accounting final

hardy company has current assets of $100,000, current liabilities of $90,000, non-current assets of $180,000 and long-term liabilities of $80,000. hardy company's working capital and its current ratio are

$10,000 and 1.11:1

operating expenses: $91,500 sales returns and allowances: $25,400 sales discounts: $11,100 sales revenue: $302,000 cost of goods sold: $158,700 gross profit would be

$106,800

net credit sales for the month are $800,000. the accounts receivable balance is $160,000. the allowance is calculated as 7.5% of the receivables balance using the percentage-of-reeivables basis. if allowance for undoubtful accounts has a credit balance of $5,000 before adjustment, what is the balance after adjustment

$12,000

accounts receivable arising from sales to customers amounted to $45,000 and $50,000 at the beginning and end of the year, respectively. income reported on the income statement for the year was $160,000. exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

$155,000

farr company purchased a new van for floral deliveries on january 1, 2019. the van cost $48,000 with an estimated life of 5 years and $12,000 salvage value at the end of its useful life. the double-declining-balance method of depreciation will be used. what is the depreciation expense for 2019?

$19,200

on may 1, 2019, pinkley company sells office furniture from their fixed assets for $150,000 cash. the office furniture originally cost $375,000 when purchased on january 1, 2012. depreciation is recorded by the straight-line method over 10 years with a salvage value of $37,500. what gain should be recognized on the sale?

$22,500

on february 1, results income tax service received a $3,000 cash retainer for tax preparation services to be rendered equally over the next 4 months. the full amount was credited to the liability account unearned service revenue. assuming that the revenue is recognized equally over the 4-month period, what balance would be reported on the february 28 balance sheet for unearned service revenue? balance in unearned service revenue

$2250

a retail store credited the sales revenue account for the sales price and the amount of sales tax on sales. if the sales tax rate is 5% and the balance in the sales revenue account amounted to %525,000, what is the amount of the sales taxes owned to the taxing agency?

$25,000

alfalfa company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value in valuing inventories: product a: cost - $110,000, NRV - $120,000; product b: cost - $80,000, NRV - $76,000; product c: cost - $155,000, NRV - $162,000. if alfalfa applies the LCNRV basis, the value of the inventory reported on the balance sheet would be

$341,000

kennedy company issued stock to ed Kennedy in exchange for his investment of $25,000 cash in the business. the company recorded revenues of $185,000, expense of $140,000, and had paid dividends of $10,000. what was Kennedy's net income for the year?

$45,000

Jake's market recorded the following events involving a recent purchase of merchandise: received goods for $50,000, terms 2/10, n/30: returned $1,000 of the shipment for credit; paid $250 freight on the shipment; and paid the invoice within the discount period. as a result of these events, the company's inventory increased by

$48,270

electric sunset company gathered the following reconciling information in preparing its july bank reconciliations: cash balance per books, 7/31 - $5,500; deposits in transit - $300; notes received and interest collected by bank $1,100; bank charge for check printing $20; outstanding checks $2,000; NSF check $170. the adjusted cash balance per books on july 31 is

$6,410

a company just starting business made the following four inventory purchases in june: june 1st - 150 units, total cost $390; june 28th - 150 units, total cost $510 [TOTAL COST JUNE PURCHASES $2,115]. a physical count of merchandise inventory on june 30 reveals that there are 200 units on hand. using the average-cost method, the amount allocated to the ending inventory on june is

$604

the maturity value of a $60,000, 8%, 3-month note receivable is

$61,200

barker company's records show the following for the month of january: retained earnings balance at january 1 - $600,000; retained earnings balance at january 31 - $900,000; revenues - $1,005,000; dividends declared - $45,000. expenses for january were

$660,000

partridge bookstore had 500 units on hand at january 1, costing $18 each. purchases and sales during the month of january were as follows: PURCHASES: jan. 17th - 250 units, $20 (unit cost); jan. 25th - 250 units, $22 (unit cost) SALES: jan. 14th - 375 units, $28 (unit price); jan. 29th - 260 units, $32 (unit price). partridge does not maintain perpetual inventory records. according to a physical count, 365 units were on hand at january 31. the cost of the inventory at january 31, under the FIFO method is:

$7,800

on january 2, 2016, porter corporation issued 30,000 shares of 6% cumulative preferred stock at $100 par value. on december 31, 2019, porter corporation declared and paid its first dividend. what dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?

$720,000

machine with a cost of $240,000 has an estimated salvage value of $15,000 and an estimated useful life of 5 years or 15,000 hours. it is to be depreciated using the units-of-activity method of depreciation. what is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

$75,000

eneri company's inventory records show the following data: inventory: january 1st - 5,000 units, $7.00 (unit cost); june 18th - 4,500 units, $8.00 (unit cost); purchase: november 8th - 3,000 units, $9.20 (unit cost). a physical inventory on december 31 shows 2,000 units on hand. eneri sells the units for $13 each. the company has an effective tax rate of 20%. eneri uses the periodic inventory method. under the LIFO method, cost of goods sold is

$84,600

at january 1, 2019, alligator industries reported retained earnings of $130,000. during 2019, alligator had a net loss of $30,000 and paid dividends of $15,000. at december 31, 2019 the amount of retained earnings is

$85,000

operating expenses: $59,000 sales revenue: $250,000 cost of goods sold: $137,000 the gross profit rate would be

0.425

use the following information to answer the question below (and use 365 days for a year when calculating financial ratios): net credit sales $800,000, cost of goods sold $480,000, interest expense $7,000, net income $60,000, accounts receivable (beginning) $100,000, accounts receivable (ending) $120,000, inventory (beginning) $75,000, inventory (ending) $85,000, total assets (beginning) $500,000, total assets (ending) $600,000, total common stockholders' equity (beginning) $320,000, total common stockholders' equity (ending) $430,000. return on common stockholders' equity is

16%

at june 1, 2021, coquehcot industries had an accounts receivable balance of $12,000. during the month, the company performed credit services of $30,000 and collected accounts receivable of $22,000. what is the balance in accounts receivable at june 30, 2021?

20,000

use the following information to answer the question below (and use 365 days for a year when calculating financial ratios): net credit sales $800,000, cost of goods sold $480,000, interest expense $7,000, net income $60,000, accounts receivable (beginning) $100,000, accounts receivable (ending) $120,000, inventory (beginning) $75,000, inventory (ending) $85,000, total assets (beginning) $500,000, total assets (ending) $600,000, total common stockholders' equity (beginning) $320,000, total common stockholders' equity (ending) $430,000. the gross profit rate is

40%

use the following information to answer the question below (and use 365 days for a year when calculating financial ratios): net credit sales $800,000, cost of goods sold $480,000, interest expense $7,000, net income $60,000, accounts receivable (beginning) $100,000, accounts receivable (ending) $120,000, inventory (beginning) $75,000, inventory (ending) $85,000, total assets (beginning) $500,000, total assets (ending) $600,000, total common stockholders' equity (beginning) $320,000, total common stockholders' equity (ending) $430,000. the average collection period is

50.2 days

use the following information to answer the question below (and use 365 days for a year when calculating financial ratios): net credit sales $800,000, cost of goods sold $480,000, interest expense $7,000, net income $60,000, accounts receivable (beginning) $100,000, accounts receivable (ending) $120,000, inventory (beginning) $75,000, inventory (ending) $85,000, total assets (beginning) $500,000, total assets (ending) $600,000, total common stockholders' equity (beginning) $320,000, total common stockholders' equity (ending) $430,000. the inventory turnover ratio is:

