accounting finail

Which of the following accounts is not reported in the stockholders' equity section of the balance sheet?

Sales Revenue

A company received a bill for newspaper advertising services, $400. The bill will be paid in 10 days. How would the transaction be recorded today?

debit Advertising Expense $400, credit Accounts Payable $400.

PUFF ADVENTURES has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual direct deposit of payroll for the first week of January?

$12,843

A company had the following cash flows for the year: + (a) Purchased land, $60,000 (b) Borrowed from a local bank, $100,000 V (c) Paid employee salaries, $50,000 (d) Issued common stock, $75,000 V + (e) Paid dividends, $20,000 V - (1) Sold equipment, $40,000 (9) Sold services to customers, $120,000 What amount would be reported for net financing cash flows on the Statement of Cash Flows

$155,000

CARNITAS, Inc. had a Retained Earnings balance of $12,000 at December 31, 2018. The company had an average income of $7,500 over the next 3 years, and an ending Retained Earnings balance of $15,000 at December 31, 2019. What was the total amount of dividends paid over the last three years?

$19,500

CHIPOTLE HONEY VINAIGRETTE reported net income of $200,000. Beginning balances in Accounts Receivable and Accounts Payable were $15,000 and $20,000, respectively. Ending balances in these accounts were $12,000 and $22,000, respectively. Assuming that all relevant information has been presented, CHIPOTLE HONEY VINAIGRETTE's net cash flows from operating activities would be:

$205,000

On November 1, 2018, JOEL signed a $200,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2019. JOEL should record which of the following adjusting entries at December 31, 2018?

. Debit Interest Expense and credit Interest Payable, $2,000.

BARBACOA issues 5,000 shares of 8%, $100 par value preferred stock at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $100,000 in 2018. Assuming the preferred stock is cumulative, how much of the $100,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?

$80,000 to preferred stockholders and $20,000 to common stockholders.

During the year, CHORIZO had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers, $5,000; payment of dividends, $1,000, payment to workers, $2,000; and payment for machinery, $8,000. What amount would be reported for investing net cash flows on the Statement of Cash Flows?

($8,000).

STEAK LEASING received $12,000 for 24 months rent in advance. How should STEAK record this transaction?

. Debit Cash; credit Deferred Revenue.

All classifications on the Balance Sheet have a general relationship with sections identified on the Statement of Cash Flows. Indicate which relationships are correctly identified in the table below. Classification on the Balance Sheet Section on Statement of Cash Flows 1. Bonds Payable, financing 2. Equipment, Investing 3. Common Stock, financing 4. Accounts Payable, Operating 5. Accounts Receivable, Operating

1,3,4,5

Consider the following transactions: 1. The company uses supplies purchased in the previous period, $1.500. 2. The company pays cash for rent in advance, $6,000. 3. The company repays a loan to the bank, $10,000 (ignore any interest cost). The amount of accrual-basis expense is _____ while the amount of cash-basis expense is______

1,500; 6,000

A partial balance sheet for GUACAMOLE is shown below. (dollars in thousands) current assets 505/ current liabilities 320=

1.578

CORN TORTILLA's income statement reports sales of $100,000: cost of goods sold of $46,000, operating expenses of $34,000, interest expense of $15,000, income tax expense of $2,000, and net income of $3,000. If you were to perform a vertical analysis of this income statement, you would divide each of these income statement line items by:

100,000

Excerpts from SOFRITAS' December 31, 2018 and 2017, financial statements are presented below: Accounts receivable (2018) $80,000 (2017) $72,000 Inventory ('18) 84,000 ('17) 70,000 Net sales ('18)400,000 ('17) 372,000 Cost of goods sold ('18)254,000 ('17) 216,000 Total assets ('18)850,000 ('17) 810,000 Total stockholders' equity ('18)500,000 ('17) 450,000 Net income ('18)75,000 ('17) 56,000 SOFRITAS' 2018 average days in inventory is (round all calculations to one decimal place):

110.6 DAYS Average days in inventory= 365/3.3= 110.6

On January 1, 2018, WPS ENTERPRISES borrows $30,000 to purchase a new Toyota Highlander by agreeing to a 6%, 4-year note with the bank. Payments of $704.55 are due at the end of each month with the first installment due on January 31, 2018. What is the second month's interest expense?

