The year-end adjusting entry to accrue interest on a note receivable is an asset source transaction.
Answer the following statement true (T) or false (F)
True
This is an asset source transaction. The entry increases assets (interest receivable) and increases stockholders' equity (retained earnings). It also increases interest revenue, which increases net income.
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In calculating deferred income taxes, ___________________________________ occur when an item is included in the tax calculation and is never included for financial accounting purposes, or vice versa
Fill in the blank(s) with correct word
Use this information to answer the following question. Pinnacle Corporation has 90,000 shares of $10 par value common stock outstanding. The following transactions occurred during the year: Mar. 17 Declared a 10 percent stock dividend to stockholders of record on March 20. Market value of the stock was $22 on March 17. 30 Distributed the stock dividend. The entry to record the transaction of
March 17 is: A) Stock Dividends 198,000 Common Stock Distributable 90,000Additional Paid-in Capital 108,000 B) Common Stock Distributable 90,000 Common Stock 90,000 C) Common Stock Distributable 198,000 Common Stock 90,000Retained Earnings 108,000 D) Stock Dividends 198,000 Cash 198,000
If changes occur in the prices of the manufacturing inputs from one period to the next, then FIFO produces a more accurate unit cost than does the weighted average method
Indicate whether the statement is true or false
Briefly discuss the limitations on a corporation electing Subchapter "S" status