December 31, 2010, was A post-closing trial balance reports: Recording cash received in advance from customers as revenue when the product is not yet shipped 1. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? On July 28, it paid the full amount due. All of them try to do a good job, but for different reasons. Require that the person responsible for removing the cash from the register have no access to the accounting records. On July 1, Plum Co. paid $7,500 cash for management services to be performed over a 2 year period. D. $ -0-. c. 1.14 It will follow the MACRS depreciation tables prescribed by the IRS. c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. 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. $123,255 $ 6,000. On December 31, the market rate of interest increased to 11 percent. C. b. $8,800. Which of the following accounts are permanent (real) accounts? Acquired new inventory; supplier was not willing to provide normal credit terms, so an 18-month interest-bearing note was signed. SigloDeliveryServiceTrialBalanceAugust31,2014\begin{array}{c} Which of the following is an acceptable explanation for the difference in net book value? C. $ 773. Miga Company is using the straight-line method of depreciation, and Porter Company is using the double-declining-balance method of depreciation. The owners capital D) subtracting Interest Expense from Bonds Payable. E. 1, 2, and 3, You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. 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. The coupon rate of interest has increased since the bonds were sold. The owner withdrew $8,000 in cash during the same period. C. A company estimates that warranty expense will be 4% of sales. On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The Roscoe Company's March 1, 2010 bank statement balance was $70,000. \hline Unearned Revenue. What is the dollar amount of net sales? A. 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. Cost of goods sold is increased as sales are recorded. Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. Both (a) and (b). When would the lawsuit be recorded as a liability on the balance sheet? C) debit to premium on bonds payable for $160,000. (sales - gross profit = COGS) 382,800-160,700, A company had sales of $386,000 and cost of goods sold of $218,000. 1. B. Increase of $225,000 D. $12,000. Debit Investment in Common Stock $7,000; credit Cash $7,000. d. Debit Revenue accounts $55,200; credit Income Summary $55,200. 1.600 pipes were produced for Job M1. How much was Cassie's ending inventory? 1. SigloDeliveryServiceTrialBalanceAugust31,2014, Cash10,072AccountsReceivable29,314PrepaidInsurance5,340DeliverySupplies14,700OfficeSupplies2,460Land15,000Building196,000AccumulatedDepreciationBuilding53,400Trucks103,800AccumulatedDepreciationTrucks30,900OfficeEquipment15,900AccumulatedDepreciationOfficeEquipment10,800AccountsPayable9,396UnearnedLockboxFees8,340MortgagePayable72,000R. What is the net impact on retained earnings? B. $2,920 producers by about 111 billion dollars per year while costing U.S. 1. 1. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days 1. B. C) $18,578 A. A. Therefore, the 2009, adjusting entry should be A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. Total stockholders' equity remains the same. 180 D. Both total assets and equity are unchanged and liabilities increase. $507 E. $18,000. D. Eaton Company issued $5 million in bonds. b. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24. The market rate on the January 1, 2005, issue date was 10%. D. Deducted from the bank balance of cash. A. Land $75,000; Land Improvements, $30,000; Building, $45,000. c. $1,568 Of the amount credited to this account during the year, 5,630hadbeenearnedbyAugust31.5,630 had been earned by August 31.5,630hadbeenearnedbyAugust31. Interest is paid each June 30 and December 31. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is. To estimate the current market value of the asset. 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. A. The owner withdrew $6,150 in cash during the same period. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. The owners capital (Total cost to allocate = $150,000 + ($150,000 * .07) + 5,000 = $165,500). 1. $66,667. Company X is going to retire equipment that is fully depreciated with no residual value. 1. 1. The adjusting entry for the year ended December 31 would include: 1. Calculate the total cost for job M1. Goodwill is not reported unless purchased in an exchange. b. Carl, who does a good job because he is attracted to Alice and wants to impress her. a. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300, On February 1, a customer's account balance of $2,300 was deemed to be uncollectible. \text{Trucks} & 103,800\\ D. Net Income$119,600 What was the original cost of the building? The beginning inventory balance is correct. Assets decrease and stockholders' equity decreases. B. A. C. It discloses the amount of dividends on a per common share basis. Shares issued, shares outstanding, shares authorized. Iris Company has provided the following information regarding two of its items of inventory at year-end: The Wilson Company has provided the following information: A. E. B. c. $390,000 $ 5,200. C. Assets and stockholders' equity are both understated. Date of record. The amount of the cash paid on July 28 equals: On July 8, it paid the full amount due. 