Reference no: EM132641296
Questions -
Q1. Lee Company reported the following data for the current year:
Legal and audit fees 1,700,000
Rent for office space 2,400,000
Interest on inventory loan 2,100,000
Loss on abandoned data processing equipment 350,000
The office space is used equally by the sales and accounting departments.
What amount should be classified as general and administrative expenses?
a. 2,900,000
b. 3,250,000
c. 4,100,000
d. 5,000,000
Q2. The Green Co. reported the following data for the current year
Accounting and legal fees 250,000
Freight in 1,750,000
Freight out 1,600,000
Officers' salaries 1,500,000
Insurance 850,000
Sales representatives salaries 2,150,000
Research and development expense 1,000,000
What amount should be reported as administrative expenses?
a. 2,600,000
b. 5,500,000
c. 4,350,000
d. 3,600,000
Q3. Bell Company provided the following information for the current year:
Purchases 5,300,000
Purchase discounts 100,000
Beginning inventory 1,600,000
Ending inventory 2,150,000
Freight out 400,000
What is the cost of goods sold for the current year?
a. 4,650,000
b. 4,750,000
c. 5,050,000
d. 5,850,000
Q4. Corazon Company provided the following information for the current year:
Sales 7,000,000
Sales Returns and allowances 100,000
Cost of goods sold 2,800,000
Utilities Expense 1,000,000
Interest revenue 150,000
Income tax expense 800,000
Casualty loss due to earthquake 50,000
Finance cost 200,000
Salaries expense 600,000
Loss on sale of investment 50,000
What amount should be reported as income from continuing operations?
a. 1,550,000
b. 1,600,000
c. 2,350,000
d. 1,400,000