Print 1. MC.01-097 Bay Camera The company reported the following items on its financial statements for the year ended December 31, 2019: Sales $780,000 Cost of Sales $700,000 Selling, general & administrative expense 20,000 Other Expense 15,000 Dividends 5,000 Income Tax Expense 12,500 Refer to Bay Camera. What amount will be reported as Retained Earnings on the Balance Sheet at December 31, 2019, assuming this is the first year of operations? a. $22,500 b. $42,500 c. $27.500 d. Not enough information is provided 2. MC.01-109 If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity $2,000,000 b. $1,800,000 C. $800,000 d. $3,800,000 MacBook Pro 3. MC 01-129 If a company has current assets of $2,100,000 and current liabilities of $500,000, calculate its working capital a $1,600,000 b. $2,100,000 C. $2,500,000 d. $500,000 4.MC.02-126 All of the following accounts have normal credit balances except 3. unearned revenue. b. Inventory c. common stock d. accounts payable 5. MC 03-082 Carlock Systems received a 6-month, 12% not for $50,000 from a customer on November 1, 2016. The note is due on April 30, 2020. Assuming the company's accounting period ends on December 31. how much interest revenue should be recognized during 2019 and 2020? 2019 2020 30 $6,000 $1,000 12.000 $1,000 $5,000 MacBook Pro S CONSINOWIC Online teaching and learning resource from Cengage Learning 6. MC 03-100 If the end-of-year supplies on hand towed 5200, and purchases totaled $300, and supplies on hand at the beginning of the year amounted to $100, how much will be reported as supplies expense for the current year? 2.400 b. 5600 c. $300 d. 1200 7. MC 03-113 Which of the followindstinget involves the cash account? 3. Accrued Expenses b. Deferred c. Oferred Revenue d. None of these choices are correct 8. MC 03-114 The count, Supot, has been of $10,000 on January 1. During any. 122.000 of ses were purchased on account and the ability was appropriately recorded. A count of supplies at the end of any intesa bace of $2,000. What adjusting entry is necessary at January 3 Supplies Expense 24.000 Suportes 24,000 22.000 22.000 30,000 MacBook Pro & 7 8 9 de E R Y pleng SEATS 12.cengagenow.com/li/takeAssignment/printuntakenAssignment.do?assignmentid-2180310 COMPONOW. Online teaching and leaming resource from Cengage Learning d. None of these choices are correct 8. MC 03-114 The aut account, Supplies, has a balance of $10,000 on January 1. During January, $22,000 of supplies were purchased on account and the ability was appropriately recorded. A count of supplies at the end of January indicates a balance of $2,000. What adjusting entry is necessary at January 317 a. Supplies Expense 24,000 Supplies 24,000 Supplies 22,000 Accounts Payable 22,000 Supplies Expense 30,000 Supplies 30,000 d. Supplies Expense 22,000 Supplies 20,000 Accounts Payable 2,000 9. MC.03-118 Failure to record the earned portion of unearned revenue would result in which of the following? a. Net Income being understated. b. Total assets being understated. Ne effect on total abilities d. Stockholders' equity being overstated 10. MC.04-073 While preparing the April 30th bank reconciliation, the accountant entined the following items: MacBook Pro d. Stockholders' equity being overstated. 10.MC.04-073 While preparing the April 30th bank reconciliation, the accountant identified the following items: Company's balance according to the general ledger Outstanding checks Bank service charge A customer's NSF check returned by the bank $15,000 2,500 15 100 What is the company's adjusted cash balance at April 30th? a. $12,385 b. $12,500 c. $17,385 d. $14,885 11. MC.04-108 Dreammaker Kitchens The following information relates to the company's November bank reconciliation: Bank statement balance $10,700 v2.cengagenow.com/ilm/takeAssignment/printUntaken Assignment.do CengageNOW Online teaching and learning resource from Cengage Learning d. $14,885 11. MC.04-108 Dreammaker Kitchens The following information relates to the company's November bank reconciliation: Bank statement balance $10,700 Unadjusted cash balance from the company's records ? Deposit in transit 2,100 Outstanding checks 1,200 Bank service chargest 300 Interest earned on the bank account 100 Customer's NSF check returned by the bank 400 Refer to Dreammaker Kitchens. As a result of the bank reconciliation process, what is the net increase or decrease in cash which must be recorded on the company's books? 3. 