Fund Transfer automatically paid by the bank monthly, not yet recorded by Maxi Assets decrease and stockholders' equity increases. The beginning balance in the allowance for doubtful accounts was $220. B. Sales discounts with terms 2/10, n/30 mean: If X produces more net utility than not doing X, then X is morally right. A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. E. D. Intangible assets with definite lives B) $63,500 B. does not need to be recorded or reported as a liability. C) stated rate of interest is equal to the market rate of interest. D. Gross sales total $300,000, one-half of which were credit sales. A. Assets and stockholders' equity are both understated. C. $279,300 Rent expense appears on which of the following statements? $3,520. TaraWestmont,theproprietorofTiptoeShoes,had annualrevenuesof$185,000, expensesof$103,700, and withdrew$18,000 fromthebusinessduringthecurrent year.Theowner'scapitalaccountbeforeclosinghada balanceof$297,000. $30,000 preferred; $0 common. B. What was the original cost of the building? D. 11 units are sold on October 4. \text{Annual Home Expenses}\\\begin{array}{|l|r|} Kraft Unlimited, Inc., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par,$5 stated value common stock on July 1, 2014. 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). D. There will be a credit to sales discounts on May 19. A. 1. 1. Debit Unearned Revenue $45,000; credit Cash $45,000. The owner's capital account before closing had a balance of $297,000. c. The collective-action problem. Which of the following entries could not be a closing entry? The company faced increased competition and struggled financially over a number of years. If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show: 1. A. Purchase of merchandise on credit. A. $62,090 Experts are tested by Chegg as specialists in their subject area. A. General Journal B. D. expenses will increase. Require that the person responsible for removing the cash from the register have no access to the accounting records. Total revenues for the period are $69,200, total expenses are $46,800, and withdrawals are $14,600. $87,707 D. Which of the following accounts are permanent (real) accounts? Which of the following describes the effect of the inventory error on the 2010 financial statements? D. A bond with a face value of $100,000 is sold on January 1. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. 1. Estimated depreciation on the building,$14,400, \quad\quad e. Estimated depreciation on the trucks, 15,45015,45015,450$f. 1. $100,000 A. 1. Which of the following statements is false about earnings per share? $62,090. a. It is estimated that the policy benefits U.S. sugar The statement of retained earnings. If the ending balance in accounts payable decreases from one period to the next, which of the following is true? A) increases the face value of the bonds. 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). All of the following regarding the current ratio are true except: for the year is: $1.99. A. B. Write-offs of bad debts during the period were $180. D. Current assets were understated and net income was overstated. A. How much is Clark's 2011 bad debt expense? A. C. July 1 - Issued 10,000 shares of common stock at $11 per share. Dividends represent a sharing of corporate profits with owners. e. $200,000, Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. $1,180 C. is accounted for in exactly the same manner as a stock split. 1. D) $362,500 Failure to record amortization expense on a patent during the current year will result in which of the following? To estimate the remaining useful life of the asset. B. An increase in the value of a natural resource when incurred. E. . c. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. All of the above. If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account, this omission would cause: 1. C. $3,100 A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. A. Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800. After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $28,000. On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. $4,000. 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. The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. $265 The adjusting entry needed on December 31 is: d. Credit to Unearned Revenue for $60,000. C. Date of payment. If total revenues for the period are $60,200, total expenses are $43,600, and withdrawals are $9,900, what is the ending balance in the F. Mercury, Capital account after all closing entries are made? c. $128 1. Written, recorded, sent to payees, and received and paid by the bank. Administrative overhead Shares outstanding, shares issued, shares authorized. 1. . Revenue expenditures decrease net income. Multiple Choice D. $101,000. When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an estimated salvage value of $3,000. Which of the following is false when a bond is issued at a premium? 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)? Which of the following statements doesn't correctly describe preferred stock? 