Please provide data thanks.
Exam: 061690RR - ACCOUNTING FOR MERCHANDISING
When you have completed your exam and reviewed your answers, click
Submit Exam. Answers will not be recorded until you
Submit Exam. If you need to exit before completing the exam, click Cancel Exam.
Questions 1 to 20:
Select the best answer to each question. Note that a question and its answers may be split across a page
break, so be sure that you have seen the
entire question and all the answers before choosing an answer.
Which of the following would probably not cause inventory shrinkage?
Spills of items
Correct counting of all inventory
Spoilage of items
Goods available for sale are $350,000; beginning inventory is $24,000; ending inventory is $32,000; and
cost of goods sold is $275,000. The inventory turnover is
Which items may not limit the effectiveness of internal control systems in an organization?
Properly designed controls
Costs not worth benefits
The balance sheet format that lists assets above liabilities is the _______ form.
Isaiah Sporting Goods uses the perpetual average cost method of determining inventory costs. Below is
the inventory record for Product C124:
Date Received Sold Cost/Unit Balance
April 22 534 $6.58 $3,513.72
May 17 433 $6.70 $2,901.10
June 21 389 $6.76 $2,629.64
August 2 436 $6.44 $2,807.84
AS there are 5 exams therefore you are requested to post each exam with its fair value of $40 each, so they may be answered each separately, you may add my name before the posted question, you may upload all data at www.mediafire.com at once, I will answer on each post separately, thanks.
Meranda Corporation purchases $3,500 of inventory on account from Ashley Corporation. The journal
entry to record this purchase for Meranda under a perpetual inventory system is
debit Inventory; credit Accounts Payable—Meranda.
debit Accounts Payable-Ashley; credit Inventory.
debit Inventory; credit Accounts Payable—Ashley.
debit Inventory; credit Cash.
If current assets decrease and current liabilities increase, the current ratio
remains the same.
will change based on the change in total assets.
Net sales times the historical gross profit percentage yields the estimated
cost of goods sold.
When a merchandiser sells on account, which of the following is not needed to record the transaction?
Cost of goods sold
The major difference in the statement of retained earnings between a service business and a
merchandising business is
that the retained earnings statement of a merchandising business includes dividends.
that the retained earnings statement of a service business includes dividends.
nothing. There are no differences between the two.
that the retained earnings statement of a merchandising business shows the cost of goods sold.
Committing a fraud because the employee feels that it will be easy to do is indicative of which part of
the fraud triangle?
A company's gross profit percentage decreases from 58% to 51%. What does this mean?
We can't determine anything definite from the information given.
This means that net income will be lower.
This means that there will be a net loss.
This means that net income will be higher.
Casey Company's beginning inventory and purchases during the fiscal year ended December 31, 2012,
were as follows: (
Note: The company uses a perpetual system of inventory.)
What is the cost of goods sold for Casey Company for 2012 using LIFO?
Units Unit Price Total Cost
January 1—Beginning Inventory 20 $12 $240
March 8—Sold 14
April 2—Purchase 30 $13 $390
June 5—Sold 25
Aug 6—Purchase 25 $14 $350
Sept 11—Sold 22
Total Cost of Inventory $980
Ending inventory is 14 units.
Which of the following may not limit the effectiveness of internal control systems in an organization?
Poorly designed controls
Duties not segregated
Understanding of policies and procedures
ABC Corporation pays an invoice for $350 in time to take a 3% discount. The journal entry to record
the payment of this invoice is
debit Accounts Payable $340; credit Cash $340.
debit Accounts Payable $340; debit Inventory $10; credit Cash $350.
debit Accounts Payable $350; credit Cash $350.
debit Accounts Payable $350; credit Inventory $10.50, credit Cash $339.50.
In a balance sheet prepared in report form, liabilities must be listed after
assets with long-term liabilities listed first.
assets in alphabetical order.
assets with current liabilities listed first.
Under a perpetual inventory system, the account to which transportation charges on incoming
merchandise is generally entered is
Which of the following is an incorrect statement if ending inventory is understated?
Net income is understated.
Income tax is understated.
