7) Given the following information, determine the cost of goods sold at December 31 using the LIFO periodic inventory method:

December 2: 15 units were purchased at $8.00 per unit. December 9: 20 units were purchased at $10.40 per unit. December 11: 22 units were sold at $36.00 per unit. December 15: 30 units were purchased at $11.15 per unit. December 22: 28 units were sold at $36.00 per unit.

$627.50

$542.50

$509.62

$495.25

$662.50

8) On January 1, a company issued and sold a $392,000, 5%, 10-year bond payable, and received proceeds of $387,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:

debit Bond Interest Expense $9,550; debit Discount on Bonds Payable $250; credit Cash $9,800.

debit Bond Interest Expense $9,800; credit Cash $9,800.

debit Bond Interest Expense $9,800; debit Discount on Bonds Payable $250; credit Cash $10,050.

debit Bond Interest Expense $19,600; credit Cash $19,600.

debit Bond Interest Expense $10,050; credit Cash $9,800; credit Discount on Bonds Payable $250.

9) Refer to the following selected financial information from Shakley's Incorporated. Compute the company's debt-to-equity ratio for Year 2.

	Year 2				Year 1
Net sales	$	488,000			$	428,150
Cost of goods sold		278,200				252,020
Interest expense		11,600				12,600
Net income before tax		69,150				54,580
Net income after tax		47,950				41,800
Total assets		320,900				299,400
Total liabilities		171,900				169,200
Total equity		149,000				130,200
10) Given the following items and costs as of the balance sheet date, determine the value of Faltron Company's merchandise inventory. $1,100 of goods sold by Faltron to another company are in transit and shipping terms are FOB destination. $1,800 of goods sold by another company to Faltron are in transit and shipping terms are FOB destination. $2,100 of goods owned by Faltron are in the possession of a consignee. Damaged goods owned by Faltron that originally cost $3,600 now have a $500 net realizable value. $8,500 $5,500 $4,200 $4,800 $3,700

0.87.

3.28.

2.15.

1.15.

1.87.