ACCT 350, Fall 2010
1. Bell Inc. took a physical inventory at the end of the year and determined that $650,000
of goods were on hand. In addition, Bell, Inc. determined that $50,000 of goods that
were in transit that were shipped f.o.b. shipping were actually received two days after
the inventory count and that the company had $75,000 of goods out on consignment.
What amount should Bell report as inventory at the end of the year?
Risers Inc. reported total assets of $1,600,000 and net income of $85,000 for the current
year. Risers determined that inventory was understated by $23,000 at the beginning of
the year and $10,000 at the end of the year. What is the corrected amount for total assets
and net income for the year?
$1,610,000 and $95,000.
$1,590,000 and $98,000.
$1,610,000 and $72,000.
$1,600,000 and $85,000.
Use the following to answer questions 3-4:
The following information was available from the inventory records of Rich Company for January:
Balance at January 1
Balance at January 31
3. Assuming that Rich does
maintain perpetual inventory records, what should be the