6.0

notification by the bank that a deposited customer check was returned NSF requires the the company make the following adjusting entry

accounts receivable (debit); cash (credit)

the entry to record the receipt of payment within the discount period on a sale of $1500 with terms of 1/10, n/30 will include a credit to

accounts receivable for $3800

closing entries are journalized and posted

after the financial statements are prepared

the basic accounting equation may be expressed as

assets = liabilities + stockholder's equity

accounts payable is reported on the

balance sheet

accumulated depreciation is reported on the

balance sheet

equipment is reported on the

balance sheet

unearned sales revenue are reported on the

balance sheet

paden company purchased merchandise from emmett company with freight terms of FOB shipping point. the freight costs will be paid by the

buyer

merriweather post pavilion received an $840 check from a customer for the balance due. the transaction was erroneously recorded as a debit to cash $480 and a credit to service revenue $480. the correcting entry is

cash $360 (debit) and service revenue $480 (debit); accounts receivable $840 (credit)

carter company sells merchandise on account for $3,000 to Hannah company with credit terms of 2/10, n/30. hannah company returns $450 of merchandise that was damaged, along with a check to settle the account within the discount period. what entry does carter company make upon receipt of the check?

cash 2,499 (debit) sales returns & allowances 450 (debit) sales discounts 51 (debit) accounts receivable 3,000 (credit)

a $100 petty cash fund has cash of $13 and receipts of $84. the journal entry to replenish the account would include a credit to

cash for $87

closing entries

cause the revenue and expense accounts to have zero balances

treasury stock is a(n)

contra stockholders' equity account

two categories of expenses for merchandising companies are

cost of goods sold and operating expenses

on august 3, mountain goats tree service received cash from customers who were billed in july. the entry to record this transaction would include a

credit to accounts receivable

the collection of a $3100 account after the 1 percent discount period will result in a

credit to accounts receivable for $3100

if income summary has a credit balance after revenues and expenses have been closed into it, the closing entry for income summary will include a

credit to the retained earnings account

merriweather post pavilion received a $820 check from a customer for the balance due. the transaction was erroneously recorded as a debit to cash $280 and a credit to service revenue $280. the correcting entry is

debit cash, $540 and service revenue, $280; credit accounts receivable, $820

on october 20, mountain goats tree service paid for their monthly advertising. the entry to record this transaction would include a

debit to advertising expense

an aging of company's accounts receivable indicated that $3,000 is estimated to be uncollectible. if allowance for doubtful accounts has a $700 debit balance, the adjustment to record bad debts for the period will require a

debit to bad debts expense for $3,700

on july 7, mountain goats tree service performed cash services of $1,700. the entry to record this transaction would include a

debit to cash

on april 30, mountain goats tree service purchased a $20,000 machine by paying $2,000 cash and signing a note for the balance due. the journal entry to record this transaction would include a

debit to equipment

on january 1, sway corporation had 60,000 shares of $10 par value common stock outstanding. on march 17, the company declared a 15% stock dividend to stockholders of record on march 20. market value of the stock was $13 on march 17. the entry to record the transaction of march 17 would include a

debit to stock dividends for $117,000

on september 13, mountain goats tree service purchased additional supplies for cash. the entry to record this transaction would include a

debit to supplies

when the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a

debit to the allowance account

bonita co. returned defective goods costing $4500 to sandhill company on april 19, for credit. the goods were purchased april 10, on credit, terms 2/10, n/30. the entry by bonita co. on April 19, in receiving full credit is:

debit: accounts payable $4,500 credit: inventory $4,500

bills p. leonard $300 after completing for each transaction

debit: accounts receivable credit: service revenue

sheldon cooper invests $4,000 cash in exchange for shares of common stock in a small welding business

debit: cash credit: common stock

vaughn company sells merchandise on account for $3900 to ivanhoe company with credit terms of 2/10, n/30. ivanhoe company returns $800 of merchandise that was damaged, along with a check to settle the account within the discount period. what entry does vaughn company make upon receipt of the check?

