The accountant of Omega Consulting, Inc. failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before the end of the fiscal year. Assume the company initially recorded a liability
Which of the following statements is true?
A) The total liabilities will be overstated.
B) The total liabilities will be understated.
C) The total assets will be overstated.
D) The total assets will be understated.
A
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On December 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, payable January 10 of the following year. No other dividends were declared in either year. Show the effect on the accounting equation of the entry to be recorded on January 10. What happened to SE?
A. (600,000) Treasury Stock B. (600,000) Paid-in Capital in Excess of Par C. 600,000 Dividends Payable D. 600,000 Common Stock E. (600,000) Common Stock F. (600,000) Dividends G. 600,000 Cash H. (600,000) Cash I. 0 No Effect J. (600,000) Dividends Payable
Assume that the annual property taxes on a home are $1,380; that the home is being sold as of May 1; and that the taxes for the current year have been paid. If the buyer and seller agree to prorate the property taxes as of the sale date, the buyer's portion of the taxes would be most nearly:
A: $1,380; B: $1,150; C: $690; D: $230.