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acc 510 module 2 home work
1.
value:
2.35 points
Use the information in the following adjusted trial balance for the Webb Trucking Company.
Account Title
Debit
Credit
Cash
$
7,300
Accounts receivable
16,500
Office supplies
2,000
Trucks
197,000
Accumulated depreciation—Trucks
$
40,582
Land
75,000
Accounts payable
11,300
Interest payable
3,000
Long-term notes payable
52,000
K. Webb, Capital
183,638
K. Webb, Withdrawals
19,000
Trucking fees earned
134,500
Depreciation expense—Trucks
26,175
Salaries expense
63,080
Office supplies expense
7,398
Repairs expense—Trucks
11,567
Totals
$
425,020
$
425,020
(1)
Calculate the current ratio. (Assume that the industry average for the current ratio is 1.5.) (Round your answer to 2 decimal places.)
Current ratio
(2)
Compare Webb's current ratio with the industry average.
Webb's current ratio is above the industry average.
Webb's current ratio is below the industry average.
2.
value:
2.35 points
The following adjusted trial balance of Webb Trucking Company.
Account Title
Debit
Credit
Cash
$
8,100
Accounts receivable
16,500
Office supplies
2,000
Trucks
158,000
Accumulated depreciation—Trucks
$
32,548
Land
75,000
Accounts payable
12,100
Interest payable
3,000
Long-term notes payable
52,000
K. Webb, Capital
160,160
K. Webb, Withdrawals
19,000
Trucking fees earned
113,000
Depreciation expense—Trucks
20,993
Salaries expense
52,997
Office supplies expense
10,500
Repairs expense—Trucks
9,718
Totals
$
372,808
$
372,808
The K. Webb, Capital, account balance is $160,160 at December 31, 2010.
(1)
Prepare the income statement for the year ended December 31, 2011. (Input all amounts as positive values. Omit the "$" sign in your response.)
WEBB TRUCKING COMPANY
Income Statement
For Year Ended December 31, 2011
3.
value:
2.35 points
Account Title
Debit
Credit
Cash
$
5,000
Accounts receivable
29,000
Office supplies
6,958
Trucks
190,000
Accumulated depreciation—Trucks
$
39,140
Land
46,000
Accounts payable
9,000
Interest payable
20,000
Long-term notes payable
61,000
K. Webb, Capital
146,271
K. Webb, Withdrawals
17,000
Trucking fees earned
125,000
Depreciation expense—Trucks
25,245
Salaries expense
59,329
Office supplies expense
11,000
Repairs expense—Trucks
10,879
Totals
$
400,411
$
400,411
Using the above adjusted trial balance to prepare Webb Trucking Company’s classified balance sheet as of December 31, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)
WEBB TRUCKING COMPANY
Balance Sheet
December 31, 2011
4
4.
value:
2.35 points
The following unadjusted trial balance contains the accounts and balances of Dalton Delivery Company as of December 31, 2011, its first year of operations.
a.
Unrecorded depreciation on the trucks at the end of the year is $8,505.
b.
The total amount of accrued interest expense at year-end is $8,000.
c.
The cost of unused office supplies still available at the year-end is $600.
(1)
Use the above information about the company’s adjustments to complete a 10-column work sheet.(Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
DALTON DELIVERY COMPANY
Work Sheet
For Year Ended December 31, 2011
Unadjusted
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
& Statement of
Owner's Equity
Account Title
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
$
15,500
$
$
$
$
$
$
$
$
Accounts receivable
18,500
Office supplies
1,600
Trucks
290,000
Accum. Depreciation–Trucks
$
80,000
Land
170,000
Accounts payable
24,335
Interest payable
4,000
Long-term notes payable
150,000
V. Dalton, Capital
151,838
V. Dalton, Withdrawals
35,000
Delivery fees earned
283,495
Depreciation expense—Trucks
20,000
Salaries expense
119,068
Office supplies expense
11,000
Interest expense
4,000
Repairs expense—Trucks
9,000
Totals
$
693,668
$
693,668
Net Income
Totals
$
$
$
$
(2.1)
Prepare the year-end closing entries for Dalton Delivery Company as of December 31, 2011. (Omit the "$" sign in your response.)
