Question

Tipper Inc. had the following transactions during 2020: • Sales of $13,000 on account for 2020 • Collected $19.000 for services to be performed in 2021 • Paid $5,000 cash in salaries for 2020 • Purchased airline tickets for $2,000 in December for a trip to take place in 2021 What is Tipper Inc's 2020 net income using accrual accounting? $14,000 $8,000 $25,000 $6,000 5 pts Question 1 5 pts Question 15 Question 8 5 pts Borrowing money is an example of aln) A paid dividend to stockholders The Antique Bookstore Company purchased $12,500 worth of office supplies on Sept 2 and recorded the purchase as an asset On June 30, a physical count of the office supplies indicated only $4,500 on hand. The adjusting entry that should be made by the company on Sept 30 is: operating activity increases assets and stockholders' equity investine activity decreases assets and stockholders equily equity financing activity debit Supplies Experise, $4.500: credit Supplies. $4,500 decreases assets and increases stockholders'equity o debt financing activity. debit Supplies $8,000 credit Supplies Expense $8,000 increases assets and decreases stockholders' equity. debit Supplies Expense. $8,000: credit Supplies $8,000. debit Supplies $4,500; credit Supplies Expense. $4,500.

Answer 1

Question No 0 Compute the Net Income of Tipper Inc Under Accrual Accounting Particulars Sales on Account Less : Salaries Paid Amount $ 13,000 $ (5,000) Net Income $ 8,000 Note : Under Accrual Method of Accounting, Revenues are recognized as and when they are performed but expense should be recognized when they are Incurred. Question No (1) Borrowing Money is an Example of Debt Financing Activity Question No (2) A Paid Dividend to Stockholders. Decrease Assets and Decrease Stockholder's Equity Note : Since Payment to dividend is out of profits, net income will reduce resulting in decrease in stockholders equity and payment is with cash reducing assets. Question No (15) Option [c] is correct Supplies Expense - $8000 Debit Supplies - $8000 Credit Note : Do Comment for any further clarifications, Thank you