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Stanton Corporation had net income for the year of $200,000 and a profit margin of
20%. If total average assets were $400,000, the asset turnover ratio was ____________
times.
Answer:
Yeloe Corporation sells 400 shares of common stock being held as an investment. The
shares were acquired six months ago at a cost of $60 a share. Yeloe sold the shares for
$40 a share. The entry to record the sale is
Answer:
A debit memorandum issued by the bank ______________ the cash balance in the
depositor's account.
Answer:
Ryan Adams, an employee of Heartbreaker Corp., will not receive his paycheck until
April 2. Based on services performed from March 15 to March 31, his salary was
$1,000. The adjusting entry for Heartbreaker Corp. on March 31 is
Answer:
Receivables are valued and reported in the balance sheet at their gross amount less any
sales returns and allowances and less any cash discounts.
Answer:
Bingham Corporation has the following stockholders' equity accounts on January 1,
2015:
The company uses the cost method to account for treasury stock transactions. During
2015, the following treasury stock transactions occurred:
Instructions
Journalize the treasury stock transactions for 2015.
Answer:
Equipment with an invoice price of $20,000 was purchased and freight costs were $900.
The cost of the equipment would be $______________.
Answer:
Booker Corporation had the following comparative current assets and current liabilities:
During 2016, credit sales and cost of goods sold were $750,000 and $400,000,
respectively.
Instructions
Compute the following liquidity measures for 2016:
1> Current ratio.
2> Working capital.
3> Acid-test ratio.
4> Accounts receivable turnover.
5> Inventory turnover.
Answer:
Using the indirect method, an increase in accounts receivable during a period is
deducted from net income in calculating cash provided by operations.
Answer:
