assignment is in attachment. very simple assignment.

Question 1 After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the adjustments columns of the worksheet. adjusted trial balance. postclosing trial balance. the general journal. Question 2 The net income (or loss) for the period is found by computing the difference between the income statement credit column and the balance sheet credit column on the worksheet. is found by computing the difference between the income statement columns of the worksheet. is found by computing the difference between the trial balance totals and the adjusted trial balance totals. cannot be found on the worksheet. Question 3 If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a debit to the retained earnings account. debit to the owner's dividends account. Credit to the owner's dividend account. Question 5 A postclosing trial balance will show zero balances for balance sheet accounts. zero balances for all accounts. only balance sheet accounts. Only income statement accounts Question 6 Which of the following steps in the accounting cycle would not generally be performed daily? Analyze business transactions Post to ledger accounts Prepare adjusting entries Journalize transactions Question 7 The two optional steps in the accounting cycle are preparing reversing entries and a worksheet. an adjusted trial balance and a postclosing trial balance. a postclosing trial balance and reversing entries. a worksheet and post closing trial balances. Question 8 Speedy Bike Company received a $940 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $490 and a credit to Service Revenue $490. The correcting entry is debit Cash, $450 and Accounts Receivable, $490; credit Service Revenue, $940. debit Cash, $450 and Service Revenue, $490; credit Accounts Receivable, $940. debit Accounts Receivable, $940; credit Cash, $450 and Service Revenue, $490. debit Cash, $940; credit Accounts Receivable, $940. Question 9 The first item listed under current liabilities is usually taxes payable. accounts payable. notes payable. salaries payable. Question 10 The operating cycle of a company is the average time that is required to go from cash to cash in producing revenues. accounts receivable in producing revenues. sales in producing revenues. inventory in producing revenues. Question 11 On a classified balance sheet, current assets are customarily listed in the order of liquidity. with the largest dollar amounts first. in the order of acquisition. in alphabetical order. Question 12 The most important information needed to determine if companies can pay their current obligations is the relationship between current assets and current liabilities. relationship between shortterm and longterm liabilities. projected net income for next year. net income for this year. Question 13 Balance sheet accounts are considered to be nominal accounts. capital accounts. temporary owner's equity accounts. permanent accounts. Question 14 Correcting entries are made at the end of an accounting period. after closing entries. at the beginning of an accounting period. whenever an error is discovered. Question 15 Goodwill would be reported in the ______________ section of a classified balance sheet. Intangible assets Longterm liabilities Current assets Longterm investments E511 In 2008, Walter Payton Company had net sales of $900,000 and cost of goods sold of $540,000. Operating expenses were $230,000, and interest expense was $11,000. Payton prepares a multiplestep income statement. Compute Payton's gross profit. $ Compute the gross profit rate. (Round answer to 0 decimal places, e.g. 125.) % What is Payton's income from operations and net income? Income from Operations Net Income If Payton prepared a singlestep income statement, what amount would it report for net income? $ In what section of its classified balance sheet should Payton report merchandise inventory? P54A J. Hafner, a former professional tennis star, operates Hafner's Tennis Shop at the Miller Lake Resort. At the beginning of the current season, the ledger of Hafner's Tennis Shop showed Cash $2,500, Merchandise Inventory $1,700, and Common Stock $4,200.The following transactions were completed during April. Apr. 4 Purchased racquets and balls from Wellman Co. $840, FOB shipping point, terms 2/10, n/30. 6 Paid freight on purchase from Wellman Co. $40. 8 Sold merchandise to members $1,150, terms n/30. The merchandise sold had a cost of $790. 10 Received credit of $40 from Wellman Co. for a damaged racquet that was returned. 11 Purchased tennis shoes from Venus Sports for cash, $420. 13 Paid Wellman Co. in full. 14 Purchased tennis shirts and shorts from Serena's Sportswear $900, FOB shipping point, terms 3/10, n/60. 15 Received cash refund of $50 from Venus Sports for damaged merchandise that was returned. 17 Paid freight on Serena's Sportswear purchase $30. 18 Sold merchandise to members $810, terms n/30.The cost of the merchandise sold was $530. 20 Received $500 in cash from members in settlement of their accounts. 21 Paid Serena's Sportswear in full. 27 Granted an allowance of $30 to members for tennis clothing that did not fit properly. 30 Received cash payments on account from members, $660. The chart of accounts for the tennis shop includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 505 Cost of Goods Sold. Journalize the April transactions using a perpetual inventory system. amounts from largest to smallest eg 10, 5, 3, 2.) Date Description Apr. 4 Apr. 6 Apr. 8 (To record cost of merchandise sold.) Apr. 10 Apr. 11 Apr. 13 Apr. 14 Apr. 15 Apr. 17 Apr. 18 (To record cost of merchandise sold.) Apr. 20 Apr. 21 Apr. 27 Apr. 30 Enter the beginning balances in the ledger accounts and post the April transactions. (Use J1 for t reference.) (If answer is zero, please enter 0. Do not leave any fields blank.) Cash Date Explanation Ref. Apr. 1 Balance 6 J1 11 J1 13 J1 15 17 J1 20 J1 21 J1 30 J1 J1 Accounts Receivable Date Explanation Ref. Apr. 8 J1 18 J1 20 J1 27 J1 30 J1 Merchandise Inventory Date Explanation Ref. Apr. 1 Balance 4 J1 6 J1 8 J1 10 11 J1 13 J1 14 J1 15 J1 17 J1 18 J1 21 J1 J1 Accounts Payable Date Explanation Apr. 4 Ref. J1 Prepare a trial balance on April 30, 2008. Account Titles Cash Accounts Receivable Merchandise Inventory Accounts Payable Common Stock Sales Sales Returns and Allowances Cost of Goods Sold P56A (ad) Kristen Montana operates a retail clothing operation. She purchases all merchandise inventory on credit and uses a periodic inventory system. The accounts payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts. You are provided with the following selected information for the fiscal years 2005, 2006, 2007, and 2008. 