Question 31

To calculate straight-line depreciation, one would have to know all of the following EXCEPT ________.

capitalized cost

the number of units the asset is expected to produce

the asset's residual value

the estimated useful life of the asset

Question 32

Revenues are closed into the ________ account?

income summary

the owner's withdrawals

owner's capital

expenses

Question 33

Determine cash withdrawals for the period if net income is $34,000, beginning owner's equity is $29,000, and ending owner's equity is $55,000.

$18,000

$8,000

$60,000

$5,000

Question 34

Table 4

The following data are for the RoadRunner Corporation, which uses a perpetual inventory system:

Sales revenue

$600,000

Freight-in

42,000

Beginning inventory

77,000

Purchase discounts

19,000

Sales returns and allowances

33,000

Operating expenses

77,000

Ending inventory

81,000

Purchases of inventory

415,000

Sales discounts

35,000

Joseph RoadRunner, withdrawals

71,000

Purchase returns and allowances

39,000

Refer to Table 4. After calculating the cost of goods sold at $395,000, gross profit for RoadRunner Company is ____________.

$137,000

$172,000

$205,000

$60,000