Details of this Paper

ACCT - DONALD RUDDY COMPANY PROBLEM

Description

solution


Question

Question;DONALD RUDDY COMPANYAdjusted Account BalancesFor the Year Ended December 31, 20XXAccounts Payable $ 5,060Accounts Receivable 5,340Accumulated Depreciation?Office Equipment 400Advertising Expense 210Allowance for Doubtful Accounts 300Cash 7,170Depreciation Expense?Office Equipment 200Insurance Expense 140Merchandise Inventory, January 1, 20XX 5,000Notes Payable 1,000Office Equipment 2,000Office Supplies 90Office Supplies Expense 210Prepaid Insurance 190Purchases 40,000Purchase Discounts 170Purchase Returns and Allowances 500Rent Expense 1,500Ruddy, Capital 4,100Ruddy, Drawing 250Salaries Expense 8,055Salaries Payable 550Sales 60,380Sales Discounts 200Sales Returns and Allowances 350Taxes Payable 420Transportation-in 250Utilities Expense 385Vehicle 1,340Note: The ending merchandise inventory on December 31, 20XX, was $3,000.;1. The cost of goods sold isA. $44,580. C. $38,580.B. $41,580. D. $33,580.;2. The net cost of purchases areA. $39,080. C. $39,750.B. $39,580. D. $39,830.;3. The cost of goods available for sale isA. $39,080. C. $41,580.B. $39,330. D. $44,580.;4. Net sales for the period amount toA. $59,830. C. $60,380.B. $60,180. D. $60,930.;5. What are the total operating expenses?A. $10,105 C. $10,700B. $10,490 D. $11,000;A trial balance as of December 31, 20XX, for the Sylvia Goody Company is entered on the work sheet at the back of this unit.;Additional data:a. Increase in allowance for doubtful accounts $ 113b. Interest accrued on notes receivable 24c. Depreciation on equipment 320d. Expired insurance 126e. Store supplies on hand 85f. Interest accrued on notes payable 36g. Salaries accrued but not paid 340h. Merchandise Inventory, December 31, 20XX 7,220;6. On the work sheet prepared for the Sylvia Goody Company as of December 31, thedebit total under Adjustments isA. $1,039. C. $926.B. $1,015. D. $913.;7. Which one of the following statements is true for the ending inventory balance?A. It will appear as a debit in the Trial Balance column.B. It will appear as a debit in the Adjusted Trial Balance column.C. It will appear as a credit in the Balance Sheet column.D. It will appear as a credit in the Income Statement column.;8. Which one of the following statements applies to the $714 in the Transportation-inaccount?A. It will appear in the debit column of the Income Statement.B. It will appear in the credit column of the Income Statement.C. It will appear in the debit column of the Balance Sheet.D. It will appear in the credit column of the Balance Sheet.;9. The cost of goods purchased that would appear on a formal income statement preparedfor the Sylvia Goody Company, based on the information in the work sheet,would beA. $20,939. C. $20,221.B. $20,423. D. $19,709.;10. The net income for the Sylvia Goody Company for the period ending December 31,20XX, isA. $10,382. C. $11,120.B. $10,406. D. $14,206.;11. When a firm is using a periodic inventory procedure, the cost of goods purchased isequal toA. Beginning Inventory + Purchases ? Purchase Returns and Allowances ? PurchaseDiscounts + Transportation-in.B. Ending Inventory + Purchases ? Purchase Returns and Allowances ? PurchaseDiscounts + Transportation-in.C. Purchases ? Purchase Returns and Allowances ? Purchase Discounts +Transportation-in.D. Purchases ? Purchase Returns and Allowances ? Purchase Discounts ?Transportation-in.;12. An example of a contra-revenue account found on the Income Statement is theA. Uncollectible Accounts Expense.B. Transportation-in.C. Purchase Returns and Allowances.D. Sales Returns and Allowances.;13. Company A records purchases using the net price method. If an item is purchasedfrom a supplier for $800 on terms of 3/10, n/30, the correct accounting entry would beA. Purchases 776Purchase Discounts 24Accounts Payable 800B. Purchases 776Accounts Payable 776C. Accounts Payable 800Purchases 776Purchase Discounts 24D. Purchases 800Accounts Payable 800;14. What account will be debited to record an accounts receivable amount considered to bea bad debt if the direct write-off method of accounting is used?A. Uncollectible Accounts ExpenseB. CashC. Allowance for Doubtful AccountsD. Sales;Here?s a partial record of the J. Shafer Company as of December 31, 20XX.Purchase Returns $ 1,500Sales Discounts 900Operating Expenses 20,000Transportation-in 1,100Ending Inventory 7,400Sales 53,500Beginning Inventory 9,500Purchases 27,200;15. The cost of goods sold isA. $37,800. C. $29,800.B. $36,700. D. $28,900.;16. The company?s net income isA. $17,400. C. $4,600.B. $16,800. D. $3,700.;17. The term used to designate that the buyer of merchandise is responsible for thetransportation costs of shipping the merchandise isA. E.O.M. shipping point. C. E.O.M. destination.B. F.O.B. shipping point. D. F.O.B. destination.;18. Gross profit on sales minus operating expenses equalsA. net operating income. C. net sales.B. cost of goods sold. D. net operating expenses.;19. The following information about the Wells Company?s merchandising accounts isavailable:Beginning Inventory............ $100,000Ending Inventory............... 40,000Purchase Discounts............. 4,000Transportation-in............... 7,500Purchases.................... 55,000Cost of Goods Sold............. 115,000The information on Purchase Returns and Allowances has been misplaced, and it?s upto you to determine its final balance from the information given above. The amount ofPurchase Returns and Allowances must beA. $3,500. C. $11,000.B. $7,500. D. $15,000.;20. All but one of the following accounts would be credited in the closing process. Whichaccount would not be credited in the closing entries?A. Sales DiscountsB. PurchasesC. Transportation-inD. Purchase Returns and Allowances

 

Paper#43608 | Written in 18-Jul-2015

Price : $22
SiteLock