May I please get help with 3,4,5 thank you. This is for finance. With adjusting entries

Multiple Choice (10 points) 1. An increase in an expense a. increases revenues. b. increases assets. c. decreases liabilities. d. decreases stockholders' equity. 2. A company with total stockholders' equity of $85,000 paid a $10,000 business debt. As a result of this transaction, total stockholders' equity a. did not change. b. increased by $10,000. c. decreased by $10,000. d. increased to $95,000. 3. The purpose of recording depreciation on productive assets is to a. reflect the decline in the market value of the assets each period. b. reduce income when the company has an exceptionally profitable year. c. be in conformity with the monetary recognition principle. d. allocate the original cost of productive assets to expense over its useful life. 4. A Company debited Prepaid Insurance for $1,080 on July 1, 2015, for a one-year fire insurance policy. If the company prepares monthly financial statements, failure to make an adjusting entry on July 31 for the amount of insurance that has expired would cause a. assets to be overstated by $1,080 and expenses to be understated by $1,080. b. expenses to be overstated by $90 and assets to be understated by $90. c. assets to be overstated by $90 and expenses to be understated by $90. d. expenses to be overstated by $1,080 and assets to be understated by $1,080. 5. Which one of the following accounts is not closed at the end of an accounting period? a. Retained Earnings account b. Dividends account c. Service Revenue account d. Insurance Expense account 6. Gross profit is calculated by subtracting a. total expenses from total revenues. b. cost of goods sold from net sales. c. cost of goods sold from total revenues. d. operating expenses from net sales. 7. A Company had beginning inventory of $45,000 at March 1, 2015. During the month, the company made purchases of $360,000. The inventory at the end of the month is $51,000. What is cost of goods available for sale for the month of March? a. $45,000 b. $51,000 c. $354,000 d. $405,000 8. A check correctly written and paid by the bank for $271 is incorrectly recorded on the company's books for $217. The appropriate adjustment on bank reconciliation would be to a. deduct $271 from the book's balance. b. deduct $54 from the book's balance. c. deduct $54 from the bank's balance. d. add $54 to the bank's balance. 9. A company just starting business purchased three merchandise inventory items at the following prices: first purchase $920; second purchase $880; third purchase $830. If two items were sold during the period and the company used the LIFO costing method, the gross profit for the period would be how much greater or less than if the FIFO costing method had been used? a. Gross profit would be $90 greater. b. Gross profit would be $90 less. c. Gross profit would be the same. d. Gross profit would be $40 greater. 10. Equipment was purchased for $96,000 and has a book value of $32,000 and a depreciable cost of $80,000. The estimated salvage value is a. $32,000. b. $64,000. c. $48,000. d. $16,000. Adjusting Entries (15 points) The following information for the Company is available on June 30, 2015, the end of a monthly accounting period. You are to prepare the necessary adjusting journal entries for the Company for the month of June for each situation given. Appropriate adjusting entries had been recorded in previous months. You may omit journal entry explanations. 1. The Company purchased a 2-year insurance policy on February 1, 2015 and debited Prepaid Insurance for $4,800. 2. On January 1, 2015, a tenant in an apartment building owned by The Company paid $4,200 which represents six months' rent in advance. The amount received was credited to the Unearned Rent account. 3. On June 1, 2015, the balance in the Supplies account was $200. During June, office supplies costing $580 were purchased. A physical count of office supplies at June 30 revealed that there was $140 still on hand. 4. On March 31, 2015, The Company purchased a truck for $54,000. It is estimated that the annual depreciation will be $9,000. 5. The Company has two employees who earn $100 and $120 per day, respectively. They are paid each Friday for a five-day workweek that begins each Monday. Assume June 30 is a Wednesday in 2015. Closing Entries (10 points) The end of the period account balances after adjustments are as follows: Account Balances (After Adjustments) Cash $ 9,000 Supplies 3,500 Prepaid Rent 3,600 Equipment Accumulated DepreciationEquipment Accounts Payable 128,000 20,000 8,500 Common Stock 60,000 Retained Earnings 46,400 Dividends 7,000 Service Revenue 26,000 Supplies Expense 5,000 Depreciation Expense 3,000 Rent Expense Salaries and Wages Expense Utilities Expense 900 3,400 500 Instructions Prepare the end of the period closing entries. You may omit journal entry explanations. Journal Entries (18 points) Prepare the necessary general journal entries for the month of October for the Company for each situation given below. The Company uses a perpetual inventory system. Oct. 5 Paid cash of $12,000 for operating expenses that were incurred and properly recorded in the previous period. Oct. 8 Purchased merchandise for $25,000 on account. Credit terms: 2/10, n/30; Freight term: FOB Shipping Point. Oct. 10 Paid freight bill of $470 for merchandise purchased on October 8. Oct. 12 Borrowed $10,000 from Admire Bank signing an 8%, 3-month note. Oct. 15 Paid for merchandise purchased on October 8. The company takes all discounts to which it is entitled. Oct. 20 Sold merchandise for $16,000 to Tom Green on account. The cost of the merchandise sold