Accrued salaries payable of $140,000 were not accrued for at December 31, 2021. Office supplies on hand of $58,000 at December 31, 2021 were erroneously treated as expense for 2021 instead of supplies inventory. Neither of these errors was discovered nor corrected. The effect of these two errors would cause

Note: These numbers may differ from what you saw in a previous question. Proceed with caution 🙂 IU Corp.’s transactions for the year ended December 31, 2021 included the following: Borrowed $1,500,000 from a bank, resulting in a note payable, to purchase real estate. Received dividends of $40,000 Sold available-for-sale securities for $1,000,000. Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Paid $900,000 toward a bank loan. Reduced accounts receivable by $200,000. Increased accounts payable $400,000. IU Corp.’s net cash used in (negative numbers)/provided by (positive numbers) financing activities for 2021 was

Note: These numbers may differ from what you saw in a previous question. Proceed with caution 🙂 IU Corp.’s transactions for the year ended December 31, 2021 included the following: Borrowed $2,000,000 cash from a bank, resulting in a note payable, to purchase real estate.  Received dividends of $40,000 Sold available-for-sale securities for $1,000,000. Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Paid $900,000 toward a bank loan. Reduced accounts receivable by $200,000. Increased accounts payable $400,000. IU Corp.’s net cash used in (negative numbers)/provided by (positive numbers) financing activities for 2021 was

In 2021, Mayo Co. decided to change from FIFO to LIFO for inventory cost purposes. Mayo Co. has existed since 2018 and each year reports two years of comparative financial statements. How will this change appear on their statement of stockholders equity in their 2021 10-K?

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The following information was taken from the 2021 financial statements of Gala Corporation:   Inventory, January 1, 2021                                  $   200,000 Inventory, December 31, 2021                                 240,000 Accounts payable, January 1, 2021                         150,000 Accounts payable, December 31, 2021                   240,000 Sales revenue                                                           1,200,000 Cost of goods sold                                                     1,100,000 If the direct method is used in the 2021 statement of cash flows, what amount should Gala Company report as cash payments to suppliers?

During 2021, equipment was sold for $500,000. The equipment cost $750,000 and had a book value of $432,000. Accumulated Depreciation—Equipment was $1,750,000 at 12/31/20 and $2,205,000 at 12/31/21. Depreciation expense for 2021 was

Taxable Income is $56,000. The ending balance needed in the deferred tax asset account is $17,000, and the beginning balance in the deferred tax asset account is $12,000. The ending balance needed in the deferred tax liability account is $12,000, and the beginning balance in the deferred tax liability account is $18,000. What is income tax expense for the year assuming a tax rate of 25%?

IU Corp.’s transactions for the year ended December 31, 2021 included the following: Purchased real estate for $2,000,000 cash.  Received dividends of $40,000 Sold available-for-sale securities for $1,000,000. Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Paid $900,000 toward a bank loan. Reduced accounts receivable by $200,000. Increased accounts payable $400,000. IU Corp.’s net cash used in investing activities for 2021 was

Assume that a lease has been correctly classified as a operating lease. The lease liability recognized at the beginning of the lease is $66,977. Annual payments of $15,000 are made at the beginning of the year, and the lessor’s rate of 6% is known to the lessee. The lease begins on January 1, 2021 and the first payment is made on that day. The lease is a five year lease.  Assuming that the first payment is made at the inception of the lease, what is the reduction to the right of use asset recognized at the end of the first year of the lease (December 31, 2021)? Remember – it’s an operating lease. How do you calculate the amortization amount for an operating lease?