General Journal
Debit
Credit
(Click to select)Delivery fees earnedDepreciation expense-trucksRepairs expense-trucksIncome summarySalaries expenseOffice supplies expenseV. Dalton, WithdrawalsInterest expense
(Click to select)V. Dalton, WithdrawalsIncome summaryOffice supplies expenseSalaries expenseRepairs expense-trucksDelivery fees earnedInterest expenseDepreciation expense-trucks
(Click to select)V. Dalton, WithdrawalsRepairs expense-trucksSalaries expenseInterest expenseDepreciation expense-trucksIncome summaryDelivery fees earnedOffice supplies expense
(Click to select)Repairs expense-trucksDelivery fees earnedOffice supplies expenseSalaries expenseInterest expenseV. Dalton, WithdrawalsDepreciation expense-trucksIncome summary
(Click to select)V. Dalton, WithdrawalsIncome summaryDelivery fees earnedOffice supplies expenseRepairs expense-trucksSalaries expenseInterest expenseDepreciation expense-trucks
(Click to select)Income summaryV. Dalton, WithdrawalsOffice supplies expenseRepairs expense-trucksInterest expenseDelivery fees earnedDepreciation expense-trucksSalaries expense
(Click to select)Income summaryV. Dalton, WithdrawalsOffice supplies expenseInterest expenseDepreciation expense-trucksDelivery fees earnedSalaries expenseRepairs expense-trucks
(Click to select)Interest expenseSalaries expenseIncome summaryDepreciation expense-trucksRepairs expense-trucksV. Dalton, WithdrawalsOffice supplies expenseDelivery fees earned
(Click to select)Repairs expense-trucksSalaries expenseV. Dalton, CapitalDelivery fees earnedDepreciation expense-trucksInterest expenseIncome summaryOffice supplies expense
(Click to select)Interest expenseDelivery fees earnedV. Dalton, CapitalSalaries expenseDepreciation expense-trucksRepairs expense-trucksIncome summaryOffice supplies expense
(Click to select)Office supplies expenseV. Dalton, WithdrawalsDepreciation expense-trucksSalaries expenseIncome summaryDelivery fees earnedV. Dalton, CapitalInterest expense
(Click to select)Office supplies expenseDelivery fees earnedV. Dalton, WithdrawalsInterest expenseDepreciation expense-trucksV. Dalton, CapitalIncome summarySalaries expense
(2.2)
Determine the capital amount to be reported on its year-end balance sheet. (Omit the "$" sign in your response.)
Ending balance
$
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5.
value:
2.35 points
The following adjusted trial balance contains the accounts and balances of Showers Company as of December 31, 2011, the end of its fiscal year.
No.
Account Title
Debit
Credit
101
Cash
$
18,000
126
Supplies
9,600
128
Prepaid insurance
2,000
167
Equipment
23,000
168
Accumulated depreciation—Equipment
$
6,500
301
R. Showers, Capital
42,165
302
R. Showers, Withdrawals
6,000
404
Services revenue
43,400
612
Depreciation expense—Equipment
2,000
622
Salaries expense
25,302
637
Insurance expense
1,823
640
Rent expense
2,908
652
Supplies expense
1,432
Totals
$
92,065
$
92,065
(1)
Prepare the December 31, 2011, closing entries for Showers Company. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Dec. 31
(Click to select)Income summarySalaries expenseRent expenseAccounts receivableServices revenueR. Showers, WithdrawalsDepreciation expense-equipmentSupplies expense
(Click to select)Accounts receivableSupplies expenseDepreciation expense-equipmentIncome summaryRent expenseR. Showers, WithdrawalsServices revenueSalaries expense
(Click to select)Income summaryR. Showers, CapitalDepreciation expense-equipmentR. Showers, WithdrawalsRent expenseInsurance expenseSalaries expenseSupplies expense
(Click to select)Salaries expenseR. Showers, CapitalIncome summaryInsurance expenseRent expenseDepreciation expense-equipmentR. Showers, WithdrawalsSupplies expense
(Click to select)R. Showers, WithdrawalsRent expenseDepreciation expense-equipmentInsurance expenseSupplies expenseSalaries expenseIncome summaryR. Showers, Capital
(Click to select)Salaries expenseIncome summaryDepreciation expense-equipmentInsurance expenseRent expenseR. Showers, WithdrawalsSupplies expenseR. Showers, Capital
(Click to select)Insurance expenseRent expenseSalaries expenseDepreciation expense-equipmentIncome summaryR. Showers, CapitalR. Showers, WithdrawalsSupplies expense
(Click to select)Rent expenseR. Showers, WithdrawalsInsurance expenseR. Showers, CapitalSupplies expenseSalaries expenseIncome summaryDepreciation expense-equipment
(Click to select)Supplies expenseSalaries expenseAccounts receivableServices revenueR. Showers, CapitalDepreciation expense-equipmentIncome summaryRent expense
(Click to select)Salaries expenseAccounts receivableIncome summaryR. Showers, CapitalRent expenseDepreciation expense-equipmentServices revenueSupplies expense
(Click to select)R. Showers, CapitalDepreciation expense-equipmentRent expenseSupplies expenseR. Showers, WithdrawalsIncome summarySalaries expenseServices revenue
(Click to select)R. Showers, CapitalServices revenueRent expenseDepreciation expense-equipmentIncome summaryR. Showers, WithdrawalsSupplies expenseSalaries expense
(2)
Prepare the December 31, 2011, post-closing trial balance for Showers Company. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities and Equity. Be sure to list the asset in order of liquidity. Omit the "$" sign in your response.)
