Heimadaemi 11 20 svor PDF

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Verk 2 (dæmi 11-20) vægi 5% - skiladagur: 14-10-19 kl. 09:00 11. Tony’s Market recorded the following events involving a recent purchase of merchandise: Received goods for €90,000, terms 2/10, n/30. Returned €1,800 of the shipment for credit. Paid €450 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company’s inventory a. increased by €86,436. b. increased by €88,650. c. increased by €86,877. d. increased by €86,886. 12. In a perpetual inventory system, cost of goods sold is recorded a. on a daily basis. b. on a monthly basis. c. on an annual basis. d. with each sale. 13. The following information was available from the inventory records of Queen Company for July: Balance at July 1 Purchases: July 6 July 26 Sales: July 7 July 31 Balance at July 31

Units 30,000

Unit Cost £ 2.25

Total Cost £67,500

20,000 27,000

2.55 2.60

51,000 70,200

(25,000) (40,000) 12,000

What should be the inventory reported on Queen’s July 31 statement of financial position using the average-cost inventory method (round per unit amounts to two decimal places)? a. £27,000. b. £29,400. c. £29,610. d. £31,500. 14. Brocken Co. has the following data related to an item of inventory: Inventory, May 1 Purchase, May 7 Purchase, May 16

3,000 units @ £4.20 10,500 units @ £4.40 2,100 units @ £4.50

Inventory, May 31

3,900 units

The value assigned to cost of goods sold if Brocken uses FIFO is a. £50,700. b. £51.246. c. £51,207. d. £50,880. Bls. 1 af 3

15. A company purchased inventory as follows: 200 units at $2.50 300 units at $3.00 The average unit cost for inventory is a. $2.50. b. $2.75. c. $2.80. d. $3.00. 16. Graham Company uses a periodic inventory system. Details for the inventory account for the month of January 2020 are as follows: Balance, 1/1/20 Purchase, 1/15/20 Purchase, 1/28/20

Units 400 200 200

Per unit price $5.00 5.30 5.50

Total $2,000 1,060 1,100

An end of the month (1/31/20) inventory showed that 240 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month? a. $2,752 b. $2,848 c. $5,600 d. $6,000 17. Valli Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700,000 and credit sales are $2,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Valli Company make to record the bad debts expense? a. Bad Debt Expense ........................................................ 32,000 Allowance for Doubtful Accounts .......................... 32,000 b. Bad Debt Expense ........................................................ 25,000 Allowance for Doubtful Accounts .......................... 25,000 c. Bad Debt Expense ........................................................ 25,000 Accounts Receivable ............................................ 25,000 d. Bad Debt Expense ........................................................ 32,000 Accounts Receivable ............................................ 32,000 18. Bad Debt Expense is reported on the income statement as a. part of cost of goods sold. b. reducing gross profit. c. an operating expense. d. a contra-revenue account.

19. Using the following information: Accounts receivable Allowance Cash realizable value

12/31/19 HK$525,000 (40,000) HK$485,000

During 2020, sales on account were HK$145,000 and collections on account were HK$100,000. Also during 2020, the company wrote off HK$5,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at HK$45,000. Bls. 2 af 3

Bad debt expense for 2020 is a. HK$35,000. b. HK$5,000. c. HK$45,000 d. HK$10,000. Ans: D, LO: 2, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA FC: Measurement, IMA: Reporting Solution: HK$45,000  (HK$40,000  HK$5,000)  HK$10,000 [Est. tot. uncollect. amt. – (Beg. allow. acct. bal. – Accts. written off) = Bad debt exp.]

20. Watunga Bank agrees to lend Hoffman Granite Company €600,000 on January 1. Hoffman Granite Company signs a €600,000, 8%, 9-month note. What is the adjusting entry required if Hoffman Granite Company prepares financial statements on June 30? a. Interest Expense.................................................................. 24,000 Interest Payable.......................................................... 24,000 b. Interest Expense.................................................................. 24,000 Cash........................................................................... 24,000 c. Interest Payable................................................................... 24,000 Cash........................................................................... 24,000 d. Interest Payable................................................................... 24,000 Interest Expense......................................................... 24,000 Ans: A, LO: 1, Bloom: AN, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA FC: Measurement, IMA: Reporting Solution: €600,000  .08  612  €24,000 (Prin. x Int. rate x Fraction of a yr. = Int. exp.)

Bls. 3 af 3...