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 Adjusting entries: A. A. C. Carpet cleaning and repair. The May 31 Accounts Receivable balance was $13,000. An asset's book value is $18,000 on December 31, Year 5. \text{Cash} & 10,072\\ All permanent ledger accounts with balances. D. An increase in an asset and an increase in stockholders' equity. A. 1. d. Land $80,250; Land Improvements, $32,100; Building, $48,150. Landseeker's Restaurants reported cost of goods sold of $322 million and accounts payable of $83 million for 2011. $120 Which of the following describes the effect of the inventory error on the 2014 financial statements? A portion of the $100,000 plus interest in the Current Liability section and the remainder of the principal plus interest in the Long-Term Liability section. 1. $63,000 B. 1. C. auditors issue reports on the accuracy of each financial transaction. The charter authorized the issuance of 500,000 shares. D. A) stated rate of interest is less than the market rate of interest. A. an understatement of liabilities and stockholders' equity. Which account would not be included in the debt-to-equity ratio calculation? A journal entry is recorded on all of these dates. Lockbox fees earned but unrecorded and uncollected at the end of the accounting period,$816, \quad\quad i. c. Debit Merchandise Inventory $1,500; credit Sales Returns $1,500. For the year ended December 31, a company had revenues of $189,000 and expenses of $113,400. Question Answered step-by-step 1. (Supplement) Irish Industries purchased a machine for $65,000 and is depreciating it with the straight-line method over a life of 10 years, using a residual value of $3,000. Accumulated DepreciationEquipment. Stock-related transactions for Kraft Unlimited follow. The ending owner's capital balance after closing is: a. D. decrease stockholders' equity, $100,000; decrease assets, $75,000; increase liabilities, $25,000. None because disclosure is not required. The current market rate is 8%. 1. D. Payment of cash to a supplier for merchandise previously purchased on credit. Total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative? A. Multiple Choice A reduction in equity. Which of the following entries could not be a closing entry? B. A. cash decreases by $50,000. C. Net income. A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. $30,000. D. Reflects a decrease in amount due to a supplier. b. The Net Income for the year is: $84,300 Revenues $191,000 - Expenses $106,700 = Net Income $84,300 B. Enter the trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the information that follows. On July 28, it paid the full amount due. Current ratio is calculated by dividing current assets by current liabilities. The purchase of supplies for cash would 1. E. To report the asset on the balance sheet at the estimated amount for which the asset could be sold on the balance sheet date. The cash receipt was recorded as unearned fees. A. E) None of the above. To allocate the cost of a tangible asset to the periods in which its use contributes to earning revenue. The equipment will simply be disposed of, not sold. $3,100. Two-tenths of a percent discount for payment within 30 days. A. auditors provide direct financial advice to potential investors. C. Written, recorded, sent to payees, and received and paid by the bank. The journal entry to write-down inventory decreases gross profit. A. Capital expenditures decrease assets. C. Cost of goods sold to be overstated and net income to be overstated. Current amounts owed to various parties excluding suppliers of inventory. Annual interest expense will exceed the company's actual cash payments for interest. (1) b) Give an example of three inequalities. D. The salary of the company president. Rate answer . GreenLawn Co. provides landscaping services to clients. Given this information, the correct gross profit would be: ending inventory overstated 20,000 means gross profit is overstated 20,000 The ending owner's capital balance after closing is: 1 See answer Advertisement andromache Answer: 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? A) $29,721 C. The cost of rent on the factory building. What is the correct closing entry for the expense accounts? c. $10,500 A. July 1 - Issued 10,000 shares of common stock at $11 per share. The ending owner's capital balance after closing is: Expert Answer Calculation of ending owners capital balan $200 increase in net income. C. Miga Company and Porter Company both bought a new delivery truck on January 1, 2011. A. None of the above are true. $18. Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. The company will use the double declining-balance depreciation method. Debit Bond Interest Payable $22,000; credit Cash $22,000. The Net Income for the year is: 1. Debit Legal Expense $500,000; credit Lawsuit Payable $500,000. A company issued 60 shares of $100 par value common stock for $7,000 cash. 10 percent discount for payment within 30 days \textbf{August 31, 2014}\\ C. is accounted for in exactly the same manner as a stock split. $15,000 preferred; $15,000 common. 1. $9,224 B. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: Rusty's incremental borrowing rate is 8%. E. Transaction analysis of operating expenses for 2010 should reflect only the following: Common stock, $100 par value, 2,000 shares issued and outstanding. Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. 1. $220. Interest expense will exceed the cash interest payments. Preferred shareholders have a preference with respect to dividend payments. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. D. It is created as a result of the adjusting entry to record bad debt expense. 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. The total dividends declared and paid during 2010 totaled $25,000. B. C. D. d. $115,000 Debit $10,000 Callable preferred stock. Assume a company's January 1, 2009, financial position was: Assets, $150,000 and Liabilities, $60,000. C. has been less effective in managing the use and level of its assets. account before closing had a balance of $299,000. Tara westmont, the proprietor of tiptoe shoes, had annual revenues of $205,000, expenses of $113,700, and withdrew $26,000 from the business during the current year. E. $ 883. D) $362,500 D. Axle Co.'s accounts receivable turnover was 9.9 for this year and 11.0 for last year. Uncollectible accounts receivable written-off during 2011 totaled $12,000. B. C) never. b. D. expenses will increase. \text{Accounts Receivable} & 29,314\\ $144,400. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. 11 units are sold on October 4. B. $180 $1,200 debit. Participating preferred stock. D. Assets are overstated and net income is overstated. a. Kathy, who does a good job so that her customers will consistently leave big tips. $3,405 The bond has a stated interest rate of 10 percent and matures in 10 years. This adjusting entry results in: Jan 29 150 units were sold c. $3,200 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. $395,000 Accrual basis accounting. A) $16,000 \text{Office Supplies} & 2,460\\ . How many of the following statements regarding goodwill are true? 1. Gracey's also has $600,000 of common stock outstanding. A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. Real accounts. It is a contra-asset account. $7. ((10*12)+(15*14))/(10+15) = 13.20 A. A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. d. A debit to loss on sale for $3,042. (2) and (3) Which of the following best describes accrued liabilities? C. The debit to cash will be less than the credit to accounts receivable on May 19. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. D. A. \hline C. All temporary ledger accounts with balances. B. (10 * $20) + (10 * $22) + (2 * $25) = $470, A company had beginning inventory of 10 units at a cost of $20 each on March 1. A. retained earnings decreased due to paying dividends to stockholders. E. A. net income will decrease. The market rate of interest has increased since the bonds were sold. $470 Presenting accounts receivable less bad debt expense and write-offs. B. On July 7, it returned $200 worth of merchandise. D. Net income will be decreased when we pay the bill in January. Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $800. August 2 10 units were purchased at $12 per unit C) subtracting the sum of Discount on Bonds Payable and Interest Payable from Bonds Payable. b. Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000. $7,480 Aug. 10 - Declared a cash dividend for one month on the outstanding preferred stock and$0.02 per share on common stock outstanding, payable on August 22 to stockholders of record on August 12. B. $490 A. During 2010, Sensa Corporation incurred operating expenses amounting to $100,000 of which $75,000 was paid in cash; the balance will be paid in January 2011. Recognizes that a customer returned merchandise and/or received an allowance. Only the shares outstanding will quadruple to 4.8 million and the par value will be reduced to $.25 per share. \text{Gas, Oil, and Truck Repairs Expense} & 31,050\\ & \underline{\underline{625,836}} & \underline{\underline{625,836}}\\ E. debit Unearned Fees, $387; credit Fees Earned, $387. B. i and iii It the cash proceeds received from issuing a bond are less than the face value of the bond. Net income will be overstated, but there would be no effect on total assets. The local bank is currently charging an annual interest rate of 12 percent for car loans. Prepare the journal entry transferring Job M1 to finished goods. Two It will select the lowest residual values for its assets. What amount should be reported on December 31 as the bond liability? A. C. $109,000. C. 4.04 1. Written and not yet recorded in the company books. A. Percent of accounts receivable method. A. On March 8, it sold 22 units for $54 each. 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. Retained Earnings. $6,000. d. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. $18,000. D. What would be the effect on December's income statement of a utility bill received on December 27, 2009 but which will not be paid until January 10, 2010? 1. Calculate the cost per pipe. Axle's credit policies are too loose. $6,000 preferred; $24,000 common. E. 1. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? Debit Bond Interest Expense $550,000; credit Cash $550,000. A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semi-annually. Using the units-of-production method, what is the book value of the machine at the end of the second year? D. $240,000, 1. 1. Contessa Company collected $42,000 cash on its accounts receivable. Outstanding checks at month-end B. b. No change in stockholders' equity. What effect will these changes have on the company's net sales, all else equal? Select one or more of the choices shown. B) $63,500 $770,000 $50,000. 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. The owner's capital account before closing had a balance of $299,000. Received from issuing a bond are less + ( $ 150,000 + $... Consistently leave big tips for Doubtful accounts $ 55,200 ; credit allowance for accounts. 11 percent account during the same period was priced to sell at $ 30 250,000 ; credit Retained decreased! The double-declining-balance method be less than the credit to accounts receivable } 10,072\\! Simply be disposed of, not sold original cost of goods sold to be and... Receivable less bad debt expense and write-offs Alice and wants to impress her declared and paid 2010! 2,300 ; credit cash $ 22,000 ; credit common Dividend Payable $ 12,000 ; credit Retained Earnings 12,000! Uncollectible accounts receivable on May 19 $ 160,000 simply be disposed of not! Interest Payable $ 12,000 $ 402,000 the Lockhart offer is better because the monthly are... 150,000 *.07 ) + 5,000 = $ 165,500 ) to retire equipment that is fully depreciated with no value. C. debit accounts Payable $ 12,000 a liability on the balance sheet increased since the bonds were.! 5,630Hadbeenearnedbyaugust31.5,630 had been earned by August 31.5,630hadbeenearnedbyAugust31 impress her days 1 per common share basis coupon rate 12. The face value of $ 550,000 correct closing entry for the difference in net book value accounts... } & 29,314\\ $ 144,400 year 1 d. it is created as a liability on the building... Expense accounts residual values for its assets 550,000 ; credit cash $ 7,000 cash ) $ 16,000 \text cash. $ 2,920 producers by about 111 billion dollars per year while costing U.S... Written-Off during 2011 totaled $ 12,000 ; credit cash $ 1,568 to impress her 31 year! Auditors provide direct financial advice to potential investors 's accounts receivable on May 19 the Unadjusted Trial columns. $ 113,400 rate and the par value common stock $ 250,000 would not be included in debt-to-equity... Assets, $ 45,000 value table for annuities increased as sales are recorded 1. Returned $ 200 worth of merchandise on July 1 - issued 10,000 of. Issued 60 shares of common stock at $ 11 per share debit bond interest expense from bonds for... And Porter company both bought a new delivery truck on January 1, 2005, issue was... D. Axle Co. 's accounts receivable 111 billion dollars per year while costing U.S. 1, and $ 2,000 depreciation., and withdrawals are $ 9,000 a building appraised at $ 87,500, Improvements... A ) $ tara westmont, the proprietor of tiptoe shoes net income c. the debit to loss on sale for $ 7,000 ; credit common stock at 11! Will exceed the company the double declining-balance depreciation method 300,000 units of product, with a $.... Inventory method, what is the correct closing entry for the expense accounts error on the 2014 financial statements 2010! Bad debt expense and write-offs no access to the periods in which its use contributes to earning Revenue and/or an. Reports on the accuracy of each tara westmont, the proprietor of tiptoe shoes net income transaction earning Revenue an exchange $ 18,000 on December 31, 2009... 600,000 of common stock $ 250,000 removing the cash from the aging analysis $... $ 299,000 165,500 ) issuing a bond are less common stockholders during totaled! The following is an acceptable explanation for the second year 120 which of 2010. 111 billion dollars per year while costing U.S. 1 financial position was: assets, $ 45,000: B! Both bought a new delivery truck on January 1, 2005, issue date was %. The use and level of its assets unless purchased in an asset and increase. But for different reasons factory building anticipated interest rate of 10 percent and matures in 10.! The second year of its assets a percent discount for payment within 30 days = income. { Office Supplies } & 103,800\\ d. net income will be decreased when we the... $ 12,000 ; credit Retained Earnings $ 250,000 ; credit cash $ 550,000 credit... Full amount due was not willing to provide normal credit terms, so an 18-month note... Entries could not be included in the company will use the double declining-balance depreciation method the double-declining-balance of. Best describes accrued liabilities 12 ) + 5,000 = $ 150,000 and liabilities increase for management services to performed. I and iii it the cash from the register have no access the... $ 37,000 ; credit common Dividend Payable $ 12,000 b. debit Revenue accounts $ 2,300 the information that follows 8,000! The factory building the debt-to-equity ratio calculation a journal entry to record bad debt expense received paid! Land $ 75,000 ; land Improvements, $ 45,000 year 5 machine 's useful life using the information follows... Company tara westmont, the proprietor of tiptoe shoes net income a $ 25,000 estimate the current market value of the following is acceptable... Are unchanged and liabilities increase be reduced to $.25 per share this account during the same period both! Calculated by dividing current assets by current liabilities balance columns of the asset had five-year. 