19. A trial balance taken at year-end showed total credits exceeding total by $4,950. This discrepancy could have been caused by: A. An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash B. The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950 C. The balance of $5,500 in the Office Equipment account being entered the trial balance as a debit of $550 D. An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable. 22. Acme Company has an agreement with a major credit card company which calls for cash to be received immediately upon deposit of Acme customers' credit card sales receipts. The credit card company receives 3.5% of card sales as its fee. If Acme has $2,000 in credit card sales, which of the following statements is the correct entry in the accounts? A. Debit Accounts Receivable - Credit Card Co $2,000 B. Debit Cash $1,930 C. Debit Accounts Receivable - Credit Card Co $1,930 D. Debit Cash $2,000 23. A company's warehouse was destroyed by a tornado on March 15. The following information was the only information that was salvaged: Inventory, beginning: $28,000 Purchases for the period: $17,000 Sales for the period: $55,000 Sales returns for the period: $700 The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory? A. $9,705 B. $25,995 C. $29,250 D. $4 4,000 *24. Shown below are a company's ledger accounts and their end-of-period balances after adjustments and before closing entries are posted. What amount will be the ending Retained Earnings? (Assume all accounts have normal balances.) Retained earnings $14.000 Dividends 19,200 Sales Revenue 58.000 Rent expense 7.200 Salaries expense......... 14.400 Insurance expense.................... 840 Depr Expense-equipment 900 Accum depr.-equipment 2.500 25. A company has the following accounts. What is the acid test ratio? Cash 56.754 Dividends $2.000 Accounts receivable 13.733 Consulting fees earned 13.718 Office supplies 2.623 Rent expense 3,673 Land 37.153 Salaries expense 6,642 Office equipment 14.535 Telephone expense 560 Accounts payable 6,463 Miscellaneous expense Common stock 54.490 Retamed Eamings 13.847 A. 3.58% B. 3.16% C. 1.80% 4.00% 280 27. On February 1, Paymore Inc. had a balance of $105,000 in Accounts Receivable. During February the company collected $78,000 from its credit customers. Also, the customer returned goods worth $11,650 because of wrong specification. The balance in Accounts Receivable at 2/28 is $83,000. What was the amount of credit sales for the month of February? A. $83,000 B. 127,500 C. 67,650 83,000 * 28. Fluffy Pet Grooming deposits all cash receipts on the day when they are received and all cash payments are made by check. At the close of business on June 30, its Cash account shows a $14,811, debit balance. Fluffy Pet Grooming's June 30 bank statement shows $14,472 on deposit in the bank. a. Outstanding checks as of June 30 total $2.261. b. The June 30 bank statement included a $75 debit memorandum for bank services c. Check No. 919, listed with the canceled checks, was correctly drawn for $789 in payment of a utility bill on June 15. Fluffy Pet Grooming mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of S798. d. The June 30 cash receipts of $2,534 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Required: Prepare the bank reconciliation statement for Fluffy Pet Grooming for the month of June and determine the adjusted bank balance. A. $14,265 B. $14,745 C. $14,677 D. $14,538 29. A company has net sales of $1,832,000, sales commissions in the amount of $194,000, net income was $366,400, and the gross profit ratio is 60%, what is the amount of cost of goods sold? A. $538,800 B. $732,800 C. $655,200 D. $879,360 31. A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory. January Purchased 100 units at $10 per unit February 5 Purchased 60 units at $12 per unit March 16 Sold 40 Units for $16 per unit Prepare the general journal entries to record the March 16 sale using the LIFO inventory valuation method. Mar. 16 Cash ($16 x 40) 640 Mar 16 Cost of goods sold (S12 x 40) Merchandise inventory Sales 480 *32. A company markets a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows: January 1: Beginning balance of 18 units at S13 cach January 12: Purchased 30 units at $14 cach. January 19 Sold 24 units at S30 selling price cach. January 20 Purchased 24 units at $17 cach. January 27: Sold 27 units at S30 selling price cach. Required: Using the LIFO method of valuation, determine the cost of sales and value of the ending inventory. 33. A company had gross profit of $134,200 on net sales of $205,000. If ending inventory was $8,000 and average inventory was $7,080, what is the company's inventory turnover? A. 10.0 B. 8.85 C. 16.77 D. 18.95 34. A company purchased $1,500 of merchandise on credit with terms 3/15, n/30. How much will be debited to Accounts Payable if the company pays $485 cash on this account within ten days? A. $485; B. $500; C. $435; D. $470.45 35. A company had expenses other than cost of goods sold of $250,000. Determine sales and gross profit given cost of goods sold was $100,000 and net income was $150,000. A. Sales: $350,000; Gross Profit: $150,000 B. Sales: $350,000; Gross Profit: $50,000 C. Sales: $500,000; Gross Profit: $400,000 D. Sales: $500,000; Gross Profit: $50,000 38. Given the following information: Petty cash balance: S450.00 Courier receipt: S82.50 Postage receipt: S48.00 Office Supplies receipt S56.22 Business Meal receipt: S102.34 Cash on hand at the end of the month: $76.21 What is the amount that needs to be reimbursed? A. $365.27 B. $289.06 C. $373.79 D. $289.00 39. The Unadjusted Trial Balance columns of a work sheet total $84,000. The Adjustments columns contain entries for the following: Office supplies used during the period, $1,200. Expiration of prepaid rent, $700. Accrued salaries expense, $500. Depreciation expense, $800. Accrued service fees receivable, $400. The Adjusted Trial Balance columns total is: A. $80,400 B. $84,000 C. $85,700 D. $85 ,900 *40. From the below information from the books of Perfect Services Company, prepare the income statement for period ended 9/30/2019. The common stock of the company is $55,000. Cleaning expenses $3,500 Accounts payable $15,300 Accounts receivable 21,600 Office equipment 41,850 Cash 13,400 Dividends paid 7.000 Fees earned 45,000 Salaries expense 9,700 Notes payable 14,000 Rent expense 4,500 Telephone expenses 2,500 Depreciation (office equip) 175