Cost of goods sold is overstated.
Gross profit is overstated.
To overstate earnings, a company can
overstate expenses and overstate revenue.
overstate receivables and understate payables.
understate unearned revenue and understate property, plant, and equipment.
understate expenses and understate revenue.
Physical inventory counts must be done
when using bar-code scan technology.
when using the periodic method of inventory.
regardless of method inventory.
when using the perpetual method of inventory
I am willing to pay $40 for each exam , however, I have not receive the answer for this exam I paid for yet. when will I get the answers to this exam?
I am working on it and will come back soon
I had five answers wrong.
3, 13, 14,18, 20. I had the same answers you had but one. They did not give the correct answer. I can take the test over.
3, was a 13, was a 14, was b 18 was d 20 was c. I made a 90.
below is the next exam.
how much? thanks
Exam: 061691RR - THE VALUE OF MONEY
Casey Company's bank statement shows a bank balance of $43,267. The statement shows a bank
service charge of $50 and a bank collection of $760 in Casey Company's behalf. Casey's book balance
should be adjusted by a total of
Meranda Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000
and is expected to produce 50,000 units in its lifetime. During the first year of operation, it produced
14,500 units. To the nearest dollar, the depreciation for the first year under the units of production method
Brandon Corporation purchased a vein of mineral ore for $3,250,000. It is estimated that 15,000,000
tons of ore are available to be extracted. The salvage value is determined to be $400,000. The estimation
depletion expense for this year's extraction of 1,760,000 tons of ore (rounded to the nearest dollar) is
Amanda Industries had total assets of $600,000; total liabilities of $175,000; and total stockholders'
equity of $425,000. Amanda Industries' debt ratio is
A repair that extends the useful life of an asset would be considered a/an
Which of the following would indicate poor internal control over accounts receivable?
The same person handling cash receipts also records the accounts receivable transactions.
The mailroom employees open the mail and give the cash receipts to another employee.
The person handling cash receipts passes the receipts to someone who enters them into accounts receivable.
The person who handles accounts receivable wouldn't write off accounts as uncollectable.
A warranty is an example of a/an _______ liability.
A company receives a note payable for $3,500 at 9% for 45 days. How much interest (to the nearest
cent) will the customer owe using a 360-day year?
Ryan Corporation made a basket purchase of three items. Item A was appraised at $35,000; item B was
appraised at $55,000; and item C was appraised at $60,000. The purchase price was $125,000. The
amount at which item B should be recorded is
($55,000/$150,000) × $125,000.
($55,000/$95,000) × $150,000.
($55,000/$95,000) × $125,000.
($55,000/$125,000) × $150,000.
Taylor Company has given you the following information from its aging of accounts receivable. The
current amount in the allowance for doubtful accounts is a $958 credit.
Using this information, what is the amount of the journal entry to record the allowance for doubtful
Current $24,400 2% uncollectible
31–60 days 7,350 8% uncollectible
61–90 days 3,380 15% uncollectible
91 and up 1,220 30% uncollectible
A company purchased furniture on January 1, 2012. Its cost was $15,600, and it had a residual value
of $1,600. Its useful life is determined to be three years. Using double-declining balance depreciation, the
depreciation for 2012 to the nearest dollar will be
Jewell Company has current assets of $56,000; long-term assets of $135,000; current liabilities of
$44,000; and long-term liabilities of $90,000. Jewell Company's debt ratio is
Which of the following would be considered a cash equivalent?
Using a 360-day year, the maturity value of a 69-day note for $1,500 at 7% annual interest is (rounded
to the nearest cent)
Research and development costs (R&D) are generally
listed as "long-term assets" on the balance sheet.
listed as "other intangibles" on the balance sheet.
expensed and become part of the income statement.
listed as "current assets" on the balance sheet.
