Reference no: EM131981761

1. Flynn Company uses a perpetual inventory system and reported $525,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $67,900 of inventory and sold inventory that had cost $40,500. At the end of the month, the physical count of inventory shows $545,000 on hand. How much shrinkage occurred during the month?

$33,100

$20,000

$47,900

$7,400

2. Purrfect Pets uses the perpetual inventory system. At the beginning of the quarter, Purrfect Pets has $49,000 in inventory. During the quarter the company purchases $10,750 of new inventory from a vendor, returned $1,100 of inventory to the vendor, and took advantage of discounts from the vendor of $390. At the end of the quarter the balance in inventory is $36,000. What is the cost of goods sold?

$24,250

$13,000

$23,750

$22,260

3. On January 1, a company lends a corporate customer $162,000 at 4% interest. The amount of interest revenue that should be recorded for the quarter ending March 31 equals:

$540.

$6,480.

$1,620.

$2,160.

4. A company lends its supplier $166,000 for 3 years at a 10% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for:

$24,900.

$16,600.

$8,300.

$49,800.

5. On the maturity date of a $10,200, 3-month, 10% note, the borrower sends a check that includes the principal and all of the interest due on the note. What is the amount of the borrower’s check?

$10,200

$13,260

$10,455

$11,220

6. On September 1, a company purchased a vehicle for $118,000 with a residual value of $3,000. The estimated useful life is 8 years and the company uses the straight-line method. What is the depreciation expense for the year ended December 31?

$14,375

$4,792

$4,917

$3,594