PracticeFinalExam_30A_noSolutions.pdf

# On january 15 nifty company sells merchandise on

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14. On January 15, Nifty Company sells merchandise on account to Martinez for \$5,000 with terms 3/10, n/30. On January 20, Martinez returns merchandise worth \$1,000 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received by Nifty? A. \$4,000 B. \$3,880 C. \$3,850 D. \$2,800

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30A-Principles of Accounting Fall 2018 Practice Final Exam 5 15. A company receives \$264, of which \$24 is for sales tax. The journal entry to record the sale would include a: 16. RKJ Company has provided the following: 100,000 shares of \$5 par value common stock are authorized; 70,000 shares have been issued; 65,000 shares are outstanding. Which of the following statements is correct? 17. Danner Corporation reported net sales of \$650,000, \$720,000, and \$780,000 in the years 2016, 2017, and 2018, respectively. If 2016 is the base year, what percentage do 2018 sales represent of the base: 18. A corporation purchases 30,000 shares of its own \$10 par common stock for \$25 per share, recording it at cost. What will be the effect on total stockholders’ equity? ? A. Increase by \$300,000. B. Decrease by \$750,000. C. Increase by \$750,000. D. Decrease by \$300,000. 19. If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at?
30A-Principles of Accounting Fall 2018 Practice Final Exam 6 20. A company has an ending accounts receivable balance of \$1,800,000 and it estimates that uncollectible accounts will be 2% of the receivable balance. If Allowance for Doubtful Accounts has a credit balance of \$4,000 prior to adjustment, its balance after adjustment will be a credit of: Section III Free response questions. Show your work for partial credit. 21. (11 points) Johnson Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 225 \$5 \$1,125 12 Purchase 525 6 3,150 23 Purchase 750 7 5,250 30 Inventory 280 Requirements: (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average cost. (9 points) Method: Ending Inventory Cost of Goods Sold FIFO LIFO Weighted-Average (b) Which costing method gives the highest ending inventory? The highest cost of goods sold? Why? (2 points)

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30A-Principles of Accounting Fall 2018 Practice Final Exam 7 22. (4 points) On April 1, Holton Company borrows \$100,000 from West Bank by signing a 6-month, 6%, interest-bearing note.
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