question

159,000 decrease

answer

If total assets decreased by 88,000 during a period of time and stockholders equity increased by 71,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is

question

decreases stockholder's equity

answer

Declaring and paying cash dividends

question

liabilities increase; stockholders' equity decreases

answer

How does receiving a bill to be paid next month affect the accounting equation?

question

45,000

answer

Allen Marks is the sole stockholder of Great Marks Company. As of December 31, 2013, they have assets of 940000 and liabilities of 300000. during 2014 allen purchased an additional 73000 of capital stock and received 33000 in cash dividends from the business. what is the amount of net income assuming that assets were 995000 and liabilities were 270000?

question

shares of capital stock issued to stockholders, dividends declared and paid to stockholders, revenues and expenses

answer

Transactions affecting stockholders' equity include

question

salary expense

answer

A credit balance in which of the following accounts would indicate a likely error?

question

accounts payable, debit; office supplies, credit

answer

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm service records this transaction?

question

cash, debit; accounts receivable, credit

answer

which of the following entires records the receipt of cash from patients on account?

question

when they are incurred, whether or not cash is paid.

answer

Using accrual accounting, expenses are recorded and reported only

question

Increases the balance of an expense account

answer

If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry?

question

been incurred, not paid and not recorded

answer

Prior to the adjusting process, accrued expenses have

question

records revenues and expenses when they are incurred.

answer

The cash basis of accounting records revenues and expenses when the cash is exchanged while the accrual basis of accounting

question

Swimming pool cleaning that has been provided but has not been billed or payed.

answer

Which of the following is an example of accrued revenue?

question

Net income for the period- 15000

answer

A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year-end.

question

600

answer

Amir designs purchased a 1 yr liability insurance policy for 7200 and recorded it as a period expense. which of the following amounts would be recorded for insurance expense during the adjusting process at the end of Amir's first month?

question

(5-6) a.

answer

(5-6) 1.

question

(5-6) c

answer

(5-6) 2.

question

(5-6) b

answer

(5-6) 3.

question

periodic system records the cost of the sale on the date the sale is made.

answer

the primary difference between periodic and perpetual inventory system is that a

question

net purchases

answer

When the perpetual inventory system is used the inventory sold is shown on the statement as

question

(5-6) c

answer

(5-6) 6.

question

debit to cash, credit to credit card expense and credit to sales

answer

Sales to customers who use bank credit cards such as mastercard or visa are usually recorded by

question

2744

answer

Merch with an invoice price of 3000 is purchased on 9/2 subject to terms 2/10, n/30, FOB destination. Freight costs are totaled 200. Whats is COMS if paid on 9/12 assuming the discount is taken?

question

144

answer

Assuming the company uses perpetual inventory system, determine the COMS for the sale of May 20 using LIFO.

question

120

answer

Assuming the company uses perpetual inventory system, determine the COMS for the sale of May 20 using FIFO.

question

320

answer

Assuming the company uses perpetual inventory system, determine the COMS for the sale of May 20 using FIFO

question

1375

answer

Determine the value of the ending inventory using FIFO

question

1350

answer

The value of the ending inventory using LIFO

question

1353

answer

The value of the ending inventory using average cost is

question

Periodic

answer

If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is

question

FIFO

answer

During a period of falling prices, which of the following inventory methods results in the lowest balance sheet amount?

question

assets and RE overstated by 70000; net income overstated by 70000.

answer

Barry's Bike Shop. effect on balance sheet and income statement

question

320000

answer

If the estimated GP is 30%, what is the estimated cost of merchandise inventory on september 30 based on the following data?

question

indicates that actual bad debt write offs have exceeded previous provisions for bad debts.

