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UMUC ACCT220 QUIZ 2 FALL 2014

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Question;Gomez Company just took its physical inventory. The count of inventory items on hand at the company's business locations resulted in a total inventory;cost of $304,983. In reviewing;the details of the count and related;inventory transactions, you;have discovered the following.;1. Gomez has;sent inventory costing;$25,103 on consignment to Kako Company. All of this inventory was at Kako's showrooms on December;31.;2. The company did not;include in the count;inventory (cost, $19,238);that was sold on;December 28, terms;FOB shipping point. The goods were in transit;on December 31.;3. The company did not;include in the count;inventory (cost, $16,542);that was purchased with terms;of FOB shipping point, The goods were in transit on December;31.;Compute the correct;December 31 inventory.;Question Attempts: 0;of 2 used;Question 25;Emporia Shoe Shop had goods available for sale in 2014 with a;retail price of $120,000. The cost of these goods was $84,000. If sales during the;period were $80,000;what is the ending inventory at cost using;the retail inventory;method?;Question;Attempts: 0 of 2 used;Acct220.7989-Fa14 I Quiz 2;Question 20;When;perpetual inventory records are;kept, the results under;the FIFO and LIFO methods;are the same as they;would be in a periodic inventory;system." Do you agree?;Question Attempts: 0;of 2 used;Acct220.7989-Fa14 I Quiz 2;Question 16;Kuzu Company discovers in 2014 that;its ending inventory at December 31,2013, was $7,000 understated. What effect;will this error have on;(a) 2013 net;income;(b) 2014 net;income;(c) the combined;net income for the 2 years;Question;Attempts: 0 of 2 used;Print by: ANGEL JESSIE Acct220.7989-Fa14 I Quiz;2;Brief Exercise 6-5;The management of Svetlana;Corp. is considering the;effects of various inventory-costing methods on its financial statements;and its income tax expense.;Assuming that the price the company pays for inventory is;increasing, which method will;(a) Provide the;highest net income?;(b) Provide the;highest ending inventory?;(c) Result in the;lowest income tax expense?;(d) Result in the;most stable earnings over a;number of years?;Question;Attempts: 0 of 2 used;Print by: ANGEL JESSIE Acct220.7989-Fa14 I Quiz;2;Brief Exercise 6-1;Farley Company identifies the following items for possible;inclusion in the taking of a physical inventory.;Indicate whether each item should be "Included" or;Not Included" from the inventory taking.;(a) Goods shipped;on consignment by Farley to another company.;(b) Goods in;transit from a supplier shipped FOBdestination.;(c) Goods sold but;being held for customer pickup.;(d) Goods held on;consignment from another company.;Question;Attempts: 0 of 2 used;Print by: ANGEL;JESSIE;Acct220.7989-Fa14 I;Quiz 2;Question 23;Goods costing;$3,000 are purchased on;account on July 15 with;credit terms of 2/10;n/30. On July 18, a $200;credit was received from the;supplier for damaged goods. Give;the journal entry on July 24 to record;payment of the balance due within;the discount period, assuming a;periodic inventory system. (Credit account titles are;automatically indented when;the amount is entered. Do not indent manually.);Date Account Titles;and Explanation Debit Credit;Question;Attempts: 0 of 2 used;Print by: ANGEL JESSIE;Acct220.7989-Fa14;/ Quiz 2;Question 22;Identify the accounts;that are added to or;deducted from Purchases in;a periodic system to;determine the cost of goods purchased. For each;account, indicate whether;it is added or deducted.;Accounts;Added/Deducted;Purchase Returns and;Allowances;Purchase Discounts;Freight-in;Question Attempts: 0 of 2 used;--~-------------;Print by: ANGEL JESSIE Acct220.7989-Fa14 /;Quiz 2;Brief