1- On December 31 of the current year, Hewett Company reported an ending inventory balance of $215,000. The following additional information is also available: • Hewett sold goods costing $38,000 to Trump Enterprises on December 28 and shipped the goods on that date with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215,000 because they were not in Hewett's warehouse. • Hewett purchased goods costing $44,000 on December 29. The goods were shipped FOB destination and were received by Hewett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $215,000. • Hewett's ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Rumsfeld Company. (Hewett Company is the consignee.] • Hewett's ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Hewett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the correct balance for ending inventory on December 31 is:
4- A company has net sales of $900,000 and average accounts receivable of $300,000, What is its accounts receivable turnover for the period?
5-On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $97,250; Allowance for Doubtful Accounts, credit balance of $951. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible?
A] $ 951
8- Thomas Enterprises purchased a depreciable asset on October 1, 2007 at a cost of $100,000. The asset is expected to have a salvage value of $15,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, 2009 will be:
9- Lomax Enterprises purchased a depreciable asset for $22,000 on March 1, 2007. The asset will be depreciated on the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, 2010?
10. Based on the information provided in question 9, Lomax Enterprises should recognize depreciation expense in 2010 in the amount of:
13. A company estimates that warranty expense will be 4% of sales. The company's sales for the current period is $185,000. The current period's entry to record the warranty expense is:
A) Warranty Expense..., ., 7,400 Sales 7,400
B) Warranty Expense , 7,400 Estimated Warranty Liability „ 7,400
C] Estimated Warranty Liability 7,400 Estimated Warranty Expense 7,400
D) Warranty Liability 7,400 Cash 7,400
E) No entry is recorded until the items are returned for warranty repairs.
14. B. Tanner contributed $14,000 in cash plus office equipment valued at $7,000 to the JT Partnership. The journal entry to record the transaction for the partnership is:
A) Cash 14,000 Office Equipment , 7,000 B. Tanner, Capital , , , , 21,000
B) Cash 14,000 Office Equipment. 7,000 JT Partnership, Capital.......... 21,000 JT Partnership 21,000
B. Tanner, Capital 21,000 B. Tanner, Capital 21,000 JT Partnership, Capital 21,000
E) Cash 14,000 Office Equipment 7,000 Common Stock 21,000
15. Web Services is organized as a limited partnership, with XXXXX XXXXX as one of its partners. David's capital account began the year with a balance of $45,000. During the year, David's share of the partnership income was $7,500, and David received $4,000 in distributions from the partnership. What is David's partner return on equity?