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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
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
@ $80,710 (1. $25,410 Use the following information to answer the questions below:
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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- Spring '11