Reference no: EM133139018

Questions -

Q1. Happy Company uses the retail method of inventory costing. It started the year with an inventory that had a retail cost of $38,000. During the year, Garrison purchased an inventory with a retail sales value of $799,400. After performing a physical inventory, Garrison calculated the inventory cost at retail to be $53,000. The mark up is 100% of cost. Determine the ending inventory at its estimated cost.

a. $79,500

b. $132,500

c. $53,000

d. $26,500

Q2. On June 31 (the end of the period), Brown Company has a credit balance of $2,435 in Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper balance should be $28,170.

Journalize the appropriate adjusting entry. If an amount box does not require an entry, leave it blank.

Q3. Using the following information:

The bank statement balance is $4,621.

The cash account balance is $4,949.

Outstanding checks amounted to $823.

Deposits in transit are $1,083.

The bank service charge is $59.

A check for $55 for supplies was recorded as $46 in the ledger.

Prepare a bank reconciliation for Candace Co. for May 31.

Q4. Thompson Corporation gathered the following reconciling information in preparing its October bank reconciliation:

Cash balance per bank, 10/31 $15,237

Note receivable collected by bank 3,056

Outstanding checks 9,319

Deposits in transit 3,647

Bank service charge 300

NSF check 1,844

Using the above information, determine the cash balance per books (before adjustments) for Thompson Corporation.

a. $8,653

b. $9,565

c. $16,149

d. $10,477

Q5. The units of Manganese Plus available for sale during the year were as follows:

There are 15 units of the product in the physical inventory at November 30. The periodic inventory system is used.

a. Determine the inventory cost by the FIFO method.

b. Determine the inventory cost by the LIFO method.

c. Determine the inventory cost by the average cost methods. Round answer to two decimal places.

Q6. Roe's Renovations utilizes the direct write-off method of accounting for uncollectible receivables. On September 15 the company is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation. Write off the $5,750 of accounts receivable due from Jacob Marley. If an amount box does not require an entry, leave it blank.

Q7. A 60-day, 7% note for $6,000, dated April 15, is received from a customer on account. The face value of the note is

a. $6,000

b. $6,420

c. $420

d. $6,070

Q8. A $176 petty cash fund has cash of $15 and receipts of $173. The journal entry to replenish the account would include a

a. credit to Petty Cash for $173

b. credit to Cash Short and Over for $12

c. credit to Cash for $176

d. debit to Cash for $15

Q9. The following lots of a particular commodity were available for sale during the year

Beginning inventory 7 units at $52

First purchase 19 units at $51

Second purchase 21 units at $27

Third purchase 14 units at $61

The firm uses the periodic system, and there are 22 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year rounded to nearest dollar according to the average cost method? Do not round intermediate calculations.

a. $993

b. $1,070

c. $1,129

d. $1,144

Q10. The following lots of Commodity Z were available for sale during the year.

Beginning inventory 11 units at $50

First purchase 17 units at $53

Second purchase 54 units at $55

Third purchase 17 units at $60

The firm uses the periodic system, and there are 26 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method?

a. $1,300

b. $1,515

c. $1,345

d. $5,441