SHOWERS COMPANY
Post-Closing Trial Balance
December 31, 2011
Debit
Credit
(Click to select)Accumulated depreciation-equipmentEquipmentSuppliesCashPrepaid insurance
$
(Click to select)Prepaid insuranceSuppliesAccumulated depreciation-equipmentCashEquipment
(Click to select)Prepaid insuranceCashSuppliesAccumulated depreciation-equipmentEquipment
(Click to select)SuppliesPrepaid insuranceEquipmentAccumulated depreciation-equipmentCash
(Click to select)EquipmentSuppliesCashAccumulated depreciation-equipmentPrepaid insurance
$
(Click to select)Prepaid insuranceSuppliesEquipmentR. Showers, CapitalCash
Totals
$
$
5
6.
value:
2.35 points
The following two events occurred for Tanger Co. on October 31, 2011, the end of its fiscal year.
a.
Tanger rents a building from its owner for $3,300 per month. By a prearrangement, the company delayed paying October's rent until November 5. On this date, the company paid the rent for both October and November.
b.
Tanger rents space in a building it owns to a tenant for $700 per month. By prearrangement, the tenant delayed paying the October rent until November 8. On this date, the tenant paid the rent for both October and November.
Required:
1.
Prepare adjusting entries that the company must record for these events as of October 31. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Oct. 31
(Click to select)Salaries payableSalaries expenseAccounts receivablePrepaid insuranceRent expenseRent payableAccounts payableCash
(Click to select)Accounts receivablePrepaid insuranceSalaries payableRent payableRent expenseSalaries expenseAccounts payableCash
(Click to select)Salaries expensePrepaid insuranceRent receivableCashAccounts receivableSalaries payableAccounts payableRent earned
(Click to select)Accounts payableCashRent earnedRent receivableAccounts receivablePrepaid insuranceSalaries expenseSalaries payable
2.
Assuming Tanger does not use reversing entries, prepare journal entries to record Tanger's payment of rent on November 5 and the collection of rent on November 8 from Tanger's tenant. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Nov. 5
(Click to select)CashRent earnedAccounts receivable Rent payableAccounts payableRent expenseSalaries payablePrepaid insurance
(Click to select)Rent earnedCashAccounts payablePrepaid insurance Rent payableRent expenseAccounts receivableSalaries payable
(Click to select)Accounts receivableRent earnedPrepaid insuranceAccounts payableCashRent expenseRent payableSalaries payable
8
(Click to select)Rent expenseRent receivablePrepaid insuranceCashAccounts receivableRent earnedRent payableAccounts payable
(Click to select)Accounts receivableAccounts payableRent receivableRent expensePrepaid insuranceRent earnedRent payableCash
(Click to select)Rent receivableCashRent payablePrepaid insuranceAccounts receivableRent earnedAccounts payableRent expense
3.
