36. ABC Inc., uses a perpetual inventory system and LIFO method. The beginning inventory of a particular product as of June 1 comprises 258 units at a cost of $20 per unit The following information pertains to the purchases of that product made during June: Purchase date June 7 June 18 No. of units purchased 32 69 Unit cost $21.5 $22.3 On June 20, the company sells 33 units at a selling price of $120 per unit. What is gross profit for the sale made on June 20?* (3 Points) $3,224.1 $735.9 $660 $770 35. Pool Company invested $42,000 in marketable securities on March 3. On March 15, it sold some of these investments for $23,000, and on March 28, it sold more of these investments for $13,000. The securities sold on March 15 had cost the company $20,000, whereas the securities sold on March 28 had cost the company $15,000. On March 28, Pool company should record: (3 Points) Gain on sale of investment for $2,000 Gain on sale of investment for $3,000 Gain on sale of investment for $23,000 Loss on sale of investment for $2,000 32. The balance of accounts receivable is $75,000. Prior to adjustment, the allowance for uncollectible accounts has a credit balance of $7,200. Income statement approach is used to estimate expected uncollectible accounts. Net credit sales for the year were $280,000 and cash sales were $168,000. Historical data indicates that approximately 3% of net credit sales are uncollectible. What is the amount of uncollectible expense that should be reported for the period? (3 Points) $1,200 $5,040 $13,440 $8,400 31. Wool Company sells a variety of merchandise (goods) to customers on account. If any customer fails to pay an invoice when due must replace their account receivable with an interest-bearing note. The company adjusts and closes its accounts at December 31. Among the transactions relating to notes receivable were the following: October 1, 2019 Received from a customer (Corner Store) a seven-month, 12 percent note for $30,000 in settlement of an account receivable due today. June 1, 2020 Collected in full the seven-month, 12 percent note receivable from Corner Store, including interest. In general journal, to record the collection of the note on June 1, 2020: * (3 Points) Cash is debited by $32,100 Interest revenue is debited by $400 Note receivable is debited by $30,000 Interest revenue is credited by $2,100 29. The following information is obtained from a bank reconciliation: Adjusted balance per company records, $6,750 Deposit in transit, $1,500 NSF check, $210 Unadjusted balance per company records, $7,000 Outstanding checks, $640 Service charge, ? What is the amount of service charge? (3 Points) $640 $40 $460 some other amount 28. Pool Company invested $42,000 in marketable securities on March 3. On March 15, it sold some of these investments for $23,000, and on March 28, it sold more of these investments for $13,000. The securities sold on March 15 had cost the company $20,000, whereas the securities sold on March 28 had cost the company $15,000. On March 15, Pool company should record: * (3 Points) Loss on sale of investment for $2,000 Gain on sale of investment for $3,000 Gain on sale of investment for $8,000 Gain on sale of investment for $23,000 27. Annual sales of a company are approximately $18 million. At the end of year 1, accounts receivable were presented in the company's balance sheet as follows: Accounts Receivable Less: Allowance for doubtful accounts $120,000 18,000 During year 2, $25,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $5,000 were subsequently collected. At the end of year 2, an aging of accounts receivable indicated a need for a $19,000 allowance to cover possible failure to collect the accounts currently outstanding, The company makes adjusting entries for uncollectible accounts only at year-end. In recording the accounts written off, which of the following is correct? * (3 Points) Debit uncollectible accounts expense; Credit: allowance for doubtful accounts Debit: allowance for doubtful accounts; Credit: accounts receivable Debit: uncollectible accounts expense; Credit: allowance for doubtful accounts Debit: accounts receivable; Credit: allowance for doubtful accounts 26. An Unrealized Holding Gain (or Loss) on Investments classified as "available-for-sale" securities: (2 points) Appears in the current period income statement, combined with realized gains and losses from sales of securities. Is reported in the asset section of the balance sheet, as an adjustment to the carrying value of the marketable securities Is reported in the stockholders' equity section of the balance sheet, as either an increase or decrease in total stockholders' equity. Indicates the amount of cash a company would receive if the marketable securities were sold as of the balance sheet date. 24. The accounting records of Golden Company showed cash of $15,250 at June 30. The balance per the bank statement at June 30 was $15,125. The only reconciling items were deposits in transit of $3,200, outstanding checks totaling $4,100, an NSF check for $1,000 returned by the bank which Golden had not yet charged back to the customer, and a bank service charge of $25. The preparation of the bank reconciliation should indicate that Golden's adjusted cash balance at June 30 is: * (3 Points) $14,474 $15,525 $14,225 $15,375 23. Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Beginning inventory (Jan. 1) Purchase (Jan. 11) Purchase (Jan. 20) Total Quantity 16 14 23 53 Unit Cost $ 10 $ 12 $ 15 Total Cost $ 160 168 345 $ 673 On January 24, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at January 31. Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of ending inventory at January 31 is: * (3 Points) $278 $268 $304 $393 22. On November 1, Willis Corporation sold merchandise in return for a 6%, three-month note receivable in the amount of $60,000. The maturity value of the note is: * (3 Points) $60,400 $900 $63,600 $60,900 21. Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. Its Allowance for Doubtful Accounts has a $1,200 debit balance prior to adjusting entries. It has just completed an aging analysis of accounts receivable at December 31, 2018. This analysis disclosed the following information: Age Group Total Not yet due $ 1-30 days past due $ 31-60 past due $ Percentage Considered Uncollectible % 2 % 8 % 1 52,000 30,000 13,000 What is the amount of uncollectible accounts expense that should be recorded at December 31, 2018? (3 Points) $95,000 $2,160 $3,360 $960 20. Pool Company invested $42,000 in marketable securities on March 3. On March 15, it sold some of these investments for $23,000, and on March 28, it sold more of these investments for $13,000. The securities sold on March 15 had cost the company $20,000, whereas the securities sold on March 28 had cost the company $15,000. Assuming the fair market value of the company's remaining unsold securities was $6,800. The necessary fair value adjustment at the end of the period will include (3 Points) Unrealized holding gain on investment of $200 Unrealized holding gain on investment of $800 Unrealized holding loss on investment of $200 none of the above 19. On November 1, Willis Corporation sold merchandise in return for a 6%, three month note receivable in the amount of $60,000. The proper adjusting entry at December 31 (end of Willis fiscal year) includes a: * (3 Points) Debit to Interest Receivable of $300. Credit to Notes Receivable of $900. Debit to Cash of $600. Credit to Interest Revenue of $600. 18. Fisher Corporation invested $320,000 cash in available-for-sale marketable securities in early December. On December 31, the quoted market price for these securities is $337,000. Which of the following statements is correct? * (3 Points) Fisher's December 31 balance sheet reports marketable securities at $337,000 and an unrealized holding gain on investments of $17,000. Fisher's December income statement includes a $17,000 gain on investments. Fisher's December 31 balance sheet reports marketable securities at $320,000 and an unrealized holding gain on investments of $17,000. If Fisher sells these investments on January 2 for $300,000, it will report a loss of $37,000. 17. The Cash account in the ledger of Hensley, Inc. showed a balance of $8,100 at June 30. The bank statement, however, showed a balance of $8,900 at the same date. The only reconciling items consisted of a $1,000 deposit in transit, a bank service charge of $70, and outstanding checks of $700. What is adjusted cash balance per bank statement at June 30?* (3 Points) $9,093 $8,400 $9,200 $9,130 16. Wool Company sells a variety of merchandise (goods) to customers on account. If any customer fails to pay an invoice when due must replace their account receivable with an interest-bearing note. The company adjusts and closes its accounts at December 31. Among the transactions relating to notes receivable were the following: October 1, 2019 Received from a customer (Corner Store) a seven-month, 12 percent note for $30,000 in settlement of an account receivable due today June 1, 2020 Collected in full the seven month, 12 percent note receivable from Corner Store, including interest In general journal, to record the adjustment for interest on December 31, 2019: (3 Points) Interest receivable is credited by $2,100 Interest receivable is debited by $900 Interest revenue is debited by $900 Interest receivable is debited by $300 15. Annual sales of a company are approximately $18 million. At the end of year 1, accounts receivable were presented in the company's balance sheet as follows: Accounts Receivable $120,000 Less: Allowance for doubtful accounts 18,000 During year 2. $25,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $5,000 were subsequently collected. At the end of year 2, an aging of accounts receivable indicated a need for a $19,000 allowance to cover possible failure to collect the accounts currently outstanding. The company makes adjusting entries for uncollectible accounts only at year-end. In the