Below is the attached document. It's due by thursday.

ACCT_301: Carpenter Quiz #2 Student Name: ______________________________________ INSTRUCTIONS: This quiz is to be completed without the assistance of any other person and is intended to be completed in one setting. You may use your course notes, face-toface discussion material, textbook readings, and other LEO materials. If you find it helpful, you may create an Excel file to show your work for numerical problems. You must show your work including calculations to receive full credit. Additionally, your work must be presented in a logical, easy to follow manner for full credit. Partial credit will be given for incorrect answers if you show your work. This quiz is worth 175 points or 17.5% of your final grade and is comprised of 20 questions. The point breakout of the questions is as follows: Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 10 5 15 10 10 10 10 6 6 6 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Total 8 8 8 8 15 12 8 5 5 10 175 *Save this file as: Last Name_ First Name_Quiz 2 and upload to the Correct Assignment Dropbox* I pledge on my honor that I have not given or received any unauthorized assistance on this examination. In addition, I pledge that I will not disclose to, or discuss the contents of this examination with, students who have not taken it. _____________________________________________________________________________________________ Good Luck!!! Question 1 (10 points): Page 1 of ___ ACCT_301: Carpenter Quiz #2 What is the difference between FOB Shipping and FOB Destination? When determine the balance of inventory at the end of the year, why does it matter to know the shipping terms of in-transit inventory? Question 2 (5 points): Franklin Corporation began the accounting period with $60,000 of merchandise inventory, purchases during the year totaled $240,000, and a physical count of inventory of hand at the end of the period totaled $72,000. What was Franklin Corporation's cost of goods sold for the period? Question 3 (15 points) Superstar Sporting Goods had the following transactions in April 2014. April 1st - Sold merchandise on account for $288,000 with terms 2/10, n/30. April 5th - Customer who purchased goods on April 1st returned $45,000 worth of goods for full credit. Payment for these goods has not yet been received. April 8th - Payment was received for the net amount due from the sale on April 1 st. Record the three journal entries to summarize the activity from the transactions above. Use the following information for Question 4 - Question 7 Taylor Corporation is a newly formed entity that engages in the purchase and resale of amphibious tour vehicles. Purchases for the first year of operation were as follows: Page 2 of ___ ACCT_301: Carpenter Quiz #2 Date Purchases 7-Jan 50 units @ $15,000 each 15-Mar 70 units @ $16,000 each 16-Jun 30 units @ $16,500 each 3-Aug 90 units @ $17,000 each 11-Oct 25 units @ $17,200 each Sales for year amounted to 210 units and totaled $4,250,000. Question 4 (10 points) If Taylor uses the first-in, first-out (FIFO) inventory method, what value would be assigned to ending inventory and cost of goods sold? How much is gross profit? Question 5 (10 points) If Taylor uses the last-in, first-out (LIFO) inventory method, what value would be assigned to ending inventory and cost of goods sold? How much is gross profit? Question 6 (10 points) If Taylor uses the weighted average inventory method, what value would be assigned to ending inventory and cost of goods sold? How much is gross profit? Question 7 (10 points) Which of the above techniques produces the highest profit? Which of the above techniques reports the most \"current \"cost on the balance sheet and why? Which of the above techniques reports the most \"current\" cost in measuring income? Which of the above techniques results in the lowest income tax obligation? Page 3 of ___ ACCT_301: Carpenter Quiz #2 Use the following information to answer Question 8 - Question 10 On January 1, 2013 ABC Inc. acquired a new machine at a cost of $23,000 with a residual value of $3,000. The estimated useful life is 10 years and 100,000 units. For the year ending December 31, 2013, the machine produced 15,000 units. For the year ending December 31, 2014, the machine produced 10,000 units and 5,000 units were produced in calendar year 2015. Question 8 (6 points) Determine the annual depreciation expense for each 2013, 2014, and 2015 using the straight-line method. Question 9 (6 points) Determine the annual depreciation expense for each 2013, 2014, and 2015 using the units of production method. Question 10 (6 points) Determine the annual depreciation expense for each 2013, 2014, and 2015 using the double-declining method. Use the following information to answer Questions 11 - 14 Kirkland Beverage Company owns a delivery truck with an original cost of $50,000 and an accumulated depreciation balance of $20,000. The estimated residual value is $4,000. Consider each of the independent situations below and present the required journal entry to record the sale or disposal