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Corresponds to CLO 8(c) Arrow Corporation uses the conventional

Resolved Question:

Corresponds to CLO 8(c)
Arrow Corporation uses the conventional retail inventory method to value its merchandise inventory. The following information is available for the current year:
Submitted: 11 months ago.
Category: Homework
Expert:  F. Naz replied 11 months ago.
The data is incomplete, please complete it thanks.
Customer: replied 11 months ago.














1. Corresponds to CLO 1(a)
All of the following are considered primary user of financial reports, except: (Points : 2)



Employees
investors
creditors
all of these are primary users.



 
















Question 2. 2. Corresponds to CLO 1(b)
The due process system used by the FASB (Points : 2)



identifies the most important accounting issues
requires that all accountants must receive a copy of the financial standards
enables interested parties to express their views on issues under consideration
is an efficient system for collecting dues from members.



 


















standards and principles based on federal statutes
a common set of standards and principles
acceptance requires an affirmative vote of Certified Public Accountants
practices that have been accepted for at least a year by all industry members



 
















Question 4. 4. Corresponds to CLO 1(d)
Which of the following is a major challenge facing the accounting profession? (Points : 2)



Timeliness
Forward-looking data
Nonfinancial measurements
All of the above



 
















Question 5. 5. Corresponds to CLO 2(a)
Accounting information is made useful for decision making by which two fundamental qualities? (Points : 2)



Faithful representation and comparability
Comparability and timeliness
Relevance and faithful representation
Materiality and neutrality



 
















Question 6. 6. Corresponds to CLO 2(b)
In the financial statements, under what qualitative characteristic of accounting information should a change in inventory valuation method be reported? (Points : 2)



Verifiability
Consistency
Neutrality
Timeliness



 
















Question 7. 7. Corresponds to CLO 2(c)
Accountants produce financial statements at arbitrary points in time during the lifetime of an entity in accordance with which basic accounting concept? (Points : 2)



Going concern assumption
Historical cost assumption
Periodicity assumption
Monetary unit assumption



 
















Question 8. 8. Corresponds to CLO 2(d)
Generally, product costs are recognized as expenses (Points : 2)



In the period when the related revenue is recognized
In the period when the vendor invoice is recieved.
In the period when the expenses are paid.
In the period when the expenses are incurred.



 
















Question 9. 9. Corresponds to CLO 3(a)
Jot Construction Company uses the percentage-of-completion method of accounting. In 2013, Jot began work on a contract it had received which provided for a contract price of $6,000,000. Additional information related to the project includes: costs incurred during the year were $2,100,000; estimated costs to complete as of December 31, 2013 were $1,400,000; billings during the year were $3,600,000; collections during the year totaled $3,000,000. What amount should Jot recognize as gross profit for the project in 2013? (Points : 2)



$700,000
$1,000,000
$1,500,000
$2,500,000



 
















Question 10. 10. Corresponds to CLO 3(b)
Swift Builders, Inc. uses the completed-contract method of accounting for a $450,000 contract that it expects will take two years to complete. At December 31, 2013, the end of the first year of the contract, additional information related to the project includes: costs incurred to date were $290,000; estimated costs to complete were $180,000; billings to date were $325,000; collections to date were $300,000. What amount should Swift recognize as gross profit or loss for 2013? (Points : 2)



$ -0-
a $20,000 loss
a $40,000 loss
a $110,000 loss



 
















Question 11. 11. Corresponds to CLO 3(c)
Miller Company appropriately uses the installment method of accounting to recognize income in its financial statements. Pertinent data relating to this method of accounting includes: installment sales totaled $400,000 for 2013 and $500,000 for 2014; cost of sales were $260,000 for 2013 and $300,00 for 2014; in 2013 Miller collected $280,000 from 2013 sales; in 2014 Miller collected $100,000 from 2013 sales and $300,000 from 2014 sales. What amount should Miller report as realized gross profit on the 2014 income statement? (Points : 2)



$155,000
$120,000
$98,000
$35,000



 
















Question 12. 12. Corresponds to CLO 3(d)
On June 1, 2013, Vision Corporation consigned 100 TVs, costing $1,000 each, to Future Electronics. The cost of shipping the TVs amounted to $2,500 and was paid by Vision Corporation. On December 31, 2013, Future Electronics emailed a report to Vision, indicating that 72 of the TVs had been sold for $1,800 each. Future also included remittance for the amount due, after deducting a commission of 5%, advertising of $500, and installation costs of $1,440. What amount should Vision Corporation include on its December 31, 2013 balance sheet for the consigned TVs? (Points : 2)



$-0-
$28,000
$28,700
$30,643



 
















Question 13. 13. Corresponds to CLO 4(a)
If Collier Costumes, Inc. has the following items at year-end, how much should it report as cash on the balance sheet?























