Problem 1 (13 points) In the table below, indicate with an "X" in the proper column whether the account is a (nominal) temporary account or a (real) permanent account. Temporary (Nominal) Permanent (Real) a. b. d. f. Account Cash............................................... Prepaid insurance ........................... Unearned fees........................ Accounts receivable ........................... Insurance expense .............. O. Ner, Capital ..................... O. Ner, Withdrawals .............. Rent expense ....... Fees earned..................................... Supplies.................................... Supplies expense........... Depreciation expense - Building. Accumulated depreciation - Building .. k. m. Problem 2 (5 points) Calculate the current ratio in each of the following separate cases. Case 1 Case 2 Case 3 Case 4 Case 5 Current Assets Current Liabilities $ 75,000 $ 30,000 $161,500 $ 85,000 $ 45,000 $ 53,000 $132,000 $127,000 $ 99,000 $110,000 Problem 3 (29 points) Ceres Computer Sales uses the perpetual inventory system and had the following transactions during December. Dec 1 Sold merchandise on credit for $5,000, terms 3/10, n/30. The items sold had a cost of $3,500. 3 Purchased merchandise for cash, $720. 4 Purchased merchandise on credit for $2,600, terms 1/20, n/30. 5 Issued a credit memorandum for $300 to a customer who returned merchandise purchased November 29. The returned items had a cost of $210. 11 Received payment for merchandise sold December 1. 15 Received a credit memorandum for the return of faulty merchandise purchased on December 4 for $600. 18 Paid freight charges of $200 for merchandise ordered last month. (FOB shipping point) 23 Paid for the merchandise purchased December 4 less the portion that was returned. 24 Sold merchandise on credit for $7,000, terms 2/10, n/30. The items had a cost of $4,900. 31 Received payment for merchandise sold on December 24. Prepare general journal entries for the above transactions. Problem 4 (13 points) A company that uses a perpetual inventory system made the following cash purchases and sales: January 1: Purchased 100 units at $10 per unit. February 5: Purchased 60 units at $12 per unit. March 16: Sold 40 units for $16 per unit. 1. Prepare general journal entries to record the March 16 sale assuming a cash sale and the FIFO method is used. 2. Prepare the general journal entry to record the March 16 sale assuming a cash sale and the LIFO method is used
