Looking for some help on an accounting quiz. File is attached

Please answer all multiple-choice questions (by shading) and problems. 1. Which of the following accounts should be closed to the Income Summary account at the end of the fiscal year? a. accounts payable. b. depreciation expense - machinery. c. accounts receivable. d. cash 2. A company usually determines the amount of supplies used during a period by a. adding the supplies on hand to the balance of the Supplies account. b. summing the amount of supplies purchased during the period. c. taking the difference between the supplies purchased and the supplies paid for during the period. d. taking the difference between the balance of the Supplies account and the cost of supplies on hand 3. Benson LLC is preparing financial statements and has a mortgage loan on its building, which is due in six months and will be paid in cash. The mortgage loan payable will be recorded in the classified balance sheet under: a. accrued liabilities. b. long-term liabilities. c. property, plant and equipment. d. current liabilities 4. Accrued expenses are a. incurred but not yet paid or recorded. b. paid and recorded in an asset account before they are used or consumed. c. paid and recorded in an asset account after they are used or consumed. d. incurred and already paid or recorded. 5. The matching principle states that expenses should be matched with revenues. Another way of describing the principle is to say that a. assets should be matched with liabilities. b. owner withdrawals should be matched with owner contributions. c. efforts should be matched with accomplishments d cash payments should be matched with cash receipts. 6. Which of the following statements concerning accrual-basis accounting is incorrect? a. Accrual-basis accounting follows the revenue recognition principle. b. Accrual-basis accounting follows the matching principle. c. Accrual-basis accounting recognizes expenses when they are paid. d. Accrual-basis accounting is the method required by generally accepted accounting principles. 7. Which of the following expressions is incorrect? a. Gross profit - operating expenses = net income b. Operating expenses - cost of goods sold = gross profit c. Sales revenue - cost of goods sold - operating expenses = net income d. Net income + operating expenses = gross profit 8. Which of the following time periods would not be referred to as an interim period? a. Monthly b. Annually c. Quarterly d. Semi-annually 9. With the perpetual system, the merchandise inventory account is used in each of the following except the entry to record a. goods purchased on account. b. the return of goods purchased. c. payment within the discount period. d. payment of freight on goods sold. 10. A buyer would record a payment within the discount period under a perpetual inventory system by crediting a. Accounts Payable. b. Purchase Discounts. c. Merchandise Inventory d. Sales Discounts. 11. . Which of the following statements is true? When the general price level is rising, the inventory on the balance sheet at the end of the year would: a. more nearly approximate current replacement cost under LIFO than under FIFO. b. be lower under the FIFO method of costing than under the LIFO method. c. be lower under the weighted-average method than under the LIFO method. d. be higher under the FIFO method than under the LIFO method. 12. The lower-of-cost-or-market basis of valuing inventories is an example of a. comparability. b. conservatism c. the cost principle. d. consistency 13. A company purchased inventory as follows: 200 units at $10 300 units at $15 The average unit cost for inventory is a b c d. $13.20. $13.00 $12.00 $11.20 14. The most important information needed to determine if companies can pay their current obligations is the a. net income for this year. b. projected net income for next year. c. relationship between short-term and long-term liabilities. d. relationship between current assets and current liabilities. 15. Two categories of expenses for merchandising companies are a. cost of goods sold and financing expenses. b. cost of goods sold and operating expenses c. operating expenses and financing expenses. d. sales and cost of goods sold. 16. Disclosures about inventory should include each of the following except the a basis of accounting. b. costing method. c. quantity of inventory d. major inventory classifications 17. The purchase of merchandise under the perpetual inventory procedure results in a: a. debit to Merchandise Inventory b. debit to Purchases c. debit to Accounts Payable d. credit to Accounts Receivable 18. If the periodic inventory procedure is used, the: a. cost of merchandise on hand can be readily determined by referring to the Merchandise Inventory account. b. inventory items would most likely have a high individual unit value. c. inventory items would most likely have a high individual unit value. d. cost of goods sold can be determined only after a physical inventory is taken. 