ACC 201 Unit 2 Practice Exam

Conway Company purchased merchandise inventory with an invoice price of $ 12000 and credit terms of 2/10, n/30. What is the net cost of the goods if Conway Company pays within the discount period?

$ 11760

Serene Stereos has the following inventory data: Nov. 1 Inventory 30 units @ $ 6.00 each 8 Purchase 120 units @ $ 6.45 each 17 Purchase 60 units @ $ 6.30 each 25 Purchase 90 units @ $ 6.60 each A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Cost of goods sold (rounded) under FIFO is

$ 1269

A credit sale of $ 1400 is made on July 15, terms 2/ 10, net/30, on which a return of $ 100 is granted on July 18. What amount is received as payment in full on July 24?

$ 1274

Laser Listening has the following inventory data: Nov. 1 Inventory 30 units @ $ 6.00 each 8 Purchase 120 units @ $ 6.45 each 17 Purchase 60 units @ $ 6.30 each 25 Purchase 90 units @ $ 6.60 each A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 30 units from each of the three purchases and 10 units from the November 1 inventory, cost of goods sold (rounded) is

$ 1286

Carryable CDs has the following inventory data: Nov. 1 Inventory 30 units @ $ 6.00 each 8 Purchase 120 units @ $ 6.45 each 17 Purchase 60 units @ $ 6.30 each 25 Purchase 90 units @ $ 6.60 each A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Cost of goods sold (rounded) under LIFO is

$ 1295

De Meaning Corporation issued a one-year 6% $ 400000 note on April 30, 2017. Interest expense for the year ended December 31, 2017 was:

$ 16000

Hogan Industries had the following inventory transactions occur during 2017: Feb. 1, 2017 Purchase 108 $ 45 Mar. 14, 2017 Purchase 186 $ 47 May 1, 2017 Purchase 132 $ 49 The company sold 306 units at $ 63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $ 1800, what is the company's after-tax income using LIFO? (rounded to whole dollars)

$ 1982

At December 31, 2017, before any year-end adjustments, Janus Company's's Prepaid Insurance account had a balance of $ 4200. It was determined that $ 1800 of the Prepaid Insurance had expired. The adjusted balance for Prepaid Insurance for the year would be:

$ 2400

Dole Industries had the following inventory transactions occur during 2017: Feb. 1, 2017 Purchase 90 $ 90 Mar. 14, 2017 Purchase 155 $ 94 May 1, 2017 Purchase 110 $ 98 The company sold 255 units at $ 126 each and has a tax rate of 30%. Assuming that a periodic inventory system is used and operating expenses of $ 2500, what is the company's after-tax income using FIFO? (rounded to whole dollars)

$ 4186

Hogan Industries had the following inventory transactions occur during 2017: Feb. 1, 2017 Purchase 108 $ 45 Mar. 14, 2017 Purchase 186 $ 47 May 1, 2017 Purchase 132 $ 49 The company sold 306 units at $ 63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using LIFO? (rounded to whole dollars)

$ 4632

Hogan Industries had the following inventory transactions occur during 2017: Feb. 1, 2017 Purchase 108 $ 45 Mar. 14, 2017 Purchase 186 $ 47 May 1, 2017 Purchase 132 $ 49 The company sold 306 units at $ 63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)

$ 5088

Delightful Discs has the following inventory data: Nov. 1 Inventory 30 units @ $ 6.00 each 8 Purchase 120 units @ $ 6.45 each 17 Purchase 60 units @ $ 6.30 each 25 Purchase 90 units @ $ 6.60 each A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Ending inventory (rounded) under LIFO is

$ 632

Automobile Audio has the following inventory data: Nov. 1 Inventory 30 units @ $ 6.00 each 8 Purchase 120 units @ $ 6.45 each 17 Purchase 60 units @ $ 6.30 each 25 Purchase 90 units @ $ 6.60 each A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Ending inventory (rounded) under FIFO is

$ 657

A company shows a balance in Salaries and Wages Payable of $ 50000 at the end of the month. The next payroll amounting to $ 75000 is to be paid in the following month. What will be the journal entry to record the payment of salaries?

Debit-Salaries and Wages Payable: 50000 Debit-Salaries and Wages Expense: 25000 Credit-Cash: 75000

A company purchased office supplies costing $ 5000 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, $ 4100; credit Supplies, $ 4100

Prepaid Insurance: $82 If, on December 31, 2017, the insurance still unexpired amounted to $ 20, the adjusting entry would contain a:

debit to Insurance Expense for $ 62

An adjusting entry can include a:

debit to an asset and a credit to a revenue

Stan's Market used the perpetual method to record the following events involving a recent purchase of inventory: Received goods for $ 120000, terms 2/ 10, n/30. Returned $ 2400 of the shipment for credit. Paid $ 600 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory

increased by $ 115848

Masterfalls Corporation purchased a one-year insurance policy in January 2016 for $ 36000. The insurance policy is in effect from March 2016 through February 2017. If the company neglects to make the proper year-end adjustment for the expired insurance:

net income and assets will be overstated by $ 30000

Under revenue recognition principle service-type businesses recognize revenue:

when the service is performed