130.Selected account balances from the December 31, 2015, trial balance of the Gracy Company are listed below: Debit Credit Inventory, January 1, 2015 $12,500 Purchases 25,000 Salaries Expense 5,000 Rent Expense 3,250 General and Administrative Expenses 2,500 Sales $61,000 Dividends Declared 3,500 In addition, the following information is available: · Thecost of the ending inventory at December 31, 2015, is $7,500. · $890 of salaries have accrued as of December 31. · On March 30, Gracy purchased a month insurance policy for $240. The purchase was debited to Prepaid Insurance. · On December 1, the company paid 2 months' rent […]

8) The following data relate to Elle Corporation's industry segments. (Elle HQ represents the corporate headquarters). All other segments are geographical sales segments. AttributeEuropeRussiaChinaJapanElle HQ External sales$35,000$24,000$33,000$0$0 Intersegment   Sales2,0001,0004,00000 Expenses27,00018,00029,0005,00012,000 Assets assigned20,00022,00030,00014,00015,000 Income from   Equity investee5,000 Required: 1. Prepare a report which reconciles the reportable segment profits to total consolidated profits assuming that corporate expenses are not allocated to the operating segments. 2. Prepare a report which reconciles the reportable segment profits to total consolidated profits assuming that corporate expenses are allocated evenly among the operating segments.

41.Understandability is a characteristic that is a.a secondary and interactive quality b.a threshold for recognition c.an overall quality d.an enhancing quality 42.The materiality of an item of financial information refers to the likelihood that its omission or misstatement would affect the decisions of those relying on that information and thus make differing choices if the information had been presented. This concept most closely relates to the a.financial magnitude of the item b.verifiability of the item c.neutrality of the item d.confirmatory value of the item 43.All of the following items are classified as accounting assumptions and conventions except for a.going concern […]

92.On October 1, 2015, Jacob’s Beach Umbrellas borrowed $5,000 on a 12%, one-year note payable. Interest was payable semiannually. A correct adjusting entry was made on December 31, 2015, and a correct reversing entry was made on January 1, 2016. The entry that should be made on March 31, 2016, is a. Interest Payable 300 Cash 300 b. Interest Expense150 Interest Payable 150 Cash 300 c. Interest Expense 150 Cash 150 d. Interest Expense 300 Cash 300 93.Which of the following adjusting entries would not be reversed in the following accounting period? a. an entry that recognized an accrued expense […]

11) Using a safe payments schedule, how much cash should Melvin receive in the first distribution? A) $ 81,000 B) $165,000 C) $168,600 D) $202,500 12) Using a safe payment schedule, how much cash should Lola receive in the first distribution? A) $ 81,000 B) $ 98,000 C) $168,600 D) $202,500 13) Que, Rae, and Sye are in the process of liquidating their partnership. Sye has agreed to accept the inventory, which has a fair value of $60,000, as part of her settlement. A balance sheet and the residual profit and loss sharing percentages are as follows: Cash$248,000Accounts payable$180,000 Inventory100,000Que, […]