Homework Answers
24.
Conservatism is accounting principle which reflects the practice of using lower of cost and net realizable value to evaluate inventory.
25.
| a | Debit in equipment | Increase (Assets) |
| b. | Credit in utilities payable | Increase (Liabilities) |
| c. | Debit in service income | Decrease (Revenue) |
| d. | Debit in taxes payable | Decrease (Liabilities) |
| e. | Credit in salaries payable | Increase (Liabilities) |
| f. | Debit in cash | Increase (Assets) |
| g. | Debit in accounts payable | Decrease (Liabilities) |
| h. | Credit in rent | Decrease (Expenses) |
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24. The practice of using the lower of cost and net realizable value to evaluate inventory...
A company reports inventory using the lower of cost and net realizable value. Below is information...
A company reports inventory using the lower of cost and net realizable value. Below is information related to its year- end inventory: InventoryQuantity Cost NRV Item A 140 $28 $33 Item B 4033 23 a. Calculate ending inventory under the lower of cost and net realizable value. Ending inventory b. Prepare the necessary adjusting entry to inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal...
c. Expenses decrease stockholders' equity. d. Expenses are a negative factor in the computation of net...
c. Expenses decrease stockholders' equity. d. Expenses are a negative factor in the computation of net income 26. A revenue account a is increased with a debit b is decreased with a credit c. is increased with a credit. d. has a normal balance of a debit. 27. The Dividends account a. appears on the income statement along with the expenses of the business b mast show transactions every accounting period. c. is increased with debits and decreased with credits...
Oriole Enterprises had the following selected transactions. 1. Bo Oriole invested $6,400 cash in the business....
Oriole Enterprises had the following selected transactions.
1. Bo Oriole invested $6,400 cash in the business.
2. Purchased a 2-year insurance policy for $3,840.
3. Paid office rent of $1,344.
4. Performed consulting services and billed a client $8,320.
5. Bo Oriole withdrew $1,200 cash for personal use.
Prepare the debit-credit analysis for each transaction.
Debit-Credit Analysis Effect on Amounts Effect on Accounting Equation : Debit Cash 1. Debits Increase Assets 6,400 Credits Increase Owner's Equity 4: Credit Owner's Capital...
31) A business uses a credit to record: A) An increase in an expense account. B)...
31) A business uses a credit to record: A) An increase in an expense account. B) A decrease in an asset account. C) A decrease in an unearned revenue account. D) A decrease in a revenue account. E) A decrease in a capital account. 32) Identify the statement below that is correct: A) The left side of a T-account is the credit side. B) Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. C) The left...
The company borrowed using a note payable from the bank for $30,000 on January 1 of...
The company borrowed using a note payable from the bank for $30,000 on January 1 of the current vear, due with all interest on June 30 of the following year. The note payable requires 10% interest Debit and credit the accounts affected. Dec. 31 Ensure the equation still balances and debits - credits. Assets Liabilities Stockholders' Equity (h) The company calculated its income taxes as $26.110 for the current year ended December 31. Debit and credit the accounts affected. Dec....
Exercise 1 These are the assumptions, principles, and constraints discussed in this and pre- vious chapters....
Exercise 1 These are the assumptions, principles, and constraints discussed in this and pre- vious chapters. 1. Economic entity assumption. 2. Matching principle. 3. Monetary unit assumption. 4. Time period assumption. 5. Cost principle. 6. Materiality 7. Full disclosure principle. 8. Going concern assumption. 9. Revenue recognition principle. 10. Conservatism. Instructions Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once. (a) is the rationale for why plant...
1 .Choose all the accounts below that would be INCREASED by a DEBIT entry to the...
1 .Choose all the accounts below that would be INCREASED by a DEBIT entry to the account. Group of answer choices Assets Dividends Capital Contributions Revenues Contra Assets Losses Expenses Liabilities Contra Revenues Retained Earnings Gains 2. Choose all the accounts below that would be DECREASED by a CREDIT entry to the account. Group of answer choices Retained Earnings Assets Equity Expenses Dividends Contra Assets Losses Liabilities 3. Choose all the accounts below that would be DECREASED by a DEBIT...
Review the transactions and determine the accounts, the account types (use assets, liabilities, equity, dividends, revenue,...
Review the transactions and determine the accounts, the account types (use assets, liabilities, equity, dividends, revenue, and expenses), if they increase/decrease and if they are DR/CR. Check your spelling carefully and do not abbreviate. Refer to the for account titles Provided services on account. Account Name Account Type Increase/Decrease Debit/Credit Purchase of building with note Account Name Account Type Increase/Decrease Debit/Credit Enter the following transactions as journal entries. Record debits first, then credits Received $7,000 utility bill to be paid...
