QUESTION 2: 14% FIFO LIFO INVENTORY In its first month of

QUESTION 2: 14% FIFO LIFO INVENTORY In its first month of operations Bethke Company made three purchases of merchandise in the following sequence: (1)187units at $11 (2)481units at $12 and (3)133units at $13. Assuming there are300units on hand compute the cost of the ending inventory under the FIFO method and LIFO method. Bethke uses a periodic inventory system. FIFO LIFO The cost of the ending inventory $ $ QUESTION 3: 5% RECEIVABLES What is the difference between an account receivable and a note receivable? QUESTION 4: 9% PLANT ASSETS & DEPLETION Corales Company acquires a delivery truck at a cost of $79800. The truck is expected to have a salvage value of $9600at the end of its4-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method. Annual depreciation for the first and second years $ Franceour Mining Co. purchased for $7107600a mine that is estimated to have35538000tons of ore and no salvage value. In the first year5707600 tons of ore are extracted and sold. Calculate depletion cost per ton.(Round answer to 2 decimal places e.g. 0.50.) Depletion cost per ton $ QUESTION 5: 7% PAYROLL Beth Corbins regular hourly wage rate is $20 and she receives an hourly rate of $30for work in excess of40hours. During a January pay period Beth works48hours. Beths federal income tax withholding is $96.00 and she has no voluntary deductions. Use January 15 for the end of the pay period and the payment date. Prepare the journal entries to record (a) Beths pay for the period and (b) the payment of Beths wages.(Assume FICA rate of 7.65%. Round your answers to 2 decimal places e.g. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 15 (b) Jan. 15 MULTIPLE CHOICE QUESTIONS 1% each (There is no QUESTION 6) Question 7: When the stockholders invest cash in the business what is the effect? a Liabilities increase and stockholders equity increases b Both assets and liabilities increase c Both assets and stockholders equity increase d None of the above Question 8: The ending balance in retained earnings is shown in the: a. Income statement b. Statement of retained earnings c. Balance sheet d. Both (b) and (c) e. Both (a) and (c) f. (a) (b) and (c) Question 9: A cash dividend of $500 was declared and paid to stockholders. The correct journal entry to record the declaration is: a. DR Capital stock 500 and CR Cash 500 b. DR Cash 500 and CR Dividends 500 c. DR Dividends 500 and CR Cash 500 d. DR Cash 500 and CR Capital stock 500 0: If $3000 has been earned by a companys workers since the last payday in an accounting period the necessary adjusting entry would be: a. Debit an expense and credit a liability. b. Debit an expense and credit an asset. c. Debit a liability and credit an asset. d. Debit a liability and credit an expense. 1: The accrual basis of accounting: a. Recognizes revenues only when cash is received b. Is used by almost all companies c. Recognizes expenses only when cash is paid out d. Recognizes revenues when sales are made or services are performed and recognizes expenses only when cash is paid out. 2: The need for adjusting entries is based on: a. The matching principle b. Source documents c. The cash basis of accounting d. Activity that has already been recorded in the proper accounts. 3: Which of the following statements is false regarding the closing process? a. The Dividends account is closed to Income Summary. b. The closing of expense accounts results in a debit to Income Summary. c. The closing of revenues results in a credit to Income Summary. d. The Income Summary account is closed to the Retained Earnings account. 4: Which of the following statements is true regarding the classified balance sheet? a. Current assets include cash accounts receivable and equipment. b. Plant property and equipment is one category of long-term assets. c. Current liabilities include accounts payable salaries payable and notes receivable. d. Stockholders’ equity is subdivided into current and long-term categories. 5: The underlying assumptions of accounting includes all the following except: a. Business entity b. Going concern c. Matching d. Money measurement and periodicity 6: Frick Company began the accounting period with $60000 of merchandise and net cost of purchases was $240000. A physical inventory showed $72000 of merchandise unsold at the end of the period. The cost of goods sold of Frick Company for the period is: a. $300000 b. $228000 c. $252000 d. $168000 e. None of the above 7: A classified income statement consists of all of the following major sections except for: a. Operating revenues b. Cost of goods sold c. Operating expenses d. Non-operating revenues and expenses e. Current assets 8: A business purchased merchandise for $12000 on account; terms are 2/10 n/30. If $2000 of the merchandise was returned and the remaining amount due was paid within the discount period the purchase discount would be: a. $240 b. $200 c. $1200 d. $1000 e. $3600 9: Frick Company began the accounting period with inventory of 3000 units at $30 each. During the period the company purchased an additional 5000 units at $36 each and sold 4600 units. Assume the use of periodic inventory procedure. The cost of ending inventory using weighted-average is: a. $114750 b. $157600 c. $122400 d. $109650 e. None of the above Question 20: Frick Company began the accounting period with inventory of 3000 units at $30 each. During the period the company purchased an additional 5000 units at $36 each and sold 4600 units. Assume the use of periodic inventory procedure. The cost of goods sold using weighted-average is: a. $147200 b. $160350 c. $155250 d. $114000 e. None of the above Question 21: During a period of rising prices which inventory method might be expected to give the highest net income? a. Weighted-average b. FIFO c. LIFO d. Specific identification e. Cannot determine Question 22: The following information: related to the bank reconciliation of the Flip Company: Balance per bank statement $1951.20 Balance per ledger 1869.60 Deposits in transit 271.20 Outstanding checks 427.80 NSF check 61.20 Service charges 13.80 The adjusted/correct cash balance is: a. $1794.60 b. $1719.60 c. $1638.00 d. $1713.00 e. $1876.20 Question 23: In a bank reconciliation deposits in transit should be: a.nbsp; Deducted from the balance per books b. Deducted from the balance per bank statement c. Added to the balance per ledger d. Added to the balance per bank statement e. Disregarded in the bank reconciliation Question 24: After the bank reconciliation is prepared the entry to record bank service charges would have a credit to: a. Bank Service Charge Expense b. Cash c. Petty Cash d. Cash Short and Over e. None of the above Question 25: Frick Company estimates uncollectible accounts using the percentage-of-receivables method and expects that 5 percent of outstanding receivables will be uncollectible for 2010. The balance in Accounts Receivable is $200000 and the allowance account has a $3000 credit balance before adjustment at year-end. The uncollectible accounts expense for 2010 will be: a $7000 b. $10000 c. $13000 d. $9850 e. None of the above Question 26: Frick Company issued its own $10000 90-day non interest-bearing note to a bank. If the note is discounted at 10 percent the proceeds to Frick are: a. $10000 b. $9000 c. $9750 d. $10250 e. None of the above Question 27: On 2010 July 1 Frick Company purchased equipment for $400000 and installation and testing costs totaled $40000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40000. If Frick uses the double-declining-depreciation method the depreciation expense for 2010 is: a. $88000 b. $72000 c. $36000 d. $44000 e. $40000 Question 28: The result of recording a capital expenditure as a revenue expenditure is an: a. Overstatement of current year’s expense b. Understatement of current year’s expense c. Understatement of subsequent year’s net income d. Overstatement of current year’s net income e. None of the above Question 29: A truck costing $45000 and having an estimated salvage value of $4500 and an original life of five years is exchanged for a new truck. The cash price of the new truck is $57000 and a trade-in allowance of $22500 is received. The old truck has been depreciated for three years using the straight-line method. The new truck would be recorded at: a. $55200 b. $57000 c. $34500 d. $43200 e. None of the above Question 30: Which of the following is not an advantage of the corporate form of organization? a. Continuous existence of the entity b. Limited liability of stockholders c. Government regulation d. Easy transfer of ownership Question 31: Treasury stock should be shown on the balance sheet as a(n): a. Reduction of the corporation’s stockholders’ equity b. Current asset c. Current liability d. Investment asset

Expert Help With This Assignment — On Your Terms