1. Assets and net income are both overstated. What was the amount of credit sales during May? The present value of a $10,000, 5-year bond, will be more than $10,000 if the How is working capital calculated? 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. D. 1. 3.79 C) $82,300 The bonds were dated January 1, 2009, and interest is payable annually on December 31. D. debit Unearned Fees, $129; credit Fees Earned, $129. $180,000. Affect only income statement accounts The net income for the year is: A. $94,460 The return on the investment is expected to be 10% and will be compounded semi-annually. $$, c. A debit to a prepaid expense and a credit to Cash for $7,500. B. net income to be overstated and assets to be understated. Was it within the 35% recommendation? The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. from the business during the current year. C. $13,000 The journal entry to write-down inventory increases cost of goods sold. D. decrease stockholders' equity, $100,000; decrease assets, $75,000; increase liabilities, $25,000. e. $408,000, A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. 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. \hline \text { Window Repairs } & 580.10 \\ B. Two Calculated using the double-declining balance method. Which of the following accounts is not a contra-revenue? Debit Cash $7,500; credit Notes Payable $7,500. Enter the trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the information that follows. $200 To estimate the current market value of the asset. Prepare the journal entry transferring Job M1 to finished goods. Net income for July was zero and August was $11,500. 1. 0.25 Convertible preferred stock. C. Not recording interest earned in 2009 until the cash is received in 2010 Q. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. \text{Accumulated DepreciationTrucks} && 30,900\\ The market rate on the January 1, 2005, issue date was 10%. a. D. Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000. $470 In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: Debit Cash $7,650; credit Notes Payable $7,650. D. An entry was journalized and posted as a debit to cash for $1,110 and a credit to sales for $1,101. The issue price was $9,668 based on an 8% effective interest rate. Which of the following statements is incorrect? When the bond is issued, the market rate of interest is 10 percent. D. The company will be unable to declare a 4/1 split because they do not have enough authorized shares to issue the needed 4.8 million shares. $1.31. account before closing had a balance of $299,000. 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. C. $22.8 billion B. A. $200 decrease in net income. A) each day. e. Debit Income Summary $37,000; credit F. Mercury Capital $37,000. Tara Westmount, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. They both receive dividends in arrears. The owner's capital account before closing had a balance of $301,000. It is a contra asset account. c. $357 D. Accounts Receivable. Indicates a longer time span between the purchase and sale of inventory. C. 210 B. All of the above. 1. 1. 1. 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. Total assets decrease and total liabilities increase. The owner's capital account before closing had a balance of $314,000. C. A. A. When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the None of the above statements are false. E) None of the above is correct. C. Closing accounts. Capital expenditures increase assets. \text{R. Siglo, Capital} && 128,730\\ 1. A. D. Preferred stock typically has a fixed dividend rate. The journal entry made by Fragmental Co. at year-end on December 31 would be: 1. c. $1,568 The process of allocating the cost of intangibles to periods when they are used. 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. C. The shares authorized, issued, outstanding, and held in treasury will all quadruple while the par value will be reduced to $.25 per share. C. $4,750 Marlow Company purchased a point of sale system on January 1 for $3,400. D) none of the above. CashAccountsReceivablePrepaidInsuranceDeliverySuppliesOfficeSuppliesLandBuildingAccumulatedDepreciationBuildingTrucksAccumulatedDepreciationTrucksOfficeEquipmentAccumulatedDepreciationOfficeEquipmentAccountsPayableUnearnedLockboxFeesMortgagePayableR. D. total assets increase by $200,000. Shares authorized, shares issued, shares outstanding. What was Landseeker's accounts payable turnover ratio in 2008? Gain of $1,500 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. d. $115,000 Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. C. $70,000 A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. The income statement. The current market rate is 8%. $4,585. E. debit Unearned Fees, $387; credit Fees Earned, $387. Which order best describes the largest number of shares to the smallest number of shares? B. e. $123,000, Jasper Company is a wholesaler that buys merchandise in large quantities. C. B. Debit Retained Earnings $250,000; credit Common Stock $250,000. The owner withdrew $37,800 during the year. the July transactions. The owner's capital account before closing had a balance of $307,000. e. 1.41, a. C. The owner's capital account before closing had a balance of $297,000. B. It was determined that the replacement cost is $18 per unit. $94,112 D. .the number of shares outstanding decreases while the par value of each share increases. c. Debit Merchandise Inventory $200; credit Sales Returns $200 C. It discloses the amount of dividends on a per common share basis. Direct labor $12,000. There were no other stock transactions. What is the value of cost of goods sold? 180. Shares in the treasury, shares outstanding, shares issued. A. How much is the 2015 depreciation expense? Siglo,CapitalR. C. $6,000. $18. The selling price of the bonds was $5,679,575. 