of the truck, using proper format. Page 4 of ___ ACCT_301: Carpenter Quiz #2 Question 11 (8 points) Sold for $30,000 Question 12 (8 points) Sold for $26,000 Question 13 (8 points) Sold for $34,000 Question 14 (8 points) Is totaled in a collision with no scrap value and no insurance (no proceeds will be received) Question 15 (5 points) Why is it important for companies to establish strong internal controls? Question 16 (12 points) What are four controls a company can put in place to ensure cash receipts & cash disbursements are handled appropriately? Use the following information for Question 17 - Question 18 Page 5 of ___ ACCT_301: Carpenter Quiz #2 Wiggins Corporation utilizes an accounting software package that is capable of producing a detailed aging of outstanding accounts receivables. Following is the aging schedule as of December 31, 2012. As denoted below the total Accounts Receivable balance outstanding at December 31, 2012 is 2,125,000. AGE 0 to 30 days 31 to 60 days 61 to 120 days Over 120 days AMOUNT OUTSTANDING $ 1,200,000 700,000 200,000 25,000 Casper Corporation has owned and operated Wiggins Corporation for many years and has a very good sense of the probability of collection of outstanding receivables, based on an aging analysis. The following table reveals the likelihood of collection: AGE PROBABILITY OF COLLECTION 0 to 30 days 98% 31 to 60 days 90% 61 to 120 days 75% Over 120 days 50% Question 17 (8 points) Using the % of Receivables method for determining the appropriate Allowance for Uncollectible Accounts, what should the ending balance in the Allowance for Uncollectible Accounts be at December 31, 2012? Question 18 (5 points) Assume Casper Corporation has a beginning Allowance for Uncollectible Accounts balance of $56,500 and determines the ending balance of the Allowance for Uncollectible Accounts should be $156,500. What is the journal entry required to record the adjustment to the Allowance for Uncollectible Accounts? Page 6 of ___ ACCT_301: Carpenter Quiz #2 Use the following information for Question 19 - Question 20 The Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2003, net credit sales totaled $4,500,000 and the estimated bad debt percentage is 1.2%. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2003. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2003 and a credit balance of $40,000 (after all adjusting entries) at the end of 2003. Question 19 (5 points) What is bad debt expense for 2003? Question 20 (10 points) Determine the amount of accounts receivable written off during 2003. Page 7 of ___ ACCT_301: Carpenter Quiz #2 Student Name: ______________________________________ INSTRUCTIONS: This quiz is to be completed without the assistance of any other person and is intended to be completed in one setting. You may use your course notes, face-toface discussion material, textbook readings, and other LEO materials. If you find it helpful, you may create an Excel file to show your work for numerical problems. You must show your work including calculations to receive full credit. Additionally, your work must be presented in a logical, easy to follow manner for full credit. Partial credit will be given for incorrect answers if you show your work. This quiz is worth 175 points or 17.5% of your final grade and is comprised of 20 questions. The point breakout of the questions is as follows: Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 10 5 15 10 10 10 10 6 6 6 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Total 8 8 8 8 15 12 8 5 5 10 175 *Save this file as: Last Name_ First Name_Quiz 2 and upload to the Correct Assignment Dropbox* I pledge on my honor that I have not given or received any unauthorized assistance on this examination. In addition, I pledge that I will not disclose to, or discuss the contents of this examination with, students who have not taken it. _____________________________________________________________________________________________ Good Luck!!! Question 1 (10 points): Page 1 of ___ ACCT_301: Carpenter Quiz #2 What is the difference between FOB Shipping and FOB Destination? When determine the balance of inventory at the end of the year, why does it matter to know the shipping terms of in-transit inventory? Question 2 (5 points): Franklin Corporation began the accounting period with $60,000 of merchandise inventory, purchases during the year totaled $240,000, and a physical count of inventory of hand at the end of the period totaled $72,000. What was Franklin Corporation's cost of goods sold for the period? Question 3 (15 points) Superstar Sporting Goods had the following transactions in April 2014. April 1st - Sold merchandise on account for $288,000 with terms 2/10, n/30. April 5th - Customer who purchased goods on April 1st returned $45,000 worth of goods for full credit. Payment for these goods has not yet been received. April 8th - Payment was received for the net amount due from the sale on April 1 st. Record the three journal entries to summarize the activity from the transactions above. Use the following information for Question 4 - Question 