Assuming that the company uses reversing entries, prepare reversing entries on November 1 and the journal entries to record Tanger's payment of rent on November 5 and the collection of rent on November 8 from Tanger's tenant. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Nov. 1
(Click to select)Accounts payableRent payableSalaries expenseAccounts receivableCashPrepaid insuranceRent expenseSalaries payable
(Click to select)Prepaid insuranceRent expenseRent payableCashSalaries expenseSalaries payableAccounts receivableAccounts payable
(Click to select)Rent earnedSalaries expenseCashRent receivablePrepaid insuranceAccounts receivableSalaries payableAccounts payable
(Click to select)Rent earnedAccounts payableSalaries expenseCashAccounts receivableRent receivablePrepaid insuranceSalaries payable
5
(Click to select)Accounts receivableRent expensePrepaid insuranceRent payableAccounts payableCashRent earnedSalaries payable
(Click to select)Rent earnedAccounts payablePrepaid insuranceAccounts receivableSalaries payableCashRent expenseRent payable
8
(Click to select)Rent earnedRent expenseCashRent payableSalaries payablePrepaid insuranceAccounts payableAccounts receivable
(Click to select)Rent earnedRent expenseSalaries payableCashRent payableAccounts payablePrepaid insuranceAccounts receivable
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7.
value:
2.35 points
Case A
Case B
Case C
Cash
$
760
$
865
$
1,060
Short-term investments
0
0
500
Current receivables
0
945
660
Inventory
1,900
955
3,800
Prepaid expenses
1,200
562
900
Total current assets
$
3,860
$
3,327
$
6,920
Current liabilities
$
2,239
$
1,120
$
1,730
Compute the current ratio and acid-test ratio for each of the above separate cases. (Round your answers to 2 decimal places.)
Case A
Case B
Case C
Current ratio
Acid-test ratio
Which company case is in the best position to meet short-term obligations?
Case A
Case B
Case C
8.
value:
2.35 points
Using your accounting knowledge, find the missing amounts in the following separate income statements athrough e. (Amounts in parentheses do not require a minus sign in front of them. Input all amounts as positive values. Omit the "$" sign in your response.)
a
b
c
d
e
Sales
$
51,200
$
36,250
$
33,280
$
$
20,122
Cost of goods sold
Merchandise inventory (beginning)
4,864
2,936
6,989
6,124
2,073
Total cost of merchandise purchases
29,184
27,987
7,256
Merchandise inventory (ending)
()
(3,736
)
(8,489
)
(5,749
)
()
Cost of goods sold
28,684
11,241
7,056
Gross profit
5,826
38,198
Expenses
9,000
10,650
13,050
2,600
6,100
Net income (loss)
$
$
14,359
$
(7,224
)
$
35,598
$
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9.
value:
2.35 points
Taos Company purchased merchandise for resale from Tuscon Company with an invoice price of $16,300 and credit terms of 3/10, n/60. The merchandise had cost Tuscon $11,117. Taos paid within the discount period. Assume that both buyer and seller use a perpetual inventory system.
1(a)
Prepare entries that the buyer should record for the purchase. (Omit the "$" sign in your response.)
General Journal
Debit
Credit
(Click to select)Salaries payableCost of goods soldCashAccounts receivableSalesAccounts payableMerchandise inventorySales discounts
(Click to select)Merchandise inventorySales discountsAccounts receivableSalaries payableSalesCashCost of goods soldAccounts payable
1(b)
Prepare entries that the buyer should record for the cash payment. (Omit the "$" sign in your response.)
General Journal
Debit
Credit
(Click to select)SuppliesAccounts payableAccounts receivableCashSales discountsMerchandise inventoryCost of goods soldSalaries payable
(Click to select)Accounts payableSales discountsSalaries payableMerchandise inventoryCashAccounts receivableSuppliesCost of goods sold
(Click to select)CashMerchandise inventorySales discountsSalaries payableAccounts payableCost of goods soldSuppliesAccounts receivable
2(a)
Prepare entries that the seller should record for the sale. (Omit the "$" sign in your response.)
General Journal
Debit
Credit
(Click to select)CashSalesAccounts receivableSales discountsSalaries payableMerchandise inventoryAccounts payableSelling expenses
(Click to select)Salaries payableSales discountsMerchandise inventorySalesCashSelling expensesAccounts payableAccounts receivable
(Click to select)Merchandise inventorySalesCost of goods soldSales returns and allowancesAccounts payableAccounts receivableCashSales discounts
(Click to select)Sales returns and allowancesMerchandise inventoryAccounts receivableAccounts payableCost of goods soldCashSales discountsSales
2(b)
Prepare entries that the seller should record for the cash collection. (Omit the "$" sign in your response.)
General Journal
Debit
Credit
(Click to select)CashMerchandise inventorySales allowanceUnearned revenueSalaries payableAccounts payableAccounts receivableSales discounts
(Click to select)Accounts payableSales allowanceSalaries payableCashSales discountsAccounts receivableUnearned revenueMerchandise inventory
(Click to select)Accounts payableMerchandise inventorySales allowanceAccounts receivableSales discountsUnearned revenueCashSalaries payable
3.
Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 11% and paid it back on the last day of the credit period. Compute how much the buyer saved by following this strategy. (Use 365 days a year. Round your intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.)
Buyer's net savings
$
10.
value:
2.35 points
The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2011, unadjusted trial balance of Deacon Co., a business owned by Julie Deacon. Use these account balances along with the additional information to journalize (a) adjusting entries and (b) closing entries. Deacon Co. uses a perpetual inventory system.
Debit
Credit
Merchandise inventory
$
32,800
Prepaid selling expenses
6,000
J.Deacon, Withdrawals
2,400
Sales
$
590,400
Sales returns and allowances
22,435
Sales discounts
6,282
Cost of goods sold
290,477
Sales salaries expense
64,944
Utilities expense
18,893
Selling expenses
50,774
Administrative expenses
130,478
Additional Information
Accrued sales salaries amount to $1,700. Prepaid selling expenses of $2,400 have expired. A physical count of year-end merchandise inventory shows $32,177 of goods still available.
Deacon Co. uses a perpetual inventory system.
Using the above account balances and the additional information prepare adjusting entries. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Dec. 31
(Click to select)Salaries payablePrepaid expensesSales allowanceSelling expensesMerchandise inventorySales salaries expenseIncome summaryUtilities expenseCost of goods sold
(Click to select)Sales allowanceSelling expensesMerchandise inventorySalaries payableUtilities expenseIncome summarySales salaries expenseCost of goods soldPrepaid expenses
(Click to select)Selling expensesSales salaries expenseMerchandise inventoryCost of goods soldAccrued salariesUtilities expenseIncome summaryPrepaid selling expensesSales allowance
(Click to select)Merchandise inventoryCost of goods soldUtilities expenseAccrued salariesIncome summarySales allowanceSales salaries expensePrepaid selling expensesSelling expenses
(Click to select)Prepaid selling expensesSelling expensesSales salaries expenseUtilities expenseCost of goods soldSuppliesSalaries payableCashMerchandise inventory
(Click to select)Selling expensesCost of goods soldPrepaid selling expensesUtilities expenseSalaries payableSales salaries expenseMerchandise inventoryCashSupplies
Using the above account balances and the additional information prepare closing entries. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Dec. 31
(Click to select)Utilities expenseSalaries expensesSelling expensesSales discountsIncome summarySalesCost of goods soldCommon stockDividends
(Click to select)DividendsSelling expensesCommon stockCost of goods soldSales discountsSalaries expensesUtilities expenseIncome summarySales
(Click to select)Cost of goods soldUtilities expenseSelling expensesIncome summaryAdministrative expensesCashSales returns and allowancesSales salaries expenseSales discounts
(Click to select)Income summarySales salaries expenseCost of goods soldSales discountsSelling expensesSales returns and allowancesUtilities expenseCashAdministrative expenses
(Click to select)Sales salaries expenseIncome summaryCashCost of goods soldAdministrative expensesUtilities expenseSales discountsSelling expensesSales returns and allowances
(Click to select)Sales discountsSelling expensesIncome summarySales returns and allowancesCost of goods soldAdministrative expensesSales salaries expenseUtilities expenseCash
(Click to select)CashSelling expensesSales salaries expenseSales returns and allowancesCost of goods soldAdministrative expensesIncome summarySales discountsUtilities expense
(Click to select)Selling expensesSales salaries expenseCashSales returns and allowancesUtilities expenseSales discountsCost of goods soldIncome summaryAdministrative expenses
(Click to select)Sales salaries expenseCashSales discountsUtilities expenseIncome summarySales returns and allowancesSelling expensesCost of goods soldAdministrative expenses
(Click to select)Sales salaries expenseCost of goods soldAdministrative expensesIncome summarySales discountsSales returns and allowancesSelling expensesUtilities expenseCash
(Click to select)Income summarySalaries expensesSalaries payablePrepaid selling expensesCommon stockDividendsSuppliesCashJ. Deacon, Capital
(Click to select)J. Deacon, CapitalIncome summaryDividendsPrepaid selling expensesCashSalaries expensesSuppliesSalaries payableCommon stock
(Click to select)DividendsJ. Deacon, CapitalSuppliesJ. Deacon, WithdrawalsAccounts payableSalaries expensesSalaries payableCommon stockPrepaid selling expenses
(Click to select)SuppliesJ. Deacon, CapitalSalaries payableAccounts payablePrepaid selling expensesJ. Deacon, WithdrawalsSalaries expensesCommon stockDividends
11.
value:
2.35 points
A company reports the following sales related information: Sales (gross) of $109,000; Sales discounts of $2,800; Sales returns and allowances of $8,000; Sales salaries expense of $5,100.
