Investments in bondsInvestments in bonds; accrued interest; sale; straight-line interest; financial statement effects ● LO14-2, Appendix A The following transactions relate to bond investments of Livermore Laboratories. The company's fiscal year ends on December 31. Livermore uses the straight-line method to determine interest. 2024 July1 Purchased $16 million of Bracecourt Corporation 10% debentures, due in 20 years (June 30, 2044), for $15.7 million. Interest is payable on January 1 a...

In 2023In 2023, the taxpayer became ineligible to use the cash method of accounting. At the beginning of the year, accounts receivable totaled $240,000, accounts payable for merchandise totaled $80,000, and inventory on hand totaled $320,000. Enter the Federal income tax adjustment due to the change in accounting method and its effect on net income.Answer & ExplanationWhen a taxpayer becomes ineligible to use the cash method of accounting and must switch to the accrual method, an adjustment is r...

if an employee in quebec who work an organization uner to a different revenue quebec account numbers anif an employee in quebec who work an organization uner to a different revenue quebec account numbers and to canada revenue agency payroll number account numbers how many total information slip would the employee recievedAnswer & ExplanationIn Quebec, employees typically receive two main types of information slips related to their income and taxes:1.T4 Slip: This is the Statement of Remuneration...

for unearned revenue1Questionfor unearned revenues, indicate if the account type shown is over or understated prior to adjustment and what type of account is debited and credited in the unearned revenue adjusting entry.Answer & ExplanationUnearned revenues are initially recorded as liabilities because they represent payments received before services are performed or goods are delivered. Prior to adjustment, the following occurs:1.Account Type Over/Understated:oLiabilities: OverstatedoRevenues...

1. What is petty cash? o Small amounts of cash kept for miscellaneous purposes o Cash used to offset the amounts owed to inventory suppliers o Cash required by banks to be kept on deposit o Cash used to pay for rent, insurance, and advertising FEEDBACK 2 / 2 (100.0%) 2. Debit memos from a bank reduce a depositor's cash balance, and credit memos increase the balance. This seems backwards from the normal debit-and-credit ru

1. If a cost increases as the sales volume increases, the cost is a: o Fixed cost o Direct cost o Variable cost o Sunk cost FEEDBACK 2 / 2 (100.0%) 2. Which of the following has a direct materials inve

1. What is petty cash? o Small amounts of cash kept for miscellaneous purposes o Cash used to offset the amounts owed to inventory suppliers o Cash required by banks to be kept on deposit o Cash used to pay for rent, insurance, and advertising FEEDBACK 2 / 2 (100.0%) 2. Debit memos from a bank reduce a depositor's cash balance, and credit memos increase t

1. Which of the following factors are used in calculating a company’s inventory turnover? o Net sales and average inventory o Cost of goods sold and average working capital o Average inventory and cost of goods sold o Average accounts receivable and net sales FEEDBACK 2 / 2 (100.0%) 2. Which of the following factors are used in calculating a company’s number of days’ sa

1. At Teasdale Company, past experience reveals that 20% of sales are for cash and the remaining 80% are on credit. As the accountants at Teasdale Company prepare a cash budget, what will they do with these percentages? o Use the same percentages each month in order to maintain consistency. o Adjust the percentages over time as the company learns about its customers’ payment patterns o Use a higher percentage of credit sales in each month to reflect inflation. o Use a lower percentage of...

Wk 3 – Practice: Topic 9: Assessing How Well Companies ManageTheir Inventories Quick Check