finl_practice_exam_2 - Practice Problems - Test #2 1....

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Practice Problems - Test #2 1. Prepare a multi-step income statement, statement of retained earnings and classified balance sheet given the following account balances for Practice Corp on 12/31/08. A/P 400 Patent 50 A/R 200 Prepaid Rent 500 Accum. Deprec. - Equip. 300 Rent Expense 100 Bond payable (5/1/10) 900 Retained Earnings 1/1/08 800 Cash 500 Sales 1,500 COGS 300 Sales Discounts 20 Common Stock 400 10 Depreciation Exp. 20 Supplies 50 Dividends 50 Supplies Expense 200 Equip 800 Trademark 100 Interest Exp. 100 Unearned Revenue 250 Inventory 300 Utility Expense 50 Land 500 Wage Expense 400 Land held for speculation 200 Wages Payable 100 Loss on Sale of Bldg. 200 2. Given the following inventory data and assuming the perpetual method is used, calculate COGS and ending inventory using A) FIFO, B) LIFO C) Weighted Average D) Specific Identification. Date Units $/Unit Total 1-Apr Beg. Inv. 10 @ $1.00 $10.00 8-Apr Purchase 20 @ $1.60 $32.00 15-Apr Purchase 30 @ $1.70 $51.00 20-Apr Sale 40 @ $4.00 $160.00 25-Apr Purchase 50 @ $2.18 $109.00 30-Apr Sale 50 @ $4.00 $180.00 For specific ID purposes, 10 of the units remaining in ending inventory are from the 4/8 purchase and 10 are from the 4/25 purchase. 3. A company has inventory of 10 units at a cost of $2 each on August 1. On August 5, they purchased 20 units at $3 per unit. On August 10 they purchased 30 units at $4 per unit. On August 15, they sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 10? 4. Given the information from #3 what is the cost of the 30 units sold on 8/15 (assume LIFO & perpetual method).
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5. During the month of May the following transactions occurred at Merchandiser Company. Record journal entries assuming Merchandiser Co. uses a perpetual inventory system. May 4 Purchased 200 skirts at a cost of $10 each from the Wholesaler Company, terms 1/15, n/60. 6 Sold 100 shirts to Customer Company for $30 each, terms 2/10, n/30 (assume the shirts cost Merchandiser $10 each). 7 Received 2 shirts back from Customer Company and issued them credit memo #61. 8 Returned 5 shirts to Wholesaler Company and received credit memo #882. 13 Received payment from Customer Company. 15 Paid Wholesale Company. 6. Prepare original entries journal entries for Bob’s Pool Service Company on December 31, 2006. Assume that no prior adjustments have been made in 2006. a.
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This note was uploaded on 12/09/2010 for the course TELFER ADM 1300 taught by Professor Peterkoppel during the Spring '10 term at University of Ottawa.

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finl_practice_exam_2 - Practice Problems - Test #2 1....

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