Which of the following is not a common internal control procedure that would be implemented with regards to cash receipts?

Fred and Barney started a partnership. During Year 1, Fred invested $14,500 in the business and Barney invested $23,000. The partnership agreement called for each partner to receive an annual distribution equal to 8% of his capital contribution. Any further earnings were to be retained in the business and divided equally between the partners. The partnership reported net income of $33,000 during Year 1. How will the $33,000 of net income be split between Fred and Barney respectively? (Hint: Consider both the cash withdrawals and allocation of remaining income.) FredBarneyA$ 13,840$ 13,160B$ 14,500$ 18,500C$ 16,500$ 16,500D$ 16,160$ 16,840

Chubb Company paid cash to purchase equipment on January 1, Year 1. Select the answer that shows how the recognition of depreciation expense in Year 2 would affect the financial statements. Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.Increase= +Increase −Increase=Decrease B.Decrease=Decrease+ Increase− =IncreaseIncrease OAC.Decrease= +Decrease −Increase=DecreaseDecrease OAD.Decrease= +Decrease −Increase=Decrease

What happens when a company is operating in an inflationary environment?

On January 1, Year 1, Residence Company issued bonds with a $64,000 face value. The bonds were issued at face value. They had a 20-year term and a stated rate of interest of 7%. Which of the following shows how the bond issue will affect Residence’s financial statements on January 1, Year 1? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenues−Expenses=Net IncomeA. = + − = (64,000) IAB. = + − = (64,000) FAC.64,000=64,000+ − = 64,000 FAD.(64,000)=(64,000)+ − = (64,000) IA

Fred and Barney started a partnership. During Year 1, Fred invested $14,500 in the business and Barney invested $23,000. The partnership agreement called for each partner to receive an annual distribution equal to 8% of his capital contribution. Any further earnings were to be retained in the business and divided equally between the partners. The partnership reported net income of $33,000 during Year 1. How will the $33,000 of net income be split between Fred and Barney respectively? (Hint: Consider both the cash withdrawals and allocation of remaining income.) FredBarneyA$ 13,840$ 13,160B$ 14,500$ 18,500C$ 16,500$ 16,500D$ 16,160$ 16,840

Pace Company issued bonds with a face value of $200,000 at 97. How does the issuance affect the company’s accounting equation?

Stubbs Company uses the perpetual inventory method and the weighted-average cost flow method. On January 1, Year 2, Stubbs purchased 600 units of inventory that cost $4.00 each. On January 10, Year 2, the company purchased an additional 600 units of inventory that cost $3.25 each. If the company sells 1,100 units of inventory for $8 each, what is the amount of gross margin reported on the income statement?Note: Round your intermediate calculations to two decimal places.

Hancock Medical Supply Company, earned $94,500 of revenue on account during Year 1, its first year of operation. During Year 1, Hancock collected $74,200 of cash from its receivables accounts. The company did not write-off any uncollectible accounts. It estimates that it will be unable to collect 1% of revenue on account. What is the net realizable value of receivables that will be reported on the balance sheet at December 31, Year 1?

On January 1, Year 1, Graham Corporation issued 360 shares of $5 stated value preferred stock for $120 per share. Which of the following shows how the stock issue will affect Graham’s financial statements on January 1, Year 1?