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QUESTION

1. High Step Shoes had annual revenues of $187,000, expenses of $104,700, and dividends of $18,800 during the current year. The retained earnings account before closing had a balance of $299,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:

Debit Retained earnings $82,300; credit Income Summary $82,300

Debit Income Summary $63,500; credit Retained earnings $63,500

Debit Income Summary $82,300; credit Retained earnings $82,300

Debit Retained earnings $63,500; credit Income Summary $63,500

Debit Retained earnings $299,000; credit Income Summary $299,000

QUESTION

1. A company recorded 2 days of accrued salaries of $1800 for its employees on January 31. On February 9, it paid its employees $7800 for these accrued salaries and for other salaries earned through February 9. Assuming the company does not prepare reversing entries, the January 31 and February 9 journal entries are:

1/31 Salaries Expense 1800

Salaries Payable 1800

2/9 Salaries Payable 6000

Salaries Expense 1800

Cash 7800

1/31 Salaries Expense 1800

Salaries Payable 1800

2/9 Salaries Expense 7800

Cash 7800

1/31 Salaries Expense 1800

Cash 1800

2/9 Salaries Expense 7800

Cash 7800

1/31 Salaries Expense 1800

Salaries Payable 1800

2/9 Salaries Expense 6000

Salaries Payable 1800

Cash 7800

1/31 Salaries Payable 1800

Salaries Expense 1800

2/9 Salaries Expense 6000

Salaries Payable 1800

Cash 7800

QUESTION

1. A company has sales of $376,800 and its gross profit is $158,300. Its cost of goods sold equals:

   $535,100.

$376,800.

$158,300.

$(216,700).

$218,500.

QUESTION

1. Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $107,000 in sales during the second quarter of this year. If it began the quarter with $18,700 of inventory at cost and purchased $72,700 of inventory during the quarter, its estimated ending inventory by the gross profit method is:

$29,100.

$18,700.

$16,500.

$32,100.

$22,470.

QUESTION

1. If assets are $410,000 and liabilities are $199,000, then equity equals:

   $1,019,000.

$410,000.

$211,000.

$609,000.

$199,000.

QUESTION 27

1. Rico's Taqueria had cash inflows from operating activities of $35,000; cash outflows from investing activities of $30,000, and cash outflows from financing activities of $20,000. Calculate the net increase or decrease in cash.

$15,000 decrease.

$50,000 decrease.

$85,000 increase.

$15,000 increase.

$45,000 increase.

  

QUESTION

1. A company purchases merchandise with a catalog price of $28,500. The company receives a 40% trade discount from the seller. The seller also offers credit terms of 1/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise?

   $16,929.

$11,571.

$16,571.

$17,100.

$11,400.

QUESTION

1. Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.

  

Date Activities Units Acquired at Cost Units Sold at Retail

May 1 Beginning Inventory 180 units @ $13

5 Purchase 235 units @ $15

10 Sales 155 units @ $23

15 Purchase 115 units @ $16

24 Sales 105 units @ $24

   $4165

$3700

$3540

$7705

$4005

Answer 1

Question

Answer : income summary = revenue - Expenses

= $187000 - $ 104700

= $ 82300

then the closing of income summary will be:

Debit Income Summary $82,300; credit Retained earnings $82,300

QUESTION :A company recorded 2 days of accrued salaries of $1800 for its employees on January 31. On February 9, it paid its employees $7800 for these accrued salaries and for other salaries earned through February 9. Assuming the company does not prepare reversing entries, the January 31 and February 9 journal entries are:

Answer :-

1/31 Salaries Expense 1800

Salaries Payable 1800

2/9 Salaries Expense 6000

Salaries Payable 1800

Cash 7800

QUESTION :A company has sales of $376,800 and its gross profit is $158,300. Its cost of goods sold equals:

Answer :- $ 218500

Gross profit = Sales - Cost of good sold

$158300= $376000- Cost of good sold

Cost of good sold = $376800 - $158300

Cost of good sold   =$218500

QUESTION : Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $107,000 in sales during the second quarter of this year. If it began the quarter with $18,700 of inventory at cost and purchased $72,700 of inventory during the quarter, its estimated ending inventory by the gross profit method is:

Answer : Gross Profit = 30 %

cost of good sold = Sales - 30 % 0f sales

= $107000= $107000*30/100

= $107000 - $32100

= $ 74900

Cost of good sold = Opening stock + Purchase - Closing stock

$74900= $18700+$72700 - Closing stock

closing stock= $ 18700+ $ 72700 - $ 74900

= $ 91400 - $ 74900

Closing stock   =$16500

QUESTION If assets are $410,000 and liabilities are $199,000, then equity equals:

Answer : Assets = Liablities + Equity

$410000= $199000 + Equity

Equity = $ 410000- $ 199000

Equity = $211,000.

QUESTION 27 Rico's Taqueria had cash inflows from operating activities of $35,000; cash outflows from investing activities of $30,000, and cash outflows from financing activities of $20,000. Calculate the net increase or decrease in cash.

Net Increase or decrease in cash = cash inflows from operating activities + Investing activities + Financing activities

= $35000 - $30000 - $ 20000

= - $ 15000

Net decrease in cash = $15,000 decrease.

QUESTION A company purchases merchandise with a catalog price of $28,500. The company receives a 40% trade discount from the seller. The seller also offers credit terms of 1/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise?

Answer : $16,929.

Cost of merchanise = catalog price - Trade discount - credit term discount

= $28500 - 28500 *40/100

= $28500- $ 11400

=$ 17100

= $17100 - $17100*1/100

= $17100 - $ 171

= $16929

QUESTION  Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Answer : cost of good sold under FIFO

May 1 Cost of good sold  155 units @ $13 = $ 2015

24 Cost of good sold 25 units @ $ 13 = $ 325

Cost of good sold   80 units @ $15 = $ 1200

Total Cost of good sold    = $3540