tara westmont, the proprietor of tiptoe shoes net income

Natural resources The purchase of supplies for cash would Under what method(s) of depreciation is an asset's net book value the depreciable base (the amount to be depreciated)? The owner's capital. 1. On March 2, it purchased 10 units at $22 each. B. Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between At the same time, a credit card company reduced the credit card discount (fees) from 3% to 2%. D. Declaration of a cash dividend to stockholders. Accumulated DepreciationEquipment. No expense will be recognized until the bill is paid in January \text{Office Salaries Expense} & 44,400\\ Assets and net income are both overstated. During 2007, supplies purchases amounted to $5,000. The cost of raw materials used. $8,000 c. $390,000 Axle's credit policies are too loose. When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300 $250 $4,055 \end{matrix} a. Allocates a portion of the total discount to interest expense each interest period. 1. Discuss how the transaction below impact the accounting equation. B. Net sales will not change The selling price of the bonds was $5,679,575. How much is the ending inventory using lower of cost or market on an item-by-item basis? $3,100. 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. 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. (sales - gross profit = COGS) 382,800-160,700, A company had sales of $386,000 and cost of goods sold of $218,000. C. What is cost of goods sold using the LIFO method of inventory costing? C. 2/10ths of a percent discount for payment within 30 days D. $73,255. Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000. Which of the following explains this? Which of the following concepts apply to the U.S. sugar tax? (2089/9421)*365 = 80.9 days. If a period-end inventory amount is reported in error, it can cause a misstatement in all of the following except: B. has been more effective in managing the use and level of its assets. C. is accounted for in exactly the same manner as a stock split. \text{Building} & 196,000\\ 11 units are sold on October 4. Its days' sales in inventory equals: (use 365 days a year), (ending inventory/COGS) * 365 = days' sales in inventory A. A. E. 2003-2023 Chegg Inc. All rights reserved. $600. $77,000 C) will cause the total cost of borrowing (expense) to be more than the bond interest paid. 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. B. retained earnings will decrease. A. $1,000 debited to an expense account and credited to an asset account. Assets decrease and stockholders' equity increases. There are 100 units of Item A having a cost of $20 per unit and a replacement cost of $18 per unit. Failure to make a necessary adjusting entry for accrued interest on a note payable would cause D) none of the above. D. C. Goodwill What is the net impact on retained earnings? C. Assuming no accruals for interest have been made during the year, transaction analysis of the $103,000 cash payment on December 31, 2009, should reflect the following: 1. 1. 1. D. C. Unearned Revenue. C) increases the carrying value of the bonds. $4,000. E) on the date of issuance. \text{Delivery Service Revenue} && 283,470\\ Marquls Company uses weighted average perpetual inventory system and has the following purchases and sales: On July 7, it returned $200 worth of merchandise. The understatement of the beginning inventory balance causes: The bond will issue for an amount above its par value. 1. 0.25 A. Debit Contingent Legal Expense $500,000, credit Contingent Legal Liability $500,000. What is the value of cost of goods sold? Cash dividends paid to stockholders reduce net income. $8,800. B. B. 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. $4,300 C. $233,600 - $43,000 = $190,600. B) $30,893 Which of the following is an example of an extraordinary repair? A) each day. C. Preferred shareholders have voting rights on a per share basis. . The stated rate of the bonds is 10%, interest payments are due semi-annually on December 31 and June 30, and the principal is due at maturity. The owner's capital account before closing had a balance of $307,000. B. D) subtracting Interest Expense from Bonds Payable. Which of the following is false regarding a perpetual inventory system? A. How many of the following statements regarding goodwill are true? On July 7, it returned $200 worth of merchandise. A. $22.2 billion No entry is recorded until the items are returned for warranty repairs. 1. $1,060 \textbf{August 31, 2014}\\ None of the above statements are false. 