Exercise 5-8;State where each of the;following items would;appear on (1) a multiple-step income;statement, and on (2) a;single-step income statement;(a) gain on sale of equipment;(b) interest expense, (c);casualty loss from vandalism;and (d) cost of goods sold.;Multiple-StepIncome;Statement;Single-Step Income;Statement;Question;Attempts: 0 of 2 used;Print by: ANGEL JESSIE;Acct220.7989-Fa14 I Quiz 2;Question 16;Paul Scott;Company reports net;sales of $800,000, gross profit of $370,000, and net;income of;$240,000. What are its operating expenses? Operating Expenses;======;$L_ ~;Question Attempts: 0;of 2 used;Exercise 5-1;Mr. Etemadi has;prepared the following;list of statements about service;companies and merchandisers.;Identify each;statement as true or false.;Measuring net income;for a merchandiser is;conceptually the;1. same as for a;service company.;For a merchandiser;sales less operating;expenses is called gross;2. profit.;3. For a;merchandiser, the primary;source of revenues is the;sale of inventory.;4. Sales salaries and;wages is an example of an operating expense.;5. The;operating cycle of a merchandiser is the;same as that of a service;company.;6. In a perpetual;inventory system, no detailed;inventory records of goods on hand are;maintained.;7. In a periodic;inventory system, the;cost of goods sold is determined;only at the end of the;accounting period.;A periodic;inventory system provides;better control over;8. inventories t han a perpetual system.;Print by: ANGEL JESSIE Acct220.7989-Fa14 I Quiz;2;*Brief Exercise 4-9;At Creighton;Company, the following;errors were discovered;after the transactions;had been journalized and posted.;1. A;collection on account from a;customer for $875 was recorded;as a debit to Cash $875 and a;credit to Service Revenue;$875.;2. The;purchase of store supplies;on account for $1,580 was;recorded as a debit to Supplies;$1,850 and a credit;to Accounts Payable $1,850.;Prepare the;correcting entries. (Credit account titles are;automatically indented when amount;is entered. Do not indent;manually.);No. Account;Titles and Exp anation Debit Credit;Copyright ? 2000-2014 by John Wiley & Sons, Inc. or;related companies. All rights reserved.;Print by, ANGEL;JESSIE;Acct220.7989-Fa14 I Quiz 2;Question 9;Which of the following;accounts would not;appear in the post-closing trial balance?;r service revenue;r Equipment;r Interest Payable;r Depreciation Expense;r Accumulated;Depreciation-Equipment;r Owner's Drawings;r Unearned;Service Revenue;Question Attempts: 0 of 2 used;Print by: ANGEL JESSIE Acct220.7989-Fa14 I Quiz;2;Matching Question 226;Match the items;below by selecting the appropriate number in the;space provided.;Measures the number;of times the inventory;sold during the period.;Tracks the;actual physical flow for each inventory item;available for sale.;Goods that are only partially;completed in a manufacturing company.;Cost of goods sold consists;of the most recent;inventory purchases.;Goods ready for sale to customers by retailers;and wholesalers.;Title to the goods transfers when;the public carrier accepts the;goods from the seller.;Ending inventory valuation;consists of the most;recent inventory purchases.;The same unit cost;is used to value ending inventory;and cost of goods sold.;Title to goods transfers;when the goods are delivered to the;buyer.;The amount that would;be paid at the present time;to acquire an identical item.;l. Merchandise;Inventor;2. Work in process;3. FOB shipping point;4. FOB destination;5. Specific;identification method;6. First-in, first-out;(FIFO) method;7. Last-in, first-out;(UFO) method;8. Average-cost;method;9. Inventory turnover;10. Current replacement;cost;Question;Attempts: 0 of 2 used;Print by: ANGEL JESSIE;Acct220.7989-Fa14 I;Quiz 2;*00 It! Review 6-4;(Part Level Submission);Early in 