A PMSI in consumer goods perfects automatically, without filing
Indicate whether the statement is true or false
False
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Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation: Book Value Net Realizable ValueCash$10,000 $10,000 Accounts receivable 100,000 60,000 Inventory 350,000 350,000 Land 110,000 75,000 Building and equipment 700,000 300,000 Accounts payable 100,000 Salaries payable 70,000 Notes payable (secured by inventory) 300,000 Employees' claims for contributions to pension plans 10,000 Taxes payable 80,000 Liability for accrued expenses 25,000 Bonds payable 500,000 Common stock 200,000 Additional paid-in capital 100,000 Retained earnings
(deficit) (115,000) ??Of the salaries payable, $30,000 was owed to an officer of the company. The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: John Webb was owed $10,600, Samantha Jones was owed $15,000, Sandra Johnson was owed $11,900, and Dennis Roberts was owed $2,500. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $40,000.?On a statement of financial affairs, what amount would have been shown as assets available to pay liabilities with priority and unsecured creditors? A. $495,000. B. $795,000. C. $445,000. D. $660,000. E. $390,000.
What is an unincorporated business entity that combines the most favorable attributes of general partnerships, limited partnerships, and corporations?
A) A limited proprietorship B) A general corporation C) A limited liability corporation D) A limited partnership
Where the offeror is a merchant and the offeree is a nonmerchant, what is the effect of minor
different terms contained in an acceptance? A) No contract is formed, and the purported acceptance is treated as a counteroffer. B) A contract is formed according to the terms of the offer, and the additional terms are treated as proposed additions to the contract. C) A contract is formed, but only if the parties resolve the differences in the offer and the acceptance. D) The purported acceptance is treated as a rejection, except that the original offer remains open under the firm offer rule. E) A contract will be formed incorporating the different terms of the acceptance.
On September 12, Ryan Company sold merchandise in the amount of $5,800 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ryan uses the periodic inventory system and the net method of accounting for sales. On September 14, Johnson returns some of the non-defective merchandise, which is restored to inventory. The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ryan must make on September 14 is (are):
A.
| Sales returns and allowances | 490 | |
| Accounts receivable | 490 | |
| Merchandise inventory | 343 | |
| Cost of goods sold | 343 |
B.
| Sales returns and allowances | 490 | |
| Accounts receivable | 490 | |
| Merchandise inventory | 350 | |
| Cost of goods sold | 350 |
C.
| Sales returns and allowances | 500 | |
| Accounts receivable | 500 |
D.
| Sales returns and allowances | 490 | |
| Accounts receivable | 490 |
E.
| Sales returns and allowances | 350 | |
| Accounts receivable | 350 |