Following is selected information from Company trial balance. Cash $ 51,300 Land 132,000 Patents 13,400 Accounts...

Following is selected information from Company trial balance.

Cash	$ 51,300
Land	132,000
Patents	13,400
Accounts receivable, net	28,000
Equipment	55,000
-Accum. Dep.	22,500
Accounts payable	23,100
Sales tax payable	8,400
Deferred sales	3,800
Sales	312,000
Sales discounts	4,800

How much are Current Liabilities?

What effect does the payment of dividends have on the accounting equation?

Automobile dealerships most likely use which inventory costing method?

Multiple Choice

Weighted-average.
Specific identification.
Actual cost.
Matching unit.

Expert Solution


	Current Liabilities		Accounts Payable + Sales Tax Payable + Deferred Sales
	Current Liabilities		23100+8400+3800
	Current Liabilities		35,300

	What effect does the payment of dividends have on the accounting equation?

	When dividend is paid, retained earnings is reduced by the amount of dividend and
	cash account is reduced by dividend amount. So shareholders' equity and current assets
	both are reduced on dividend payment.



	Automobile dealerships most likely use which inventory costing method?

	Specific identification
	It is the best inventory method for automobile dealerships as inventory items are big items such as
	Car.
	In this case specific identification cost is the best method to use

ekkarill92 answered 1 year ago

Preparing Closing Entries The following selected accounts and amounts are from the adjusted trial balance for...

Preparing Closing Entries The following selected accounts and amounts are from the adjusted trial balance for Seattle Inc. Sales $192,500 Cost of goods sold $92,750 Service revenue 3,500 Interest expense 7,000 Operating expenses 42,000 Dividends 19,250 Income tax expense 8,750 Required Prepare the closing entries for revenues, expenses, and dividends. Use the Income Summary account to close income statement amounts. General Journal Account Name Dr. Cr. Answer Answer Service Revenue Answer Answer Answer Answer To close revenues to income summary...

The following accounts and their balances were selected from the unadjusted trial balance of Point Loma...

The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscal year: 1 Common Stock, no par, $10 stated value $3,330,000.00 2 Paid-In Capital from Sale of Treasury Stock 44,400.00 3 Paid-In Capital in Excess of Par-Preferred Stock 226,000.00 4 Paid-In Capital in Excess of Stated Value-Common Stock 459,500.00 5 Preferred 2% Stock, $120 par 9,480,000.00 6 Retained Earnings 39,660,000.00 Prepare...

The following trial balance was prepared from the ledger accounts of Ricardo Company: RICARDO COMPANY Trial...

The following trial balance was prepared from the ledger accounts of Ricardo Company: RICARDO COMPANY Trial Balance April 30, Year 1 Account Titles Debit Credit Cash $ 78,400 Accounts receivable 49,000 Supplies 3,700 Prepaid insurance 5,500 Land $ 10,000 Accounts payable 11,500 Common stock 100,000 Retained earnings 34,255 Dividends 9,900 Service revenue 93,000 Rent expense 11,500 Salaries expense 35,300 Operating expense 36,200 Totals $ 229,500 $ 248,755 When the trial balance failed to balance, the accountant reviewed the records and...

The trial balance of Kelso Company had accounts with the following normal balances: Cash, $8,000; Accounts...

The trial balance of Kelso Company had accounts with the following normal balances: Cash, $8,000; Accounts Receivable, $6,000; Equipment, $10,000; Accounts Payable, $9,000; Owner’s Capital, $15,000; Owner’s Drawings, $500; Service Revenue, $7,000; Rent Expense, $1,000; Salaries and Wages Expense, $3,000; and Advertising Expense, $2,500. In preparing the trial balance, the total in the debit column is

3. Selected accounts from the December 31, 2015, adjusted trial balance of the Hodges Company are...

3. Selected accounts from the December 31, 2015, adjusted trial balance of the Hodges Company are shown below. Debit Credit Inventory, January 1, 2015 $30,000 Sales Revenue $90,000 Sales Returns and Allowances 3,000 Purchases 40,000 Freight-In 2,500 Selling Expenses 14,000 Administrative Expenses 8,000 Bad Debts Expense 500 Depreciation Expense-Building 1,500 Interest Expense 2,000 Income Tax Expense 2,200 Dividends 2,100 On December 31, 2015 the inventory was $18,000. Required: Prepare a 2015 income statement for the Hodges Company. ANSWER:

The following selected accounts appeared in the unadjusted trial balance of Hawthorne Industries: - Accounts Receivable...

The following selected accounts appeared in the unadjusted trial balance of Hawthorne Industries: - Accounts Receivable $176,000 Prepaid Rent 69,000 Prepaid Insurance 36,000 Equipment 280,000 Accumulated depreciation - equipment 30,000 Unearned Service Revenue 24,000 Salary Expense 130,000 Additional data: One-half of the revenue received in advance has been earned by December 31, 2019 The prepaid insurance represents three years premium on a policy providing coverage starting September 1, 2019 Since the last payday, employees have earned...

The following selected accounts appear in the adjusted trial balance for Bender Company: 1 .Accumulated Depreciation...

The following selected accounts appear in the adjusted trial balance for Bender Company: 1 .Accumulated Depreciation 5. Supplies 2 .Depreciation Expense 6. Accounts Payable 3 .J. Bender, Capital 7. Service Revenue 4 .J. Bender, Drawings Instructions Identify the accounts that would be included in the post-closing trial balance.

Blossom Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $37,760...

Blossom Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $37,760 Supplies Expense 7,080 Accounts Receivable 14,160 Dividends 25,960 Retained Earnings 82,600 Service Revenue 127,440 Salaries and Wages Expense 47,200 Utilities Expense 9,440 Rent Expense 21,240 Prepare the remaining closing entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not...

Barkers, Inc. had the following selected accounts in its unadjusted trial balance: Accounts receivable &nb

Barkers, Inc. had the following selected accounts in its unadjusted trial balance: Accounts receivable $176,000 Prepaid rent 54,000 Prepaid insurance 24,000 Equipment 300,000 Accumulated depreciation-equipment 30,000 Unearned service revenue 24,000 Salary expense 130,000 Additional data: One-third of the revenue received in advance has been earned by December 31, 2017. The prepaid insurance represents three years’ premium on a policy providing coverage starting October 1, 2017. Since the last payday, employees have earned an additional $2,000 which...

The trial balance of Scan House, Inc. included the following selected accounts as of December 31,...

The trial balance of Scan House, Inc. included the following selected accounts as of December 31, 2020: Debits Credits Sales Revenue 16,755,000 Interest Revenue 75,000 Gain on sale of investments 150,000 Unrealized gains on investments 200,000 Other Income * 1,200,000 Foreign currency translation losses 125,000 Cost of Goods Sold 11,635,000 Selling expenses 975,000 Goodwill impairment loss 550,000 Interest Expense 60,000 Administrative Expense** 780,000 Loss on sale of land 225,000 Dividends declared 175,000 Additional information: * Other Income consists of...

Question