#8 In which scenario would the specific identification of inventory costing method be most appropriate? a. An automobile dealership b. A dollar store C. A grocery store d. A clothing retailer #9 Which is true about bank reconciliations? a. Adjustments on the "bank" side require the company to record additional journal entries b. Outstanding cheques are a reconciling item on the "book" side c. Bank service charges are an adjustment on the "bank" side d. Errors can require adjustment on either side, depending on what the error is. Questions #10, #11 #12 and #13 are all based on the following scenario: Mack Inc. uses a periodic inventory system. It started the year on January 1st with 800 units of Product A which each costs $20. Purchases of Product A during the year were as follows: 2 Date Quantity purchased Unit cost Total cost February 2nd 500 $21 $10,500 September 17th 800 $22 $17,600 On December 31 , an inventory count was performed. It was determined that 200 units of Product A remained in the ending inventory. #10: How many units of Product A did Mack Inc. sell during the year? a. 200 units b. 1,300 units 1900 1Plumbers-on-the-Go Lid. started the year with total assets of $120,000 and total liabilities of $75,000. During the year, the business recorded $82,000 in service revenues ($52,000 was cash, $30,000 was on account), $45,000 in expenses, and paid dividends of $2,500. #25: Shareholders' equity at the end of the year was? a. $79,500 b. $45,000 C. $82,000 $77,000 #26: Net income for the year was? a. $34,500 b. $37,000 C. $45,000 d. $7,000 #27: On June 3, 2018, Doug Corporation purchased $4,000 worth of merchandise, terms 2/10, n/30, from Robert Corporation. The cost of the merchandise to Robert Corporation was $2,600. The shipping terms are FOB destination and the freight cost was $150. Doug Corporation pays for the merchandise on June 9, 2018. How much cash does Doug Corporation pay for the whole transaction? a. $4,070 b. $3,920 C. $4,150 $4,000 #28: The following table summarizes the sales for the month of July for Perfect Platters Wholesalers Inc. The table includes the terms, sales returns and when payment was collected for each sale. Date Sale Amount Terms Returns Date Collected April 3 $ 900 2/10, n/30 $ 50 April 9 April 9 1,300 3/10, n/30 200 April 21 April 11 450 2/10, n/30 0 April 13 How much cash does Perfect Platters Wholesale collect during July? a. $2,623 b. $2,341 c. $2,374 d. $2,650 #29: Beginning Inventory plus purchases equals? a. Cost of Goods sold b. Ending Inventory c. Purchases d. Cost of goods available for sale
