Accounting final quiz questions

For 2022, Kuhl Co. reported net income of $36,000, net sales $400,000, and average shares outstanding of 16,000. No preferred dividends were paid. Earnings per share is

$2.25

These are selected account balances on December 31, 2022. Land $150,000 Land (held for future use) 225,000 Buildings 1,200,000 Inventory 300,000 Equipment 675,000 Furniture 150,000 Accumulated Depreciation 450,000 What is the total amount of property, plant, and equipment that will appear on the balance sheet?

$1,725,000

Skypress Company collected $11,200 in September of 2021 for 4 months of service which would take place from October of 2021 through January of 2022. The revenue reported from this transaction during 2022 would be:

$2,800

The interest charged on a $300,000 note payable, at the rate of 6%, on a 90-day note would be

$4,500

ABC corporation has the following information for Dec 31, 2018. Which of the following is the correct value for Dec 31, 2019 ending retained earnings? Retained earnings Dec 31, 2018 = $500,000 Net Income from 2019 = $30,000 Dividend Distributions from 2019 = $15,000

$515,000

A company purchased inventory as follows: 200 units at $6.00 300 units at $6.60 The average unit cost for inventory is:

$6.36

Sparks Company received proceeds of $634,500 on 10-year, 8% bonds issued on January 1, 2019. The bonds had a face value of $600,000, pay interest annually on December 31, and have a call price of 102. Sparks uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2021?

$627,600

Net credit sales for the month are $900,000. The accounts receivable balance is $192,000. The allowance is calculated as 5% of the receivables balance using the percentage-of-receivables basis. If the Allowance for Doubtful Accounts has a credit balance of $6,000 before adjustment, what is the balance after adjustment?

$9,600

Calculate Net Sales with the following information: Sales Returns and Allowances: $5,000 Sales Discounts: $15,000 Gross Sales: $110,000

$90,000

Baker Bakery Company just began business and made the following four inventory purchases in June: June 1 150 units $ 1,040 June 10 200 units 1,560 June 15 200 units 1,680 June 28 150 units 1,320 $5.600 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is:

1,824

PP&E Inc. purchased a tractor for $150,000 on January 1, 2020. The tractor has a useful life of 10 years and no salvage value. Compute depreciation expense using the straight-line method for 2020.

15,000

Danforth Corp has net credit sales of $435,000, and Accounts Receivable turnover of 20.0. What are Danforth Corps average net Accounts receivable?

21,750

PP&E Inc. purchased a snowplow for $150,000 on January 1, 2018. The snowplow has a useful life of 10 years and no salvage value. Compute depreciation expense using the double declining balance for 2019.

24,000

PP&E Inc. purchased a machine for $150,000 on January 1, 2019. The machine has a useful life of 10 years and no salvage value. Compute depreciation expense using the double declining balance for 2019.

30,000

Permitting only designated personnel such as shift supervisors and cashiers to handle cash receipts is an application of which principle?

Establishment of Responsibilities

Which of the following is an example of an operating activity for ABC corporation?

ABC corporation collects $1,000 in payment for goods sold to XYZ corporation the prior month.

Which of the following events is not recorded in the accounting records?

An employee is terminated

Which accounts normally have debit balances?

Assets, dividends, and expenses

Investments that are very liquid and are held for a short period of time and can be easily or quickly be converted to a specific amount of cash are:

Cash equivalents

Which of the following is not one of the sections of a cash budget?

Cash from operations section

C-Sal Inc. has equipment that cost $88,000 and has depreciated $62,000. If she sells the equipment for $25,000 cash, how would she record a gain/loss on sale?

Debit to Loss on Sale for $1,000

Which of the following is not considered an asset?

Dividends

The amount of cost of good available for sale during the year depends on the amounts of :

beginning merchandise inventory and net costs of purchases

Which of these accounts would most likely be associated with interest?

Notes Receivable

A flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be recognized?

November 30th

Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called

callable bonds

Which of the following activities is not a component of the operating cycle?

Payment of employees' salaries

Ratios that measure the income or operating success of a company for a given period of time are:

Profitability Ratios

Which of the following accounts would appear on an income statement?

Rent Expense

The following reconciling item is applicable to the bank reconciliation for Forde Co. Indicate how the item should be shown on a bank reconciliation: Outstanding Check

Subtraction on the bank side

Which of the following is an example of an external user of ABC corporations accounting information?

The Securities Exchange Commission (SEC).

When a perpetual inventory system is used, which of the following is a purpose of taking a physical inventory?

To check the accuracy of the perpetual inventory records

Freight costs incurred by the seller on outgoing merchandise are an operating expense to the seller.

True

When a company receives an interest-bearing note receivable, it will

debit Notes Receivable for the face value of the note

A company purchased office supplies costing $5,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be:

debit Supplies Expense, $4,100; credit Supplies, $4,100

A company receives $348, of which $28 is for sales tax. The journal entry to record the sale would include a

debit to Cash for $348

Each of the following is a major type (or category) of adjusting entry except:

earned expenses

Manufactured inventory that has begun the production process but is not yet completed is:

work in process

what is the order of the four financial statements

income statement, statement of retained earnings, balance sheet, cash flow statement

During 2022, Gibson Company's assets decreased $40,000 and its liabilities decreased $60,000. Its stockholders' equity therefore:

increased $20,000

Collection of a $500 Accounts Receivable:

increases an asset $500; decreases an asset $500

How do you find Gross Profit?

net sales - cost of goods sold