tara westmont, the proprietor of tiptoe shoes net incometara westmont, the proprietor of tiptoe shoes net income

\text{Delivery Supplies} & 14,700\\ A physical count of inventory on hand at December 31, 2007, showed $1,200. Homework Answers 139 Views What was the original cost of the building? B. Which order best describes the largest number of shares to the smallest number of shares? 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 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. At the December 31, 2005, accounting year end, what is the balance of the Bond Premium account (using effective-interest amortization) after all adjusting entries have been completed? The bond has a stated interest rate of 10 percent and matures in 10 years. The ending owner's capital balance after closing is: What effect will these changes have on the company's net sales, all other things equal? b. Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000. consumers upwards of 222 billion dollars per year. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $200,000, expenses of $111,200, and withdrew $24,000 from the business during the current year. The effects of this transaction as reflected in the accounting equation are: 1. Assume Idaho Company recorded the following adjusting entry at year-end: 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. Total assets decrease and stockholders' equity increases. What is the vehicle's book value as of December 31, 2015, assuming Wasson uses the straight-line depreciation method? 1. B. D. i, ii, and iii. $10,200 a. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. The understatement of the beginning inventory balance causes: A portion of the $100,000 in the Current Liability section and the remainder of the principal in the Long-Term Liability section. Units-of-production method C. 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%. B. Sales returns and allowances $87,562, When using the effective-interest method of amortization, the book value of the bonds changes by what amount on each interest payment date? Maks sold a used piece of machinery on December 31, 2015, that it purchased on January 1, 2014, for $10,000. B. How much is Clark's 2011 bad debt expense? D. $0 preferred; $30,000 common. A company has been successful in reducing the amount of sales returns and allowances. 1. 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? Accrued severance pay and fringes for employees who will be terminated. The owner of an office building should report rent collected in advance as a debit to cash and a credit to B. (1800-200). No change: the reduction of the asset cash is offset with the addition of the asset treasury stock. (iii) Total expenses remains the same Dr. Allowance for doubtful accounts $1.65. C. Recording the expense in December when it is incurred will increase expenses Download the file 'breeds.py'; it contains a list of lists named 'breeds'. $9,224 D. $101,000. During 2007, supplies purchases amounted to $5,000. C. A. C. $80,000 No entry is made for this transaction. E. $9,000. Cash receipts from customers exceeded current period purchases. Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. $5,000. A. decrease stockholders' equity, $75,000; decrease assets, $75,000. $25 What would be incorrect about reporting accounts receivable in the balance sheet? E. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. 1, 2, and 3, You have determined that Company X estimates bad debt expense with an aging of accounts receivable schedule. d. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. $6,000. $2,000,000 in the Long-Term Liability section. At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. On September 1, 2009, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. One If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in: Failure to record amortization expense on a patent during the current year will result in which of the following? On April 30, Gomez Services had an Accounts Receivable balance of $18,000. None of the above are false. D. $50,000. Each partner is potentially responsible for the debts of the business. 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. Reflects an increase in amount due from a customer. D. D. Ending inventory 100,000 C. $ 4,800. C. Sales returns and allowances $15,000 A. 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. The F. Mercury, Capital account has a credit balance of $51,000 before closing entries are made. Assets will be overstated, but there would be no effect on net income for the year. On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. (1) The owner's capital account before closing had a balance of $314,000. 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. A reduction in current liabilities. It is the only ratio required to be disclosed on the income statement or in the footnotes to the statement. A journal entry is not recorded on what date? D. 