31 32 33 Question 27 (4 points) The Matisse Co. sells hula hoops the company purchases from their supplier, the Goop Co. At year end, the Matisse Co. sold a total of 1,200 hula hoops at a selling price of $10 per unit. The following information relates to inventory for the current 34 35 36 year: 37 38 39 40 41 Beginning Inventory: 100 units @ $2.00 per unit Purchase 1: 300 units @ $2.20 per unit Purchase 2: 500 units @ $3.00 per unit Purchase 3: 500 units @ $4.00 per unit Question: Using FIFO (First in First out). Cost of Goods Sold for the year would be: I . 43 45 ! $3.940. $3.560 50 51 $800. $4,360, 35 36 Question 35 (4 points) On October 1, 2020, the Petty Co. loaned $20,000 to the American Girl Co. The loan is a one-year note with an interest rate of 10%. All payments for principal and interest will be received by the Petty Co. on September 30, 2021. 38 39 41 42 On October 1, 2020, after the Petty Co. prepares the journal entry to record the note, overall: 3 44 45 1 6 47 48 Total assets and total liabilities will increase. Total assets and total liabilities will decrease. Total assets will remain unchanged. None of the above. 49 50 51 35 50 38 39 Question 36 (4 points) On October 1, 2020, the Petty Co. loaned $20,000 to the American Girl Co. The loan is a one-year note with an interest rate of 10%. All payments for principal and interest will be received by the Petty Co. on September 30, 2021. How much total Interest Revenue will the Petty Co, report at year end on 12/31/2020? 41 42 -- -- 44 45 $333.33. $0; all interest will be recognized in the year cash is received. $2,000. 5 47 48 $500 31 32 33 34 35 36 Question 26 (4 points) A multi-step income statement, used by a merchandise company, includes all of the following except: 37 36 39 cost of goods sold 1 40 42 merchandise inventory net sales revenue. 44 45 I operating expenses. 46 47 48 gross profit