147.23 Interest Expense ($30,000 * 6% * 150.00

FLOUR TORTILLA reports accounts receivable of $100,000 in 2017 and $250,000 in 2018. Using horizontal analysis, what would be the percentage increase or decrease in accounts receivable?

150% increase

Using the information in the table above in problem 58 and assuming CILANTRO sold 2,300 units of inventory during the month. Cost of goods sold assuming LIFO would be:

16,760 Cost of goods sold = (600 * $7.35) + (800 * $7.30) + (600 * $7.25) + (300 * $7.20) = $16,760.

Suppose you buy dinner (at Chiptole, of course) for $23.75 that includes an 8% sales tax. How much did Chiptole charge you for the dinner (excluding any tax) and how much do they owe for sales tax?

21.99 for dinner and $1.76 for sales tax. $23.75/1.08 = $21.99.

KEEGAN purchased new equipment for $90,000. Residual value at the end of an estimated four-year service life is expected to be $10,000. During the four-year period, the company expects to use the equipment a total of 5,000 hours. What is the depreciation expense for the second year and the remaining book value of the equipment assuming the firm uses the "Double Declining Balance" method?

22,500; 22,500

Consider the following account balances of the SOUR CREAM LAW FIRM at then end of the year: Accounts payable: 4,400 salaries expense: 12,800 cash: 1,700 common stock: 2,400 service rev: 8,300 Supplies: 4,300 retained earnings: 1,100 Utilities expense: 5,000 How many of these accounts would appear in SOUR CREAM's year-end income statement?

3 Salaries expense, service rev, utilities expense

Recent financial statement data for ROASTED CHILI-CORN SALSA (RCCS) Inc. is shown below. Current liabilities 180 10% Bonds, long-term: 360 Total liabilities 540 Stockholders' equity Common stock 200 Retained earnings 280 Total stockholders' equity 480 Total liabilities and equity 1,020 Interest expense 36 Income before tax 89 Net income $62 RCCS's times interest earned ratio is (rounded to two decimal places):

3.47 Net income- interest tax/ interest expense 124/36= 3.47

ALYSON CONSTRUCTION purchased a 3-acre tract of land for a building site for $350,000. The company demolished the old building at a cost of $12,000, but was able to sell scrap from the building for $1,500. The cost of title insurance was $900 and attorney fees for reviewing the contract was $500. Property taxes paid were $3,000, of which $250 covered the period after the purchase date. The capitalized cost of the land is:

364,650

CHEESE EMPORIUM was organized on January 1, 2018. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 2018, CHEESE EMPORIUM had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is the total stockholders' equity at the end of 2018?

420,000

inventory records for CILANTRO revealed the following: Date: Transaction: # of units: unit cost Mar. 1: beginning inv: 1,000: 7.20 Mar. 10: Purchase: 600: 7.25 MAr. 16 Purchase: 800: 7.30 Mar. 23: Purchase: 600: 7.35 CILANTRO sold 2,300 units of inventory during the month. Ending inventory assuming FIFO would be:

5,140 Ending inventory = (100x 7.30)+ (600x7.35)= 5,140

At December 31, BELL PEPPER (BP) had account balances in Accounts Receivable of $311,000 and in Allowance for Uncollectible Accounts of $970 (credit) before any adjustments. An analysis of BP's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for the year should be

5,250

Excerpts from PINTO BEANS' December 31, 2018 and 2017, financial statements are presented net sales 190,000/ average account rece (40,000+ 36,000)/2