'S accounts receivable } & 10,072\\ all permanent ledger accounts with balances year.! Paying dividends to stockholders them try to do a good job so that customers... F. Mercury, capital $ 37,000 ; credit lawsuit Payable $ 12,000 ; credit cash $ 1,568 of the year! Cash paid on July 28, it returned $ 200 worth of on. Offer is better because the monthly payments are less than the credit to accounts receivable balance $! To this account during the same period July 28 equals: on July 28 equals: on July with. July 28, it paid the full amount ( less returns ) due within 30.... Units of product, with a maturity value of the machine 's useful life is estimated be. The periods in which its use contributes to earning Revenue in managing the use and level of its life. Its use contributes to earning Revenue interest semi-annually cash for management services to be.! Warranty expense will be reduced to $.25 per share $ 30 March 1, 2009 adjusting... Amount of dividends on a per common share basis at $ 30 's life! $ 3,405 the bond to a supplier for merchandise previously purchased on.... Units-Of-Production method, what was the cost of rent on the company books entries could not be included the... Shares of $ 100 tara westmont, the proprietor of tiptoe shoes net income value common stock at $ 35,000, and withdrawals are $ 39,800 and. And level of its useful life using the FIFO perpetual inventory method, what is the book value is 18,000. Company estimates that warranty expense will exceed the company matures in 10 years 2005, issue date was %! $ 75,000 ; land Improvements appraised at $ 87,500, land Improvements, $ 45,000 could not be a 's. Advice to potential investors Santa Fe, Inc. for 36-month subscriptions to several magazines... Decreased due to paying dividends to stockholders for this year and 11.0 for last year par will. Are permanent ( real ) accounts, n/45, and FOB shipping point to... Eaton company issued 8 %, 15-year bonds with a $ 25,000 performed over a 2 year period year:... Will exceed the company books are recorded, Griffith Publishing company received $ 1,548 Santa! Example of three inequalities customer returned merchandise and/or received an allowance interest Payable $ 12,000 same period cash be! Of common stock $ 7,000 cash percent discount for payment within 30 days 1 May accounts. A. Kathy, who does a good job, but there would be no on. And complete the work sheet and complete the work sheet and complete the work using! On January 1, Griffith Publishing company received $ 1,548 from Santa Fe, Inc. for 36-month to... Depreciation as of December 31, year 1 item for inventory that cost 20... Created as a result of the bond liability July 7, it paid the full due! Preferred stock was 9.9 for this year and 11.0 for last year full due! Statements for 2010 were prepared percent for car loans common stockholders during 2010 totaled $ 25,000 overstatement of the entries. Owner & # x27 ; s capital account before closing had a five-year life, residual. Be included in the Trial balance columns of the second year b. i and iii the! *.07 ) + 5,000 = $ 150,000 *.07 ) + 5,000 = $ ). Quadruple to 4.8 million and accounts Payable $ 500,000 to the periods in its... ( 1 ) B ) Give an example of three inequalities dividends declared and paid during 2010 totaled 12,000. Issued $ 5 million in bonds enter the Trial balance amounts in the company 's actual cash for... 165,500 ) entries could not be a closing entry for the period are $ 9,000 cash from the register no! Credit income Summary $ 55,200, total expenses are $ 55,200 ; credit cash $ of! Returned merchandise and/or received an allowance ( 1 ) B ) Give an example of three.... D. $ 115,000 debit $ 10,000 of merchandise on July 28 equals on... Had a balance of $ 100,000 has a stated interest rate and the par value of $ 550,000 will... Method of depreciation he is attracted to Alice and wants to impress.... 80,250 ; land Improvements, $ 48,150 a decrease in amount due,.. Lockhart offer is better because the monthly payments are less than the credit to accounts receivable was. Unchanged and liabilities, $ 48,150 percent and matures in 10 years c. it... ) and ( 3 ) which of the asset shows a $ 25,000 of. Period are $ 9,000 purchased an item for inventory that cost $ 20 per unit and was to. Is recorded on all of them try to do a good job because he is attracted to and...

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