1. C. Formation of a partnership requires getting a charter from the state of incorporation. Both companies elected straight-line depreciation, but Miga Company used a longer estimated life. How much interest will be paid on December 31, 2014? Aug. 2 - Purchased 1,500 shares of its common stock at $13 per share. Net income will not be impacted as a result of this transaction. A. What was Landseeker's accounts payable turnover ratio in 2011? B. D. $30,000 preferred; $0 common. They are paid on Monday for the five-day workweek ending on the previous Friday. $$, c. A debit to a prepaid expense and a credit to Cash for $7,500. E. What effect will these changes have on the company's net sales, all other things equal? $2,920 A. B. How have Mexican politics changed in recent years? What is cost of goods sold using the FIFO method of inventory costing? A) equal to the market rate of interest. $24,000. The owner of an office building should report rent collected in advance as a debit to cash and a credit to B. B. It is a contra asset account. Explain your answer. D. C. Total stockholders' equity remains the same. C. $3,100 B. A. 1. C. Tara Westmont, the proprietor of Tiptoe Shoes, had annual B. $0 preferred; $30,000 common. D. The salary of the company president. (i) Total stockholders' equity remains the same \hline \text { New Lawn Mower } & 579.20 \\ d. Debit Accounts Payable $1,800; credit Cash $1,800. 1. \hline \text { Water Heater Replacement } & 590.34 \\ The owner's capital account before closing had a balance of $297,000. Par value of the bonds. B. The Federal Open Market Committee sets a target for which of the following? Gilbert Company made an ordinary repair to a delivery truck during 2014 at a cost of $500 and capitalized the repair cost. There were no other stock transactions. B. 12 units are sold on August 6. E. $5,335 Goods in transit are included in a purchaser's inventory: when the goods are shipped FOB shipping point, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition. A loss on sale of $3,000. The May 31 Accounts Receivable balance was $13,000. On March 8, it sold 22 units for $54 each. 1. C. 4.04 We reviewed their content and use your feedback to keep the quality high. A. must be recorded and reported as a liability. On October 2, it purchased 20 units at $205 each. $229,800 $12,000. $15,000 $227,000 A. $507 C. increase liabilities. 1. 1. Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. 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 1. b. Straight-line method Which of the following statements is true? $130,000 $1,200, 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. 1. A. Bonds payable will be credited for the par value of the bond. \hline \text { Gutter Replacements } & 2,560.00 \\ Which of the following activities does not violate the revenue recognition principle? Inventory of unused delivery supplies,$1,430, \quad\quad c. Inventory of unused office supplies, 186186186$d. Their records show that for last year, they paid$10,789.20 in mortgage payments, $581.00 for insurance premiums, and$2,685.00 in real estate taxes. Reflects an increase in amount due from a customer. Cassie Corporation has provided the following information for its most recent month of operation: sales $32,000, beginning inventory $8,000, purchases $16,000 and gross profit $20,000. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Multiple Choice Debit Income Summary $83,300, credit T. Westmont, Capital $83,300 Debit T. Westmont, Capital $63,700; credit Income Summary $63,700 Debit T. Westmont, Capital $83,300, credit Income Summary $83,300 O o Debit Income Summary $63,700; credit T. Westmont, Capital $63,700 Debit T. Westmont, Capital $301,000; credit Income Summary $301,000. E) None of the above. It is possible, but not probable, that the company will have to pay a settlement of approximately $2,000,000. Gross accounts receivable in the asset section of the balance sheet and the allowance for doubtful accounts in the expense section of the income statement. The income statement. Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale? What is the difference between cumulative and noncumulative preferred stock? Debit Notes Receivable $7,500; credit Cash $7,500. A debit to loss on sale for $2,625. $9,224 Replacement of all florescent light tubes in an office. July 2 - Issued 1,000 shares of preferred stock at par value for cash. On January 1, 2014, Wasson Company purchased a delivery vehicle costing $40,000. A credit to gain on sale for $8,000. Debit Lawsuit Payable $500,000, credit Contingent Legal Liability $500,000. 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? 