Prepare the net sales portion of the company’s multiple-step income statement. (Input all amounts as positive values. Omit the "$" sign in your response.)
Multiple-Step Income Statement
(Click to select)Cost of salesSalesSales returns and allowancesOther expenseSales discounts
$
(Click to select)Less: Sales returns and allowancesLess: Sales discountsAdd: Sales returns and allowancesAdd: Sales discountsSales
$
(Click to select)Less: Sales discountsAdd: Sales discountsLess: Sales returns and allowancesSalesAdd: Sales returns and allowances
Net sales
12.
value:
2.35 points
Chess Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes.
2011
2010
LIFO inventory
$
290
$
240
LIFO cost of goods sold
870
810
FIFO inventory
360
265
FIFO cost of goods sold
825
—
Current assets (using LIFO)
350
320
Current liabilities
170
150
1.
Compute its current ratio, inventory turnover, and days' sales in inventory for 2011 using (a) LIFO numbers and (b) FIFO numbers. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place.)
Current ratio
Inventory
turnover
Days' sales
in inventory
LIFO
times
days
FIFO
times
days
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Top of Form
Ringo Company had $940,000 of sales in each of three consecutive years 2010–2012, and it purchased merchandise costing $520,000 in each of those years. It also maintained a $240,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2010 that caused its year-end 2010 inventory to appear on its statements as $220,000 rather than the correct $240,000.
13.
value:
2.36 points
1.
Determine the correct amount of the company's gross profit in each of the years 2010 – 2012. (Omit the "$" sign in your response.)
2010
2011
2012
Gross profit
$
$
$
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14.
value:
2.36 points
2.
Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2010−2012. (Input all amounts as positive values. Omit the "$" sign in your response.)
RINGO COMPANY
Comparative Income Statements
Year 2010
Year 2011
Year 2012
(Click to select)SalesBeginning inventoryGoods available for saleEnding inventoryCost of purchases
$
$
$
Cost of goods sold
(Click to select)Beginning inventoryEnding inventorySalesAccounts payableGood available for sale
$
$
$
(Click to select)Ending inventoryAccounts payableCost of purchasesGood available for saleSales
(Click to select)SalesCost of purchasesGood available for saleEnding inventoryBeginning inventory
(Click to select)SalesGood available for saleCost of purchasesEnding inventoryBeginning inventory
Cost of goods sold
Gross profit
$
$
$
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Bottom of Form
16. 15.
value:
2.36 points
Duke Associates, antique dealers, purchased the contents of an estate for $37,600. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Duke Associates’ warehouse was $1,250. Duke Associates insured the shipment at a cost of $160. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $500.
Determine the cost of the inventory acquired from the estate. (Omit the "$" sign in your response.)
Cost of inventory
$
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value:
2.36 points
Harold Co. reported the following current-year purchases and sales data for its only product.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan.
1
Beginning inventory
135
units
@ $11.40
=
$
1,539
Jan.
10
Sales
125
units
@$41.40
Mar.
14
Purchase
285
units
@ $16.40
=
4,674
Mar.
15
Sales
175
units
@$41.40
July
30
Purchase
435
units
@ $21.40
=
9,309
Oct.
5
Sales
265
units
@$41.40
Oct.
26
Purchase
635
units
@ $26.40
=
16,764
Totals
1,490
units
$
32,286
565
units
Assume that ending inventory is made up of 120 units from the March 14 purchase, 170 units from the July 30 purchase, and all 635 units from the October 26 purchase. Using the specific identification method, calculate the following. (Omit the "$" sign in your response.)
(a) Cost of goods sold
$
(b) Gross profit
$
17.
value:
2.36 points
Ripken Company's ending inventory includes the following items.
Per Unit
Product
Units
Cost
Market
Helmets
33
$
55
$
51
Bats
26
73
79
Shoes
47
92
96
Uniforms
51
37
37
Compute the lower of cost or market for ending inventory applied separately to each product. (Omit the "$" sign in your response.)
Product
LCM applied
to products
Helmets
$
Bats
Shoes
Uniforms
Total inventory at LCM
$
