In the VALS2™ system thinkers are career oriented and prefer predictability to risk
Indicate whether the statement is true or false
FALSE
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Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2017, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2017 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2017. At the end of 2017, the fair value of the Able stock was $18,000 and the fair value of the Baker stock was $28,000. The stocks were purchased for short-term speculation prior to the effective date of the change in accounting rules for equity investments. Perry owns 10% of each company. Perry should record the receipt of the Baker dividend as
A.
| DR Cash | 240 | ? |
| CR Investment in Baker | ? | 240 |
B.
| DR Cash | 240 | ? |
| CR Dividend income | ? | 240 |
C.
| DR Dividends receivable | 240 | ? |
| CR Dividend income | ? | 240 |
D.
| DR Cash | 240 | ? |
| CR Dividends receivable | ? | 240 |
The primary reasons retailers give for supporting a manufacturer's consumer promotions program include each of the following, except:
A) increase store traffic B) increase store sales C) increase sales of the manufacturer's brand D) attract new customers
Omari Assembly, Inc, which uses backflush costing, had the following transactions during the month of October : (a) Purchased raw materials on account, $700,000. (b) Requisitioned raw materials to production, $700,000. (c) Distributed direct labor
costs, $105,000. (d) Manufacturing overhead incurred, $215,000 . (Use Various Credits for the account in the credit part of the entry.) (e) Completed all goods. (f) Sold goods for $1,500,00 . on account. Prepare journal entries to record the above transactions.
A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?
A. Debit Supplies Expense $1,250 and credit Supplies $1,250. B. Debit Supplies Expense $850 and credit Supplies $850. C. Debit Prepaid Supplies $850 and credit Supplies Expense $850. D. Debit Supplies Expense $1,250 and credit Supplies $2,100. E. Debit Supplies $1,250 and credit Cash $1,250.