When you make your adjusting entry for depreciation expense, how is cash affected? Assume your physical inventory is $6,000 less than the LIFO inventory according to your ledger. Prepare the appropriate journal entry to fix this? You are selling $10,000 of 5-year, 8% Bonds with interest payable semi-annually. The market rate of interest for this type of bond if 6.5%. 1) Will the selling price of the bonds be more than, equal to, or less than $10,000? 2) Why? Treasury Stock has a normal debit balance? Does that mean it is is an asset? If it is not an asset, what kind of an account is it? When a partnership liquidates, are the assets remaining are distributed to the partners based on their profit & loss ratio? If the P&L ratio is not used, how woud you distribute the assets to the partners. You own a hardware store. A customer buys a hammer from you. You give the customer the hammer. What does the customer give to you? 1. Cash equal to the selling price of the hammer; 2. A promise to pay the selling price next week; 3. Two Flyers Tickets that have a face value equal to the selling price of the hammer; or 4. a or borc (any one of the three) The deduction for Bad Debts Expense is generally based on a reasonable estimate. Tor F Who decides what GAAP is? GAAP rules and Tax rules are frequently different. T or F