On January 1, 2009, Madison Company had Rs60,000 of Retained Earnings. During 2009 Madison earned net...
On January 1, 2009, Madison Company had Rs60,000 of Retained Earnings. During 2009 Madison earned net income of Rs100,000 and declared and paid dividends of Rs15,000. In addition, the company received cash of Rs25,000 as an additional investment by its owners. Therefore, the ending balance in Retained Earnings at December 31, 2009 would be Select one: a. Rs145,000 b. Rs 90,000 c. Rs130,000 d. Rs170,000 Which of the following items would not fall under the definition of an asset? Select...
the journal entry to write down inventory under the lower of cost or net realizable value...
the journal entry to write down inventory under the lower of
cost or net realizable value rule results in a debit to cost of
goods sold and credit to inventory true
E8-6 8-2, 8-3 Recording Depreciation and Repairs (Straight-Line Depreciation) Manrow Growers. Ine.. owns equipment for sowing and harvesting its organic fruit nuts that are sold to local restaurants and grocery stores. At the beginning of 2019 company showed the following balances: fruit, vegetables, and tree 2019. an asset account...
A company reports inventory using the lower of cost and net realizable value. Below is information related to its year- end inventory: InventoryQuantity Cost NRV Item A 140 $28 $33 Item B 4033 23 a. Calculate ending inventory under the lower of cost and net realizable value. Ending inventory b. Prepare the necessary adjusting entry to inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal...
c. Expenses decrease stockholders' equity. d. Expenses are a negative factor in the computation of net income 26. A revenue account a is increased with a debit b is decreased with a credit c. is increased with a credit. d. has a normal balance of a debit. 27. The Dividends account a. appears on the income statement along with the expenses of the business b mast show transactions every accounting period. c. is increased with debits and decreased with credits...
Oriole Enterprises had the following selected transactions.
1. Bo Oriole invested $6,400 cash in the business.
2. Purchased a 2-year insurance policy for $3,840.
3. Paid office rent of $1,344.
4. Performed consulting services and billed a client $8,320.
5. Bo Oriole withdrew $1,200 cash for personal use.
Prepare the debit-credit analysis for each transaction.
Debit-Credit Analysis Effect on Amounts Effect on Accounting Equation : Debit Cash 1. Debits Increase Assets 6,400 Credits Increase Owner's Equity 4: Credit Owner's Capital...
31) A business uses a credit to record: A) An increase in an expense account. B) A decrease in an asset account. C) A decrease in an unearned revenue account. D) A decrease in a revenue account. E) A decrease in a capital account. 32) Identify the statement below that is correct: A) The left side of a T-account is the credit side. B) Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. C) The left...
The company borrowed using a note payable from the bank for $30,000 on January 1 of the current vear, due with all interest on June 30 of the following year. The note payable requires 10% interest Debit and credit the accounts affected. Dec. 31 Ensure the equation still balances and debits - credits. Assets Liabilities Stockholders' Equity (h) The company calculated its income taxes as $26.110 for the current year ended December 31. Debit and credit the accounts affected. Dec....
Exercise 1 These are the assumptions, principles, and constraints discussed in this and pre- vious chapters. 1. Economic entity assumption. 2. Matching principle. 3. Monetary unit assumption. 4. Time period assumption. 5. Cost principle. 6. Materiality 7. Full disclosure principle. 8. Going concern assumption. 9. Revenue recognition principle. 10. Conservatism. Instructions Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once. (a) is the rationale for why plant...
Review the transactions and determine the accounts, the account types (use assets, liabilities, equity, dividends, revenue, and expenses), if they increase/decrease and if they are DR/CR. Check your spelling carefully and do not abbreviate. Refer to the for account titles Provided services on account. Account Name Account Type Increase/Decrease Debit/Credit Purchase of building with note Account Name Account Type Increase/Decrease Debit/Credit Enter the following transactions as journal entries. Record debits first, then credits Received $7,000 utility bill to be paid...
the journal entry to write down inventory under the lower of
cost or net realizable value rule results in a debit to cost of
goods sold and credit to inventory true
E8-6 8-2, 8-3 Recording Depreciation and Repairs (Straight-Line Depreciation) Manrow Growers. Ine.. owns equipment for sowing and harvesting its organic fruit nuts that are sold to local restaurants and grocery stores. At the beginning of 2019 company showed the following balances: fruit, vegetables, and tree 2019. an asset account...
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