Accounting exams

Accounting exams - E XAM 2 Which of the following would not...

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EXAM 2 Which of the following would not appear on both a single-step income statement and a multistep income statement? A. Gross Profit B. Selling and Administrative Expenses C. Sales Revenues D. Cost of Goods Sold Central Company sold goods for $5000 to Western Company on March 12 on credit. Terms of dale were 2/10,n/30. At the time of the sale, Central recorded the transaction by debiting accounts receivable for $5,000 and crediting sales revenue for $5,000. Western paid the balance due, less the discount, on March 21. To record the March 21 transaction, Central would debit: A. Cash for 5,000 B. Accounts Receivable for $4,000 C. Cash for 4,900 D. Accounts receivable for $5,000 Use the following answer choices to answer the next two questions: A. 9,500 B. 2,370 C. 5400 D. 2900 E. 1900 F. 2400 G. 6000 H. 6500 I. 5,500 J. None of the above After Potter makes the adjusting entry to estimate bad debt expense for the year, what amount would appear as Bad Debt Expense on the 2008 income statement. (E)
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After Potter makes the adjusting entry to estimate bad debt expense for the year, what amount would appear on the balance sheet as the amount of Allowance for Doubtful accounts. (F) Before adjustment, the allowance for doubtful accounts has a credit balance of $2,700. The company had $140,000 of net credit sales during the period and historically fails to collect 4% of credit sales. The company uses the percentage of credit sales method of estimating doubtful accounts. After adjusting for estimated bad debts, the new balance in the allowance for doubtful accounts account will be. A. $8,300 B. $5,600 C. $2,900 D. Indeterminable, it cannot be determined from the information given. Gallagher Corporation , a merchandising firm, purchased 300 items for resale at the cost of $10 each. Gallagher also incurred the following costs: Transportation costs to get the items to Gallagher’s department store $35 Re-packaging cost necessary to get the items ready for sale $50 Advertising costs related to the items $95 What amount should appear in the Inventory account for these items? A. $3,000 B. $3,035 C. 3,050 D. 3,085 E. 3,095 F. 3,130 G. 3,145 H. 3,180 I. None of the above
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Prior to recording the adjusting entry for estimating bad debt, XYZ Company has a balance of $100,000 in gross accounts receivable and a debit balance of $500 in the allowance for doubtful accounts. Based on XYZ’s past experience , approximately 5% of total accounts receivable will be uncollectible. Credit sales during the year were $150,000. Using the aging of accounts method, the estimated bad debt expense will be: A. 8,000 B. 7,500 C. 7,000 D. 5,500 E. 5,000 F. 4,500 EXAM 3 A preemptive right enables a shareholder to buy newly issued stock before the company offers it to others Land should not be depreciated A company buys back 300,000 shares of its stock from its investors at $45 a share. Two years later it reissues this stock for $65 a share. The stock reissue
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This note was uploaded on 08/15/2011 for the course ACIS 2115 taught by Professor Jayardley during the Spring '07 term at Virginia Tech.

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Accounting exams - E XAM 2 Which of the following would not...

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