question 1 phipps company borrowed 25 000 cash onoctober 1 2010 and signed a six mon 4280312
1.Phipps Company borrowed $25,000 cash onOctober 1, 2010, and signed a six-month, 8% interest-bearing notepayable with interest payable at maturity. Assuming that noadjusting entries have been made during the year, what is theamount of accrued interest payable to be reported on the December31, 2010 balance sheet?
2.. On January 1, 2011, thegeneral ledger of Global Corporation included supplies inventory of$2,000. During 2011, supplies purchases amounted to $6,000. Aphysical count of inventory on hand at December 31, 2011 determinedthat the supplies inventory was $1,300. How much is the 2011supplies expense?
3. A company reported the followinginformation for its most recent year of operation: purchases,$300,000; beginning inventory, $20,000; and cost of goods sold,$10,000. How much was the company's endinginventory?
4.The following data weretaken from the records of Lilo Corporation for the year endedDecember 31, 2010:
Sales returns andallowances 10,000
Selling and administrativeexpenses 170,000
Cost of goods sold 510,000
The income tax rate is 35%.
Based on the above data, prepare a multiple-step income statementusing good form. Include grossprofit and pretax income. Usethe form below.
5. For each of the accounts listed below,indicate whether they would be classified as an
ASSET (A) , LIABILITY(L), STOCKHOLDERS EQUITY (SE), REVENUE (R), EXPENSE (E)
______Inventory ______Prepaid insurance
______Notes payable ______Accountspayable
______Retained earnings ______Costof Goods Sold
______Accounts receivable ______Wage Expense