A truck costing $56,000 has accumulated depreciation of $50,000. The truck is scrapped for $500. The
journal entry to record this transaction is
debit Loss on Disposal $6,000, debit Accumulated Depreciation - Truck for $50,000, and credit Truck for $56,000.
debit Cash for $500, debit Loss on Disposal for $55,500, and credit Truck for $56,000.
debit Cash for $500, debit Truck for $50,000, debit Loss on Disposal for $5,500, and credit Accumulated Depreciation -
Truck for $56,000.
debit Cash for $500, debit Accumulated Depreciation - Truck for $50,000, debit Loss on Disposal for $5,500, and credit
Margaret is a customer of Tammy Company. The company wrote off her account of $1,200 on August 15. On October 12, she sent in a payment of $560. What will Tammy Company record first to reinstate
Debit Accounts Receivable/Margaret; credit Allowance for Doubtful Accounts.
Debit Cash; credit Accounts Receivable/Margaret.
Debit Allowance for Doubtful Accounts; credit Accounts Receivable/Margaret.
Debit Uncollectible Accounts Expense; credit Accounts Receivable/Margaret.
Rick Company has cash of $143,000; net accounts receivable of $89,000; short-term investments of
$35,000; and prepaid expenses of $40,000. It also has $50,000 in current liabilities and $80,000 in longterm
liabilities. The quick ratio for Rick Company is
Ryan Corporation made a basket purchase of three items. Item A was appraised at $35,000; item B
was appraised at $55,000; and item C was appraised at $60,000. The purchase price was $125,000. The
amount at which item C should be recorded (rounded to the nearest dollar) is
Which of the following would not be a liability according to FASB's definition of a liability?
The signing of a three-year employment contract at a fixed annual salary
A note payable with no specified maturity date
An obligation that's estimated in amount
An obligation to provide goods or services in the future
How do I pay for your assistant?
1. Earnings that a stockholder receives from a corporation are an example of which stockholder right?A. DividendsB. PreemptionC. VoteD. Liquidation2. If Rick's net sales increased from $40,000 to $80,000 and its operating expenses increased from $30,000to $50,000, then vertical analysis based on net sales would show which of the following for operatingexpenses for the two periods (to the nearest tenth of a percent)?A. 160.0% and 133.3%B. 62.5% and 75.0%C. 133.3% and 160.0%D. 75.0% and 62.5%3. Rick Company's net sales decreased from $90,000 in year 1 to $45,000 in year 2, and its cost of goodssold decreased from $30,000 in year 1 to $20,000 in year 2. Vertical analysis based on sales would showwhich decreases in cost of goods sold for the two periods (rounded to the nearest tenth of a percent)?A. 44.4% and 33.3%B. 300% and 225%C. 225% and 300%D. 33.3% and 44.4%4. If you own 500 shares (2% of a corporation's stock) and the corporation issues 15,000 new shares, howmany of the new shares can you purchase under preemptive right?A. 0B. 500C. 800D. 3005. What is the rate of return on equity if net income is $22,700; preferred dividends are $3,000; sales are$100,000; and average common stockholders' equity is $86,000?A. 22.9%B. 26.4%C. 22.7%D. 86.0%6. Tammy Corporation has 350,000 shares of $3 par common stock outstanding. It has declared a 5%stock dividend. The current market price of the common stock is $7.50/share. The amount that will becredited to common stock on the date of declaration isA. $78,750.B. $183,750.C. $131,250.D. $52,500.7. Tammy Company has a beginning accounts receivable balance of $65,000 and an ending accountsreceivable balance of $60,000. Net credit sales are $250,000. Tammy's accounts receivable turnover rate isA. 4.000.B. 3.846.C. 4.167.D. 2.000.8. Brandon Company had extraordinary losses of $150,000. If its corporate tax rate is 30%, at whichamount will the losses be shown on the income statement?A. Not enough information is given to answer the question.B. $105,000C. $150,000D. $45,0009. A company has $56,000 in cash; $12,000 in accounts receivable; $25,000 in short-term investments;and $100,000 in merchandise inventory. The company also has $60,000 in current liabilities. Thecompany's quick ratio isA. 3.217.B. 1.550.C. 1.133.D. 0.933.10. Accounts receivable amounted to $215,000 at the beginning of the