Warm Up Prior to Chapter 17

Warm Up Prior to Chapter 17 - Accounting II Warm up Prior...

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Unformatted text preview: Accounting II Warm up Prior to Chapter 17 A revenue ultimately: a. increases assets and liabilities increases assets and stockholders’ equity c. Increases assets and decreases stockholders’ equity d. leaves total assets unchanged Gen rally accepted account principles have eliminated all the Weaknesses in accounting practice b. are accounting rules formulated by the Internal Revenue Service are sound in theory but rarely used in practice c1 @) are changing continually Which of the following transactions will 1101 result in the recognition of an expense? @ Declaration and payment of a dividend b. Expiration of prepaid insurance c. Interest accrued on a bank loan d. Use of machinery during the period Which of the following accounts is not closed during the closing procedure? a. Income Summary fl Q7 Retained Earnings c. Commissions Earned d. Dividends Usingmthe accounts receivable aging method, estimated uncollectible accounts are (fifiw. If the balance of the Allowance for Uncollectible Accounts is $9,000 credit before adjustment, what is the balance after the adjustment? ,5) $25,000 credit 'b. $9,000 credit 0. 16,000 credit . $34,000 credit 0’35 Assuming that new cost of purchases was $90,000 during the year and that ending merchandise inventory was $2,000 less than the beginning merchandise inventory of $25,000, how much was cost of goods sold? 93,000 a. $113,000 b. $67,000 $92,000 (1. $117,000 If the indirect method is used, each of the following is a proper adjustment to net income (9 I: to arrive at net cash flows from operating activities except .. a, deducting an increase in Accounts Receivable. R (ha/h W9 V deducting a decrease in Prepaid Expenses. U adding an increase in Salaries Payable " , adding a decrease in Inventory. fl 0W, 3 ¢ muagi 9. w 2% 10159 N Purchased treasury stock for cash. gr 1 1. 01° Received dividends on securities held. 12. ’58.“ 1'3. 6 15: 58 17. “Oh 18. 19. [flag/0 7d", Purchased long-term investment for cash. Sold a building at a loss, 0P ReCording amortization of a copyright. Purchased land for cash. (7872474 .227de fizzvéa,,> Pmchasedhemnt by issuing a mortgage. Sold preferred stock for cash. Transferred cash to a money market account. Declared and paid a cash dividend. Paid a current liability. Which of the following is not a valid reason to classify costs as product or period costs? ‘ H a. To determine manufacturing costs. b. To determine which costs will change if production increases. yo report production costs on the Income Statement. ' To analyze costs for control puposes. If beginning Work in Process Inventory was $27,444, total manufacturing costs for the month were $68,191, and ending Work in Process Inventory was $25,595, how much was the cost of goods manufactured for the period? &$95,635 $70,040 8 . 0. $66,342 £773” A??? d. $93,786 265‘? The Yager Company had COGS of $81,920, beginning FG of $26,620, and ending FG of $25,410. What was the dollar amount of goods transferred to F G inventory this month? a. $107,330 1). $83,130 @ $80,710 (1. $25,410 Use the following information to answer the questions below: refer" xiii Admin. Salaries: ($30,000 ) Indirect Labor: $8,000 Advertising Expense: w Sales: 80,000 Materials Inv., Jan. 1: 20,000 Direct Labor Costs: 14,000 Materials Inv., Dec 31: 15,000 Income Tax Expense: 2,000 Fin. Goods, Jan. 1: 7,000- Factory Depreciation: 2,000 Fin. Goods, Dec. 31: 8,0008 Dir. Materials Purch.: 11,000 WIP, Jan. 1: 5,000 WIP, Dec. 31: 3.000 ’ ‘ 010 t . I ~ I, o 490% 20. Calculate total manufacturinigi,> jgsts. JO ((2: T -_ 4310a) 21 Calculate cost of goods manufactured. Mp (alas ::. 3,000 _ j “W0 '5‘“ 1 5953003” 4mm 22. Calculate cost of goods sold. Fin gm“ '3‘3‘2 8.000 +— COGS mfg ’ C3“ Geode Saul: 7.000 2 flow, 23. Calculate net income or loss. Q9 V a") 2 €665 “ 4 Ir “7“” $6 +5 Fill 4 ...
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