5.0%

Given the info below , what is the gross profit? sale rev: 320,00 account rece: 50,000 ending inv: 100,000 cost of goods sold: 250,000 sales rev: 20,000

50,000 Sales rev (320,00)- sale returns (20,00)- cost of goods sold (250,000)= 50,000

RAZORBACKS issues $10 million in bonds on January 1, 2018. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date, cash paid, interest expense, increase in carrying value, carrying value: 1/1/18 --- carrying value: 8,640,967 6/30/18: 300,000: 345,639: 45,639: 8,686,606 12/31/18: 300,000 347,464: 47,363: 8,734,070 6/30/19: 300,000: 351,337: 51,337: 8,834,770 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.)

6% ($300,000/$10,000,000) * 2 payments per year = 6%.

Using the information above in problem 66, the journal entry on May 1, 2019 to record the amount of cash needed to pay back the note payable plus any accrued interest would include:

A credit to cash for $206,000. $200,000 + ($200,000 * 6% * 6/12] = $206,000.

Which of the following accounts represents a resource of the company?

Accounts receivable

When preparing a bank reconciliation, a deposit outstanding would be:

Added to the bank's cash balance

If a company issues 1,000 shares of $1 par value common stock for $20 per share, which of the following accounts would be credited?

Additional Paid-in Capital

Which of the following does not represent a liability of a company? A. Salaries owed to employees. 8. Taxes owed to the government. C. Amounts owed to suppliers. D. All of the other answers are liabilities.

All of the other answers are liabilities.

Adjusting entries:

Always involve at least one income statement account and one balance sheet account.

Treasury Stock is normally reported as:

An asset account.

Gains on the sale of long-term assets for cash:

Are the excess of the cash received over the book value

Bond X and Bond Y are both issued by the same company, HOGS. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 9% interest. The current market rate of interest is 8%. Which of the following is correct?

Bond Y will sell for more than Bond X.

On May 31, FRESH TOMATO SALSA's Cash account showed a balance of $10,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: checks outstanding: 2,250 deposits outstanding: 1,900 Nsf: 100 service fees: 40 Error; FRESH TOMATO SALSA wrote a check for $30 but recorded it incorrectly for $300. What is the amount of cash that should be reported in the company's balance sheet as of May 31?

Cash balance = $10,000 - $100 - $40 + $270 = $10,130.

Deferred revenues refer to:

Customers paying cash in advance of the good or service to be provided

At the beginning of December, TOMATILLO-GREEN CHILI SALSA (TGCS) had $2,000 in supplies on hand. During the month, supplies purchased amounted to $3,000, but by the end of the month the supplies balance was only $800. What is the appropriate month-end adjusting entry for TGCS

Debit Supplies Expense $4,200, credit Supplies $4,200

BLACK BEANS had 100,000 outstanding shares of common stock. On June 16, 2018, BLACK BEANS repurchased 20,000 shares of its own stock at $30 per share. On July 23, 2018, BLACK BEANS resold 10,000 shares at $28 per share. What net effect did the repurchase and the resell of common stock have on the accounting equation

Decrease in assets and decrease in stockholders' equity.

Which of the following is true about a "debit"? It is part of the double-entry procedure that keeps the accounting equation in balance. II. it represents an increase to assets. III. It represents a decrease to liabilities. IV. is on the right side of a T-account. Always on the best

I,II,III

The balance of cash reported in the balance sheet this year minus the balance of cash reported in the balance sheet last year equals:

Net cash flows from operating, investing, and financing activities

Retained Earnings represent a company's:

Net income less dividends since the company first began operations

AVOCADO reported the following amounts at the end of the year; total sales = $550,000: sales discounts =$12,000; sales returns = $44,000; sales allowances =$17,000. What was the company net revenues for the year?

Net revenues= $550,000- 12,000-44,000-17,000= 477,000

Which of the following is added to net income as an adjustment under the indirect method of preparing the statement of cash flows?

Salaries payable increase.