2014, Chien;Company switched to a just-in-time;inventory system. Its;sales, cost of goods sold, and;inventory amounts for 2013 and 2014;are shown below.;2013 2014;Sales $3,123,157 $3,750,000;Cost of goods sold 1,242,079 1,404,335;Beginning inventory 171,722 212,968;Ending inventory 212,968 104,678;*(a1);Determine the;inventory turnover for 2013;and 2014. (Round;answers to 1. decimal;place;e.g. 1..5.);The inventory turnover;2013 2014;Attempts: 0 of 2;used;*(a2);The parts of;this question must;be completed in order. This part;wi/! be available when you complete;the part above.;Print by: ANGEL JESSIE Acct220.7989-Fa14/ Quiz 2;*Do It! Review 6-3;(Part Level Submission);Answer the following;questions;*(a);Moberg Company sells;three different categories;of tools (small, medium;and large). The cost and;market value of its inventory of tools;are as follows.;Small Cost;$ 63,523 Market;Value;$ 72,460;Medium 289,853 259,770;Large 152,348 171,123;Determine the value;of the company's inventory;under the lower-of-cost-or-market approach.;Attempts: 0 of 2 used;*(b);The parts of;this question must be completed in order. This part;will be available when you;complete the part above.;Print by: ANGEL JESSIE;Acct220.7989-Fa14;/ Quiz 2;*00 It! Review 6-2 (Part Level Submission);The accounting;records of Old Towne Electronics show the;following data.;Beginning inventory 2,975 units;at $4;Purchases 8,051 units;at $7;Sales 9,376 units;at $10;*(a1);Calculate Average-cost;per unit. (Round answer to 3 decimal places, e.g.;2.525.);Attempts: 0 of 2 used;*(a2);The parts of;this question must;be completed in order. This;part will be available when;you complete the part above.;Copyright ? 2000-2014;by John Wiley & Sons;Inc. or related companies.;All rights reserved.;Print by: ANGEL JESSIE Acct220.7989-Fa14 /;Quiz 2;Matching;Question 237;Match the items;below by selecting the;appropriate number in the;space provided.;An incentive to;encourage customers to pay their;accounts early.;Expenses;incurred in the process of earning sales revenue.;Freight terms that;require the seller to pay the freight;cost.;Sales revenue less;sales returns and allowances and sales discounts.;A document that;supports each credit purchase.;Net sales less cost of goods sold.;Freight cost to deliver;goods to customers reported as a selling;expense.;Requires a;physical count of goods on hand to compute;cost of goods sold.;Gross profit less;total operating expenses.;Freight terms that;require the buyer;to pay the freight cost.;1. Net sales;2. Sales discounts;3. Purchase invoice;4. Periodic;inventory system;5. FOB destination;6. FOB shipping point;7. Freight-out;8. Gross profit;9. Operating expenses;10, Income from;operations;Question;Attempts: 0 of 2 used;Print by: ANGEL JESSIE Acct220.7989-Fa14 I Quiz 2;*Do It! Review 5-3;The trial;balance of Optique Boutique;at December 31;shows Inventory $21,770;Sales Revenue $162,240, Sales;Returns and Allowances $4,160;Sales Discounts $3,540, Cost of Goods Sold $92,680, Interest;Revenue $5,550, Freight-Out;$1,940, Utilities Expense;$7,730, and Salaries and Wages;Expense $18,070.;Prepare the closing;entries for Optique. (Credit;account titles are;automatically indented;when amount is entered. Do not;indent manually.);Account;"ties and Explanation;Question;Attempts: 0 of 2 used;Print by: ANGEL JESSIE;Acct220.7989-Fa14 I Quiz 2;*00 It! Review 5-2;On October 5;Loomis Company buys merchandise on account;from Brooke Company. The selling price of the goods is $4,970, and the cost to Brooke Company;is $3,290. On October 8, Loomis;returns defective goods with;a selling price of $670 and a;fair value of $91.;Record the;transactions on the books of Brooke Company.;(Credit account titles are automatically;indented when amount is entered.;Do not indent manually.);Date Account;Titles and