debit: cash $3038, sales returns & allowances $800, sales discounts $62 credit: accounts receivable $3900

purchases equipment on account for $1,200

debit: equipment credit: accounts payable

blue guitar music school borrowed $30,000 from the bank signing an 8%, 6-month note on november 1. principal and interest are payable to the bank on may 1. if the company prepares monthly financial statements, what adjusting entry should the company make at november 30, with regard to the note?

debit: interest expense $200 credit: interest payable $200

pays $800 cash to landlord for june rent

debit: rent expense credit: cash

flounder arcade paid the weekly payroll on january 2 by debiting salaries and wages expense for $56,150. the accountant preparing the payroll entry overlooked the fact that salaries and wages expense of $30,340 had been accrued at year end on december 31. the correcting entry is

debit: salaries and wages payable $30,340 credit: salaries and wages expense $30,340

on june 1, during its first month of operations, crooked rain purchased supplies for $4,500 and debited the supplies account for that amount. at june 30, an inventory of supplies showed $1,000 of supplies on hand. what adjusting journal entry should be made for june?

debit: supplies expense 3,500 credit: supplies 3,500

each of the following accounts is closed to income summary except

dividends

under accrual-basis accounting

events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received

the expense recognition principle matches

expenses with revenues

in a manufacturing business, inventory that is ready for sale is called

finished goods inventory

which one of the following would not be considered an advantage of the corporate form of organization?

government regulation

sales revenue less cost of goods sold is called

gross profit

land acquired from the issuance of common stock is reported

in a separate schedule at the bottom of the statement

a buyer would record a payment within the discount period under a perpetual inventory system by crediting

inventory

the journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit

inventory

the factor which determines whether or not goods should be included in a physical count of inventory is

legal title

correcting entries

may involve any combination of accounts in need of correction

after gross profit is calculated, operating expenses are deducted to determine

net income

if ending inventory is understated, net income and assets will be

net income (understated); assets (understated)

admire county bank agrees to lend givens brick company $300,000 on january 1. givens brick company signs a $300,000, 8%, 9-month note. What entry will givens brick company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

notes payable 300,000 (debit) interest payable 18,000 (debit); cash 318,000 (credit)

the economic entity assumption requires that the activities

of an entity be kept separate from the activities of its owner

a post-closing trial balance will show

only permanent account balances

cash receipts from interest and dividends are classified as

operating activities

net income is gross profit less

operating expenses

which of the following depicts the proper sequence of steps in the accounting cycle?

prepare a trial balance, prepare adjusting entries, prepare financial statements

the primary purpose of the statement of cash flows is to

provide information about the cash receipts and cash payments during a period

items waiting to be used in production are considered to be

raw materials

inventory is

reported as a current asset on the balance sheet

the preparation of closing entries

results in transferring the balances in all temporary accounts to retained earnings

an enterprise which sells goods to customers is known as a

retailer

which of the following is a true statement about closing the books of a corporation?

revenues and expenses are closed to the income summary account

if errors occur in the recording process, they

should be corrected as soon as they are discovered

generally accepted accounting principles are

standards that indicate how to report economic events

cash dividends are reported on the

statement of retained earnings

depletion is

the allocation of the cost of natural resources to expense

the balance in the income summary account before it is closed will be equal to

the net income or loss on the income statement

the primary source of revenue for a wholesaler is

the sale of merchandise

if goods win transit are shipped FOB destination

the seller has legal title to the goods until they are delivered

a list of accounts and their balances at a given time is called a(n)

trial balance

REM real estate received a check for $24,000 on july 1 which represents a 6 month advance payment of rent on a building it rents to a client. unearned rent was credited for the full $24,000. financial statements will be prepared on july 31. REM real estate should make the following adjusting entry on july 31

unearned rent $4,000 (debit); rent revenue $4,000 (credit)

if a company determines cost of goods sold each time a sale occurs, it

uses a perpetual inventory system

in a perpetual inventory system, cost of goods sold is recorded

with each sale

a current liability is a debt that can reasonably be expected to be paid

within one year or the operating cycle, whichever is longer

an auto manufacturer would classify vehicles in various stages of production as

work in process