The payment of salaries is classified in the statement of cash flows as a(n):

Operating activity

The correct order from the smallest number of shares to the largest number of shares is

Outstanding, issued, and authorized.

A contingent liability should be recorded on a company's financial statements only if the likelihood of a loss occurring is:

Probable and the amount of the loss can be reasonably estimated.

Which of the following is an example of a noncash activity?

Purchase of land by issuing debt

______ is an investing cash flow and _____ is a financing cash flow, as reported on the statement of cash flows.

Purchasing land; repaying a bank loan

Which of the following describes the purpose(s) of closing entries?

Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period

"Record revenue when goods or services are provided to customers" is the definition of which principle in accounting?

Revenue recognition

Which of the following best explains the meaning of total stockholders' equity?

The amount of capital invested by stockholders plus profits retained over the life of the company.

In each succeeding payment on an installment note:

The amount that goes to decreasing the carrying value of the note increases.

If a company has stockholders' equity of $60,000 at the end of the year, which of the following statements must be true?

The company's assets exceed liabilities by $60,000.

The act of collusion refers to:

Two or more people acting in coordination to circumvent internal controls.

Which of the following is a reason that a corporation would prefer to issue stock instead of bonds?

The risk of going bankrupt is less

. The lower of cost and net realizable value rule causes losses in the value of inventory to be recognized in the period when:

The value of inventory declines below cost.

ELLARY COMPANY purchased a computer that cost $10,000. It had an estimated useful life of 5 years and no residual value. The computer was depreciated by the straight-line method and was sold at the end of the second year of use for $5,000 cash. ELLARY should record

a loss of 1,000 $10,000/5 years = depreciation of $2,000 per year. After two years, the book value would be $10,000 - ($2,000 * 2 years) = $6,000. The asset was sold for $5,000, so the company should record a loss of $1,000.

A(n) receivable is an informal credit arrangement with trade customers, whereas a(n) receivable is a formal signed credit arrangement between a creditor and a debtor

account; note

. Which of the following is correct? A. The receivables turnover ratio depicts the company's frequency of cash collections, B. The inventory turnover ratio can be used to assess the company's frequency of selling inventory. C. The current ratio reflects the company's ability to pay current debt. D. All of these

all of these

Cash flows from investing do not include cash flows from:

borrowing

Cash transactions recorded by the bank but not yet recorded by the company include all of the following except

checks outstanding

Below is the company's Cash T-account: Cash: DR: CR: beg. 1,200 5,200 3,100 End. 3,300 The 5,200 amount could represent which of the following?

collection of customers. DR cash to increase

which of the following ratios is most usful in evaluating solvency?

debt to equity ratio (Long term focus- solvency)

Comparing changes in net income for one company over time is an example of

horizontal analysis

Under an operating lease, leasing improves the balance sheet by reducing:

long-term debt

which measure reflects profitability from normal operations and a key performance measure for predicting the future profit- generating ability of a company?

operating income

TORTILLA provides services of $46,000 to CHIPS WATER DISTRICT #45 on April 12 of the current year with terms 1/15, n/60. What would TORTILLA record on April 23, assuming the customer made the correct payment on that date? A: cash 45,540 sales rev 460 account rece ------46,000 B: cash 460 accounts rece ---------46,00 interest rate -------- 460 C: cash 45,540 sales discounts 460 accounts rece-------46,000 D: Cash 46,000 accounts rece---------45,540 sales reve ------ 460

option c

Which of the following is correct about the statement of cash flows?

paying dividends to investors creates a cash outflow from financing activities.

The purpose of recording an allowance for uncollectible accounts is to

report accounts receivable at net realizable value

A discontinued operation refers to:

the sale or disposal of a significant component of a company's operations,

KOURTNEY COMPANY made an ordinary repair to a delivery truck at a cost of $500. KOURTNEY'S accountant debited the asset account, Equipment. Was this treatment an error, and if so, what will be the effect on KOURTNEY's financial statements?

yes, the error overstated assets and net income