of ?/10, n/30. The cost of the merchandise sold was $43,800. During the discount period, Fugate Company returned $3,000 of merchandise and paid its account in full (minus the discount) by remitting $69,300 in cash. Both companies use a perpetual inventory system. Instructions Prepare the journal entries that Noble Company made to record: (1)the sale of merchandise. (2)the return of merchandise. (3)the collection on account. V. (10%) Purdy Company is in the electronics industry and the price it pays for inventory isDECREASINGInstructions By using the FIFO or Average-cost method, indicate which inventory method will: a.provide the lowest ending inventory. b.provide the highest cost of goods sold. c.result in the highest net income. . P.5 Attention: 1. For fairness and justice, students should be self-disciplined to maintain school’s and students’ honor. 2. Chatting, taking examination papers out, peeping, and other misconduct are prohibited during the examination. Violators will be seriously punished. ATRX-Q03-001-FM256-01
Tamkang University Examination Paper (Academic Year:105Semester:1Exam:MidtermGraduationFinal） Course Title:Accounting Class No. Code: Test Date:01/1(mm/dd),2（period）Class Instructor：LIN, KU-JUNTotal pages: Please mark what is allowed to bring in:▓Calculators▓Textbooks▓Notebooks▓Electronic dictionary▓DictionaryOther: d.result in the lowest income tax expense. e.produce the most stable earnings over several years. Answer:
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VI. (6%) Eckert Company reported the following summarized annual data at the end of 2017: Sales revenue$1,000,000 Cost of goods sold*600,000 Gross margin400,000 Operating expenses270,000 Income before income taxes$130,000 *Based on an ending FIFO inventory of $250,000. The income tax rate is 30%. The controller of the company is considering a switch from FIFO to average- cost. He has determined that on an average-cost basis, the ending inventory would have been $220,000. Instructions What effect, if any, would the proposed change have on Eckert's income tax expense and net income?
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ATRX-Q03-001-FM256-01
Tamkang University Examination Paper (Academic Year:105Semester:1Exam:MidtermGraduationFinal） Course Title:Accounting Class No. Code: Test Date:01/1(mm/dd),2（period）Class Instructor：LIN, KU-JUNTotal pages: Please mark what is allowed to bring in:▓Calculators▓Textbooks▓Notebooks▓Electronic dictionary▓DictionaryOther: VII. (20%) For each of the independent events listed below, analyze the impact on the indicated items at the end of the current year by placing the appropriate code letter in the box under each item. Code: O=item is overstated U=item is understated NA=item is not affected Events Items AssetsEquityCost ofGoods SoldNet Incom e 1.A physical count of goods on hand at the end of the current year resulted in some goods being counted twice. 2.The ending inventory in the previous period was overstated. 3.Goods purchased on account in December of the current year and shipped FOB shipping point were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by P.7 Attention: 1. For fairness and justice, students should be self-disciplined to maintain school’s and students’ honor. 2. Chatting, taking examination papers out, peeping, and other misconduct are prohibited during the examination. Violators will be seriously punished.
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