When common stock is issued for services or non-cash assets, cost should be
| | only the fair value of the consideration received. |
| | the book value of the common stock issued. |
| | only the fair value of the consideration given up. |
| | either the fair value of the consideration given up or the consideration received, whichever is more clearly evident. |
Each of the following is reported for common stock except the
A prior period adjustment that corrects income of a prior period requires that an entry be made to
| | a current year revenue or expense account. |
| | the retained earnings account. |
| | an income statement account. |
Prior period adjustments are reported
| | on the current year's income statement. |
| | on the current year's balance sheet. |
| | on the current year's retained earnings statement. |
| | in the footnotes of the current year's financial statements. |
The current portion of long-term debt should
| | be reclassified as a current liability. |
| | not be separated from the long-term portion of debt. |
| | be classified as a long-term liability. |
The Mayer and Rodin partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $406000 for Mayer and $197000 for Rodin. At the beginning of the year, Mayers Capital account had a balance of $793000, while Rodins ' Capital account had a balance of $709000. Net income for the year was $502000. The balance of Rodins Capital account at the end of the year after closing is
The partnership of Bher and Dhillips reports net income of $119400. The partners share equally in income and losses. The entry to record the partners' share of net income will include a
| | credit to Dhillips, Drawing for $59700. |
| | credit to Income Summary for $119400. |
| | debit to Dhillips, Capital for $59700. |
| | credit to Bher, Capital for $59700. |
Accounting for treasury stock is done by the
| | lower of cost or market method. |