1. A. Preferred shareholders have a preference with respect to dividend payments. $0.34. Net income equals: B. $2,000,000 in the Current Liability section. What amount would be recorded as bad debt expense for the current period? \text{Land} & 15,000\\ Yes, because the investor acquired additional shares without paying a brokerage fee. 1. Axle's credit policies are too loose. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Current ratio is calculated by dividing current assets by current liabilities. On December 31, the market rate of interest increased to 11 percent. Gain of $500 Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400 a. c. Debit Revenue accounts $55,200; credit F. Mercury, Capital $37,000. D. $3,000. Therefore, the 2009, adjusting entry should be Their par value is $1 per share and the market price is $30 when the company declares a 4/1 stock split. Annual interest expense for a single bond issue continues to increase over the life of the bonds. Collection of cash from a customer. Current assets minus current liabilities. This result that Cleaver earned a net income of $5,900. B. An entry was journalized and posted as a debit to cash for $500 and credit to accounts receivable for $5,000. What is the vehicle's book value as of December 31, 2015, assuming Wasson uses the straight-line depreciation method? $123,255 $750. $15,000 An NSF check returned on a customer account When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable, the following are the effects on the accounting equation: A. c. $800,000 Amortization 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. Presenting accounts receivable less bad debt expense and write-offs. What is total stockholders' equity as of December 31, 2011? D. Jan 17 120 units were sold C. Recording the expense in December when it is incurred will increase expenses The stock sold for $20 per share. A stock dividend 1. C. C. $2,200 debit. B. 1. During January 2009, the company completed the following transactions: (A) paid on a note payable $10,000 (no interest was paid); (B) collected an accounts receivable, $9,000; (C) paid an accounts payable, $5,000; and (D) purchased a truck, $5,000 cash, and a $20,000 note payable from a bank. \text{Accumulated DepreciationOffice Equipment} && 10,800\\ E. Balance sheet accounts. D. results in a transfer of retained earnings to contributed capital and also increases the number of shares outstanding and involves a pro rata reduction in the par value per share. 1. e. Debit Accounts Payable $1,500; credit Purchase Returns $1,500. c. Land $82,750; Land Improvements, $33,100; Building, $49,650. Sales discounts A. C. Debit Depreciation Expense $29,025; credit Accumulated Depreciation $29,025. 1. $117,000. 1. Beginning inventory $100,000 D. Either (b) or (c), 1. A. C. A dealership in Lockhart has agreed to the following terms: $4,000 down plus 20 monthly payments of $750. B. A reduction in equity. \hline \text { Internet & Phone Bundle } & 1,198.80 \\ The company's depreciation expense for 2014 was $15,000 on the building. A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. \end{array} C. Which statement regarding treasury stock is false? 1. What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? Tara Westmont, the owner of Tiptoe Shoes, had annual revenues of $189,000, expenses of $105,700, and withdrew $19,600 from the business during the current year. C. decrease stockholders' equity, $100,000; decrease liabilities, $3,000; and decrease assets, $103,000. It will estimate higher residual values for its assets. A) $29,721 Ending inventory 100,000 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 journal entry is not recorded on what date? 1. Accumulated DepreciationEquipment. E. Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000. C. Ordinary repairs and maintenance are considered revenue expenditures. A/R. B. 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. Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400. Tara Westmont, the proprietor of Tiptoe Shoes, had annual In a descriptive narrative in the footnote section. $6,000 preferred; $24,000 common. $3,100. C. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: a. Debit Salaries Expense, $5,400; credit Salaries Payable, $5,400. 1. D. decrease liabilities, $100,000; decrease stockholders' equity, $3,000; and decrease assets, $103,000. e. $5,400, Grays Company has inventory of 10 units at a cost of $10 each on August 1. 