Income tax expense:
= ($118,000 - $79,000) X 30%
= $11,700
$11,700 will be recorded as expense which decrease the stockholders equity.
Decreases stockholders equity by $11,700
1st option
Harvey Co. pays income tax at an average rate of 30 percent. This year its revenue...
Q.3 How does the year-end adjusting entry to recognize uncollectible accounts expense affect the elements of the financial statements? Multiple Choice A. Increase total assets and decrease stockholders’ equity. B. Increase total liabilities and increase stockholders’ equity. C. Decrease total assets and decrease stockholders’ equity. D. Decrease total liabilities and increase stockholders’ equity.
Which of the following would not be a result of the adjusting entry to record accrued interest on a note payable? Multiple Choice A decrease in net income. A decrease in stockholders' equity. An increase in liabilities A decrease in current assets.
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Rhoades Tax Services began business on December 1, 2015. Its December transactions are as follows. Dec Rhoades invested $20,000 in the business in exchange for common stock. Paid $1,200 cash for December rent to Bomba Realty. 2 Purchased $1,080 of supplies on account. 2 Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days. Paid $1,080 cash on account for supplies purchased December 2. 14 Paid $900 cash for assistant's wages for 2 weeks' work...
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8) Daisy Co. previously received & recorded $5,000 cash from a client for future consulting services. Now Daisy Co. has provided $3,000 of the services and earned that revenue. What is the necessary adjusting entry? Debit Credit If this adjustment is not made, the following are overstated, understated, or not impacted: (completed for you on this question) Assets: not impacted Revenue: understated Liabilities: overstated Expense:_not impacted Stockholders' Equity: understated 9) Interest of $450 has accrued on a note payable. What...
You are provided with the following information for Wildhorse Co., effective as of its April 30, 2017, year-end Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Common stock Cost of goods sold Depreciation expense Dividends Equipment Income tax expense Income taxes payable Insurance expense Interest expense Inventory Land Mortgage payable Notes payable Prepaid insurance Retained earnings (beginning) Salaries and wages expense Salaries and wages payable Sales revenue Stock investments (short-term) $924 990 670 1,450 1,440 1,150 245 415 2,600 255 225...
Ch 1 1. Given the following dat Dec 31 Year 2 Dec 31 Year 1 Total liabilities S128,250 $120,000 Total stockholders oquity 95.000 80.000 compute the ratio of liabilities to stockholders' equity for each year Round to two decimal places 1.50 and 107, 11.35 and 1.50 respectively respectively 1.07 and 1.19. 1.1.19 and 1.35 respectively respectively The liabilities and stockholder's equity of a company are $132,000 and $244.000, respectively. Assets should equal SS188.00 $132.00 p $376,00 12.000 A financial statement...
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