30.If Cost of Goods Sold is $27,000, Beginning Inventory is $10,000, and Purchases totaled $30,000 in a month, what should Ending Inventory be equal to?

a. $3,000

b. $47,000

c. $7,000

d. $13,000

31. If ending inventory is erroneously understated (Clue: think of Cost of Goods Sold formula and Gross Profit formula):

a. Cost of merchandise sold is understated and gross profit/net income is overstated

b. Cost of merchandise sold is overstated and gross profit/net income is understated

c. Cost of merchandise sold is understated and gross profit/net income is understated

d. Cost of merchandise sold is overstated and gross profit/net income is overstated

32.What is the total stockholders' equity based on the following account balances?

Common Stock$400,000

Paid-In Capital in Excess of Par$25,000

Retained Earnings$200,000

Treasury Stock$50,000

a. $675,000

b. $575,000

c. $625,000

d. $600,000

33.The journal entry to issue 1,000,000 shares of $6 par common stock for $8.00 per share on January 2nd would be:

a. Jan 2Cash8,000,000

Common Stock6,000,000

Paid-In Capital in Excess of Par - C/S2,000,000

b. Jan 2Cash6,000,000

Common Stock6,000,000

c. Jan 2Cash6,000,000

Paid-In Capital in Excess of Par - C/S2,000,000

Common Stock8,000,000

d. Jan 2Cash1,000,000

Common Stock1,000.000

34.Stock Splits and Stock Dividends:

a. increase total Stockholders' equity

b. decrease total Stockholders' equity

c. have no impact on total Stockholders' equity

d. increase net income

35.Which of the following applications of the rules of debit and credit is true?

a. decrease Prepaid Insurance with a credit and the normal balance is a credit

b. increase Accounts Payable with a credit and the normal balance is a debit

c. increase Supplies Expense with a debit and the normal balance is a debit

d. decrease Cash with a debit and the normal balance is a credit