5600 decrease b. $100 decrease c. $400 decrease d. $300 decrease 12. MC 05-054 ATAU Company Data for the year ended December 31 are presented below: 12. MC.05-054 AT&U Company Data for the year ended December 31 are presented below: Sales (credit) $2,500,000 Sales returns and allowances 50,000 Accounts Receivable (December 31) 640,000 Allowance for Doubtful Accounts (Before adjustment at December 31) 20,000 Estimated amount of uncollected accounts based on aging analysis 45,000 Refer to AT&U Company. If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense? a. $24,500 b. $25,000 C. $44,500 d. $4,500 13. MC 05-083 A company needs to record 6 months of accrued interest on a h-year, 12%, $12,000 promissory note payable. How much interest expense should be a $1,440 b. $1,000 CengageNOW Online teaching and learning resource from Cengage Learning A company needs to record 6 months of accrued interest on a 4-year, 12%, $12,000 promissory note payable How much interest expense should be accrued? a $1,440 b. $1,080 C. $720 d. $2,160 14. MC.06-099 Klump Co. Klumo Couses a perpetual inventory system and had the following inventory transactions for the month of June June $900.00 $2.093.00 1 4 5 10 24 On hand, 50 units at $18.00 each Purchased 115 units $18.20 each Sold 100 units Purchased 75 units at $18.25 each Sold Sounits Total cost of goods available for sale On hand, 90 units $3,75 54,361.75 30 Refer to the information provided for me of the company the inventory conting method, the motor ending inventory reported on the balance sheet 3. 51,183.00 b. $2,720.00 C$1,041.75 d. 51,810.00 MacBook Pro CengageNOWZ | Online teaching and learning resou resource from Cengage Learning 15.MC.06-102 Klump Co. Klump Co. uses a perpetual Inventory system and had the following inventory transactions for the month of June. June 1 On hand, 50 units at $18.00 each $900.00 4 Purchased 115 units at $18.20 each $2,093.00 5 Sold 100 units 10 Purchased 75 units at $18.25 each $1,368.75 24 Sold 50 units Total cost of goods available for sale $4,361.75 30 On hand, 90 units Refer to the information provided for klump Co. If the company uses the LIFO inventory costing method, cost of goods sold for the month of June is: a. $2,732.50 b. 52,720.00 C. $2,722.50 d. $2.738.00 16. MC 07-039 Fabian Woodworks This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimate It of 5 years, or 100,000 hours of operation. The truck w January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020 Refer to Fabian Woodworks. If the company uses the straight-line method of depreciation, what is the book value at December 31, 2017 MacBook Pro 16. MC.07-039 Fabian Woodworks This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2.000 and an estimate of 5, 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020. Refer to Fabian Woodworks. If the company uses the straight-line method of depreciation, what is the book value at December 31, 2017 a $10,000 b. 58.000 c. 54,000 d. 36.000 17. MC 07-049 Acompany purchased land and incurred the following costs: Purchase Price 5500,000 Excavation Costs 50.000 Rating old bunding 12.500 Broker Fees 10,000 Cost of a Parking Lot 25,000 What is the cost of the land? 3.5550,000 MacBook Pro $ % 5 2 3 6 0 7 8 W E R . Y 18. MC 08-108 General Lighting During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6% Refer to General Lighting Sales taxes are required to be paid to the state taxing authority at the end of the quarter. Which of the following records the sale of the batteries? a. Accounts Receivable 636,000 Sales Revenue 600,000 Sales Tax Payable 36,000 b. Accounts Receivable 636,000 Sales Revenue 636,000 c. Accounts Receivable 600,000 Sales Revenue 564,000 Sales Tax Payable 36,000 d. Accounts Receivable 600,000 Sales Revenue 600,000 19. MC.09-082 A bond issuing a 101.25 means that the bond a. sold for $101.25 b. sold at a discount stated rate is lower than the market rate of interest d. sold for $1,012.50 20. MC.10-097 Ladder Distributors MacBook Pro 30 C. stated rate is lower than the market rate of interest d. sold for $1,012.50 20. MC.10-097 Ladder Distributors The stockholders' equity section of the December 31, 2019, balance sheet is provided below. Common Stock, $30 par, 20,000 shares issued and outstanding $600,000 Pald-in Capital in Excess of Par-Common Stock 240,000 Retained Earnings 200.000 Total Stockholders' Equity $1,540,000 Assume that all of the 20,000 shares of stock that was issued as of December 31, 2019, was issued for $42 per share on March 1, 2020, the company required 4,000 shares of its common stock for $50 per share Refer to Ladder Distributors. What is the total amount of stockholders equity that will be presented on the company's March 31, 2020, balance sheet? a $1,372,000 . 