Cash in bank



$42,600



Cash on hand



$580



Post-dated checks



$1,420



Certificates of deposit



$90,000




(Points : 2)



$42,600
$43,180
$44,600
$133,180



 
















Question 14. 14. Corresponds to CLO 4(b)
At December 31, 2013, Vega Vaccum Corporation has cash in bank of 104,000, restricted cash in a separate account of $19,000, and a bank overdraft at another bank of $500. How much should it report as cash on the balance sheet? (Points : 2)



$123,000
$122,500
$104,500
$104,000



 
















Question 15. 15. Corresponds to CLO 4(c)
Only the cash in bank should be reported as cash on the balance sheet.
Which of the following are classified as cash on the balance sheet? (Points : 2)



Postage stamps
Checks from other parties presently in the cash register
Post-dated checks
Cash restricted for plant expansion



 
















Question 16. 16. Corresponds to CLO 4(d)
The month-end bank statement for Guthrie Motors shows a balance of $152,000 and a bank service charge of $40. Outstanding checks are $35,000, a deposit of $10,000 was in transit at month end, and a check for $1,500 was erroneously charged by the bank against the account. The correct balance in the bank account at month end is (Points : 2)



$125,000
$125,460
$128,500
$128,460



 
















Question 17. 17. Corresponds to CLO 5(a)
As of December 31, Gammelguard Corporation has outstanding accounts receivable of $1.5 million. Sales on credit during the year were $9 million. The allowance for doubtful accounts has a credit balance of $20,000. If the company estimates that 9% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? (Points : 2)



$115,000
$135,000
$155,000
$810,000



 
















Question 18. 18. Corresponds to CLO 5(b)
As of December 31, Wiliams Corporation has outstanding accounts receivable of $3.6 million. Sales on credit during the year were $12.5 million. The allowance for doubtful accounts has a credit balance of $62,000. If the company estimates that 1% of its net credit sales will be uncollectible, what will be the amount of bad debt expense recognized for the year? (Points : 2)



$63,000
$125,000
$187,000
$360,000



 
















Question 19. 19. Corresponds to CLO 5(c)
Kandris Corporation had a balance in accounts receivable of $600,000 and a balance in allowance for doubtful accounts of $55,000, when management decided the account receivable from Dunn Corporation of $2,000 had become uncollectible. What journal entry should Kandris Corporation make to write-off the uncollectible account? (Points : 2)



Debit Bad Debt Expense, credit Allowance for Doubtful Accounts, $2,000
Debit Accounts Receivable, credit Allowance for Doubtful Accounts, $2,000
Debit Allowance for Doubtful Accounts, credit Accounts Receivable, $2,000
Debit Allowance for Doubtful Accounts, credit Bad Debt Expense, $2,000



 
















Question 20. 20. Corresponds to CLO 5(d)
At December 31, Norman Industrial Inc. had account balances before year-end adjusting entries for accounts receivable and the related allowance for doubtful accounts of $920,000 and $79,000 respectively. An aging of accounts receivable indicated that $100,000 of the December 31, receivables are expected to be uncollectible. The net realizable value of accounts receivable after adjustment is (Points : 2)



$1,020,000
$820,000
$841,000
$999,000



 
















Question 21. 21. Corresponds to CLO 6(a)
The following is a record of Axis Corporation's inventory transactions for the current month:

























June 1



Balance, 400 units @ $65 each



June 16



Sale, 500 units @ $90



June 14



Purchase 900 units @ $68 each



June 20



Sale, 300 units @ $90



June 25



Purchase 250 units @ $70 each



 



 




Axis uses the periodic inventory system. Using the FIFO method, what is the amount of cost of goods sold for the month?


(Points : 2)



$51,500
$52,000
$53,200
$54,900



 
















Question 22. 22. Corresponds to CLO 6(b)
The following is a record of Meyer Corporation's inventory transactions for the current month:


 

























October 1



Balance, 600 units @ $24 each



October 9



Sale, 600 units @ $51



October 12



Purchase 550 units @ $26 each



October 19



Sale, 500 units @ $51



October 25



Purchase 700 units @ $27 each



 



 




 


Meyer uses the periodic inventory system. Using the LIFO method, what is the amount of ending inventory for the month?


(Points : 2)



$18,300
$20,200
$18,000
$29,300



 
















Question 23. 23. Corresponds to CLO 6(c)
The following is a record of Tiller Corporation's inventory transactions for the current month:

























January 1



Balance, 500 units @ $10 each



January 5



Sale, 290 units @ $25



January 11



Purchase 300 units @ $12 each



January 13



Sale, 250 units @ $25



January 23



Purchase 400 units @ $13 each



January 27



Sale, 310 units @ $25




Tiller uses the periodic inventory system. Using the weighted-average inventory method, what is the amount of ending inventory for the month?


(Points : 2)



$14,004
$9,775
$4,085
$4,025



 
















Question 24. 24. Corresponds to CLO 6(d)
The following is a record of Caulder Corporation's inventory transactions for the current month:

























March 1



Balance, 500 units @ $40 each



March 12



Sale, 200 units @ $85



March 16



Purchase, 300 units @ $42 each



March 22



Sale, 350 units @ $85



March 28



Purchase, 300 units @ $43 each



 



 




Caulder uses the perpetual inventory system. Using the LIFO method, what is the ending inventory at March 31?


(Points : 2)



$22,900
$22,100
$22,600
$23,400



 
















Question 25. 25. Corresponds to CLO 7(a)
In the context of dollar-value LIFO, when inventory in base year dollars increases, (Points : 2)



The LIFO reserve decreases
The LIFO price index increases
A LIFO layer is created
A LIFO layer is liquidated



 
















Question 26. 26. Corresponds to CLO 7(b)
Hemmer Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2011. Its inventory at that date was 460,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows:


 



























Date



Inventory at Current Prices



Current Price Index



December 31, 2012



$513,600



107



December 31, 2013



$580,000



125



December 31, 2014



$650,000



130




 


What is the cost of ending inventory at December 31, 2013 under dollar-value LIFO?


(Points : 2)



$460,000
$485,680
$481,400
$464,280



 
















Question 27. 27. Corresponds to CLO 7(c)
Inventories are primarily accounted for at cost on the balance sheet. In a departure from the cost basis, inventory is accounted for at market when (Points : 2)



There is any decrease in the future utility
Mangement wants to decrease the value of ending inventory
There is a decrease in the future utility below the original cost
Management wants to defer profits to a future period



 
















Question 28. 28. Corresponds to CLO 7(d)
If the historical cost of product X is $55, the selling price of product X is $90, the costs to sell product X are $14, the replacement cost for product X is $50, and the normal profit margin is 30% of sales price, what si the lower-of-cost-or-market inventory value for product X? (Points : 2)



$50
$49
$76
$55



 
















Question 29. 29. Corresponds to CLO 8(a)
Energy Solutions Corporation estimates the cost of its physical inventory at November 30 for use in an interim financial statement. Management uses a gross profit rate on sales of 30%. The following information is available:



















Inventory, November 1



$500,000



Purchases during November



$650,000



Sales during November



$900,000




The estimated cost of inventory at November 30 is


(Points : 2)



$270,000
$630,000
$650,000
$520,000



 
















Question 30. 30. Corresponds to CLO 8(b)
Big Equipment Corporation estimates the cost of its physical inventory at November 30 for use in an interim financial statement. Management uses a rate of markup on cost of 25%. The following information is available:



















Inventory, November 1



$3,000,000



Purchases during November



$2,800,000



Sales during November



$6,000,000




The estimated cost of inventory at November 30 is


(Points : 2)



$5,800,000
$4,800,000
$1,200,000
$1,000,000



 
















Question 31. 31. Corresponds to CLO 8(c)
Arrow Corporation uses the conventional retail inventory method to value its merchandise inventory. The following information is available for the current year:















































 



Cost



Retail



Beginning Inventory



$30,000



$50,000



Purchases



$160,000



$270,000



Freight-In



$2,500



----



Net Markups



 



$8,500



Net Markdowns



 



$10,000



Employee Discounts



 



$1,000



Sales



 



$205,000




What is the cost to retail ratio?


(Points : 2)



60.16%
59.65%
58.60%
57.84%



 
















Question 32. 32. Corresponds to CLO 8(d)
Capital City Corporation uses the conventional retail inventory method to determine its ending inventory at cost. The following information is available for the current year:





































 



Cost



Retail



Beginning Inventory



$300,000



$420,000



Purchases



$1,450,000



$2,000,000



Net Markups



 



$80,000



Net Markdowns



 



$30,000



Sales



 



$1,900,000




What is the ending inventory at cost?


(Points : 2)



$520,000
$399,000
$300,000
$570,000



 

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Expert:  Linda_us replied 11 months ago.
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1. Corresponds to CLO 1(a)
All of the following are considered primary user of financial reports, except: (Points : 2)





Employees
investors
creditors
all of these are primary users.



 


 
































Question 2. 2. Corresponds to CLO 1(b)
The due process system used by the FASB (Points : 2)





identifies the most important accounting issues
requires that all accountants must receive a copy of the financial standards
enables interested parties to express their views on issues under consideration
is an efficient system for collecting dues from members.



 


 




































standards and principles based on federal statutes
a common set of standards and principles
acceptance requires an affirmative vote of Certified Public Accountants
practices that have been accepted for at least a year by all industry members



 


 
































Question 4. 4. Corresponds to CLO 1(d)
Which of the following is a major challenge facing the accounting profession? (Points : 2)





Timeliness
Forward-looking data
Nonfinancial measurements
All of the above



 


 
































Question 5. 5. Corresponds to CLO 2(a)
Accounting information is made useful for decision making by which two fundamental qualities? (Points : 2)





Faithful representation and comparability
Comparability and timeliness
Relevance and faithful representation
Materiality and neutrality



 


 
































Question 6. 6. Corresponds to CLO 2(b)
In the financial statements, under what qualitative characteristic of accounting information should a change in inventory valuation method be reported? (Points : 2)





Verifiability
Consistency
Neutrality
Timeliness



 


 
































Question 7. 7. Corresponds to CLO 2(c)
Accountants produce financial statements at arbitrary points in time during the lifetime of an entity in accordance with which basic accounting concept? (Points : 2)





Going concern assumption
Historical cost assumption
Periodicity assumption
Monetary unit assumption



 


 
































Question 8. 8. Corresponds to CLO 2(d)
Generally, product costs are recognized as expenses (Points : 2)





In the period when the related revenue is recognized
In the period when the vendor invoice is recieved.
In the period when the expenses are paid.
In the period when the expenses are incurred.



 


 
































Question 9. 9. Corresponds to CLO 3(a)
Jot Construction Company uses the percentage-of-completion method of accounting. In 2013, Jot began work on a contract it had received which provided for a contract price of $6,000,000. Additional information related to the project includes: costs incurred during the year were $2,100,000; estimated costs to complete as of December 31, 2013 were $1,400,000; billings during the year were $3,600,000; collections during the year totaled $3,000,000. What amount should Jot recognize as gross profit for the project in 2013? (Points : 2)





$700,000
$1,000,000
$1,500,000
$2,500,000



 


 
































Question 10. 10. Corresponds to CLO 3(b)
Swift Builders, Inc. uses the completed-contract method of accounting for a $450,000 contract that it expects will take two years to complete. At December 31, 2013, the end of the first year of the contract, additional information related to the project includes: costs incurred to date were $290,000; estimated costs to complete were $180,000; billings to date were $325,000; collections to date were $300,000. What amount should Swift recognize as gross profit or loss for 2013? (Points : 2)





$ -0-
a $20,000 loss
a $40,000 loss
a $110,000 loss



 


 
































Question 11. 11. Corresponds to CLO 3(c)
Miller Company appropriately uses the installment method of accounting to recognize income in its financial statements. Pertinent data relating to this method of accounting includes: installment sales totaled $400,000 for 2013 and $500,000 for 2014; cost of sales were $260,000 for 2013 and $300,00 for 2014; in 2013 Miller collected $280,000 from 2013 sales; in 2014 Miller collected $100,000 from 2013 sales and $300,000 from 2014 sales. What amount should Miller report as realized gross profit on the 2014 income statement? (Points : 2)





$155,000
$120,000
$98,000
$35,000



 


 
































Question 12. 12. Corresponds to CLO 3(d)
On June 1, 2013, Vision Corporation consigned 100 TVs, costing $1,000 each, to Future Electronics. The cost of shipping the TVs amounted to $2,500 and was paid by Vision Corporation. On December 31, 2013, Future Electronics emailed a report to Vision, indicating that 72 of the TVs had been sold for $1,800 each. Future also included remittance for the amount due, after deducting a commission of 5%, advertising of $500, and installation costs of $1,440. What amount should Vision Corporation include on its December 31, 2013 balance sheet for the consigned TVs? (Points : 2)





$-0-
$28,000
$28,700
$30,643



 


 
































Question 13. 13. Corresponds to CLO 4(a)
If Collier Costumes, Inc. has the following items at year-end, how much should it report as cash on the balance sheet?














































Cash in bank




$42,600




Cash on hand




$580




Post-dated checks




$1,420




Certificates of deposit




$90,000






(Points : 2)





$42,600
$43,180
$44,600
$133,180



 


 
































Question 14. 14. Corresponds to CLO 4(b)
At December 31, 2013, Vega Vaccum Corporation has cash in bank of 104,000, restricted cash in a separate account of $19,000, and a bank overdraft at another bank of $500. How much should it report as cash on the balance sheet? (Points : 2)





$123,000
$122,500
$104,500
$104,000



 


 
































Question 15. 15. Corresponds to CLO 4(c)
Only the cash in bank should be reported as cash on the balance sheet.
Which of the following are classified as cash on the balance sheet? (Points : 2)





Postage stamps
Checks from other parties presently in the cash register
Post-dated checks
Cash restricted for plant expansion



 


 
































Question 16. 16. Corresponds to CLO 4(d)
The month-end bank statement for Guthrie Motors shows a balance of $152,000 and a bank service charge of $40. Outstanding checks are $35,000, a deposit of $10,000 was in transit at month end, and a check for $1,500 was erroneously charged by the bank against the account. The correct balance in the bank account at month end is (Points : 2)





$125,000
$125,460
$128,500
$128,460



 


 
































Question 17. 17. Corresponds to CLO 5(a)
As of December 31, Gammelguard Corporation has outstanding accounts receivable of $1.5 million. Sales on credit during the year were $9 million. The allowance for doubtful accounts has a credit balance of $20,000. If the company estimates that 9% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? (Points : 2)





$115,000
$135,000
$155,000
$810,000



 


 
































Question 18. 18. Corresponds to CLO 5(b)
As of December 31, Wiliams Corporation has outstanding accounts receivable of $3.6 million. Sales on credit during the year were $12.5 million. The allowance for doubtful accounts has a credit balance of $62,000. If the company estimates that 1% of its net credit sales will be uncollectible, what will be the amount of bad debt expense recognized for the year? (Points : 2)





$63,000
$125,000
$187,000
$360,000



 


 
































Question 19. 19. Corresponds to CLO 5(c)
Kandris Corporation had a balance in accounts receivable of $600,000 and a balance in allowance for doubtful accounts of $55,000, when management decided the account receivable from Dunn Corporation of $2,000 had become uncollectible. What journal entry should Kandris Corporation make to write-off the uncollectible account? (Points : 2)





Debit Bad Debt Expense, credit Allowance for Doubtful Accounts, $2,000
Debit Accounts Receivable, credit Allowance for Doubtful Accounts, $2,000
Debit Allowance for Doubtful Accounts, credit Accounts Receivable, $2,000
Debit Allowance for Doubtful Accounts, credit Bad Debt Expense, $2,000



 


 
































Question 20. 20. Corresponds to CLO 5(d)
At December 31, Norman Industrial Inc. had account balances before year-end adjusting entries for accounts receivable and the related allowance for doubtful accounts of $920,000 and $79,000 respectively. An aging of accounts receivable indicated that $100,000 of the December 31, receivables are expected to be uncollectible. The net realizable value of accounts receivable after adjustment is (Points : 2)





$1,020,000
$820,000
$841,000
$999,000



 


 
































Question 21. 21. Corresponds to CLO 6(a)
The following is a record of Axis Corporation's inventory transactions for the current month:


















































June 1




Balance, 400 units @ $65 each




June 16




Sale, 500 units @ $90




June 14




Purchase 900 units @ $68 each




June 20




Sale, 300 units @ $90




June 25




Purchase 250 units @ $70 each




 




 






Axis uses the periodic inventory system. Using the FIFO method, what is the amount of cost of goods sold for the month?




(Points : 2)





$51,500
$52,000
$53,200
$54,900



 


 
































Question 22. 22. Corresponds to CLO 6(b)
The following is a record of Meyer Corporation's inventory transactions for the current month:




 


















































October 1




Balance, 600 units @ $24 each




October 9




Sale, 600 units @ $51




October 12




Purchase 550 units @ $26 each




October 19




Sale, 500 units @ $51




October 25




Purchase 700 units @ $27 each




 




 






 




Meyer uses the periodic inventory system. Using the LIFO method, what is the amount of ending inventory for the month?




(Points : 2)





$18,300
$20,200
$18,000
$29,300



 


 
































Question 23. 23. Corresponds to CLO 6(c)
The following is a record of Tiller Corporation's inventory transactions for the current month:


















































January 1




Balance, 500 units @ $10 each




January 5




Sale, 290 units @ $25




January 11




Purchase 300 units @ $12 each




January 13




Sale, 250 units @ $25




January 23




Purchase 400 units @ $13 each




January 27




Sale, 310 units @ $25






Tiller uses the periodic inventory system. Using the weighted-average inventory method, what is the amount of ending inventory for the month?




(Points : 2)





$14,004
$9,775
$4,085
$4,025



 


 
































Question 24. 24. Corresponds to CLO 6(d)
The following is a record of Caulder Corporation's inventory transactions for the current month:


















































March 1




Balance, 500 units @ $40 each




March 12




Sale, 200 units @ $85




March 16




Purchase, 300 units @ $42 each




March 22




Sale, 350 units @ $85




March 28




Purchase, 300 units @ $43 each




 




 






Caulder uses the perpetual inventory system. Using the LIFO method, what is the ending inventory at March 31?




(Points : 2)





$22,900
$22,100
$22,600
$23,400



 


 
































Question 25. 25. Corresponds to CLO 7(a)
In the context of dollar-value LIFO, when inventory in base year dollars increases, (Points : 2)





The LIFO reserve decreases
The LIFO price index increases
A LIFO layer is created
A LIFO layer is liquidated



 


 
































Question 26. 26. Corresponds to CLO 7(b)
Hemmer Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2011. Its inventory at that date was 460,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows:




 






















































Date




Inventory at Current Prices




Current Price Index




December 31, 2012




$513,600




107




December 31, 2013




$580,000




125




December 31, 2014




$650,000




130






 




What is the cost of ending inventory at December 31, 2013 under dollar-value LIFO?




(Points : 2)





$460,000
$485,680
$481,400
$464,280



 


 
































Question 27. 27. Corresponds to CLO 7(c)
Inventories are primarily accounted for at cost on the balance sheet. In a departure from the cost basis, inventory is accounted for at market when (Points : 2)





There is any decrease in the future utility
Mangement wants to decrease the value of ending inventory
There is a decrease in the future utility below the original cost
Management wants to defer profits to a future period



 


 
































Question 28. 28. Corresponds to CLO 7(d)
If the historical cost of product X is $55, the selling price of product X is $90, the costs to sell product X are $14, the replacement cost for product X is $50, and the normal profit margin is 30% of sales price, what si the lower-of-cost-or-market inventory value for product X? (Points : 2)





$50
$49
$76
$55



 


 
































Question 29. 29. Corresponds to CLO 8(a)
Energy Solutions Corporation estimates the cost of its physical inventory at November 30 for use in an interim financial statement. Management uses a gross profit rate on sales of 30%. The following information is available:






































Inventory, November 1




$500,000




Purchases during November




$650,000




Sales during November




$900,000






The estimated cost of inventory at November 30 is




(Points : 2)





$270,000
$630,000
$650,000
$520,000



 


 
































Question 30. 30. Corresponds to CLO 8(b)
Big Equipment Corporation estimates the cost of its physical inventory at November 30 for use in an interim financial statement. Management uses a rate of markup on cost of 25%. The following information is available:






































Inventory, November 1




$3,000,000




Purchases during November




$2,800,000




Sales during November




$6,000,000






The estimated cost of inventory at November 30 is




(Points : 2)





$5,800,000
$4,800,000
$1,200,000
$1,000,000



 


 
































Question 31. 31. Corresponds to CLO 8(c)
Arrow Corporation uses the conventional retail inventory method to value its merchandise inventory. The following information is available for the current year:






























































































 




Cost




Retail




Beginning Inventory




$30,000




$50,000




Purchases




$160,000




$270,000




Freight-In




$2,500




----




Net Markups




 




$8,500




Net Markdowns




 




$10,000




Employee Discounts




 




$1,000




Sales




 




$205,000






What is the cost to retail ratio?




(Points : 2)





60.16%
59.65%
58.60%
57.84%



 


 

























Question 32. 32. Corresponds to CLO 8(d)
Capital City Corporation uses the conventional retail inventory method to determine its ending inventory at cost. The following information is available for the current year:










































































 




Cost




Retail




Beginning Inventory




$300,000




$420,000




Purchases




$1,450,000




$2,000,000




Net Markups




 




$80,000




Net Markdowns




 




$30,000




Sales




 




$1,900,000






What is the ending inventory at cost?




(Points : 2)



 


$520,000
$399,000
$300,000
$570,000

Expert:  Linda_us replied 11 months ago.
I am already working on these question. Would it be okay if I post the solution in 2 hours?
Customer: replied 11 months ago.

plz i don't have anytime just 1 hour to the exam

Expert:  Linda_us replied 11 months ago.
I am trying my best to complete it in next 45 min :-)
Customer: replied 11 months ago.

thx a lot but plz don't forget me MR.NAZ

Expert:  Linda_us replied 11 months ago.
Its Linda who is working on your questions :-)
Customer: replied 11 months ago.

no one ok take your time i am waiting u


 

Expert:  Linda_us replied 11 months ago.

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Customer: replied 11 months ago.

u r so nice here some questions to my friend we ha


















Question 9.9. Corresponds to CLO 3(a)
Jot Construction Company uses the percentage-of-completion method of accounting. In 2013, Jot began work on a contract it had received which provided for a contract price of $6,000,000. Additional information related to the project includes: costs incurred during the year were $1,400,000; estimated costs to complete as of December 31, 2013 were $2,100,000; billings during the year were $2,400,000; collections during the year totaled $2,000,000. What amount should Jot recognize as gross profit for the project in 2013? (Points : 2)



$700,000
$1,000,000
$1,500,000
$2,500,000
























Question 11.11. Corresponds to CLO 3(c)
Miller Company appropriately uses the installment method of accounting to recognize income in its financial statements. Pertinent data relating to this method of accounting includes: installment sales totaled $500,000 for 2013 and $650,000 for 2014; cost of sales were $300,000 for 2013 and $422,500 for 2014; in 2013 Miller collected $300,000 from 2013 sales; in 2014 Miller collected $150,000 from 2013 sales and $400,000 from 2014 sales. What amount should Miller report as realized gross profit on the 2014 income statement? (Points : 2)



$60,000
$120,000
$140,000
$200,000



















Question 14.14. Corresponds to CLO 4(b)
At December 31, 2013, Vega Vacuum Corporation has cash in bank of 38,500, restricted cash in a separate account of $9,000, and a bank overdraft at another bank of $750. How much should it report as cash on the balance sheet? (Points : 2)



$38,500
$29,500
$37,750
$46,750


















Question 15.15. Corresponds to CLO 4(c)
Which of the following is
not as cash on the balance sheet? (Points : 2)



Postage stamps
Post-dated checks
Cash restricted for plant expansion
All of the above



















Question 18.18. Corresponds to CLO 5(b)
As of December 31, William Corporation has outstanding accounts receivable of $5.8 million. Sales on credit during the year were $18.5 million. The allowance for doubtful accounts has a credit balance of $94,000. If the company estimates that 2% of its net credit sales will be uncollectible, what will be the amount of bad debt expense recognized for the year? (Points : 2)



$464,000
$370,000
$276,000
$116,000


















Question 19.19. Corresponds to CLO 5(c)
Kandris Corporation had a balance in accounts receivable of $450,000 and a balance in allowance for doubtful accounts of $34,000, when management decided the accounts receivable from Dunn Corporation of $1,800 had become uncollectible. What journal entry should Kandris Corporation make to write-off the uncollectible account? (Points : 2)



Debit Allowance for Doubtful Accounts, credit Accounts Receivable, $1,800
Debit Allowance for Doubtful Accounts, credit Bad Debt Expense, $1,800
Debit Bad Debt Expense, credit Allowance for Doubtful Accounts, $1,800
Debit Accounts Receivable, credit Allowance for Doubtful Accounts, $1,800






























Question 21.21. Corresponds to CLO 6(a)
The following is a record of Axis Corporation's inventory transactions for the current month:

























June 1



Balance, 300 units @ $65 each



June 16



Sale, 400 units @ $90



June 14



Purchase 800 units @ $68 each



June 20



Sale, 500 units @ $90



June 25



Purchase 250 units @ $70








Axis uses the periodic inventory system. Using the FIFO method, what is the amount of cost of goods sold for the month?


(Points : 2)



$61,700
$60,300
$58,500
$31,100


















Question 22.22. Corresponds to CLO 6(b)
The following is a record of Meyer Corporation's inventory transactions for the current month:

























October 1



Balance, 500 units @ $24 each



October 9



Sale, 500 units @ $51



October 12



Purchase 900 units @ $26 each



October 19



Sale, 800 units @ $51



October 25



Purchase 600 units @ $27 each








Meyer uses the periodic inventory system. Using the LIFO method, what is the amount of ending inventory for the month?


(Points : 2)



$18,900
$16,800
$34,600
$17,200


















Question 23.23. Corresponds to CLO 6(c)
The following is a record of Tiller Corporation's inventory transactions for the current month:


























January 1



Balance, 500 units @ $10 each



January 5



Sale, 290 units @ $25



January 11



Purchase, 300 units @ $12 each



January 13



Sale, 250 units @ $25



January 23



Purchase, 400 units @ $13 each



January 27



Sale, 310 units @ $25





Tiller uses the periodic inventory system. Using the weighted-average inventory method, what is the cost of goods sold for the month?


(Points : 2)



$14,004
$9,775
$4,085
$4,025


















Question 27.27. Corresponds to CLO 7(c)
What is primary purpose of stating inventories at lower-of-cost-or-market? (Points : 2)



To report a loss when there is a decrease in the future utility below the original cost
To be conservative
To report a loss whenever there is a decrease in the future utility
To permit future profits to be recognized


















Question 30.30. Corresponds to CLO 8(b)
Big Equipment Corporation estimates the cost of its physical inventory at November 30 for use in an interim financial statement. Management uses a rate of markup on cost of 25%. The following information is available:



















Inventory, November 1



$3,000,000



Purchases during November



$2,800,000



Sales during November



$6,000,000




The estimated cost of inventory at November 30 is


(Points : 2)



$5,800,000
$4,800,000
$1,200,000
$1,000,000


















Question 31.31. Corresponds to CLO 8(c)
Arrow Corporation uses the conventional retail inventory method to value its merchandise inventory. The following information is available for the current year:

















































Cost



Retail



Beginning Inventory



$30,000



$50,000



Purchases



$180,000



$250,000



Freight-In



$2,500



----



Net Markups





$8,500



Net Markdowns





$10,000



Employee Discounts





$1,000



Sales





$205,000




What is the cost to retail ratio?


(Points : 2)



68.88%
68.07%
70.35%
70.83%


















Question 32.32. Corresponds to CLO 8(d)
Capital City Corporation uses the conventional retail inventory method to determine its ending inventory at cost. The following information is available for the current year:







































Cost



Retail



Beginning Inventory



$350,000



$500,000



Purchases



$1,600,000



$2,440,000



Net Markups





$60,000



Net Markdowns





$30,000



Sales





$2,350,000




What is the ending inventory at cost?


(Points : 2)



$620,000
$350,000
$470,000
$403,000




ve 16 min

Customer: replied 11 months ago.

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Expert:  Linda_us replied 11 months ago.
How much time do we have?
Customer: replied 11 months ago.

10 min plz plz

Customer: replied 11 months ago.

6 min

Customer: replied 11 months ago.

send any answer 2 min


 

Expert:  Linda_us replied 11 months ago.
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Customer: replied 11 months ago.

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Customer: replied 11 months ago.














. Reiley Co. purchased land as a factory site for $1,000,000. Reiley paid $40,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Title insurance cost $2,400. Architect's fees were $41,200. Excavation cost $10,040. The contractor was paid $2,400,000. Interest costs during construction were $170,000.

The cost of the building that should be recorded by Reiley Co. is (Points : 4)



$2,611,200
$2,615,840
$2,621,240
$2,661,240



 
















Question 2.2. On October 1, Carr Co. began construction of a small building. Payments of $150,000 were made monthly for three months beginning October 1. The building was completed and ready for occupancy on December 31. In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are (Points : 4)



$37,500
$150,000
$75,000
450,000



 
















Question 3.3. During 2012, Foster Co. incurred average accumulated expenditures of $500,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2012 was a $600,000, 10%, 5-year note payable dated January 1, 2010. What is the amount of interest that should be capitalized by Foster during 2012? (Points : 4)



$0
$10,000
$50,000
$60,000



 
















Question 4.4. On August 1, 2012, Kegan Corporation purchased a new machine on a deferred payment basis. A down payment of $3,000 was made and 4 monthly installments of $4,000 each are to be made beginning on September 1, 2012. The cash equivalent price of the machine was $16,200. Kegan incurred and paid installation costs amounting to $500. The amount to be capitalized as the cost of the machine is (Points : 4)



$16,500.
$16,200
$19,000
$16,700



 
















Question 5.5. On December 1, Young Corporation exchanged 5,000 shares of its $25 par value common stock held in treasury for a parcel of land to be held for a future plant site. The treasury shares were acquired by Young at a cost of $40 per share, and on the exchange date the common shares of Young had a fair market value of $50 per share. Young received $9,000 for selling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at (Points : 4)



$191,000.
$200,000
$241,000
$250,000



 
















Question 6.6. Equipment that cost $55,000 and has accumulated depreciation of $25,000 is exchanged for similar equipment with a fair value of $40,000 and $10,000 cash is received (assume commercial substance).

The gain to be recognized from the exchange is (Points : 4)



$4,000 gain
$5,000 gain
$15,000 gain
$20,000 gain



 
















Question 7.7. On March 6, 2013, Calle Corporation purchased machinery for $25,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. Calle uses straight-line depreciation and follows the half-year convention. What amount of depreciation expense should be recorded for 2013? (Points : 4)



$1,000
$1,250
$2,000
$2,500



 
















Question 8.8. Witten Co. purchased machinery that was installed and ready for use on January 3, 2011, at a total cost of $230,000. Salvage value was estimated at $30,000. The machinery will be depreciated over five years using the double-declining-balance method. For the year 2012, Witten should record depreciation expense on this machinery of (Points : 4)



$48,000
$55,200
$60,000
$92,000



 
















Question 9.9. On January 1, 2012, Reiley Co. purchased new machinery for $540,000. The machinery has an estimated useful life of five years, and depreciation is computed by the sum-of-the-years'-digits method. The accumulated depreciation on this machinery at December 31, 2013, should be (Points : 4)



$360,000
$324,000
$216,000
$180,000



 
















Question 10.10. In January 2012, Kohl Mining Corporation purchased a mineral mine for $6,300,000 with removable ore estimated by geological surveys at 3,000,000 tons. The property has an estimated value of $600,000 after the ore has been extracted. Kohl incurred $1,740,000 of development costs preparing the property for the extraction of ore. During 2012, 300,000 tons were removed and sold. For the year ended December 31, 2012, Kohl should include what amount of depletion in its cost of goods sold? (Points : 4)



$646,000
$570,000
$744,000
$767,250



 
















Question 11.11. The general ledger of Younger Corporation as of December 31, 2011, includes the following accounts:

Copyrights $20,000
Deposits with advertising agency $13,500
Discount on bonds payable $33,750
Goodwill $245,000
Trademarks $45,000

In the preparation of Younger's balance sheet as of December 31, 2011, what should be reported as total intangible assets? (Points : 4)



$357,250.
$323,500.
$310,000.
$290,000.



