1- On December 31 of the current year, Hewett Company reported an ending inventory balance of $215,000. The following additional information is also available: • Hewett sold goods costing $38,000 to Trump Enterprises on December 28 and shipped the goods on that date with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215,000 because they were not in Hewett ‘s warehouse. • Hewett purchased goods costing $44,000 on December 29. The goods were shipped FOB destination and were received by Hewett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $215,000. • Hewett ‘s …show more content…
The company ‘s sales for the current period is $185,000. The current period ‘s entry to record the warranty expense is:
A) Warranty Expense…, ., 7,400 Sales 7,400
B) Warranty Expense , 7,400 Estimated Warranty Liability „ 7,400
C] Estimated Warranty Liability 7,400 Estimated Warranty Expense 7,400
D) Warranty Liability 7,400 Cash 7,400
E) No entry is recorded until the items are returned for warranty repairs.
14. B. Tanner contributed $14,000 in cash plus office equipment valued at $7,000 to the JT Partnership. The journal entry to record the transaction for the partnership is:
A) Cash 14,000 Office Equipment , 7,000 B. Tanner, Capital , , , , 21,000
B) Cash 14,000 Office Equipment. 7,000 JT Partnership, Capital………. 21,000 JT Partnership 21,000
B. Tanner, Capital 21,000 B. Tanner, Capital 21,000 JT Partnership, Capital 21,000
E) Cash 14,000 Office Equipment 7,000 Common Stock 21,000
15. Web Services is organized as a limited partnership, with David White as one of its partners. David ‘s capital account began the year with a balance of $45,000. During the year, David ‘s share of the partnership income was $7,500, and David received $4,000 in distributions from the partnership. What is David ‘s partner return on equity?
Ending partnership equity = $45,000 + $7,500 – $4,000 = $48,500
Return on partnership equity = $7,500/(($45,000 + .