1. Accompanying the bank statement was a credit memo for a short-term note collected by the...

1. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts? a.debit Cash; credit Notes Receivable and Interest Revenue b.debit Notes Receivable; credit Cash c.debit Accounts Receivable; credit Cash d.debit Cash; credit Miscellaneous Income

2. Use the information below to answer the following question. The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $60 First purchase 25 units at $65 Second purchase 30 units at $68 Third purchase 15 units at $75 The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year rounded to the nearest dollar using the average cost method? a.$1,575 b.$1,805 c.$3,705 d.$1,685

3. "To maintain public confidence and trust in the financial reporting of companies" is the purpose of a.Sarbanes-Oxley b.GAAP c.the FASB d.the IRS

Solutions

Expert Solution

The journal entry to record the transaction is :

==> Therefore, Option a is correct.

==> Weighted-average cost per unit = Total cost / Total units = $5,390 / 80 = $67.375 per unit.

==> Cost of ending inventory = $67.375 X 25 units = $1,684.375 = $1,685

Therefore, option d is correct.

==> "To maintain public confidence and trust in the financial reporting of companies" is the purpose of Sarbanes-Oxley Act (SOX). Because it requires documentation and verification of internal control procedures and increased emphasis on effectiveness of internal control. Failure to comply with SOX can lead to financial penalties, stock market delisting, and criminal prosecution of executives.

Therefore, Option a is correct.

ekkarill92 answered 1 year ago

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