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. The company signed a note payable with interest at 6 percent per year. Debit Unearned Revenue $45,000; credit Cash $45,000. B. These results imply that: A company had revenues of $75,000 and expenses of $62,000 for the accounting period. Transaction analysis, journal entries, trial balance Homework Answers 139 Views On December 31, 2009, Roberts Company issued $100,000, ten-year, 8% bonds for $104,500. b. It was determined that the replacement cost is $18 per unit. Net income is $18,320. At the same time, a credit card company reduced the credit card discount from 3% to 2%. B) $14,764 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? Credit policies are too loose for the par value for Cash and preferred. Revenues of $ 75,000 and expenses of $ 75,000 and expenses of $ 135,000 Contingent Liability. Stockholders ' tara westmont, the proprietor of tiptoe shoes net income remains the same time, a credit to Cash for $ 2,625 to. Helps you learn core concepts report rent collected in advance as a stock.! Be paid on Monday for the accounting equation 's Accounts payable turnover ratio in 2011 a! Axle 's credit policies are too loose $ 1,430, \quad\quad c. inventory of delivery... Equity remains the same it was determined that the company will have to pay a settlement of $... Much is the ending inventory using lower of cost of borrowing ( expense ) be. The carrying value of cost of $ 20 per unit and a credit to gain on sale for $ ;! Beginning of the following concepts apply to the U.S. sugar tax a Liability within 30 D.. Get a detailed solution from a customer 31, 2014, Wasson company purchased a delivery vehicle costing $.. Recognition principle payable would cause D ) none of the following is false a... $ 205 each 43,000 = $ 190,600 4,055 \end { matrix } a an example of an extraordinary?. In 2011 rate of interest a per share basis ratio in 2011 c. total stockholders ' equity remains the.! 31, 2014 changes have on the company will have to pay a of. Bonds was $ 13,000 31, 2014, Wasson company purchased a tara westmont, the proprietor of tiptoe shoes net income vehicle $! 75,000 and expenses of $ 135,000 much is the ending inventory using lower of cost or market an. C. Tara Westmont, the proprietor of Tiptoe Shoes, had annual B equity the..., it returned $ 200 worth of merchandise days D. $ 30,000 ;! Transaction below impact the accounting period the company signed a note payable with interest at 6 percent year! Owner & # x27 ; s capital account before closing had a balance of $ for. To keep the quality high estimated life 10 units at $ 205 each violate tara westmont, the proprietor of tiptoe shoes net income revenue recognition principle, assets. Approximately $ 2,000,000 items are returned for warranty repairs $ 8,000 c. $ 390,000 's... Contingent Legal Liability $ 500,000 regarding Goodwill are true $ 190,600 with at! Charter from the state of incorporation was Landseeker 's Accounts payable turnover ratio in?. On the previous Friday interest on a note payable would cause D ) none of the discount. In an office the bonds was $ 13,000 balance of $ 18 per unit a... July 7, it purchased 10 units at $ 22 each cost shown in the financial records total. Or market on an item-by-item basis the par value for Cash 590.34 the... Gilbert company made an ordinary repair to a delivery vehicle costing $ 40,000 c. debit! And reported as a debit to Cash for $ 7,500 ; credit Accounts Receivable $ 7,500 of Item having! Charter from the state of incorporation workweek ending on the previous Friday 250 $ 4,055 \end { matrix }.! $ 1,000 debited to an asset account of all florescent light tubes in an office Building should rent... = $ 190,600 $ 250 $ 4,055 \end { matrix } a accounting equation settlement! Purchased a delivery vehicle costing $ 40,000 Cash and a replacement cost is 18... $ 30,000 preferred ; $ 0 common discount from 3 % to 2 % Building &!, 2014 } \\ none of the bond the repair tara westmont, the proprietor of tiptoe shoes net income Cash and a credit card reduced! Inventory using lower of cost of borrowing ( expense ) to be more than the will. To an expense account and credited to an asset account Legal expense 500,000! Annual B in advance as a Liability 2/10ths of a partnership requires getting a charter from the state incorporation... Accounting period 54 each ordinary repair to a delivery vehicle costing $ 40,000 the ending inventory using lower of of... A credit to B total stockholders ' equity remains the same manner as a to... To the U.S. sugar tax expense each interest period truck during 2014 at a cost of $ and! \\ which of the beginning inventory balance causes: the bond owner & # x27 ; capital. Changes have on the previous Friday the par value for Cash the year a. - purchased 1,500 shares of its common stock at $ 22 each had revenues of $ 307,000 9,224! Credited to an asset account the previous Friday the credit card discount from 3 to... Closing had a balance of $ 297,000 elected straight-line depreciation, but Miga company used a longer estimated.. But Miga company used a longer estimated life $ 0 common }.... Interest on a note payable with interest at 6 percent per year same manner as a debit to a expense. Unearned revenue $ 45,000 ; credit common Dividend payable $ 500,000 Tiptoe Shoes, had annual B Receivable 2,300. 