question1:
Consider the following facts:
– Company A had product sales revenues of $30,000 for the month.
– Its cost of goods sold was $18,000 for the month.
– Its other operating expenses were $2,000 for the month.
– Company A also had rent revenue of $500 for the month.
– Also during the month, it sold a delivery truck for a gain of $1,000 during the month.
For the month, Company A’s net income (loss) was:
Question 2 of 18
Consider the following facts:
– Company A has the following inventory information:
– Inventory at the beginning of January was 15 units purchased at $8.00 each.
– On January 8, purchased 60 units @ $8.30 each
– On January 17, purchased 30 units @ $8.40 each
– On January 25, purchased 45 units @ $8.80 each
– On January 31, a physical count showed 45 units on hand
– Company A uses the periodic inventory system
– Company A uses the specific identification method.
– The ending inventory includes 10 units from each of the purchases and 15 units from the beginning balance.
Company A’s cost of goods sold is:
Question 3 of 18
Which of the following accounts would not be debited in the process of preparing closing entries for A Company
Question 4 of 18
Consider the following facts:
– Company A sold products for $40,000 cash during the month.
– Customers returned $1,000 of the products.
– Company A’s gross profit rate is 40%.
Company A’s net sales revenue and cost of goods sold will be which of the following for the month?
Question 5 of 18
Consider the following facts:
– Company A had inventory of $300,000 at the beginning of the period.
– It wants inventory on hand to be $350,000 at the end of the period.
– Net sales for the period are expected to be $1,500,000.
– The gross profit rate is expected to be 30%.
How much merchandise should Company A expect to purchase during the year?
Question 6 of 18
Consider the following facts:
– Company A had 500 units of inventory on hand at the beginning of the year.
– The unit cost of the beginning inventory items was $18 each.
– On January 14, it sold 375 units for $28 each.
– On January 17, it purchased 250 units for $20 each.
– On January 25, it purchased 250 units for $22 each.
– On January 29, it sold 260 units for $32 each.
– Company A does not use the perpetual inventory accounting method.
– At the end of January, Company A takes a physical inventory count and discovers that 365 units are on hand.
Company A’s cost of inventory at the end of January is $_________ under the FIFO accounting method.
Question 7 of 18
Consider the following facts:
– Company A has the following inventory information:
– Inventory at the beginning of January was 15 units purchased at $8.00 each.
– On January 8, purchased 60 units @ $8.30 each
– On January 17, purchased 30 units @ $8.40 each
– On January 25, purchased 45 units @ $8.80 each
– On January 31, a physical count showed 45 units on hand
– Company A uses the periodic inventory system
Company A’s cost of goods sold under the average-cost method is:
Question 8 of 18
Consider the following facts:
– Company A had 500 units of inventory on hand at the beginning of the year.
– The unit cost of the beginning inventory items was $18 each.
– On January 14, it sold 375 units for $28 each.
– On January 17, it purchased 250 units for $20 each.
– On January 25, it purchased 250 units for $22 each.
– On January 29, it sold 260 units for $32 each.
– Company A does not use the perpetual inventory accounting method.
– At the end of January, Company A takes a physical inventory count and discovers that 365 units are on hand.
Company A’s cost of inventory at the end of January is $_________ under the LIFO accounting method.
Question 9 of 18
Consider the following facts:
– Company A purchased goods for $50,000
– The purchase terms were 2/10,n/30
– Company A returned $1,000 of the goods
– Company A paid freight of $250 on the shipment of the goods
– Company A paid the invoice within the discount period
As a result of this purchase, Company A’s inventory increased by:
Question 10 of 18
Consider the following facts:
– Company A sells merchandise on account for $6,000 to Company C
– The credit terms of the sale are 2/10, n/30
– Company C returns $1,200 of the merchandise
– Company C pays the outstanding balance within the discount period
How much does Company C pay to settle its outstanding balance?
Question 11 of 18
Consider the following facts:
– Company A begin business operations in the month of April.
– On April 1, it purchased 150 units of goods for $390.
– On April 10, it purchased 200 units of goods for $585.
– On April 15, it purchased 200 units of goods for $630.
– On April 28, it purchased 150 units of goods for $510.
– At the end of the month, it discovered that it had 200 units on hand after completing its physical inventory count.
– Company A uses the average-cost inventory accounting method.
Company A’s cost of goods sold for April is:
Question 12 of 18
Consider the following facts:
– Company A had product sales revenues of $30,000 for the month.
– Its cost of goods sold was $18,000 for the month.
– Its other operating expenses were $2,000 for the month.
– Company A also had rent revenue of $500 for the month.
– Also during the month, it sold a delivery truck for a gain of $1,000 during the month.
For the month, Company A’s operating income (loss) was:
Question 15 of 18
Consider the following facts:
– Company A begin business operations in the month of April.
– On April 1, it purchased 150 units of goods for $390.
– On April 10, it purchased 200 units of goods for $585.
– On April 15, it purchased 200 units of goods for $630.
– On April 28, it purchased 150 units of goods for $510.
– At the end of the month, it discovered that it had 200 units on hand after completing its physical inventory count.
– Company A uses the FIFO inventory accounting method.
Company A’s cost of goods sold for April is:
Question 16 of 18
Consider the following facts:
– Company A uses the perpetual inventory system
– It records inventory purchases at net cost
– It purchased goods for $6,000 with credit terms of 2/10, n/30
– It returned half of the goods purchased
– The discount period expired before it paid the outstanding invoice
The journal to record the payment of the invoice when paid includes a:
Question 17 of 18
Consider the following facts:
– Company A had merchandise inventory of $550,000 at January 1
– For the year, it had purchases of $2,250,000
– For the year, it had net sales of $3,200,000
– The physical inventory on December 31 showed $500,000 in the warehouse
– Company A’s gross profit on sales was 30%
– Company A’s suspects some of its ending inventory is missing due to theft
The estimated cost of the missing inventory is:
