A few questions from my test that I would like answered and explained. Please show your work.

1. Leinart Co. had the following inventory transactions for the period. Calculate gross profit using the FIFO cost flow assumptions.

Date		Quantity	Purchase Cost	Selling Price
July 1	Beginning Inventory	350	$1
July 10	Sale	150		$5
July 14	Purchase	400	2
July 17	Sale	300		6
July 28	Purchase	200	4

2. Based on the information below, what amount of impairment loss would be reported?

Asset	Fair value	Estimated cash flows	Book value
Building	$135,000	$138,000	$140,000
Equipment	$25,000	$36,000	$30,000
Truck	$34,000	$45,000	$42,000

3.

The bank shows a cash balance of $17,300 while the company has a cash balance of $9,000. Using the following information, calculate the reconciled balance of cash: Bank service fees = $2,400 Deposits outstanding = $11,000 Note receivable collected by the bank = $8,000 Checks outstanding = $15,000 Non-sufficient funds (NSF) checks = $1,300

4.

How many of the following transactions increase a company"s liquidity?

a.	Provide services on account
b.	Pay workers salaries in the current period
c.	Purchase office supplies with cash
d.	Pay dividends to stockholders

5.

Which of the following statements accurately describes depreciation?

:
Answers:	A. Depreciation is used to track the fair value of the asset
	B. Depreciation is used to allocate the cost of the asset over periods benefited
	C. The book value of an asset is its original cost less accumulated depreciation
	D. Two of the above are correct
	E. All of the above are correct

6. The current year"s beginning and ending balances for Allowance for Uncollectible Accounts is $23,000 and $27,000, respectively. If the amount of Bad Debt Expense for the year is $18,000, what is the amount of actual bad debts for the year?

7. Consider the following transactions: 1. The company uses supplies purchased in the previous period, $1,500. 2. The company pays cash for inventory, $6,000. 3. The company repays a loan to the bank, $10,000 (ignore any interest cost). The amount of accrual-basis expense is _____ while the amount of cash-basis expense is _____.

8. On June 8, Dayne Corp. purchased inventory on account for $15,000 with terms of 3/15. On June 10, Dayne Corp. returned $1,000 worth of inventory, and then paid the remaining balance on June 20. How would Dayne record the payment on June 20?

9. On January 1, 2012, Woodson Inc. purchased a machine that cost $500,000 and had a residual value of $50,000. The machine is expected to produce 360,000 units of cheese and is estimated to last 10 years. If 25,000 units were produced in 2012 and 35,000 were produced in 2013, what amount of Accumulated Depreciation is reported at the end of 2013 using the activity-based method (rounded to the nearest whole dollar if necessary) ?

10.

Vikings Inc. reports the following amounts: How much goodwill would be recorded if Torretta Holdings purchases Vikings for $635,000?

	Book Value	Fair Value
Assets	$400,000	$500,000
Liabilities	$45,000	$45,000
Net income	$25,000

11. Detmer & Co. has the following inventory remaining at the end of the year: The year-end adjustment to Cost of Goods Sold would be:

	Quantity	Cost	Market
Item A	100	5	8
Item B	200	6	4

12. How many of the following transactions would be capitalized? a. Purchase building by signing a long-term note b. Purchase three-year insurance policy in advance c. Pay dividends to stockholders d. Pay utilities for operating a building

13. How many of the following would decrease net income? a. Estimated future uncollectible accounts receivable b. Probable future warranty costs c. Estimated selling price of inventory falling below its original cost d. Impairment of an asset e. Actual bad debt

14.

Leinart Co. had the following inventory transactions for the period. Calculate the cost of goods sold using the average costs method (Do not round until final answer).

Date		Quantity	Purchase Cost	Selling Price
July 1	Beginning Inventory	350	$1
July 10	Sale	150		$5
July 14	Purchase	400	2
July 17	Sale	300		6
July 28	Purchase	200	4

15. Leinart Co. had the following inventory transactions for the period. Calculate the balance of ending inventory using the LIFO cost flow assumption.

Date		Quantity	Purchase Cost	Selling Price
July 1	Beginning Inventory	350	$1
July 10	Sale	150		$5
July 14	Purchase	400	2
July 17	Sale	300		6
July 28	Purchase	200	4