was $10,000. Credit terms: 2/10, n/30. Oct. 22 Purchased a 2-year insurance policy for $2,400 cash. Oct. 25 Credited Tom Green's account for $1,000 for merchandise returned by him from the sale on October 20. The cost of the merchandise returned was $625. Oct. 29 Purchased equipment for $18,000 paying $5,000 in cash and signing a 3-month, 9% note for the remainder. Multiple-Step Income Statement (15 points) Below is a partial listing of the adjusted account balances at year-end on December 31, 2015. Accounts Receivable Cost of Goods Sold Operating Expenses (includes depreciation) Interest Expense $ 19,000 245,000 65,000 1,000 Accumulated DepreciationBuildings 10,000 Sales Discounts 22,000 Inventory 45,000 Sales Revenue 350,000 Accounts Payable 14,000 Interest Revenue 800 Instructions Using whatever data you believe appropriate, prepare a multiple-step income statement for the Company for the year ended December 31, 2015. Bank Reconciliation (15 points) The Company received a bank statement for the month of October 2015, which showed a balance per bank of $3,600. The company's Cash account in the general ledger showed a balance of $1,204 at October 31. Other information that may be relevant in preparing a bank reconciliation for October follows: 1. The bank returned an NSF check from a customer for $280. 2. The company recorded cash receipts of $250 on October 31 but this amount does not appear on the bank statement. 3. A check correctly written by Vance and paid by the bank for $1,740 was incorrectly recorded in the cash payments journal for $1,470. The check was a payment on account. 4. Checks which were written in September but still had not been presented to the bank for payment at October 31 amounted to $780. 5. The bank included a credit memorandum for $1,236, which represents a collection of a customer's note by the bank for the company; principal amount of the note was $1,200 and the remainder was interest. 6. The bank included a $20 debit memorandum for service charges for the month of October. 7. Checks written in October which have not been paid by the bank at October 31 amounted to $1,200. Instructions 1. Prepare a bank reconciliation for the Company for October which reconciles the balance per books and the balance per bank to their adjusted correct balances. 2. Prepare the necessary adjusting entries for the Company at October 31, 2015. Periodic Inventories (12 points) The Company uses the periodic inventory method and had the following inventory information available for the month of November. Date Transaction Units Unit Cost 11/1 Beginning inventory 400 $3 11/5 Purchase No. 1 500 $5 11/12 Sale No. 1 450 11/18 Purchase No. 2 500 11/25 Sale No. 2 900 11/30 Purchase No. 3 600 $6 $7 A physical count of units on November 30 revealed that 650 units were on hand. Answer the following independent questions and show computations supporting your answers. 1. Assume that the company uses the average cost method. What is the dollar value of the ending inventory on November 30? 2. Assume that the company uses the LIFO inventory method. What is the dollar value of the cost of goods sold during November? 3. Assume that the company uses the FIFO inventory method. The dollar value of the ending inventory on November 30 is: Accounts Receivable (10 points) The Company uses the allowance method to account for uncollectible accounts. Prepare the appropriate journal entries to record the following transactions during 2015. You may omit journal entry explanations. June 20 The account of Sam Nolan for $1,000 was deemed to be uncollectible and is written off as a bad debt. Oct. 14 Received a check for $1,000 from Sam Nolan, whose account had previously been written off as uncollectible. Dec. 31 Use the following information for year-end adjusting entries: The balance of Accounts Receivable and Allowance for Doubtful Accounts at year-end are a debit balance of $126,000 and a credit balance $2,900, respectively. It is estimated that bad debts will be 5% of accounts receivable. Perpetual Inventory System - Inventory flow assumptions (12 points) The Company uses a perpetual inventory system. On January 22, 2015, the company had 200 units of a particular product on hand, with a total cost of $2,400. The per-unit costs were: Date Purchase quantity Unit Cost Total Cost Ending inventory 2014 50 $9 $450 Jan 10 purchase 150 $13 $1,950 Total on Hand 200 $2,400 On January 24, 2015, Arrow sold 65 units of this product. Using the three flow assumptions listed below, compute (1) the cost of goods sold, and (2) the cost of the inventory of this product on hand after this sale. Show your computations as per below format. Average Cost: Cost of Goods Sold - Inventory remaining after sale - FIFO: Cost of Goods Sold - Inventory remaining after sale - LIFO: Cost of Goods Sold - Inventory remaining after sale - Depreciation Methods (10 points) The following information is available for the Company, which has an accounting year-end on December 31, 2015. 1. A building was purchased on January 1, 1988, for $3,000,000. It is estimated to have a $30,000 salvage value at the end of its 40-year useful life. The straight-line method of depreciation is being used. 2. Store equipment was purchased on January 1, 2014, for $280,000. It was estimated that the store equipment would have a $28,000 salvage value at the end of its 5-year useful life. The double-declining balance method of depreciation is being used. Instructions Complete the table shown below by filling in the appropriate amounts. Assets Accumulated Depreciation Depreciation 1/1/15 2015 Book Value at Expense for 12/31/15 Building $2,004,750 $ $ Equipment $ 112,000 $ $