Question
3. Samson Co. sold $4,000 of goods to Ramsey Co. on account. Ramsey later returned $500 of the goods purchased from Samson. Upon receipt of
3.
Samson Co. sold $4,000 of goods to Ramsey Co. on account. Ramsey later returned $500 of the goods purchased from Samson. Upon receipt of the returned merchandise, Samson should record a
a. debit to Sales Returns and Allowances for $500. | ||
b. debit to Accounts Receivable for $500. | ||
c. debit to Cash for $500. | ||
d. credit to Sales for $500. |
4.
Use the following information for this question:
June 1 Inventory 100 @ $1.00
6 Purchased 150 @ $1.10
13 Purchased 50 @ $1.20
20 Purchased 100 @ $1.30
25 Purchased 25 @ $1.40
Total Units Sold in June: 300 units
Using the last-in, first-out (LIFO) method, the COST OF GOODS SOLD is
a. $362.50 | ||
b. $127.50 | ||
c. $325 | ||
d. $165 |
5.
Which of the following is not correct according to the accounting rules for when to record revenues and expenses?
a. Recording revenue upon performance of a service that the customer paid for in advance | ||
b. Recording revenue upon receipt of payment for services performed in a prior accounting period | ||
c. Adjusting prepaid expenses at the end of the month for the portion that has expired during the month | ||
d. Recording Interest Expense at the end of the month for the month's accrued interest on corporate debt |
6.
On January 1, Sonar Corporation issued 20-year bonds payable with a face value of $1,000,000 and a payment (face) rate of 8%, with interest payments made semiannually. At the time the bonds were issued, the market interest rate for bonds of similar risk was 10%, compounded semiannually. Which table, rate, and number of periods would be used to find the present value of the semiannual interest payments?
a. PV Single, 5%, 40 periods | ||
b. PV Annuity, 5%, 20 periods | ||
c. PV Annuity, 10%, 20 periods | ||
d. PV Annuity, 5%, 40 periods |
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