Post the adjusting entry for bad debts on December 31, 2016.

Criminal liability for accountants

Select one:

a) is possible under the Securities Act of 1933, the 1934 Act, state securities laws, and the Internal Revenue Code.
b) will result from violation of the accountant-client privilege under federal law.
c) is not an option under securities law, there is only civil liability.
d) may result in fines but not imprisonment from violation of the federal securities laws.

Which one of the following costs will not be included in the cost of equipment?

a. Installation
b. Freight
c. Testing
d. Annual insurance

How often can adjusting entries be journalized?

Edgar Corporation was authorized to issue 100,000 shares of $8 par common stock and 50,000 shares of$80 par, 4 percent, cumulative preferred stock. Edgar Corporation completed the following transactions during its first two years of operation:

2016

Jan. 2 - Issued 25,000 shares of $8 par common stock for$10 per share.

Jan. 15 - Issued 2,000 shares of $80 par preferred stock for$90 per share.

Feb. 14 - Issued 20,000 shares of $8 par common stock for$12 per share.

Dec. 31 - During the year, earned $280,000 of cash revenues and paid$165,000 of cash operating expenses.

Dec. 31 - Declared the cash dividend on outstanding shares of preferred stock for 2016. The dividend will be paid on January 31 to stockholders of record on January 15, 2017.

Dec. 31 - Closed revenue, expense, and dividend accounts to the retained earnings account.

2017

Jan. 31 - Paid the cash dividend declared on December 31, 2016.

Mar. 1 - Issued 4,000 shares of $80 par preferred stock for$92 per share.

June 1 - Purchased 1,000 shares of common stock as treasury stock at $14 per share.

Dec. 31 - During the year, earned$185,000 of cash revenues and paid $110,000 of cash operating expenses.

Dec. 31 - Declared the dividend on the preferred stock and a$1.00 per share dividend on the common stock.

Dec. 31 - Closed revenue, expense, and dividend accounts to the retained earnings account.

Required

Prepare journal entries for these transactions for 2016 and 2017 and post them to T-accounts.

issuing bonds at a discount journal entry

Choctaw Co. completed the following transactions in 2016, the first year of operation:

1. Issued 20,000 shares of $10 par common stock for$10 per share.

2. Issued 3,000 shares of $20 stated value preferred stock for$20 per share.

3. Purchased 1,000 shares of common stock as treasury stock for $12 per share.

4. Declared a$2,000 cash dividend on preferred stock.

5. Sold 500 shares of treasury stock for $14 per share.

6. Paid$2,000 cash for the preferred dividend declared in Event 4.

7. Earned cash revenues of $78,000 and incurred cash expenses of$41,000.

8. Closed revenue, expense, and dividend accounts to the retained earnings account.

9. Appropriated $8,000 of retained earnings.

Required

Prepare journal entries to record these transactions and post them to T-accounts.

What type of account is Allowance for Bad Debts?

When a new partner is admitted to a partnership, there should be a(n)

a. revaluation of assets

b. realization of assets

c. allocation of assets

d. return of assets

Using the internal rate of return method, a project is rejected when the rate of return is greater than or equal to the required rate of return.(True or False)

What is the adjusted balance on the bank reconciliation?

The Electric Company engaged in the following transactions during 2017. The beginning cash balance was $43,000 and the ending cash balance was$48,600.

1. Sales on account were $274,000. The beginning receivables balance was$86,000 and the ending balance was $74,000.

2. Salaries expense was$115,000. The beginning salaries payable balance was $9,600 and the ending balance was$7,500.

3. Other operating expenses were $118,000. The beginning Other Operating Expenses Payable balance was$8,500 and the ending balance was $6,000.

4. Recorded$25,000 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $18,000 and$43,000, respectively.

5. The Equipment account had beginning and ending balances of $28,000 and$42,000, respectively. There were no sales of equipment during the period.

6. The beginning and ending balances in the Notes Payable account were $38,000 and$32,000, respectively. There were no notes payable issued during the period.

7. There was $4,600 of interest expense reported on the income statement. The beginning and ending balances in the Interest Payable account were$6,400 and $6,200, respectively.

8. The beginning and ending Merchandise Inventory account balances were$26,000 and $32,500, respectively. The company sold merchandise with a cost of$119,000. The beginning and ending balances in the Accounts Payable account were $10,000 and$12,500, respectively.

9. The beginning and ending balances in the Notes Receivable account were $80,000 and$20,000, respectively. Notes receivable result from long-term loans made to creditors. There were no loans made to creditors during the period.

10. The beginning and ending balances in the Common Stock account were $140,000 and$190,000, respectively. The increase was caused by the issue of common stock for cash.

11. Land had beginning and ending balances of $48,000 and$28,000, respectively. Land that cost $20,000 was sold for$16,000, resulting in a loss of $4,000.

12. The tax expense for the period was$6,600. The Tax Payable account had a $3,200 beginning balance and a$2,800 ending balance.

13. The Investments account had beginning and ending balances of $10,000 and$30,000, respectively. The company purchased investments for $40,000 cash during the period, and investments that cost$20,000 were sold for $26,000, resulting in a$6,000 gain.

Required

Determine the amount of cash flow for each item and indicate whether the item should appear in the operating, investing, or financing activities section of a statement of cash flows. Also, identify any items that do not affect the cash flow statement. Assume The Electric Company uses the direct method for showing net cash flow from operating activities.

How to prepare a bank reconciliation statement for the month.

Accumulated Depreciation:

A. appears in the asset section of a balance sheet.

B. appears on the income statement.

C. is a liability on the balance sheet.

D. is a contra-stockholders' equity item.