Income from operations is gross profit less
operating expenses
Audio Express Co. uses a perpetual inventory system and records purchase company recently purchased 20 CD's at an invoice price of $6,000 and ten discs were incorrectly labeled and were returned immediately tot he supply expired, the journal entry to reco
credit to cash for $3,000
Jake's Market recorded the following events involving a recent purchase of merchandise:
Received goods for $50,000, terms 2/10, n/30.
Returned $1,000 of the shipment for credit.
Paid $250 freight on the shipment.
Paid the invoice within the discount perio
$48,270
Cobb Company's accounting records show the following at the year ending on December 31, 2013:
Purchase Discounts $ 5,600
Freight - in 7,800
Purchases 201,000
Beginning Inventory 23,500
Ending Inventory 28,800
Purchase Returns 6,400
Using the periodic syst
191,500
Kate Company purchased inventory from Phoebe Company. The shipping costs were $500 and the terms of the shipment were FOB shipping point. Kate would have the following entry regarding the shipping charges:
Inventory Cash 500
Cash 500
On October 4, 2013, JT Corporation had credit sales transactions of $3,200 from merchandise having cost $1,900. The entries to record the day's credit transactions include a
credit of $3,200 to sales revenue
A company just starting business made the following four inventory purchases in June:
June 1 150 units $ 390
June 10 200 units 585
June 15 200 units 630
June 28 150 units 510
$2,115
A physical count of merchandise inventory on June 30 reveals that there a
536
A company purchased inventory as follows:
150 units at $10
350 units at $12
The average unit cost for inventory is
$11.40
At May 1, 2013, Kibbee Company had beginning inventory consisting of 100 units with a unit cost of $7. During May, the company purchased inventory as follows:
400 units at $7
300 units at $8
The company sold 500 units during the month for $12 per unit. Ki
$2,212.50
Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2013 are as follows:
Units Per unit price Total
Balance, 1/1/13 200 $5.00 $1,000
Purchase, 1/15/13 100 5.30 530
Purchase, 1/28/13 100 5.50 550
An e
700
Switzer, Inc. has 5 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a current replacement cost of $400.What value should Switzer, Inc.,
$2,000
If beginning inventory is understated by $13,000, the effect of this error in the current period is
Cost of Goods Sold Net Income
understated and overstated
Two individuals at a retail store work the same cash register. You evaluate this situation as
a violation of establishment of responsibility
Rebekah Grace has worked for Specoly Inc., for 20 years without taking a vacation. An internal control feature that would address this situation would be
other controls
A $100 petty cash fund has cash of $17 and receipts of $87. The journal entry to replenish the account would include a
credit to cash over and short for $4
A deposit made by a company will appear on the bank statement as a
credit
The cash account shows a balance of $20,000 before reconciliation. The bank statement does not include a deposit of $4,600 made on the last day of the month. The bank statement shows a collection by the bank of $1,980 and a customer's check for $650 was r
21,096
Which of the following would not be considered cash equivalent?
notes receivable
An aging of a company's accounts receivable indicates that $3,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $700 debit balance, the adjustment to record bad debts for the period will require a
debit to bad debts expense for $3,700
Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $11,000. If the balance of the Allowance for Doubtful Accounts is $2,000 credit before adjustment, what is the amount of bad debts expense for
9,000
In reviewing the accounts receivable, the cash realizable value is $14,000 before the write-off of a $1,500 account. What is the cash realizable value after the write-off?
14,000
Kill Corporation's unadjusted trial balance includes the following balances (assume normal balances):
Accounts Receivable $ 750,000
Allowance for Doubtful Accounts 15,000
Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt
30,000
In 2013, Boyle Company had credit sales of $900,000 and granted sales discounts of $20,000. On January 1, 2013, Allowance for Doubtful Accounts had a credit balance of $22,000. During 2012, $37,500 of uncollectible accounts receivable were written off. Pa
10,900
XYZ Company accepted a national credit card for a $3,000 purchase. The cost of the goods sold is $1,800. The credit card company charges a 3% fee. What is the impact of this transaction on net operating income?
increase by $1,110
Wesley Hospital installs a new parking lot. The paving cost $40,000 and the lights to illuminate the new parking area cost $20,000. Which of the following statements is true with respect to these additions?
60,000 should be debited to land improvements
Engler Company purchases a new delivery truck for $60,000. The sales taxes are $4,000. The logo of the company is painted on the side of the truck for $1,600. The truck license is $160. The truck undergoes safety testing for $290. What does Engler record
65,890
A company purchased factory equipment on April 1, 2013 for $80,000. It is estimated that the equipment will have an $10,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as d
5250
On October 1, 2013, Holt Company places a new asset into service. The cost of the asset is $80,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2013, b
72,000
Equipment with a cost of $240,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during wh
49,500
Rooney Company incurred $420,000 of research and development cost in its laboratory to develop a patent granted on January 1, 2013. On July 31, 2013, Rooney paid $63,000 for legal fees in a successful defense of the patent. The total amount debited to Pat
63,000
The following information pertains to Worthy Video Company.
1. Cash balance per bank, July 31, $7,293.
2. July bank service charge not recorded by the depositor $28.
3. Cash balance per books, July 31, $7,384.
4. Deposits in transit, July 31, $1,500.
5. B
WORTHY VIDEO COMPANY
Bank Reconciliation
July 31
$
Add:
Less:
$
$
Add:
Less:
$
(b) Journalize the adjusting entries at July 31 on the books of Worthy Video Company. (Credit account titles are automatically indented when amount is entered. Do not indent ma
Presented below is information related to Chile Co.
1. On April 5, purchased merchandise from Graham Company for $16,000, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $800 on merchandise purchased from Graham.
3. On April 7
purchases: 16,000
accounts payable 16,000
freight in 800
cash 800
equipment 27,000
accounts payable 27,00
accounts payable 4,000
purchase and returns 4,000
accounts payable 12,000
purchase discounts 240
cash 11760
accounts payable 12,000
cash 12,000
Presented below are selected transactions at Tomas Company for 2014.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $58,000 on that date. It had a useful life of 10 years with no salvage value.
June 30 Sold a c
Date
Account Titles and Explanation
Debit
Credit
Jan. 1
accumulated depreciation 58,000
equiipment 58,000
June. 30
depreciation expense 4,000
accumulated depreciation 4,000
(To record current depreciation)
June. 30
cash 14,000
accumulated depreciation 28,