12. On the inventory tracking tab, because of finding the inventory error, the updated net income for May - July is _____________. (Format your answer as $x,xxx.xx)
$3,009.46
13. On the inventory tracking tab, because of finding the inventory error, the updated net income for August - October is ________________. (Format your answer as $x,xxx.xx)
$2,610.00
14. Body and Swole check their inventory at the end of every month as part of their management system. This kind of management system is called:
- Perpetual
- Periodic
- Proactive
- Episodic
15. If a vendor has not paid a business for services or goods rendered, and the two parties come to an agreement regarding terms to recover the unpaid balance (including time frame and interest). That agreement is called a ___________________.
- Promissory Note
- Notes Receivable
- Notes Payable
- Contra-Account
16. What was Body and Swole’s total assets on the balance sheet at the end of July?
- $38,785
- $40,285
- $41,785
- $37,285
17. When entering a promissory note in the journal as a notes receivable, each entry for a payment received includes all of the following except:
- The interest on the total original principal.
- The interest paid on principal owed (the remaining balance).
- A debit to the cash account for the principal and interest paid.
- A credit to the notes receivable account for the principal paid.
18. Body and Swole purchased $25,000 worth of equipment to open its doors. The expected life of their equipment is 5 years. Using straight line depreciation, what would they report as their equipment’s annual depreciation? (Format your answer as $x,xxx)
$5,000