Use the following information for questions 1-5: Stan's Surf Shack purchased five surfboards for $200 each. Later it purchased two additional surfboards for $250 each. Stan's sold a total of six surfboards during the period for $350 cash each. The company uses the perpetual inventory system and has not yet accrued any income taxes for the period. Indicate how the event described in the question affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element that is offset by a decrease in
that same element.) Stan's purchased the first five surfboards on account. AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(I) (I) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
The purchase of inventory on account increases assets (inventory) and increases liabilities (accounts payable). It does not affect stockholders' equity or net income. Because the purchase was made on account, this transaction does not affect the statement of cash flows.
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Iglesias, Inc. completed Job 12 on November 30. The details of Job 12 are given below:
What is the total cost of Job 12?
A) $2470
B) $1990
C) $1370
D) $1580
What is the purpose of adjusting entries?
A foreign citizen can bring a civil suit in a U.S. court for a violation of a treaty of the United States.
Answer the following statement true (T) or false (F)
Zero, Inc. agreed to build Millie a storage building for $8,000. After beginning the project, Zero realized that it could not complete the job and make a profit. Zero demanded $9,500 to complete the building. Millie agreed to pay the $9,500. When the project was complete, Millie tendered $8,000 to Zero for the job. If Zero sues Millie for the remaining $1,500,
A. Zero will win because there was consideration for the additional $1,500. B. Zero will win because Millie had a preexisting duty to pay any additional amounts. C. Zero will lose because there was no legal consideration to support the additional $1,500. D. Zero will lose because the UCC does not require consideration to modify an existing contract.