51,340.000 $1,740,000 d. 51,708,000 21. MC.11-119 A company reported the following information MacBook Pro % 5 & 7 2 3 6 8 d. $1,708 000 21. MC.11-119 A company reported the following information 2020 2019 Accounts receivable $50,000 $65,000 Inventores 43,000 Accounts payable 29,000 39,000 Net income 100,000 Depreciation expense 11,000 If the indirect method is used to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 20207 2.592,000 b. 5109,000 5111,000 d. 113.000 22. MC app:-023 Mantas Manufacturing of soment to make room for new machinery Marae receive the price of $50,000 at the end of 4 years. Assuming interest rate of 6 per year, the present of the wishow much? MacBook Pro S 7 5 7 8 9 0 Q E R. T Y O 22. MC app3-023 Manatee Manufacturing sels a plece of equipment to make room for new machinery, Manatee will receive the sales price of $50,000 at the end of 4 years. Assuming interest at a rate of 6% per year, the Present Value of this future cash flow is how much? a $39,604.50 b. 563,124.00 c. $39,515.50 d. $173.255.50 23. MC app3-024 Tom quidates on westment, and his proceeds will be received in annual payments of $10,000 each with interest computed at 7%. What is the Present Value of this Annuity? $59,713.00 b. 517,181.90 C. $5,820.10 d. 589,228.00 24. MC 06-078 Echols Company sells merchandise on credit. If a customer pays its balance due after the discount period has passed, what is the effect of the payment on seller's accounting equation? 3. Assets and stockholders' equity decrease . Asset decrease and liabilities increase Assets and holders' equity increase defect MacBook Pro % 5 4 & 7 Se 8 Company sells rovelty tems and others terms of 1/10, 1/30 to credit customers. One customer, Fauner, Inc., purchased 100 Sweet 16 party decor packs with a st price of $20 each on March 5 2019 Refer to the information provided for the company of the customer pays the amount of the invoice for its purchase on March 14, 2019, how much cash will El Company receive? b. $1,800 C. $1,980 d. 12.000 26. MC 06-01 Ghana Company The following information is from Gbane Company's accounting records for the year ended December 31: Purchases $218.400 Transportation in 13.200 Inventory, January 1 31,800 Inventory, December 31 34.560 Purchase and once 10.00 Refer to the won provided for an Company. How much will the company reports et purchases for the year anded December 31 $221.520 121.680 t. 251,320 MacBook Pro & 7 8 O W E R T Y I O S D F G H K Print 1. MC.01-097 Bay Camera The company reported the following items on its financial statements for the year ended December 31, 2019: Sales $780,000 Cost of Sales $700,000 Selling, general & administrative expense 20,000 Other Expense 15,000 Dividends 5,000 Income Tax Expense 12,500 Refer to Bay Camera. What amount will be reported as Retained Earnings on the Balance Sheet at December 31, 2019, assuming this is the first year of operations? a. $22,500 b. $42,500 c. $27.500 d. Not enough information is provided 2. MC.01-109 If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity $2,000,000 b. $1,800,000 C. $800,000 d. $3,800,000 MacBook Pro 3. MC 01-129 If a company has current assets of $2,100,000 and current liabilities of $500,000, calculate its working capital a $1,600,000 b. $2,100,000 C. $2,500,000 d. $500,000 4.MC.02-126 All of the following accounts have normal credit balances except 3. unearned revenue. b. Inventory c. common stock d. accounts payable 5. MC 03-082 Carlock Systems received a 6-month, 12% not for $50,000 from a customer on November 1, 2016. The note is due on April 30, 2020. Assuming the company's accounting period ends on December 31. how much interest revenue should be recognized during 2019 and 2020? 2019 2020 30 $6,000 $1,000 12.000 $1,000 $5,000 MacBook Pro S CONSINOWIC Online teaching and learning resource from Cengage Learning 6. MC 03-100 If the end-of-year supplies on hand towed 5200, and purchases totaled $300, and supplies on hand at the beginning of the year amounted to $100, how much will be reported as supplies expense for the current year? 2.400 b. 5600 c. $300 d. 1200 7. MC 03-113 Which of the followindstinget involves the cash account? 