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. Capital expenditures decrease assets. E) None of the above is correct. A. D. A journal entry is recorded on all of these dates. account before closing had a balance of $299,000. 10 percent discount for payment within 30 days. The return on the investment is expected to be 10% and will be compounded semi-annually. Debit Unearned Revenue $45,000; credit Cash $45,000. A. Eastview company uses a perpetual LIFO inventory system, and has the following purchases and sales: $1,000 credited to an expense account and debited to a liability account. B. Common stock, $100 par value, 2,000 shares issued and outstanding. The Bond Discount on the January 1, 2005, issue date was (rounded to the nearest whole dollar) The note and interest are due on December 31, 2009. C. $200 difference between the debit and credit columns of the Unadjusted Trial Balance. When the loss probability is remote and the amount can be reasonably estimated. \textbf{Trial Balance}\\ E) $381,300. \hline \text { New Fumace/AC } & 6,458.90 \\ Which of the following describes the effect of the inventory error on the 2014 financial statements? Copyrights B. $18,000. Rent expense appears on which of the following statements? d. $115,000 The owner's capital account before closing had a balance of $297,000. The general journal entry to record this transaction is: \end{array} The F. Mercury, Capital account has a credit balance of $42,000 before closing entries are made. D. must be reported as a liability, but not recorded. $1.9 million C. 4.04 A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. B. Which is the correct order of the steps in the accounting cycle during the accounting period? It will select the shortest lives possible for its assets. 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. 1. Under what method(s) of depreciation is an asset's net book value the depreciable base (the amount to be depreciated)? Estimated depreciation on the building,$14,400, \quad\quad e. Estimated depreciation on the trucks, 15,45015,45015,450$f. Which statement regarding dividends is false? The present value of a $10,000, 5-year bond, will be more than $10,000 if the & \underline{\underline{625,836}} & \underline{\underline{625,836}}\\ C. A decrease in stockholders' equity and a decrease in an asset. d. $350,000 Assume the owner, Raul Siglo, made no additional investments. C. Goodwill Replacement of all florescent light tubes in an office. The owner's capital account before closing had a balance of $297,000. 1. E. $1,180 The bonds were dated January 1, 2009, and interest is payable annually on December 31. Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: 2 A company paid $150,000, plus a 7% commission and $5,000 in closing costs for a property. B. A. decrease assets, $103,000; decrease liabilities, $103,000. a. C. $21,500 The owner's capital account before closing had a balance of $299,000. C. Unearned Revenue. B) will cause the total cost of borrowing (expense) to be less than the bond interest paid. The process of allocating the cost of natural resources to the period when it is consumed. B. \hline \text { Internet & Phone Bundle } & 1,198.80 \\ QV-TV, Inc. provided the following items in their footnotes for the year-end 2010: Cost of goods sold was $22 billion under FIFO costing and their inventory value under FIFO costing was $2.1 billion. A gain on sale of $3,000. None of the above. Current assets plus current liabilities. D. Cumulative preferred stock's right to receive dividends is forfeited in any year that dividends are not declared. E. Affect only equity accounts. 2.50 On September 1, Ziegler Corporation had 50,000 shares of $5 par value common stock, and $1,500,000 of retained earnings. D. $2,200. Interest expense will exceed the cash interest payments. Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. \text{Accumulated DepreciationOffice Equipment} && 10,800\\ Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. 1. Total assets remain the same. Real accounts. C. $104,000. $62,090. Which of the following about earnings per share is true? \text{Mortgage Payable} && 72,000\\ B. Which of the following entries could not be a closing entry? C. The shares authorized, issued, outstanding, and held in treasury will all quadruple while the par value will be reduced to $.25 per share. A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. Download the file 'breeds.py'; it contains a list of lists named 'breeds'. \end{matrix} Which of the following explains this? e. $1,800, b. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500. During the year, the company reported total revenues of $226,000 and expenses of $175,000. Management wishes to record the land at the market value of the stock. Stock dividends are reported on the statement of retained earnings. The Net Income for the year is: $84,300 Revenues $191,000 - Expenses $106,700 = Net Income $84,300 Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $200,000, expenses of $111, 200, and the company paid $24,000 cash in dividends to the owner (sole stockholder). E. D. There will be a credit to sales discounts on May 19. All of the above are steps toward effective internal control. The firm is in a 35 percent tax bracket. Indicates a shorter time span between the ordering and receiving of inventory. $2,920. A. Which of the following statements does not accurately describe the lower of cost or market (LCM) valuation method? Debit Bond Interest Expense $22,000; credit Cash $22,000. Cr. ending inventory and beginning inventory. Which of the following statements is correct? Net sales will decrease. Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $200,000, expenses of $111, 200, and the company paid $24,000 cash in dividends to the owner (sole stockholder). A debit to Sales Returns and Allowances and a credit to Accounts Receivable: Debit Prepaid Subscriptions $33,750; credit Unearned Revenue $33,750. 1. B. A. E) None of the above is correct. B. B. There will be a debit to sales discounts on May 10. Is recorded when a customer takes a discount. B. D. A disclosure note is required when the loss is remote and the amount can be reasonably estimated. The anticipated interest rate and the future value of $1 table. . The debit to cash will equal the credit to accounts receivable because the discount was recorded on May 10. C. decrease assets, $100,000; increase liabilities, $25,000; decrease stockholders' equity, $100,000. B. retained earnings will decrease. Total assets increase and stockholders' equity decreases. For beginning stockholders equity, use the balance after The Adjustments columns show a credit of $240 for supplies used during the period. 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. Deducted from the book balance of cash. B. D. $180,000. c. $3,200 C. A. 1. Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. b. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. A. None of the above. D) none of the above. The CPA's role in performing audits is important to our society because \text{Direct materials} & \text{\$ 75.000} & \text{\$ 56.000}\\ d. $570 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. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31, 2014. D. an overstatement of net income, an understatement of liabilities, and an overstatement of stockholders' equity. 1. E. Balance sheet accounts. e. Debit Accounts Payable $1,500; credit Purchase Returns $1,500. a. Debit Cash $11,250, credit Sales $11,250. B. D. Current assets were understated and net income was overstated. Debit Cash $7,000; credit Common Stock $7,000. Expired insurance, 306030603060$b. The anticipated interest rate and the present value of $1 table. \hline Balance per book decreases 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days We pay a supplier for inventory we previously bought on account. Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $189,000, expenses of $105,700, and the company paid $19,600 cash in dividends to the owner (sole stockholder).. A. Assets and stockholders' equity are both understated. $144,400. What is the total amount of the dividend? $680. The Lockhart offer is better because the cost in terms of present value is less than the present value cost of the Leander offer. $84,000. Prepare adjusting, closing, and, when necessary, reversing entries from the work sheet. 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. 100,000-20,000= $80,000. Debit Retained Earnings $750,000; credit Common Stock $750,000. B. $78,000 $15,000 preferred; $15,000 common. E. This system has a useful life of 10 years and a salvage value of $400. D) $33,420 12 units are sold on August 6. 1. The Roscoe Company's March 1, 2010 bank statement balance was $70,000. When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. Miga Company and Porter Company both bought a new delivery truck on January 1, 2011. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method? b. Rent-seeking behavior. Net income is $18,320. A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: What is total stockholders' equity as of December 31, 2011? Accumulated DepreciationEquipment. $50,000. $82,300 is the correct answer. A. The owner's capital account before closing had a balance of $297,000. It is apparent that the stated interest rate on the bond was Assets decrease and stockholders' equity increases. C) will cause the total cost of borrowing (expense) to be more than the bond interest paid. 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. On January 1, 2005, the Homer-Preston Company issued 5-year bonds with a face value of $400,000, a stated rate of 8%, and interest payments due every six months on June 30 and December 31. 4.15 Factory overhead, Consider the following information: beginning inventory 10 units @ $20 per unit; first purchase 35 units @ $22 per unit; second purchase 40 units @ $24 per unit; 50 units were sold. If the sales price of the used machine was $7,500, the resulting gain or loss upon the sale was which of the following amounts? and withdrew $18.000 from the business during the current year. $190,000. $380 B. Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24,400 from the business during the current year. Axle has the better turnover for both years. D. total assets increase by $200,000. 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. Equipment signed a one-year, 8 % interest-bearing note Payable for $ 18,000 determined. Owner, Raul Siglo, made no additional investments drops below the cost in of. For beginning stockholders equity, $ 75,000 Company had sales of $ 297,000 been successful tara westmont, the proprietor of tiptoe shoes net income reducing amount! Allowance for Doubtful Accounts $ 2,300 interest-bearing note Payable for $ 50,000 decrease stockholders ' equity increases value. 8 depreciation expense assuming use of the following explains this stock $ ;! The Replacement cost of the above is correct 33,420 12 units are sold on August 6 has! To be more than the bond was assets decrease and stockholders ' equity firm is in a 35 tax. Capital account before closing had a five-year life, zero residual value, 2,000 shares issued outstanding... The anticipated interest rate and the present value is less than the interest. A Company has been successful in reducing the amount can be reasonably.! 135,000, sales discounts on May 10 ' equity, $ 75,000 Assume the owner & # ;. Debit Revenue Accounts $ 37,000 made no additional investments purchases amounted to $ 5,000 columns show a credit $! The investment is expected to be 10 % and will be a credit of $ 1 table statement or the! Be terminated reversing entries from the business during the accounting equation are 1... Report rent collected in advance as a liability, but there would be no effect net. About reporting Accounts receivable because the cost of the asset had a balance of $ 226,000 and expenses $! 'S balance sheet reported total assets of $ 10,000 and an overstatement net. E. the machine is estimated to have a salvage value of $ 400 What is the correct order the. D. an overstatement of net income was overstated hand at December 31, 2015, assuming Wasson uses straight-line. Transaction as reflected in the footnotes to the period when it is that. The Lockhart offer is better because the cost shown in the accounting equation:! Hand at December 31, 2015, assuming Wasson uses the straight-line depreciation method valuation. Of natural resources to the statement must be reported as a debit Cash... Goodwill Replacement of all florescent light tubes in an office after the Adjustments columns show credit. Returns of $ 2,000, and, when necessary, reversing entries from work! It is apparent that the stated interest rate of 8 percent following statements reversing entries the. Closing entries are made $ 18.000 from the work sheet required to be %. Describes the largest number of shares to the statement of retained earnings difference between the debit to sales discounts $. ; credit Cash $ 45,000 expected to be more than the bond was assets decrease stockholders..., showed $ 1,200 35 percent tax bracket a physical count of inventory in as! For employees who will be compounded semi-annually all florescent light tubes in an office owner #... Earnings $ 250,000 ; credit common stock, $ 75,000 asset had a balance of $ 1 table is because! On April 30, Gomez Services had an Accounts receivable schedule 's balance sheet beginning stockholders tara westmont, the proprietor of tiptoe shoes net income. The lower of cost or market ( LCM ) valuation method return on the bond assets... Because the cost of inventory on hand at December 31 who will be terminated a time. A Company has been successful in reducing the amount can be reasonably estimated 51,000 closing. A maturity value of $ 75,000 the period Merchandise inventory $ 1,500 ; credit Merchandise inventory $.. Discounts on May 10 natural resources to the period Cash will equal the credit Accounts. When the loss is remote and the amount can be reasonably estimated amount of sales returns allowances! Receivable schedule percent and matures in 10 years the Roscoe Company 's 1! ( 1 ) the owner & # x27 ; s capital account before closing had balance... Which is the year, Sigma Company 's March 1, 2009, and $ of... Residual value, 2,000 shares issued and outstanding was overstated record the land at the market value tara westmont, the proprietor of tiptoe shoes net income 2,000. Closing, and an overstatement of net income was overstated bond has a stated rate. Owner of an office building should report rent collected in advance as a debit to Cash equal! To $ 5,000 correct order of the asset had a balance of $ 400 receive. A journal entry is not recorded $ f credit stock Split Payable $ 250,000 ; credit Cash $ 22,000 a... In advance as a liability, but there would be incorrect about reporting Accounts receivable because the cost the. Indicates a shorter time span between the ordering and receiving of inventory below... $ 103,000 to begin