2005 2006 2007 2008 $13,000 $11,300 $14,700 $12,200 20,000 Sales 225,700 227,600 Purchase of merchandise inventory on account 146,000 145,000 129,000 Cash payments to suppliers 135,000 161,000 127,000 Inventory (ending) Accounts payable (ending) 219,500 Calculate cost of goods sold for each of the 2006, 2007, and 2008 fiscal years. Plus: Cost of goods available Less: Cost of goods sold Calculate the gross profit for each of the 2006, 2007, and 2008 fiscal years. Less: Gross profit Calculate the ending balance of accounts payable for each of the 2006, 2007, and 2008 fiscal yea Plus: Less: Ending accounts payable Sales declined in fiscal 2008. Does that mean that profitability, as measured by the gross profit ra necessarily also declined? Calculate the gross profit rate for each fiscal year. place, e.g. 10.5.) Gross profit rate E62 Kale Thompson, an auditor with Sneed CPAs, is performing a review of Strawser Company's inventory account. Strawser did not have a good year and top management is under pressure to boost reported income. According to its records, the inventory balance at yearend was $740,000. However, the following information was not considered when determining that amount. Instructions Determine the correct inventory amount. (If answer is zero, please enter 0. Do not leave any fields blank. If amount has a negative effect, use either a negative sign preceding the number eg 45 or parentheses eg (45).) Ending inventoryas reported. 1. Included in the company's count were goods with a cost of $250,000 that the company is holding on consignment. The goods belong to Superior Corporation. 2. The physical count did not include goods purchased by Strawser with a cost of $40,000 that were shipped FOB destination on December 28 and did not arrive at Strawser's warehouse until January 3. 3. Included in the inventory account was $17,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. 4. The company received an order on December 29 that was boxed and was sitting on the loading dock awaiting pickup on December 31. The shipper picked up the goods on January 1 and delivered them on January 6. The shipping terms were FOB shipping point. The goods had a selling price of $40,000 and a cost of $30,000.The goods were not included in the count because they were sitting on the dock. 5. On December 29 Strawser shipped goods with a selling price of $80,000 and a cost of $60,000 to District Sales Corporation FOB shipping point. The goods arrived on January 3. District Sales had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Strawser had authorized the shipment and said that if District wanted to ship the goods back next week, it could. 6. Included in the count was $40,000 of goods that were parts for a machine that the company no longer made. Given the hightech nature of Strawser's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, "since that is what we paid for them, after all." Correct inventory E67 Jones Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Jones had 80 units in ending inventory. Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, an averagecost. Ending Inventory Cost of goods sold Which cost flow method would result in the highest net income? Which cost flow method would result in inventories approximating current cost in the balance shee Which cost flow method would result in Jones paying the least taxes in the first year? E69 Americus Camera Shop uses the lowerofcostormarket basis for its inventory. The following data are available at December 31. Item Units Unit Cost Market Minolta 5 $170 $156 Canon 6 150 152 Cameras Light Meters Vivitar 12 125 115 Kodak 14 120 135 Instructions Determine the amount of the ending inventory by applying the lowerofcostormarket basis. $ E611 Lebo Hardware reported the cost of goods sold as follows: 2008 2009 Beginning Inventory $20,000 $30,000 Cost of goods purchased 150,000 175,000 Cost of goods available for sale 170,000 205,000 30,000 35,000 $140,000 $170,000 Ending inventory Cost of goods sold Lebo made two errors: (1) 2008 ending inventory was overstated by $3,000 and (2) 2009 ending inventory was understated $6,000. Instructions Compute the correct cost of goods sold for each year. Cost of goods sold 2008 2009 $ $ P62A Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the beginning of March, Glanville had in beginning inventory 1,500 Clooney CDs with a unit cost of $7. During March Glanville made the following purchases of Clooney CDs. March 5 3,000 @ $8 March 21 4,000 @ $10 March 13 5,500 @ $9 March 26 2,000 @ $11 During March 12,500 units were sold. Glanville uses a periodic inventory system. Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cos methods (FIFO, LIFO, and averagecost). computations. Round final answers to 0 decimal places, e.g. 125.) Ending Inventory Cost of Goods Sold Determine the cost of goods available for sale. $ Which cost flow method results in (1) the highest inventory amount for the bal cost of goods sold for the income statement? Highest inventory amount Highest cost of goods sold P65A You are provided with the following information for Pavey Inc. for the month ended October 31, 2008. Pavey uses a periodic method for inventory. Date Description Units October 1 Beginning inventory October 9 October 11 October 17 Unit Cost or Selling Price 60 $25 Purchase 120 26 Sale 100 35 Purchase 70 27 October 22 Sale 60 40 October 25 Purchase 80 28 October 29 Sale 110 40 Instructions (a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods. (Round weightedaverage cost per unit to 3 decimal places, e.g. 2.250. Use the rounded amount for future computations. Round gross profit rate to 1 decimal place, e.g. 10.5 and all other answers to 0 decimal places, e.g. 125.) (1) LIFO. (2) FIFO. (3) Averagecost. LIFO FIFO Average Cost Ending inventory $ $ $ Cost of goods sold $ $ $ Gross profit $ $ $ Gross profit rate % % % (b) Compare results for the three cost flow assumptions. What cost flow results in the lowest inventory value. What cost flow results in the lowest cost of goods sold. What cost flow results in the lowest gross profit. What cost flow results in the lowest gross profit rate