Question 16 2 Points Inventory records for Dunbar Incorporated revealed the following: Date Transaction Beginning inventory Number of Units 300 100 Unit Cost $2.40 2.50 Apr. 1 Apr. 20 Purchase Dunbar sold 200 units of inventory during the month. Cost of goods sold assuming LIFO would be: A $480 B $500 $200 D $490 Question 17 2 Points Inventory records for Dunbar Incorporated revealed the following: Date Transaction Apr. 1 Beginning inventory Apr. 20 Purchase Number of Units 300 100 Unit Cost $2.40 2.50 Dunbar sold 200 units of inveptory during the month. Ending inventory assuming LIFO would be: $480 B $500 $200 D $490 Question 20 2 Points Using a perpetual inventory system, how should a company record the sale of inventory costing $620 for 5960 on actount? 1 620 620 960 960 2. 960 Inventory Cost of Goods Sold Sales Revenue Accounts Receivable Accounts Receivable Sales Revenue Cost of Goods Sold Inventory Inventory Gain Sales Revenue 960 620 620 3 620 340 960 960 4. Accounts Recelvable Sales Revenues Gain 620 340 The correct journal entry is: option 1 B option 2 option 3 D option 4 Question 28 2 Points ABC Inc. borrowed $8,000 from First Bank and signed a promissory note. What entry should ABC Inc. record? Debit Cash, $8,000; Credit Notes Receivable, $8,000. B Debit Notes Receivable, $8,000; Credit Cash, $8,000. Debit Cash, $8,000; Credit Notes Payable, $8,000. Debit Notes Payable, $8,000; Credit Cash, $8,000. Question 29 2 Points On December 1, 2015, Old World Deli signed a $300,000, 596, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2016. Old World Deli should record which of the following adjusting entries at December 31, 20152 A Debit Interest Expense and credit Interest Payable, $7,500. B Debit Interest Expense and credit Cash, $7,500. Debit Interest Expense and credit interest Payable, $1,250. Debit Interest Expense and credit Cash, $1,250. Question 37 2 Points ABC Company has the following accounting information: current assets $20,000, long-term assets $30,000, current liabilities $10,000, long term liabilities $20,000. ABC Company's current ratio is: A 0.5 2 2/3 015 Question 43 2 Points Questions 43-48 are about calculation of depreciation. Same information is provided for these questions. Speedy Delivery Company purchases a delivery van for $35,000. Speedy estimates that at the end of its four year service life. the van will be worth $3,000. During the four-year period, the company expects to drive the van 100,000 miles Actual miles driven each year were 30,000 miles in year 1 and 31,000 miles in year 2. Using straight-line method, the depreciation expense for year 1 is: A $8,750 B $8,000 $30,000 D) $7,500. Question 44 2 Points Speedy Delivery Company purchases a delivery van for $35,000. Speedy estimates that at the end of its four year service life, the van will be worth $3,000. During the four-year period, the company expects to drive the van 100.000 miles Actual miles driven each year were 30,000 miles in year 1 and 31,000 miles in year 2 Using straight-line method, the depreciation expense for year 2 is: $7,500 B $30,000 $8,000 $8,750 Question 45 2 Points Speedy Delivery Company purchases a delivery van for $35,000 Speedy estimates that at the end of its four year service life, the van will be worth $3,000. During the four-year period, the company expects to drive the van 100,000 miles Actual miles driven each year were 30,000 miles in year 1 and 31,000 miles in year 2 Using straight-line method, the accumulated depreciation for year 2 is: $17,500 $60,000 $15,000 $16,000 Speedy Delivery Company purchases a delivery van for $35.000 Speedy estimates that at the end of its four year service life, the van will be worth $3,000. During the four-year period, the company expects to drive the van 100,000 miles. Actual miles driven each year were 30,000 miles in year 1 and 31,000 miles in year 2. Using activity-based method, the depreciation expense for year 1 is $10,500 B $9,600 $9,920 $8,000
