Reference no: EM133113265
Question 1 - On January 1, the Newman Company estimated its property tax to be $3,240 for the year.
a. How much should the company accrue each month for property taxes?
b. Calculate the balance in Property Tax Payable as of August 31.
c. Prepare the adjusting journal entry for September. If an amount box does not require an entry, leave it blank.
Question 2 - A company using the periodic inventory system has inventory costing $200 on hand at the beginning of a period. During the period, merchandise costing $411 is purchased. At year-end, inventory costing $381 is on hand. The cost of goods sold for the year is
a. $230
b. $381
c. $411
d. $200
Question 3 - The supplies account had a balance of $1,199 at the beginning of the year and was debited during the year for $3,951, representing the total of supplies purchased during the year. If $3,138 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is
a. $5,150
b. $2,012
c. $3,138
d. $7,089
Question 4 - Abbey Co. sold merchandise to Gomez Co. on account, $27,900, terms 2/15, net 45. The cost of the goods sold was $15,257. Abbey Co. issued a credit memo for $3,300 for merchandise returned that originally cost $1,191. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?
a. $13,276
b. $3,300
c. $14,066
d. $10,042
Question 5 - The records of Penny Co. indicated that $417,520 of merchandise should be on hand on December 31. The physical inventory indicates that $414,180 of merchandise is actually on hand.
Journalize the adjusting entry for the inventory shrinkage for the year ended December 31. If an amount box does not require an entry, leave it blank.
Question 6 - Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 1/10, net 30, for $200. Pierce prepaid the $45 shipping charge. Which of the following entries does Pierce make to record this sale?
a. Accounts Receivable-Stanton, debit $45; Sales, credit $45
b. Accounts Receivable-Stanton, debit $198; Sales, credit $198, and Accounts Receivable-Stanton, debit $45; Cash, credit $45
c. Accounts Receivable-Stanton, debit $245; Sales, credit $245
d. Accounts Receivable-Stanton, debit $45; Sales, credit $45, and Transportation Out, debit $200; Cash, credit $200
Question 7 - Based upon the following data for a business with a periodic inventory system, determine the cost of goods sold for August.
Inventory, August 1 $75,580
Inventory, August 31 94,290
Purchases 378,730
Purchases returns & allowances 17,640
Purchases discounts 10,760
Freight in 4,160
Question 8 - Given
|
Finley Company End-of-Period Spreadsheet For the Year Ended December 31
|
|
Adjusted Trial Balance
|
Income Statement
|
Balance Sheet
|
|
Account Title
|
Debit
|
Credit
|
Debit
|
Credit
|
Debit
|
Credit
|
|
Cash
|
16,000
|
|
|
|
16,000
|
|
|
Accounts Receivable
|
6,000
|
|
|
|
6,000
|
|
|
Supplies
|
2,000
|
|
|
|
2,000
|
|
|
Equipment
|
71,733
|
|
|
|
71,733
|
|
|
Accumulated Depr.
|
|
6,000
|
|
|
|
6,000
|
|
Accounts Payable
|
|
10,000
|
|
|
|
10,000
|
|
Wages Payable
|
|
2,000
|
|
|
|
2,000
|
|
Common Stock
|
|
5,000
|
|
|
|
5,000
|
|
Retained Earnings
|
|
62,000
|
|
|
|
62,000
|
|
Dividends
|
4,000
|
|
|
|
4,000
|
|
|
Fees Earned
|
|
40,277
|
|
40,277
|
|
|
|
Wages Expense
|
14,055
|
|
14,055
|
|
|
|
|
Rent Expense
|
6,857
|
|
6,857
|
|
|
|
|
Depreciation Expense
|
4,632
|
|
4,632
|
|
|
|
|
Totals
|
125,277
|
125,277
|
25,544
|
40,277
|
99,733
|
85,000
|
|
Net Income (Loss)
|
|
|
14,733
|
|
|
14,733
|
|
|
|
40,277
|
40,277
|
99,733
|
99,733
|
The entry to close Dividends would be
a. debit Common Stock, $4,000; credit Retained Earnings, $4,000
b. debit Dividends, $4,000; credit Retained Earnings, $4,000
c. debit Retained Earnings, $4,000, credit Dividends, $4,000
d. debit Retained Earnings, $4,000; credit Common Stock, $4,000
Question 9 - During the current year, merchandise is sold for $56,400 cash and for $81,900 on account. The cost of the goods sold is $89,900. What is the amount of the gross profit?
Question 10 - On January 1, DogMart Company purchased a two-year liability insurance policy for $20,520 cash. The purchase was recorded to Prepaid Insurance. Prepare the January 31 adjusting entry. If an amount box does not require an entry, leave it blank.