answer

A debit balance in the Allowance for Doubtful Accounts

question

10150

answer

A 60-day, 9% note for 10000 dated May 1, is received from a customer on account. The maturity value of the note is

question

132000

answer

A new machine with a purchase price of 109000, with transportation costs of 12000, installation costs of 5000, and special acqusition fees of 6000 would have a cost basis of

question

residual value

answer

A fixed asset's estimated value at the time is to be retired from service is called

question

units of production

answer

when the amount of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is

question

35000

answer

A machine with a cost of 120000 has an estimated residual value of 15000 and an estimated life of 5 years of 15000 hours. it is to be depreciated by the units of production method. what amount of depreciation for the second full- year during which the machine was used 5000 hours?

question

19000

answer

Equipment with a cost of 220000 has an estimated residual value of 30000 and an estimated life of 1 years for 19000 hours. it is to be depreciated by the straight line method. what is the amount of depreciation for the first full year during which the equipment was used 2100 hours?

question

18750

answer

A machine with a cost of 75000 and an estimated residual value of 5000 and an estimated life of 4 years or 18000 hours. what is the amount of depreciation for the second full year, using the double declining method?

question

equipment credit 310000

answer

on december 31, strike company has decided to discard one of batting cages. the initial cost of equipment was 310000 with an accumulated depreciation of 260000. depreciation has been taken up to the end of the year. the following will be included in the entry to record the disposal.

question

no gain or loss.

answer

on december 31, strike company has decided to sell one of its batting cages. the initial cost of equipment was 310000 with an accumulated depreciation of 260000. depreciation has been taken up to the end of the year. the company found someone to buy the equipment for 50000. what is the amount of gain or loss on this transaction?

question

trademark

answer

the exclusive right to use a certain name or symbol is called

question

49000

answer

chang co issued a 50000 120 day discounted note to guarantee bank. the discount rate is 6%. assuming a 360 day year, the cash proceeds to chang co are

question

liability.

answer

the amount of federal income taxes withheld from an employees gross pay is recorded as an

question

FICA

answer

which of the following taxes would be deducted in determining an employee's net pay?

question

45000

answer

nebraska inc issues 3000 shares of common stock for 45000. the stock has a stated value of $10 per share. the journal entry to record the stock issuance would include a credit to common stock for

question

100,000

answer

the charter of a corporation provides the issuance of 100000 shares of common stock. assume that 60000 shares were originally issued and 10000 were subsequently required. what is the amount of cash dividends to be paid if $2 per share dividend is declared?

question

decrease total assets and stockholders' equity

answer

the cummulative effect of the declaration and payment of cash dividend on a company's finnancial statements is to

question

as a decrease in stockholders' equity

answer

how is treasury stock shown on a balance sheet?

question

$0

answer

a corporation purchased 1000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. what is the amount of revenue realized from the sale?

question

640000

answer

what is the total stockholders' equity based on the following account balances?

question

34000

answer

the dayton corporation began the current year with a retained earnings balance of 32000. during the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of 3000 on equipment. also, during the current year, the company earned net income of 12000 and declared cash dividends of 7000. compute the year-end retained earnings balance.

question

false.

answer

the price of a bond is equal to the sum of the interest payments and the face amount of the bonds

question

a discount.

answer

when the market rate of interest on bonds is higher than the contract rate the bonds will sell at

question

21800

answer

on jan 1 of the current year, the barton corporation issued 10% bonds with a face value of 200000. the bonds are sold for 191000. the bonds pay interest semiannually on june 30 and dec 31 and the maturity date is dec 31 five yrs from now. barton records straight line amortization of the bond discount. the bond interest expense for the year ended dec. 31 is

question

1027500

answer

if 1000000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is

question

the amount of annual interest expense is computed at 10% of the bond carrying amount at the beginning of the year.

answer

a corporation issues cash 1000000 0f 10% 20 yr bonds interest payable annually at a time when the market rate interest is 12%. the straight line method is adopted for the amortization of bond discount on premium. which of the following statements is true?

question

15000 gain.

answer

bonds payable has a balance of 1000000 and discount on bonds payable has a balance of 10000. if issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption?

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