The Income Summary account is a permanent account that will be carried forward period after period.
Answer the following statement true (T) or false (F)
False
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Nebraska Inc issues 3,000 shares of common stock for $45,000 . The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for
a. $30,000 b. $45,000 c. $15,000 d. $3,000
Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2Year 1Current assets: Cash$202? $100? Accounts receivable, net 232? 232? Inventory 182? 172? Prepaid expenses 132? 132? Total current assets$748? $636? Current liabilities: Accounts payable$242? $222? Accrued liabilities 72? 72? Notes payable, short term 132? 122? Total current liabilities$446? $416? Sales on account during the year totaled $1410 thousand. Cost of goods sold was $1010 thousand.Required:Compute the following for Year 2:a. Working capital. (Enter your answer in thousands of dollars, i.e., 100,000 should be entered as 100.)b. Current ratio. (Round your answer to 2 decimal
places.)c. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)d. Accounts receivable turnover. (Round your answer to 2 decimal places.)e. Average collection period. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 1 decimal place.)f. Inventory turnover. (Round your answer to 2 decimal places.)g. Average sale period. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 1 decimal place.)a.Working capital??b.Current ratio??c.Acid-test ratio??d.Accounts receivable turnover??e.Average collection period?daysf.Inventory turnover??g.Average sale period?days What will be an ideal response?
Bright Co holds Park Co's $40,000, 120 day, 9% note. The entry made by Bright Co when the note is collected, assuming no interest has previously been accrued is:
A) Cash 40,000Notes Receivable 40,000 B) Accounts Receivable 41,200Notes Receivable 40,000Interest Revenue 1,200 C) Cash 41,200Notes Receivable 40,000Interest Revenue 1,200 D) Accounts Receivable 41,200Notes Revenue 40,000Interest Revenue 1,200
ABC Company manufactures a contraption meant to enable a rider to fly behind a ski boat. After a few months, ABC begins to hear of injuries when riders crash into water or boats. In hopes of escaping liability, the president of ABC Company decides to discontinue business and sell all assets to XYZ Company. The president of XYZ Company is excited to purchase the assets at a bargain price and help
ABC avoid liability based upon the assertion of the president of ABC that XYZ cannot legally be held liable for the flying accidents. Which of the following is true in a majority of states applying the traditional successor liability rule? a. XYZ Company will not be held liable for the accidents so long as there is no contractual agreement by which it agrees to accept liability. b. XYZ Company will only be held liable if it continues to manufacture the same product lines as ABC. c. XYZ Company will only be held liable if it keeps the same tax number as ABC Company. d. XYZ Company will likely be held liable for the accidents based upon the transaction being entered into wrongfully in order for ABC Company to escape successor liability.