year and $245,000 at the end of theyear. Income reported on the income statement for the year was $300,000. The cash flow from operatingactivities on the cash flow statement using the indirect method isA. $270,000.B. $330,000.C. $315,000.D. $300,000.11. For vertical analysis purposes, the base item on the income statement isA. net income.B. net sales.C. gross profit.D. total expenses.12. Net sales at Kelly's Bakery increased from $40,000 to $60,000, and its cost of goods sold increasedfrom $20,000 to $40,000. Vertical analysis based on net sales would show which percentages for cost ofgoods sold (rounded to the nearest %)?A. 67% and 40%B. 10% and 30%C. 40% and 20%D. 50% and 67%13. Cost of goods sold for the year was $850,000. Inventory was $60,000 at the beginning of the year and$90,000 at the end of the year. There were no changes in the amount in accounts payable for the year.Cash payment for merchandise to be reported under the direct method isA. $940,000.B. $910,000.C. $850,000.D. $880,000.14. The accuracy of the statement of cash flows can be verified by computing the change in the balance oftheA. revenue accounts.B. cash and cash equivalent accounts.C. equity account.D. asset and liability accounts.15. Casey Company reported net income of $35,000; depreciation expenses of $20,000; an increase inaccounts payable of $2,000; and an increase in current notes receivable of $3,000. Net cash flows fromoperating activities under the indirect method isA. $54,000.B. $56,000.C. $50,000.D. $55,000.16. If total assets are $6,000, what is the common-size figure of cash, assuming that cash has a balance of$2,400?A. 60.0%B. 40.0%C. 100.0%D. 120.0%17. Isaiah Corporation's Accounts Receivable increased by $35,000, and its Accounts Payable decreasedby $18,000. What is the net effect on cash from operations under the indirect method?A. +$35,000End of examB. -$18,000C. -$53,000D. +$17,00018. The Isaiah Corporation Stockholders' Equity section includes the following information:Total par value of the preferred and common stock isPreferred Stock $22,000Paid-in Capital in Excess of Par—Preferred 2,980Common Stock 48,000Paid-in Capital in Excess of Par—Common 3,400Retained Earnings 7,350A. $70,000.B. $77,350.C. $76,380.D. $83,730.19. The Amanda Corporation Stockholders' Equity section includes the following information:What was the total selling price of the preferred stock?Preferred Stock $12,000Paid-in Capital in Excess of Par— Preferred 2,700Common Stock 15,000Paid-in Capital in Excess of Par— Common 4,100Retained Earnings 8,200A. $16,100B. $20,200C. $14,700D. $12,00020. In a common-size income statement, selling expenses are 55%. This means that they're 55% ofA. net profit.B. net income.C. gross profit.D. net sales.
How do I download the answer from the site? Do I have to sign up for this?
1. Record the following transactions using the accounting
Assets = Liabilities + Equity
XXXX(cash) XXXX(accounts payable)
A. Amanda invests $17,000 cash into her merchandising
B. She buys $6,500 of office equipment and $3,000 of office
supplies with cash from Office Depot.
C. Additional purchases were supplies for $35,000 on
account from various suppliers.
2. Journalize the following transactions and omit the explanations.
A. ABC Corporation purchased $15,000 of office furniture by
putting $7,000 down in cash and the rest on account on
B. The corporation paid $60,000 for a two-year lease on
C. The corporation had sales of $45,000, of which $35,000
were on account on April 20.
D. The corporation borrowed $25,000 by signing a note
payable on April 22.
E. The corporation paid $1,250 on one of its accounts
payable on April 26.
3. Prepare a trial balance from the following information for
Learn a New Language, Inc. for December 31, 2012.
Accounts payable $5,012
Common stock $9,692
Notes payable $1,439
Wages expense $777
Marketing expense $493
Accounts receivable $1,142
4. Compute the missing information from this post-closing trial
5. Journalize the following transactions using the perpetual
Aug. 6 Purchased $830 of inventory on account from
Johnston with terms of 2/10, n/30.
Aug. 8 Purchased $2,611 of inventory for cash from
Aug.15 Paid for August 6 purchase from Johnston.
Aug. 17 Purchased $1,743 of merchandise on account
from Luis Company with Terms of 3/15, n/45.
