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Crowe Company began operations on January 1, Year 1. The company was organized as a sole proprietorship. During Year 1, Crowe acquired $60,000 of capital from John Crowe, the owner. Also, during Year 1 the company earned net income of $40,000 and John Crowe withdrew $35,000 from the business. Based on this information, the company would show:

On January 1, Year 1, Marino Moving Company paid $116,000 cash to purchase a truck. The truck was expected to have a four-year useful life and an $42,000 salvage value. If Marino uses the straight-line method, the amount of book value shown on the Year 2 balance sheet is:

Farmer Company sold a piece of equipment for $6,000. The equipment had an original cost of $34,000 and accumulated depreciation of $31,000 at the time of the sale. Which of the following correctly shows the effect of the sale on the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue or Gain−Expense=Net IncomeA.3,000= +3,0003,000− =3,0006,000 OAB.(3,000)= +(3,000) −3,000=(3,000)6,000 IAC.3,000= +3,0003,000− =3,0006,000 IAD.6,000= +6,000 − =6,0006,000 IA

Glasgow Enterprises started the period with 70 units in beginning inventory that cost $2.50 each. During the period, the company purchased inventory items as follows: PurchaseNumber of ItemsCost1360$3.002120$3.10360$3.50 Glasgow sold 380 units after purchase 3 for $9.60 each.What is Glasgow’s ending inventory under weighted-average?Note: Round your intermediate computation to 2 decimal places.

Taylor Tools has sales of $400,000 in Year 1. Taylor warrants its products and estimates warranty expense to be 4% of sales. Which of the following shows how the year-end adjusting entry would affect the company’s assets, liabilities, and cash flow from operating activities? Total AssetsLiabilitiesCash Flow from Operating ActivitiesA. $ 16,000$ (16,000)B. $ 16,000 C.$ (16,000)$ 16,000 D.$ 16,000$ (16,000)

The Yankee Corporation has recently begun to accept credit cards. On July 7, Year 1, Yankee made a credit card sale of $600. Assume that the credit card fee is recorded on the date of sale and that the credit card company charges a fee of 3% for handling a credit card transaction.Which of the following correctly shows the effects of the sale on July 7? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.600=18+582582− =582 B.582= +582600−18=582582 OAC.582= +582600−18=582 D.600= +600600− =600

What is (are) the term(s) used to describe the party who borrows money as evidenced by a note payable?

Perry Corporation was established on January 1, Year 1 when it issued 21,600 shares of $50 par, 5 percent, cumulative preferred stock and 62,000 shares of $10 par common stock. The company’s earnings history is as follows: Year 1$112,320Net lossYear 2$190,000Net incomeYear 3$200,000Net income The corporation paid the maximum amount of dividends possible in each year of operation. The dividend paid to common stockholders at the end of Year 3 is

Alberta Company accepts a credit card as payment for $450 of services provided for the customer. The credit card company charges a 4% fee for handling the transaction. Select the answer that shows how the entry to record the sale would affect Alberta’s financial statements. Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.432= +432432− =432432 OAB.432= +432450−18=432432 OAC.432= +432450−18=432 D.450= +450450− =450

Which of the following shows how the cash payment and recognition of interest expense affects the financial statements when a bond is issued at a discount? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.Decrease=Decrease+ − = Decrease IAB.Decrease=Increase+Decrease −Increase=DecreaseDecrease OAC.Decrease=Increase+Decrease −Increase=DecreaseDecrease IAD.Decrease= +Decrease −Increase=DecreaseDecrease OA