Quiz2Form1 - SAMPLE QUIZ 2- Form 1 1. Perry Company...

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SAMPLE QUIZ 2- Form 1 1. Perry Company reported the following data at year-end: Sales, $100,000; Beginning inventory, $8,000; Ending inventory, $6,000; Cost of goods sold, $60,000; and Gross margin, $40,000. What was the amount of merchandise purchases for the year? A) $58,000. B) $68,000. C) $46,000. D) $40,000. E) None of the above 2. Use the following items from Jarchow’s Jumping Jacks income statement to compute its net income: Cost of goods sold $400,000 Selling, general and administrative expenses 200,000 Miscellaneous income 20,000 Net sales 650,000 Income tax expense 15,000 (Net loss) from discontinued operations (net of tax) (10,000) Extraordinary gain 30,000 What is Jarchow’s net income to be reported on the income statement? A) $75,000. B) $55,000. C) $85,000. D) $65,000. E) None of the above is correct. 3. Lafferty’s Laughing Lizards gross profit percentage has been increasing in the three years from 2007 through 2009 from 36.5% to 39.8%. This change has most likely been caused by A) higher product costs B) selling products with lower margins C) selling products for higher prices D) none of the above E) all of the above
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4. Matt’s Mattress Company made the following journal entries (1) to write off an
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This note was uploaded on 03/12/2012 for the course ACC 201 taught by Professor Bokmier during the Fall '10 term at Michigan State University.

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Quiz2Form1 - SAMPLE QUIZ 2- Form 1 1. Perry Company...

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