6. Given the following information, prepare a balance sheet for
Isaiah’s Tool Shed for the year ending December 31, 2012.
Cash $65,750 Retained Earnings $179,319
Common Stock $35,000 Equipment $27,500
Accounts Receivable $11,478 Accounts Payable $29,450
Land $30,000 Inventory $78,311
Prepaid Supplies $7,357 Income Taxes Payable $4,209
Office Computers $11,345 Other PPE $31,446
Accum. Depr. (all) $23,459 Prepaid Insurance $8,250
Accounts Receivable 9,467
Prepaid Rent 5,000
Prepaid Insurance (A)
Accounts Payable $5,389
Wages Payable (B)
Common Stock 37,049
Retained Earnings 8,234
Total $52,356 $52,356
7. Rick Company’s beginning inventory and purchases during
the fiscal year ended December 31, 2012, were as follows:
What is the cost of goods sold for Rick Company for 2012
8. Assume that in Year 1, the ending merchandise inventory is
overstated by $30,000. If this is the only error in Years 1
and 2, fill in the items below, indicating which items will be
understated, overstated, or correctly stated for Years 1 and
Item Year 1 Year 2
Ending inventory ___________ _____________
Beginning inventory ___________ _____________
Cost of goods sold ___________ _____________
9. Below is a list of treatments of accounting topics. Place GAAP
on the line if the treatment is GAAP-based and place IFRS on
the line if the treatment is IFRS-based.
A. Interest and dividend income are reported in the
investing section of the cash flow statement.__________
B. Interest expense is reported in the financing section of
the cash flow statement. ___________
C. The use of LIFO is prohibited. ___________
January 1—Beginning inventory 18 $24 $432
March 12—Sold 13
April 11—Purchase 45 $29 $1,305
June 20—Sold 33
Aug 16—Purchase 35 $27 $945
Sept 11—Sold 29
Total Cost of Inventory
Ending inventory is 23 units. $2,682
10. Record the necessary journal entries from the following bank
reconciliation information for July 31, 2011:
11. Journalize the following transactions for Tammy Company:
Sept. 1 Sold $3,500 of merchandise to Jim on account
Oct. 1 Exchanged Jim’s account receivable for a fourmonth,
8% note for $3,500
Dec. 31 Recorded accrued interest on Jim’s note
Feb. 1 Jim paid off his note with interest (round to
12. A truck was purchased on January 2 at a cost of $60,000.
It’s expected to be used for five years and to have a residual
value of $5,000 after 120,000 miles of service. The truck
was driven for 23,000 miles the first year and 25,000 miles
the second year. Calculate the depreciation expense to the
nearest dollar for the first and second years.
Method Year 1 Year 2
Straight-line ________ ________
Double-declining-balance ________ ________
Units-of-production ________ ________
Bank Balance, July 31, 2011 $36,739
Checkbook Balance, July 31, 2011 36,444
Bank collection of note receivable 1,200 + 165
Bank service charge 35
Deposits in transit 2,400
Outstanding checks 1,245
NSF check from customer 330
Correction of book error (check #456 written for $160,
recorded at $610)—gas expense
13. Prepare the general journal entries for the following
Jan. 2, 2011 Purchased land with a building on it for
$750,000. The land is worth $300,000.
Paid $150,000 cash down and signed a
mortgage payable for the balance.
Dec. 31, 2011 Depreciation is computed using the
straight-line method. The estimated
salvage value of the building is $75,000
and has an estimated life of 20 years.
July 1, 2012 The building and land are sold for $825,000
14. Journalize the following treasury stock transactions:
June 3 Reacquired 350 shares of $12 par common stock
at $10 per share.
June 7 Sold 180 shares of treasury stock for $16 per
June 8 Sold 150 shares of treasury stock for $9 per
15. Lowry Landscapes had net income of $50,000 for 2010.
Land was sold for $40,000, of which $3,000 was a gain.
The beginning cash balance was $53,000, and the ending
cash balance was $151,000. Depreciation expenses were
$11,000. Prepare a statement of cash flows for the year
ended December 31, 2010, for Lowry Landscapes using the