7 Taylor Corporation is a newly formed entity that engages in the purchase and resale of amphibious tour vehicles. Purchases for the first year of operation were as follows: Page 2 of ___ ACCT_301: Carpenter Quiz #2 Date Purchases 7-Jan 50 units @ $15,000 each 15-Mar 70 units @ $16,000 each 16-Jun 30 units @ $16,500 each 3-Aug 90 units @ $17,000 each 11-Oct 25 units @ $17,200 each Sales for year amounted to 210 units and totaled $4,250,000. Question 4 (10 points) If Taylor uses the first-in, first-out (FIFO) inventory method, what value would be assigned to ending inventory and cost of goods sold? How much is gross profit? Question 5 (10 points) If Taylor uses the last-in, first-out (LIFO) inventory method, what value would be assigned to ending inventory and cost of goods sold? How much is gross profit? Question 6 (10 points) If Taylor uses the weighted average inventory method, what value would be assigned to ending inventory and cost of goods sold? How much is gross profit? Question 7 (10 points) Which of the above techniques produces the highest profit? Which of the above techniques reports the most \"current \"cost on the balance sheet and why? Which of the above techniques reports the most \"current\" cost in measuring income? Which of the above techniques results in the lowest income tax obligation? Page 3 of ___ ACCT_301: Carpenter Quiz #2 Use the following information to answer Question 8 - Question 10 On January 1, 2013 ABC Inc. acquired a new machine at a cost of $23,000 with a residual value of $3,000. The estimated useful life is 10 years and 100,000 units. For the year ending December 31, 2013, the machine produced 15,000 units. For the year ending December 31, 2014, the machine produced 10,000 units and 5,000 units were produced in calendar year 2015. Question 8 (6 points) Determine the annual depreciation expense for each 2013, 2014, and 2015 using the straight-line method. Question 9 (6 points) Determine the annual depreciation expense for each 2013, 2014, and 2015 using the units of production method. Question 10 (6 points) Determine the annual depreciation expense for each 2013, 2014, and 2015 using the double-declining method. Use the following information to answer Questions 11 - 14 Kirkland Beverage Company owns a delivery truck with an original cost of $50,000 and an accumulated depreciation balance of $20,000. The estimated residual value is $4,000. Consider each of the independent situations below and present the required journal entry to record the sale or disposal of the truck, using proper format. Page 4 of ___ ACCT_301: Carpenter Quiz #2 Question 11 (8 points) Sold for $30,000 Question 12 (8 points) Sold for $26,000 Question 13 (8 points) Sold for $34,000 Question 14 (8 points) Is totaled in a collision with no scrap value and no insurance (no proceeds will be received) Question 15 (5 points) Why is it important for companies to establish strong internal controls? Question 16 (12 points) What are four controls a company can put in place to ensure cash receipts & cash disbursements are handled appropriately? Use the following information for Question 17 - Question 18 Page 5 of ___ ACCT_301: Carpenter Quiz #2 Wiggins Corporation utilizes an accounting software package that is capable of producing a detailed aging of outstanding accounts receivables. Following is the aging schedule as of December 31, 2012. As denoted below the total Accounts Receivable balance outstanding at December 31, 2012 is 2,125,000. AGE 0 to 30 days 31 to 60 days 61 to 120 days Over 120 days AMOUNT OUTSTANDING $ 1,200,000 700,000 200,000 25,000 Casper Corporation has owned and operated Wiggins Corporation for many years and has a very good sense of the probability of collection of outstanding receivables, based on an aging analysis. The following table reveals the likelihood of collection: AGE PROBABILITY OF COLLECTION 0 to 30 days 98% 31 to 60 days 90% 61 to 120 days 75% Over 120 days 50% Question 17 (8 points) Using the % of Receivables method for determining the appropriate Allowance for Uncollectible Accounts, what should the ending balance in the Allowance for Uncollectible Accounts be at December 31, 2012? Question 18 (5 points) Assume Casper Corporation has a beginning Allowance for Uncollectible Accounts balance of $56,500 and determines the ending balance of the Allowance for Uncollectible Accounts should be $156,500. What is the journal entry required to record the adjustment to the Allowance for Uncollectible Accounts? Page 6 of ___ ACCT_301: Carpenter Quiz #2 Use the following information for Question 19 - Question 20 The Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2003, net credit sales totaled $4,500,000 and the estimated bad debt percentage is 1.2%. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2003. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2003 and a credit balance of $40,000 (after all adjusting entries) at the end of 2003. Question 19 (5 points) What is bad debt expense for 2003? Question 20 (10 points) Determine the amount of accounts receivable written off during 2003. Page 7 of ___