The owner of Barnes Company established a petty cash fund amounting to $400. What is the effect on the financial statements of recording this transaction? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA. = + − = (400) OAB.(400)= +(400) −400=(400)(400) OAC. = + − = D.(400)=(400)+ − = (400) OA

Chase Company uses the perpetual inventory method. The inventory records for Chase reflected the following information: January 1Beginning inventory1,300 units @ $4.30January 12Purchase1,400 units @ $4.10January 18Sales1,500 units @ $5.80January 21Purchase1,300 units @ $4.40January 25Purchase1,100 units @ $4.20January 31Sales1,450 units @ $5.80 Assuming Chase uses a FIFO cost flow method, what is the cost of goods sold for the sales transaction on January 31?

On November 1, Year 1, Shelter Company loaned $8,200 cash to Cove Company. The one-year note carried a 7% rate of interest. Which of the following shows how the loan will affect Shelter’s financial statements on November 1, Year 1? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenues−Expenses=Net IncomeA. = + − = $ (8,200) IAB. = + − = $ (8,200) FAC.$ 8,200=$ 8,200+ − = $ 8,200 FAD.$ (8,200)=$ (8,200)+ − = $ (8,200) IA

How are bonds payable usually classified on the balance sheet?

Barton Company has a line of credit with Sea View Bank. Barton can borrow up to $219,000 at any time over the course of Year 2. The following table shows the interest rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of Year 2. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. MonthAmountAnnualBorrowed/(Repaid)Interest RateJanuary$ 44,0006%February(6,900)9%March39,0009% Which of the following shows how borrowing the $44,000 on January 1, Year 2 would affect Barton’s financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenues−Expenses=Net IncomeA.44,000=44,000+ − = 44,000 FAB.44,000=44,000+ − = 44,000 IAC.44,000= +44,000 − = 44,000 FAD.44,000= +44,000 − = 44,000 IA

Which of the following statements regarding the Securities and Exchange Commission (SEC) is not true?

On December 31, Year 1, Kardashian Company recorded an adjusting entry to recognize $5,710 of uncollectible accounts expense. Which of the following shows how this entry will affect Kardashian’s financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenues−Expenses=Net IncomeA.$ (5,710)= +$ (5,710) −$ 5,710=$ (5,710)$ (5,710) OAB.$ (5,710)= +$ (5,710) −$ 5,710=$ (5,710) C.$ (5,710)= +$ (5,710) −$ 5,710=$ (5,710)$ (5,710) FAD.$ (5,710)=$ (5,710)+ −$ 5,710=$ (5,710)

Glasgow Enterprises started the period with 80 units in beginning inventory that cost $1.90 each. During the period, the company purchased inventory items as follows: PurchaseNumber of ItemsCost1400$2.402100$2.50360$2.90 Glasgow sold 265 units after purchase 3 for $7.80 each.What is Glasgow’s ending inventory under LIFO?

A machine with a book value of $38,000 is sold for $32,000. Which of the following answers would accurately represent the effects of the sale on the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue or Gain−Expense=Net IncomeA.38,000= +38,00038,000− =38,00038,000 IAB.(6,000)= +(6,000) −6,000=(6,000)6,000 OAC.(6,000)= +(6,000) −6,000=(6,000)6,000 IAD.(6,000)= +(6,000) −6,000=(6,000)32,000 IA

At the end of the current accounting period, Ringgold Company recorded depreciation of $15,000 on its equipment. What is the effect of this event on the company’s balance sheet?