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Question 99Lee Industries had the following inventory transactions occur during 2010:UnitsCost/unit2/1/10Purchase18$453/14/10Purchase31$475/1/10Purchase22$49The company sold 51 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)$772$2,441$848$2,365Question 108On March 1, 2010, Joe Miles purchased a suit at Calvin's Fine Apparel Store. The suit cost $250 and Joe used his Calvin credit card. Calvin charges 2% per month interest if payment on credit charges is not made within 30 days. On April 30, 2010, Joe had not yet made his payment. What entry should Calvin make on April 30th?Bad Debts Expense 245 Interest Expense 5  Accounts Receivable  250Accounts Receivable 255  Interest Revenue  5 Sales 250Accounts Receivable5  Interest Revenue 5Uncollectible Account 250  Accounts Receivable  250Question 59A company just starting business made the following four inventory purchases in June:June   1150 units$390June 10200 units585June 15200 units630June 28150 units495$2,100A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is$600.$2,100.$1,500.$575.Question 54A sales journal is used to recordonly cash sales of merchandise.sales of all assets on credit and for cash.credit sales of merchandise, sales returns and allowances, and sales discounts.only credit sales of merchandise.Question 59Assume the following sales data for a company:2011$945,0002010845,0002009650,000If 2009 is the base year, what is the percentage increase in sales from 2009 to 2010?23%30%77%130%Question 147Rodgers Company lends Lanier Company $30,000 on April 1, accepting a four-month, 9% interest note. Rodgers Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared?Notes...Question 99

Lee Industries had the following inventory transactions occur during 2010:

 

Units Cost/unit   

2/1/10 Purchase 18 $45   

3/14/10 Purchase 31 $47   

5/1/10 Purchase 22 $49  

The company sold 51 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)

 

$772   

$2,441   

$848   

$2,365  

 

Question 108

On March 1, 2010, Joe Miles purchased a suit at Calvin's Fine Apparel Store. The suit cost $250 and Joe used his Calvin credit card. Calvin charges 2% per month interest if payment on credit charges is not made within 30 days. On April 30, 2010, Joe had not yet made his payment. What entry should Calvin make on April 30th?

 

 

Bad Debts Expense 245   

Interest Expense 5   

        Accounts Receivable 250  

  

 

Accounts Receivable 255   

        Interest Revenue 5   

        Sales 250  

  

 

Accounts Receivable 5   

        Interest Revenue 5  

  

 

Uncollectible Account 250   

        Accounts Receivable 250  

 

 

Question 59

A company just starting business made the following four inventory purchases in June:

 

June   1 150 units $390   

June 10 200 units 585   

June 15 200 units 630   

June 28 150 units 495   

$2,100  

 

A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is

 

$600.   

$2,100.   

$1,500.   

$575.  

 

Question 54

A sales journal is used to record

 

only cash sales of merchandise.   

sales of all assets on credit and for cash.   

credit sales of merchandise, sales returns and allowances, and sales discounts.   

only credit sales of merchandise.  

 

Question 59

Assume the following sales data for a company:

 

2011 $945,000   

2010 845,000   

2009 650,000  

 

If 2009 is the base year, what is the percentage increase in sales from 2009 to 2010?

 

23%   

30%   

77%   

130%  

 

Question 147

Rodgers Company lends Lanier Company $30,000 on April 1, accepting a four-month, 9% interest note. Rodgers Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared?

 

 

Notes Receivable 30,000   

        Cash 30,000  

  

 

Interest Receivable 900   

        Interest Revenue 900  

  

 

Interest Receivable 225   

        Interest Revenue 225  

  

 

Cash 225   

        Interest Revenue 225  

 

 

Question 75

Walker Clothing Store had a balance in the Accounts Receivable account of $390,000 at the beginning of the year and a balance of $410,000 at the end of the year. Net credit sales during the year amounted to $2,000,000. The average collection period of the receivables in terms of days was

 

146 days.   

365 days.   

30 days.   

73 days.  