Explanation;Question Attempts: 0 of 2 used;Copyright ?;2000-2014 by John Wiley;Sons, Inc. or related;companies. All rights;reserved.;Print by: ANGEL;JESSIE Acct220.7989-Fa14 / Quiz 2;*00 It! Review 5-1;On October 5, Loomis;Company buys merchandise;on account from Brooke;Company. The selling price of;the goods is $4,890, and the cost to;Brooke Company is $3,130. On;October 8, Loomis returns defective;goods with a selling price of $710 and a fair value;of $10.;Record the;transactions on the books of Loomis Company.;(Credit account titles are automatically;indented when amount is entered.;Do not indent manually.);Question;Attempts: 0 of 2 used;Copyright ? 2000?2014;by John Wiley & Sons, Inc. or related companies. All rights;reserved.;Print by: ANGEL JESSIE Acct220.7989-Fa14 I Quiz;2;Matching Question 228;Match the items;below by selecting the;appropriate number in the;space provided.;Obligations that a company;expects to pay after one year.;A part of;owners' equity in a corporation.;An optional tool which;facilitates the preparation;of financial statements.;A temporary;account used in the closing;process.;Balance sheet;accounts whose balances;are carried forward to the;next period.;The average time;that it takes to go from;cash to cash in producing;revenues.;Entries to correct;errors made in recording;transactions.;The exact;opposite of an adjusting entry;made in a previous period.;Entries at the end of an accounting period to transfer the;balances of temporary accounts;to a permanent owner's equity;account.;Assets that a company;expects to payor;convert to cash or use up within one year.;Question;Attempts: 0 of 2 used;Copyright ? 2000-2014 by John Wiley & Sons. Inc. or;related companies. All rights reserved.;Print by: ANGEL JESSIE Acct220.7989-Fa14/ Quiz;2;Do It! Review 4-4;The following;accounts were taken from;the financial statements;of Lee Company. Match each of the;accounts to its proper balance;sheet classification. If the item;would not appear on a balance sheet, use "Not;Applicable.;Accounts;Interest revenue Utilities payable Accounts payable Supplies;Bonds payable;Goodwill;Owner's capital;Accum ulated;depreciation -equ ipmen t;Equipment;Salaries and wages;expense;Debt investments;(long-term);Unearned rent revenue;Balance Sheet Classification;\;Printby: ANGEL JESSIE;Acct220.7989-Fa14;/ Quiz 2;*00 It! Review 4-3;Ryan Newton;recently received the;following information related;to Ryan Company's December;31,2014, balance sheet.;Inventory;$3,454 Debt investments;(short-term) $1,257;Cash;34,473 Accumulated;depreciation 6,016;Equipment;21,486 Accounts receivable 4,105;Stock;investments (long-term) 6,476;Prepare the assets;section of Ryan Company's;classified balance sheet. (List;current assets in order;of liquidity.);RYAN COMPANY Partial Balance Sheet December 31, 2014;Copyright ? 2000-2014;by John;Wiley & Sons, Inc.;or related companies. All;rights reserved.;Print by: ANGEL;JESSIE Acct220.7989-Fa14 I Quiz 2;*Do It! Review 4-2;The worksheet for;Tsai Company shows the following;in the financial statement;columns.;Owner's drawings $23,447;Owner's capital 73,174;Net income 41,229;Prepare the;closing entries at;December 31 that affect;owner's capital. (Credit account titles are automatically indented;when amount is entered. Do not indent manually.);Date Account;Titles and Expianatiol'.All rights reserved.;11/1812014;Do It! Review 4-1;Print by: ANGEL JESSIE Acct220.7989-Fa14 /;Quiz 2;Do It! Review 4-1;Bradley Decker is preparing a worksheet.;Explain to Bradley how he should extend the following;adjusted trial balance accounts to the financial statement columns of the worksheet.;Trial Balance accounts;Service Revenue Notes Payable;Owner's Capital Accounts Receivable;Accum ulated Depreciation;Utilities Expense

 

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