3. Accrued Expenses b. Deferred c. Oferred Revenue d. None of these choices are correct 8. MC 03-114 The count, Supot, has been of $10,000 on January 1. During any. 122.000 of ses were purchased on account and the ability was appropriately recorded. A count of supplies at the end of any intesa bace of $2,000. What adjusting entry is necessary at January 3 Supplies Expense 24.000 Suportes 24,000 22.000 22.000 30,000 MacBook Pro & 7 8 9 de E R Y pleng SEATS 12.cengagenow.com/li/takeAssignment/printuntakenAssignment.do?assignmentid-2180310 COMPONOW. Online teaching and leaming resource from Cengage Learning d. None of these choices are correct 8. MC 03-114 The aut account, Supplies, has a balance of $10,000 on January 1. During January, $22,000 of supplies were purchased on account and the ability was appropriately recorded. A count of supplies at the end of January indicates a balance of $2,000. What adjusting entry is necessary at January 317 a. Supplies Expense 24,000 Supplies 24,000 Supplies 22,000 Accounts Payable 22,000 Supplies Expense 30,000 Supplies 30,000 d. Supplies Expense 22,000 Supplies 20,000 Accounts Payable 2,000 9. MC.03-118 Failure to record the earned portion of unearned revenue would result in which of the following? a. Net Income being understated. b. Total assets being understated. Ne effect on total abilities d. Stockholders' equity being overstated 10. MC.04-073 While preparing the April 30th bank reconciliation, the accountant entined the following items: MacBook Pro d. Stockholders' equity being overstated. 10.MC.04-073 While preparing the April 30th bank reconciliation, the accountant identified the following items: Company's balance according to the general ledger Outstanding checks Bank service charge A customer's NSF check returned by the bank $15,000 2,500 15 100 What is the company's adjusted cash balance at April 30th? a. $12,385 b. $12,500 c. $17,385 d. $14,885 11. MC.04-108 Dreammaker Kitchens The following information relates to the company's November bank reconciliation: Bank statement balance $10,700 v2.cengagenow.com/ilm/takeAssignment/printUntaken Assignment.do CengageNOW Online teaching and learning resource from Cengage Learning d. $14,885 11. MC.04-108 Dreammaker Kitchens The following information relates to the company's November bank reconciliation: Bank statement balance $10,700 Unadjusted cash balance from the company's records ? Deposit in transit 2,100 Outstanding checks 1,200 Bank service chargest 300 Interest earned on the bank account 100 Customer's NSF check returned by the bank 400 Refer to Dreammaker Kitchens. As a result of the bank reconciliation process, what is the net increase or decrease in cash which must be recorded on the company's books? 3. 5600 decrease b. $100 decrease c. $400 decrease d. $300 decrease 12. MC 05-054 ATAU Company Data for the year ended December 31 are presented below: 12. MC.05-054 AT&U Company Data for the year ended December 31 are presented below: Sales (credit) $2,500,000 Sales returns and allowances 50,000 Accounts Receivable (December 31) 640,000 Allowance for Doubtful Accounts (Before adjustment at December 31) 20,000 Estimated amount of uncollected accounts based on aging analysis 45,000 Refer to AT&U Company. If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense? a. $24,500 b. $25,000 C. $44,500 d. $4,500 13. MC 05-083 A company needs to record 6 months of accrued interest on a h-year, 12%, $12,000 promissory note payable. How much interest expense should be a $1,440 b. $1,000 CengageNOW Online teaching and learning resource from Cengage Learning A company needs to record 6 months of accrued interest on a 4-year, 12%, $12,000 promissory note payable How much interest expense should be accrued? a $1,440 b. $1,080 C. $720 d. $2,160 14. MC.06-099 Klump Co. Klumo Couses a perpetual inventory system and had the following inventory transactions for the month of June June $900.00 $2.093.00 1 4 5 10 24 On hand, 50 units at $18.00 each Purchased 115 units $18.20 each Sold 100 units Purchased 75 units at $18.25 each Sold Sounits Total cost of goods available for sale On hand, 90 units $3,75 54,361.75 30 Refer to the information provided for me of the company the inventory conting method, the motor ending inventory reported on the balance sheet 3. 51,183.00 b. $2,720.00 C$1,041.75 d. 51,810.00 MacBook Pro CengageNOWZ | Online teaching and learning resou resource from Cengage Learning 15.MC.06-102 Klump Co. Klump Co. uses a perpetual Inventory system and had the following inventory transactions for the month of June. June 1 On hand, 50 units at $18.00 each $900.00 4 Purchased 115 units at $18.20 each $2,093.00 5 Sold 100 units 10 Purchased 75 units at $18.25 each $1,368.75 24 Sold 50 units Total cost of goods available for sale $4,361.75 30 On hand, 90 units Refer to the information provided for klump Co. If the company uses the LIFO inventory costing method, cost of goods sold for the month of June is: a. $2,732.50 b. 52,720.00 C. $2,722.50 d. $2.738.00 16. MC 07-039 Fabian Woodworks This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimate It of 5 years, or 100,000 hours of operation. The truck w January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020 Refer to Fabian Woodworks. If the company uses the straight-line method