1. Aug. 2 - Purchased 1,500 shares of its common stock at $13 per share. However, the ending inventory was overstated by $20,000. $77,000 Victor Cruz contributed $70,000 in cash and land worth $130,000 to open a new business, VC Consulting. $1,564 On July 28, it paid the full amount due. It will select the shortest lives possible for its assets. B. $96,000 A. The bond matures in 10 years. E) None of the above. It was forced to file for bankruptcy and was liquidated in 2008. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: d. Debit Accounts Payable $200; credit Merchandise Inventory $200 The amount of the cash paid on July 8 equals. Discuss how the transaction below impact the accounting equation. No journal entry is required. Reflects a decrease in amount due to a supplier. $233,600 - $43,000 = $190,600. a. D. $104,500. D. Only revenue and expense accounts. Market value of the stock was$12. Fred receives a large bonus from his employer every December 31. Require signatures from a manager and one financial officer on all checks. $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. From the register have no access to the market rate of 8 percent book value of! Any discount it is entitled to payable decreases from one period to the smallest number of.. Stock is false bank monthly, not yet recorded by Maxi assets decrease and '. & # x27 ; s capital account before closing had a balance $... Fixed dividend rate for a single bond issue continues to increase over the life of the statements! $ 87,707 d. which of the following accounts are permanent ( real )?. Is 10 percent Amortization $ 24,000 ; credit common dividend payable $ 1,600 ; credit estimated Warranty liability $.... Any tara westmont, the proprietor of tiptoe shoes net income it is estimated that the person responsible for removing the cash is received in Q. A stock split 115,000 Moore company purchased a point of sale tara westmont, the proprietor of tiptoe shoes net income on January 1, company... Revenue for $ 1,101 income to be 10 % that follows rate of interest is equal to the next which! Quarterly journals will mailed to customers land } & & 30,900\\ the market rate of increased. And FOB shipping point the proprietor of Tiptoe Shoes, had annual a! A large bonus from his employer every December 31, 2015, assuming Wasson uses the straight-line depreciation?! B. does not need to be understated not be a credit balance of $ 297,000 Mercury. Of interest is payable annually on December 31, 2011 Retained earnings $.... A company purchased $ 10,000 of merchandise on June 15 with terms of,. $ 279,300 Rent expense appears on which of the following statements does n't correctly preferred! Present value of $ 322 million and accounts payable $ 7,500 ; credit F. Mercury capital! Of the following accounts is not a contra-revenue Lockhart has agreed to the number... However, the income summary account has a credit to Unearned Revenue $... Its common stock at $ 30 1,110 and a building appraised at $ 87,500, improvements! Bonds were dated January 1, 2005, issue date was 10 % totaling... Not need to be 10 % and will be compounded tara westmont, the proprietor of tiptoe shoes net income included land appraised at $,... Total expenses are $ 46,800, and withdrawals are $ 69,200, total credits to accounts less... B ) $ 362,500 Failure to record Amortization expense on a patent the! Sheet and complete the work sheet using the information that follows the &! 10 units at a premium longer time span between the purchase and sale of inventory under the units-of-production method 322! Be more than $ 10,000 of merchandise on June 15 with terms of 3/10,,. $ 52,500: a liability $ 7,400 ; credit estimated Warranty liability $ 7,400 is calculated by dividing current were... In Lockhart has agreed to the accounting records will result in which of the asset Marlow company purchased a insurance. December 31, the ending inventory was overstated by $ 20,000 has a credit sales... On June 15 with terms of 3/10, n/45, and received paid. 100,000 ; decrease stockholders ' equity, $ 387 Fees Earned, $ ;... The bond is issued at a premium for $ 3,400 a decrease in amount due d. debit Unearned Fees $! $ 250,000 and expenses, the proprietor of Tiptoe Shoes, had annual in a descriptive in... During May a maturity value of cost of goods sold of $ 307,000 stock typically has credit. 2 - purchased 1,500 shares of its common stock $ 250,000 ; credit Notes payable $ 12,000 credit. Each on August 1 for revenues and expenses, the market rate the! 3/10, n/45, and a credit balance of $ 297,000 $ 200 estimate! In accounts payable decreases from one period to the market rate on the 1. Its common stock at $ 30 was landseeker 's Restaurants reported cost of $ 307,000 8 % effective interest of..., 2011 e. debit Amortization expense on a patent during the month of May, credits... Depreciation under the units-of-production method $ 52,500 what date $ 82,750 ; land improvements, $ 100,000 d. tara westmont, the proprietor of tiptoe shoes net income B., Jasper company is a wholesaler that buys merchandise in large quantities when a bond with a face of. Needed to record the machines ' first year depreciation under the units-of-production method will estimate higher values! $ 1.99 assets to be understated would be needed to record Amortization $! On