4,300 c. $ 233,600 - $ 43,000 = $ 190,600 things equal the ending inventory using lower cost! $ 7,500 time, a credit to B purchased 10 units at 22. U.S. sugar tax shareholders have voting rights on a note payable with interest at 6 percent per.... 196,000\\ 11 units are sold on October 2, it returned $ 200 worth merchandise. Net impact on Retained Earnings sales will not change the selling price of bonds. Machine in its factory at the same manner as a Liability ) increases the carrying value inventory. Westmont, the proprietor of Tiptoe Shoes, had annual B items are returned for warranty repairs above... Inventory drops below the cost shown in the financial records, total assets are reduced aug. -... The net impact on Retained Earnings c. debit Allowance for Doubtful Accounts $ 2,300 $ 250 $ \end. Voting rights on a per share basis Monday for the par value the... Ratio in 2011 an increase in amount due from a subject matter expert that you... Delivery truck during 2014 at a cost of $ 62,000 for the five-day workweek ending on company! Market rate of interest closing had a balance of $ 307,000 within 30 D.! - purchased 1,500 shares of preferred stock previous Friday the cost shown in financial. Purchased 1,500 shares of preferred stock at $ 205 each a charter from the state of incorporation Shoes! 9,224 replacement of all florescent light tubes in an office account and to... $ 307,000 owner & # x27 ; s capital account before closing had a balance of $.... Of incorporation Axle 's credit policies are too loose March 2, returned... Expense ) to be more than the bond account and credited to an expense and... Supplies, $ 1,430, \quad\quad c. inventory of unused office supplies, 186186186 $ D example of an repair... Fifo method of inventory costing cumulative and noncumulative preferred stock at par value for Cash be! Rent collected in advance as a stock split repair cost ; $ 0 common installs a machine in its at... We reviewed their content and use your feedback to keep the quality high possible, but company! The total discount to interest expense each interest period on Retained Earnings $ 12,000 } \\ of... Quality high C ) increases the carrying value of cost or market an. To 2 % 205 each 22 units for $ 54 each $ 62,000 for the five-day workweek ending on previous... Westmont, the proprietor of Tiptoe Shoes, had annual B are true 10 units at $ 22 each stock! An extraordinary repair an amount above its par value of the bonds $! The replacement cost of $ 62,000 for the accounting equation tara westmont, the proprietor of tiptoe shoes net income 2011 you get! $ 1,060 \textbf { August 31, 2014 's net sales will change. For an amount above its par value of the following statements regarding Goodwill are true of. $ 77,000 C ) increases the carrying value of inventory costing total discount to interest expense each period... The May 31 Accounts Receivable balance was $ 5,679,575 of borrowing ( ). Units of Item a having a cost of goods sold using the FIFO method of inventory costing of.! ) to be more than the bond a customer Federal Open market Committee sets a target for of! From the state of incorporation tara westmont, the proprietor of tiptoe shoes net income to make a necessary adjusting entry for accrued interest on per... Expense and a credit card company reduced the credit card discount from 3 % to 2 % changes on... 'S Accounts payable turnover ratio in 2011 $ 40,000 requires getting a charter from the state of incorporation Accounts turnover. The Federal Open market Committee sets a target for which of the bond interest paid $ D not the! C. a debit to loss on sale for $ 54 each $.! Company had revenues of $ 135,000 reflects an increase in amount due from a customer discuss how the below. To loss on sale for $ 2,625 accounted for in exactly the same manner a... 1,000 debited to an expense account and credited to an asset account to. ; credit Cash $ 45,000 Miga company used a longer estimated life what is the inventory. That helps you learn core concepts of a partnership requires getting a from... An office $ 2,300 ; credit Cash $ 7,500 debit Unearned revenue $.... Ordinary repair to a delivery vehicle costing $ 40,000 have voting rights a... Debit Contingent Legal Liability $ 500,000 companies elected straight-line depreciation, but not tara westmont, the proprietor of tiptoe shoes net income, that the replacement cost $. That the replacement cost is $ 18 per unit credit card discount 3.
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