19. Which one of the following is not a justification for adjusting entries? a. Adjusting entries are necessary to ensure that revenue recognition principles are followed. b. Adjusting entries are necessary to enable financial statements to be in conformity with GAAP. c. Adjusting entries are necessary to ensure that the matching principle is followed. d. Adjusting entries are necessary to bring the general ledger accounts in line with the budget. 20. Which of the following is a true statement about inventory systems? a. Periodic inventory systems require more detailed inventory records. b Perpetual inventory systems require more detailed inventory records c. A periodic system requires cost of goods sold be determined after each sale. d. A perpetual system determines cost of goods sold only at the end of the accounting period. Problem 1 Latman Company prepares monthly financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September. LATMAN COMPANY Trial Balance (Selected Accounts) September 30, 2014 Account Balances Office Supplies......................................................................................... $ 2,700 Office Equipment..................................................................................... 16,200 Accumulated DepreciationOffice Equipment...................................... 1,000 Unearned Revenue................................................................................... 1,200 Notes Payable........................................................................................... 5,000 An analysis of the account balances by the company's accountant provided the following additional information: 1. 2. 3. 4. A physical count of office supplies revealed $1,200 on hand on September 30 Interest accrued on Notes Payable is $80 per month. Depreciation on the office equipment for the month is $135. On September 1, 2014 Latman collected $1,200 for services to be performed from September 1, 2014 through to February 28, 2015. Service performed in September was $500. Instructions Using the above additional information, prepare the monthly adjusting entries that should be made by Latman Company on September 30 in the space provided on the next page and show any necessary calculations. Date Account/Description Debit Credit Adjusting Entries Problem 2 The adjusted account balances of the Fitness Center at July 31 are as follows: Accounts Account Balances Cash $12,000 Supplies Expense 9,000 Accounts Receivable 15,000 Service Revenue 74,000 Supplies 4,000 Interest Revenue 8,000 Insurance Expense 6,000 Prepaid Insurance 8,000 Depreciation Expense 20,000 Buildings 300,000 Accumulated Depreciation Buildings 120,000 Accounts Payable 19,000 Weber, Capital 195,000 Weber, Drawing 8,000 Utilities Expense 12,000 Salary Expense 22,000 Instructions Prepare the closing journal entries for the Fitness Center. Use the space provided below. Date Account/Description Adjusting Entries Problem 3 Debit Credit The following items are taken from the financial statements of Tailor Company For the Year Ended December 31, 2014. Accounts Cash Accounts Receivable Supplies Prepaid Insurance Insurance Expense Equipment Service Revenue Accumulated Depreciation Peters, Drawing Patents Accounts Payable Bonds Payable (due 2016) Depreciation Expense Peters, Capital Salaries Expense Interest Expense 20,000 6,000 5,500 7,000 10,000 50,000 25,400 4,800 4,200 7,500 23,500 19,000 4,800 51,000 5,200 3,500 Instructions Prepare a classified balance sheet for Tailor Company. Use the space provided on the next page. Note: for the equity section of the Balance Sheet, will have to first find net income, then add it to Capital and then less Drawing. PROBLEMS Show working beneath the problems. Problem 1 Clarke Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 100 $4 $ 400 rchase 400 $5 2,000 7/25 Purchase 200 $7 1,400 10/20 Purchase 300 $8 2,400 1,000 $6,200 A physical count of inventory on December 31 revealed that there were 400 units on hand, so 600 units were sold. Compute the Cost of Goods Sold and Ending Inventory under FIFO, LIFO and Average Methods Show Computation and solutions in space below: TAILOR COMPANY BALANCE SHEET DECEMBER 31, 2014 Problem 4 Baker Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 100 $6 $ 600 1/20 Purchase 400 $7 $2,800 7/25 Purchase 200 $8 $1,600 10/20 Purchase 300 $11 $3,300 1,000 $8,300 A physical count of inventory on December 31 revealed that there were 400 units on hand, so 600 units were sold. Compute the Cost of Goods Sold and Ending Inventory under FIFO, LIFO and Average Methods. Show Computation and solutions in space below