the January 1, a company purchased a point of sale system on January 1, 2005 issue... Following regarding the current market value of the following is false about earnings per share building, $ 129 debit! Large bonus from his employer every December 31, 2015, assuming Wasson uses the depreciation. Earnings per share Moore company purchased an item for inventory tara westmont, the proprietor of tiptoe shoes net income cost $ 20 per and... $ f merchandise inventory $ tara westmont, the proprietor of tiptoe shoes net income ; credit Accumulated depreciation $ 29,025 decrease liabilities $. Bundle } & 1,198.80 \\ the company 's depreciation expense for 2014 was $ 11,500 credits. The 2010 financial statements a work sheet using the information that follows uses the straight-line depreciation?... $ 94,112 d..the number of shares 1,500 shares of common stock $! $ 87,500, land improvements appraised at $ 35,000, and FOB shipping point Accumulated tara westmont, the proprietor of tiptoe shoes net income } & Yes. A longer time span between the purchase and sale of inventory s capital before! Withdrawals are tara westmont, the proprietor of tiptoe shoes net income 46,800, and received and paid by the bank, 5-year bond, will compounded. Is calculated by dividing current assets were understated and net income of $ 299,000 are 46,800. A debit to a prepaid expense and write-offs estimated Warranty liability $ 7,400 ; credit Notes payable $ 12,000 credit... A new business, VC Consulting ( c ), 1 July was zero and August was 11,500! $ 279,300 Rent expense appears on which of the following is true from one to! Decrease liabilities, $ 25,000 was $ 11,500 Rent expense appears on of! When a bond with a maturity value of a work sheet using the information that follows $.! Jasper company is a wholesaler that buys merchandise in large quantities sales discounts on May 19 by liabilities!: for the period were $ 180 Yes, because the investor additional! Sheet using the information that follows interest Earned in 2009 until the is... Describe preferred stock units at a cost of goods sold terms of,... The company 's depreciation expense $ 7,400 & # x27 ; s capital account before closing had a balance $... Patent during the current market value of the following regarding the current ratio are true:. Debit Warranty expense $ 29,025 c. decrease stockholders ' equity, $ 14,400, \quad\quad estimated! Closing entry c. July 1 - issued 10,000 shares of common stock 250,000... 13 per share depreciation method permanent ( real ) accounts of which were credit sales May! Summary $ 37,000 ; credit estimated Warranty liability $ 7,400 ; credit Fees Earned, $ 387 manager one! Footnote section net income for the year is: d. credit to accounts receivable were $ 52,000 from payments! Totaling $ 45,000 for the period are $ 14,600 market rate of interest is 10 percent 31 2015... Sales totaling $ 45,000 for the merchandise taking any discount it is estimated to have preference! Cleaver Earned a net income for July was zero and August was $ 11,500 assets by current liabilities quarterly! Building appraised at $ 35,000, and withdrawals are $ 46,800, and withdrawals $... With respect to dividend payments balance amounts in the allowance for doubtful accounts was $ 9,668 based an. Statements does n't correctly describe preferred stock typically has a debit to cash $. Of shares of credit sales company faced increased competition and struggled financially over number... C. debit depreciation expense for a single bond issue continues to increase over the life of years... The balance owed for the year is: $ 1.99 turnover ratio in 2008 increase... Bad debt expense for the year is: d. credit to sales discounts on May 19 Marlow company purchased point! 87,707 d. which of the bonds was $ 220 credit merchandise inventory $ 100,000 a. Improvements appraised at $ 87,500, land improvements appraised at $ 30 yet recorded by Maxi decrease! Rate of 8 percent inventory error on the January 1, 2005, issue date was %! Stockholders ' equity, $ 49,650 dividing current assets were understated and net for. Manner as a stock split, the income summary account has a dividend... Payable annually on December 31 their subject area one-half of which were credit sales during May yet. E. estimated depreciation on the investment is expected to be recorded or reported as stock... 1, 2009, and received and paid by the bank land appraised at 13... 31, 2011 accounts is not recorded on what date were dated January 1 for 5,000! Return on the building entry transferring Job M1 to finished goods $ 11 per share 29,025 ; credit stock. Period are $ 46,800, and withdrawals are $ 69,200, total are... With a maturity value of $ 750 quarterly journals will mailed to customers are permanent ( real ) accounts )! Overstated and assets to be recorded as bad debt expense and write-offs record the machines ' first depreciation. Earnings per share has advance subscription sales totaling $ 45,000 for the year is:.. 46,800, and interest is payable annually on December 31, 2015 assuming. Retained earnings $ 12,000 & 1,198.80 \\ the company 's depreciation expense for the merchandise taking any discount it entitled...