 
















Question 12.12. The following information is available for Barkley Company’s patents:

Cost $860,000
Carrying amount $430,000
Expected future net cash flows $400,000
Fair value $320,000

Barkley would record a loss on impairment of (Points : 4)



$540,000
$110,000
$80,000
$30,000



 
















Question 13.13. On January 1, 2010, equipment was purchased that cost $50,000, has a useful life of 10 years, and no residual value. At the beginning of 2014, it was decided that there were only four years remaining in the asset's useful life, instead of six. Assuming the company uses the straight-line method, depreciation expense for 2014 should be (Points : 4)



$5,000
$6,250
$7,500
$8,750



 
















Question 14.14.


The interest cost to be capitalized as part of the cost of an asset should be


(Points : 4)




the total interest cost actually incurred.




the cost of capital charge for stockholders' equity.




that portion of total interest cost which would not have been incurred if expenditures for asset construction had not been made.




that portion of average accumulated expenditures on which no interest cost was incurred.


 



 
















Question 15.15. If an industrial firm uses the units-of-production method for computing depreciation on its only plant asset, factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will (Points : 4)



be constant.
vary with unit sales.
vary with sales revenue.
vary with production.



 
















Question 16.16. White Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should (Points : 4)



recognize an extraordinary loss for the period.
include a credit to the equipment accumulated depreciation account.
include a credit to the equipment account.
not be made if the equipment is still being used.



 
















Question 17.17. Which of the following is true of depreciation accounting? (Points : 4)



Depreciation is not a matter of valuation.
Depreciation is an attempt to match revenues and expenses.
Depreciation is a process of cost allocation.
All of the above are true about depreciation.



 
















Question 18.18. A loss on impairment of a limited-life intangible asset is the difference between the asset’s (Points : 4)



carrying amount and the expected future net cash flows.
carrying amount and its fair value.
fair value and the expected future net cash flows.
cost and its fair value.



 
















Question 19.19. Purchased goodwill should (Points : 4)



be written off as soon as possible against retained earnings.
be written off as soon as possible as an extraordinary item.
be written off by systematic charges as a regular operating expense over the period benefited.
not be amortized.



 
















Question 20.20. Assets that qualify for interest cost capitalization include (Points : 4)



assets under construction for a company's own use.
assets that are ready for their intended use in the earnings of the company.
assets that are not currently being used because of excess capacity.
All of these assets qualify for interest cost capitalization.



 

Customer: replied 11 months ago.

hello i have home work

Customer: replied 11 months ago.

hi Linda how are you i have home work and i send that


 

Expert:  Linda_us replied 11 months ago.
Thanks for asking your new questions and requesting me. There is a small issue with your account, I have informed the moderator/customer service to contact you.

Is this assignment timed?
Customer: replied 11 months ago.

ok that's mean used anther visa card or i don't have money in my card


 

Expert:  Linda_us replied 11 months ago.
I am not sure about that, you need to contact customer service.
Customer: replied 11 months ago.

hello Linda how are you :)i have homework if u can help me?

Expert:  Linda_us replied 11 months ago.
I was not online earlier, how can I help you today.
Customer: replied 11 months ago.



I have taken your advice in regards XXXXX XXXXX office headquarters location, and I am now renting a great office building. The owner of the property has offered me a lease to own option within my rental contract. This option gives me the right (but not the obligation) to purchase the office building and the half-acre of land that the building sits on, on January 1, 2015. I have become aware that this lease to own option will be a bargain purchase, primarily because of exponentially increasing land value. Unfortunately, the owner the of property purchased this lot in 2006, and his inflated purchase price has resulted in his book value to be greater than the fair market value of the property. However, the office building does sit in a prime location and I most certainly intend to purchase the property when this option becomes exercisable.

I am a bit unfamiliar with bargain purchase options, so I would like you to provide me with some insight on the following questions:

1. Why do I need to include the additional bargain purchase option payment in my capitalized leased asset?
2. Why is the depreciation of my leased asset impacted by this bargain purchase option?
3. When and how do I recognize the owner's initial direct costs?
4. Where do I report my lease payments on my cash flow statement? and why?
5. When I own this property, I assume that the market value will continue to grow beyond my carrying value. Would it always be beneficial to my 2015 financials if I did a 2-year sale-leaseback? why or why not?

Customer: replied 11 months ago.

hey linda how are you i have home work


 

Expert:  Linda_us replied 11 months ago.
Welcome back. I am doing good. how are you?

Are the above questions your new assignment for today?
Customer: replied 11 months ago.

hey hun yes i have homework today take your time i have 2 hours

Expert:  Linda_us replied 11 months ago.

I am not 100% sure of the above questions. You can post them as new question so that other experts can help you.

Customer: replied 11 months ago.

ok try the best and if u have anyone to help you :)i don't know about the system here all i know you :)

Customer: replied 11 months ago.

linda you here?

Expert:  Linda_us replied 11 months ago.
I stepped away from computer from some personal work. You can simply create a new post and an expert who feel comfortable with this question will help you.

I am really sorry but completing it on such a short timeframe won't be possible for me.
Customer: replied 11 months ago.

ok but i am working now and the homework until 12:00 that's mean i have 5 hours :)


 

Customer: replied 11 months ago.

plz anyone help me i am still waiting

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