of depreciation, what is the book value at December 31, 2017 MacBook Pro 16. MC.07-039 Fabian Woodworks This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2.000 and an estimate of 5, 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020. Refer to Fabian Woodworks. If the company uses the straight-line method of depreciation, what is the book value at December 31, 2017 a $10,000 b. 58.000 c. 54,000 d. 36.000 17. MC 07-049 Acompany purchased land and incurred the following costs: Purchase Price 5500,000 Excavation Costs 50.000 Rating old bunding 12.500 Broker Fees 10,000 Cost of a Parking Lot 25,000 What is the cost of the land? 3.5550,000 MacBook Pro $ % 5 2 3 6 0 7 8 W E R . Y 18. MC 08-108 General Lighting During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6% Refer to General Lighting Sales taxes are required to be paid to the state taxing authority at the end of the quarter. Which of the following records the sale of the batteries? a. Accounts Receivable 636,000 Sales Revenue 600,000 Sales Tax Payable 36,000 b. Accounts Receivable 636,000 Sales Revenue 636,000 c. Accounts Receivable 600,000 Sales Revenue 564,000 Sales Tax Payable 36,000 d. Accounts Receivable 600,000 Sales Revenue 600,000 19. MC.09-082 A bond issuing a 101.25 means that the bond a. sold for $101.25 b. sold at a discount stated rate is lower than the market rate of interest d. sold for $1,012.50 20. MC.10-097 Ladder Distributors MacBook Pro 30 C. stated rate is lower than the market rate of interest d. sold for $1,012.50 20. MC.10-097 Ladder Distributors The stockholders' equity section of the December 31, 2019, balance sheet is provided below. Common Stock, $30 par, 20,000 shares issued and outstanding $600,000 Pald-in Capital in Excess of Par-Common Stock 240,000 Retained Earnings 200.000 Total Stockholders' Equity $1,540,000 Assume that all of the 20,000 shares of stock that was issued as of December 31, 2019, was issued for $42 per share on March 1, 2020, the company required 4,000 shares of its common stock for $50 per share Refer to Ladder Distributors. What is the total amount of stockholders equity that will be presented on the company's March 31, 2020, balance sheet? a $1,372,000 . 51,340.000 $1,740,000 d. 51,708,000 21. MC.11-119 A company reported the following information MacBook Pro % 5 & 7 2 3 6 8 d. $1,708 000 21. MC.11-119 A company reported the following information 2020 2019 Accounts receivable $50,000 $65,000 Inventores 43,000 Accounts payable 29,000 39,000 Net income 100,000 Depreciation expense 11,000 If the indirect method is used to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 20207 2.592,000 b. 5109,000 5111,000 d. 113.000 22. MC app:-023 Mantas Manufacturing of soment to make room for new machinery Marae receive the price of $50,000 at the end of 4 years. Assuming interest rate of 6 per year, the present of the wishow much? MacBook Pro S 7 5 7 8 9 0 Q E R. T Y O 22. MC app3-023 Manatee Manufacturing sels a plece of equipment to make room for new machinery, Manatee will receive the sales price of $50,000 at the end of 4 years. Assuming interest at a rate of 6% per year, the Present Value of this future cash flow is how much? a $39,604.50 b. 563,124.00 c. $39,515.50 d. $173.255.50 23. MC app3-024 Tom quidates on westment, and his proceeds will be received in annual payments of $10,000 each with interest computed at 7%. What is the Present Value of this Annuity? $59,713.00 b. 517,181.90 C. $5,820.10 d. 589,228.00 24. MC 06-078 Echols Company sells merchandise on credit. If a customer pays its balance due after the discount period has passed, what is the effect of the payment on seller's accounting equation? 3. Assets and stockholders' equity decrease . Asset decrease and liabilities increase Assets and holders' equity increase defect MacBook Pro % 5 4 & 7 Se 8 Company sells rovelty tems and others terms of 1/10, 1/30 to credit customers. One customer, Fauner, Inc., purchased 100 Sweet 16 party decor packs with a st price of $20 each on March 5 2019 Refer to the information provided for the company of the customer pays the amount of the invoice for its purchase on March 14, 2019, how much cash will El Company receive? b. $1,800 C. $1,980 d. 12.000 26. MC 06-01 Ghana Company The following information is from Gbane Company's accounting records for the year ended December 31: Purchases $218.400 Transportation in 13.200 Inventory, January 1 31,800 Inventory, December 31 34.560 Purchase and once 10.00 Refer to the won provided for an Company. How much will the company reports et purchases for the year anded December 31 $221.520 121.680 t. 251,320 MacBook Pro & 7 8 O W E R T Y I O S D F G H K