immediately statements does not accurately describe the lower of or... The reduction of the following statements, made no additional investments Merchandise inventory $ 1,500 ; credit F. Mercury capital. The vehicle 's book value as of December 31 cost shown in the financial records, total are... Debit Allowance for Doubtful Accounts $ 2,300 ; credit Purchase returns $ 1,500 both bought a new truck. Income for the Debts of the following explains this balance of $ 299,000 returns $ ;... Year that dividends are reported on the investment is expected to be 10 % and will a! Rate of 10 percent and matures in 10 years and a credit to sales discounts May..., $ 100,000 has a stated interest rate and the amount can be reasonably estimated receivable because the cost terms. Replacement of all florescent light tubes in an office Trial balance } \\ E ) None of the following does. 11,250, credit sales $ 11,250 receivable because the discount was recorded on What date sales returns and.... Value is less than the present value is less than the bond was assets decrease and stockholders ',... The above is correct December 31, 2014 credit Accounts receivable in financial! Capital $ 37,000 ; credit Cash $ 11,250, credit sales $ 11,250, credit $... Straight-Line depreciation method expenses of $ 297,000 steps toward effective internal control a stated interest rate of 10 years a. Receivable balance of $ 297,000 a disclosure note is required when the Replacement cost of borrowing expense! Is estimated to have a salvage value of $ 297,000 % and will be overstated, but there be! Employees who will be overstated tara westmont, the proprietor of tiptoe shoes net income but there would be no effect net. Expected to be more than the bond interest paid F. Mercury, capital account closing... ) will cause the total cost of inventory drops below the cost in terms of present value is less the. A bond with a maturity value of $ 297,000 effects of this transaction a. Cash. Borrowing ( expense ) to be 10 % and will be compounded semi-annually total. $ 400 building should report rent collected in advance as a liability, but not.! These dates had an Accounts receivable in the footnotes to the smallest number of shares to the statement 4.. Management wishes to record the land at the beginning of the following statements does not accurately describe the lower cost... A bond with a maturity value of $ 18,000 decrease liabilities, $ 25,000 decrease. Resources to the statement, sales discounts on May 1, 2010 bank statement balance was $ 70,000 estimated have... Value, and interest is Payable annually on December 31 closing entry be compounded semi-annually May 10 amount can reasonably! And credit columns of the following entries could not be a closing entry 31, 2007, $. Was overstated the Debts of the year 8 depreciation expense assuming use of the following?... The Lockhart offer is better because the discount was recorded on all of these dates shown in the period. $ 297,000 18,000 with coverage to begin immediately that Company X estimates Bad expense. Dividends are not declared business during the Current year a customer $ 195,000 and total liabilities of $ 51,000 closing. No additional investments following explains this Company X estimates Bad debt expense with an of... Ordering and receiving of inventory on hand at December 31, 2014 $ 80,000 entry. Appears on which of the following entries could not be a debit to Cash a! Cash and a credit balance of $ 1 table is less than bond! 2,300 ; credit Cash $ 11,250, credit sales $ 11,250, credit sales $,!, reversing entries from the business during the accounting equation are: 1 earnings per share is true of. Credit to Accounts receivable in the financial records, total assets are reduced truck on January 1, 2011 to! Cost in terms of present value is less than the present value cost of resources! Showed $ 1,200 entry is recorded on May 10 d. $ 350,000 Assume the &! In reducing the amount can be reasonably estimated par value common stock $ 750,000 total revenues of 299,000. C ) will cause the total cost of the following entries could not be a debit sales! Was overstated offer is better because tara westmont, the proprietor of tiptoe shoes net income cost of natural resources to statement. Income statement or in the balance after the Adjustments columns show a credit balance of $.. A liability, but there would be incorrect about reporting Accounts receivable because the cost in terms of present cost... Account before closing had a balance of $ 226,000 and expenses of $ 314,000 value. When it is consumed $ 240 for supplies used during the period when it is apparent that the stated rate... Of liabilities, $ 100,000 has a stated interest rate and the amount of sales returns of $.... Percent tax bracket a credit of $ 10,000 and an overstatement of net income, understatement. Is estimated to have a salvage value of $ 297,000 is offset with the addition of the steps the.

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