adjusting entry required at December 31, year 2, to increase the Allowance for Doubtful Accounts to $19,000:- (3 Points) The allowance for doubtful accounts should be credited by $21,000 The allowance for doubtful accounts should be credited by $19,000 The allowance for doubtful accounts should be credited by $1,000 The allowance for doubtful accounts should be credited by $26,000 14. In the following table, purchases pertaining to particular for the month of July are presented: Purchases Date July 2 July 12 July 21 July 22 Quantity Unit cost($) 2,890 1.4 1,567 1.5 3,765 1.7 1,672 1.9 Perpetual inventory system is used. On July 23, 2,900 units are sold. What is cost of goods sold for the sale on July 23 under FIFO? (3 Points) some other amount $3,5644 $3,068 $4,061 13. Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Beginning inventory (Jan. 1) Purchase (Jan. 11) Purchase (Jan. 20) Total Quantity 16 14 23 53 Unit Cost $ 10 $ 12 $ 15 Total Cost $ 160 168 345 $ 673 On January 14, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at January 31. Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is: * (3 Points) $393 $369 $278 $268 10. Grant Company gathered the following reconciling information in preparing its July bank reconciliation: Cash balance per books, July/31 $5,500 Deposits in transit 150 Notes receivable and interest collected by bank 850 Outstanding checks 2,000 NSF check 190 The adjusted cash balance per books on July 31 is (3 Points) $6,200 $6,010 $4,460 $6,160 8. ABC Inc., uses a perpetual inventory system and FIFO method. The beginning inventory of a particular product as of June 1 comprises 258 units at a cost of $20 per unit The following information pertains to the purchases of that product made during June: Purchase date June 7 June 18 No. of units purchased 32 69 Unit cost $21.5 $22.3 On June 20, the company sells 33 units at a selling price of $120 per unit. What is cost of goods sold for the sale made on June 20?* (3 Points) $757 $735,9 $660 none of the above 7. Yenn Company developed the following reconciling information in preparing its September bank reconciliation: Cash balance per bank, September 30 $15,000 Note receivable collected by bank $6,000 Outstanding checks $9,000 Deposits in transit $4,500 Bank service charge $75 NSF check $1,2 Determine the cash balance per books (before adjustments) for Yenn Company. (3 Points) $11,775 $5,775 $15,000 $19500 7. Yenn Company developed the following reconciling information in preparing its September bank reconciliation: Cash balance per bank, September 30 $15,000 Note receivable collected by bank $6,000 Outstanding checks $9,000 Deposits in transit $4,500 Bank service charge $75 NSF check $1,2 Determine the cash balance per books (before adjustments) for Yenn Company. (3 Points) $11,775 $5,775 $15,000 $19500 6. The following information is obtained from a bank reconciliation: Adjusted balance per bank statement, $7,650 Deposit in transit, $1,500 NSF check, $210 Unadjusted balance per bank statement $7,000 Outstanding checks, ? what is the amount of outstanding checks? (3 Points) some other amount $1,060 $850 $640 5. Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. Its Allowance for Doubtful Accounts has a $1,200 credit balance prior to adjusting entries. It has just completed an aging analysis of accounts receivable at December 31, 2018. This analysis disclosed the following information: Age Group Total Not yet due $ 1-30 days past due $ 31-60 past due $ Percentage Considered Uncollectible % 2 % 8 % 52,000 30,000 13,000 1 What is the amount of uncollectible accounts expense that should be recorded at December 31, 2018? (3 Points) $1,260 $1,000 $2,160 $960 4. In the following table, purchases pertaining to particular for the month of July are presented: Purchases Date July 2 July 12 July 21 July 22 Quantity 2,890 1,567 3,765 1,672 Unit cost($) 1.4 1.5 1.7 1.9 Perpetual inventory system is used. On July 23, 2,900 units are sold. What is cost of goods sold for the sale on July 23 under LIFO? (3 Points) $4,061 $3,068 $2,816.7 $5,2644 2. In the following table, purchases pertaining to particular for the month of July are presented: Purchases Date July 2 July 12 July 21 July 22 Quantity Unit cost($) 2,890 1.4 1,567 1.5 3,765 1.7 1,672 1.9 Perpetual inventory system is used. On July 13, 2,900 units are sold. What is cost of goods sold (rounded) for the sale on July 13 under Average cost method?* (3 Points) $3,068 $4,061 some other amount $4,162 1. The balance of accounts receivable is $75,000 as of end of the period. Prior to adjustment, the allowance for uncollectible accounts has a credit balance of $7,200. Income statement approach is used to estimate expected uncollectible accounts. Net credit sales for the year were $280,000 and cash sales were $168,000. Historical data indicates that approximately 3% of net credit sales are uncollectible. What is net realizable value of receivables as of end of the period? * (3 Points) $73,800 $59,400 $69,960 $61,660