 

Question 88

The current assets of Kile Company are $150,000. The current liabilities are $100,000. The current ratio expressed as a proportion is

 

1.5 : 1   

.67 : 1   

150%.   

$150,000 ÷ $100,000.  

 

 

Question 48

Accounts Receivable and Accounts Payable are examples of

 

controlling accounts.   

both nominal accounts and controlling accounts.   

subsidiary ledger accounts.   

nominal accounts.  

 

Question  84

Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $500,000 and credit sales are $2,000,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?

 

 

Bad Debts Expense 20,000   

        Allowance for Doubtful Accounts 20,000  

  

 

Bad Debts Expense 20,000   

        Accounts Receivable 20,000  

  

 

Bad Debts Expense 25,000   

        Accounts Receivable 25,000  

  

 

Bad Debts Expense 25,000   

        Allowance for Doubtful Accounts 25,000  

 

 

Question 133

In the month of November, Coler Company Inc. wrote checks in the amount of $9,250. In December, checks in the amount of $12,658 were written. In November, $8,468 of these checks were presented to the bank for payment, and $10,883 were presented in December. What is the amount of outstanding checks at the end of November?

 

$2,557   

$782   

$3,550   

$1,775   

 

 

Question 165

On February 1, Platt Company received a $9,000, 10%, four-month note receivable. The cash to be received by Platt Company when the note becomes due is

 

$9,000.   

$9,900.   

$300.   

$9,300.  

Question 114

Gold Clothing Store had a balance in the Accounts Receivable account of $820,000 at the beginning of the year and a balance of $880,000 at the end of the year. Net credit sales during the year amounted to $7,650,000. The receivables turnover ratio was

 

8.7 times.   

9.3 times.   

9.0 times.   

4.5 times.   

 

Question 18-4

Using the following data from the comparative balance sheet of Rodenbeck Company, illustrate vertical analysis. (Round percentages to 1 decimal place, e.g. 10.5.)

 

  December 31, 2011 December 31, 2010   

  Accounts receivable $ 502,650 $ 391,780   

  Inventory $ 833,130 $ 610,380   

  Total assets $ 3,108,000 $2,495,800  

Vertical Analysis

 

  Dec. 31, 2011 Dec. 31, 2010   

  Amount Percentage Amount   Percentage   

Accounts receivable $ % $ %   

Inventory $ % $ %   

Total assets $ % $ %  

 

  

AE6-5   

   

Catlet Co. uses a periodic inventory system. Its records show the following for the month of May in which 65 units were sold.

 

  Date Explanation Units Unit Cost Total Cost   

  May 1 Inventory 30  $10.47 $314.10   

  May 15 Purchases 25   13.47  336.75   

  May 24 Purchases 35   14.47 506.45   

      Totals 90 $1,157.30  

Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. (Round answers to 2 decimal places, e.g. 10.50.)

 

  FIFO LIFO   

Ending Inventory $ $   

Cost of goods sold $ $  

  

 

 

 

AE8-11   

   

The following information pertains to Family Video Company.

Cash balance per bank, July 31, $9,906.73.

July bank service charge not recorded by the depositor $38.19.

Cash balance per books, July 31, $9,935.38.

Deposits in transit, July 31, $2,046.00.

Bank collected $1,227.60 note for Family in July, plus interest $49.10, less fee $27.28. The collection has not been recorded by Family, and no interest has been accrued.

Outstanding checks, July 31, $806.12.

 

 

 

 

  

    

   

 

Prepare a bank reconciliation at July 31. (Round answers to 2 decimal places, e.g. 10.50.)

 

$   

Add:   

    

Less:   

Adjusted cash balance per bank $   

    

$   

Add:   

    

Less:   

Adjusted cash balance per books $   

 

 

 

 

  

    

   

 

Journalize the adjusting entries at July 31 on the books of Family Video Company. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.Round answers to 2 decimal places, e.g. 10.50.)

 

Date Description/Account Debit Credit   

July 31   

    

            

            

  (To record collection of note receivable by bank)   

July 31   

              

  (To record bank service charge.)   

 

 

 

 

  

    

   

 

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