Question
QUESTION 36 A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150
QUESTION 36
A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the First-In, First-Out inventory costing method, what is the amount of ending inventory on December 31?
$1,500 | ||
$1,250 | ||
$1,000 | ||
$2,250 |
3 points
QUESTION 37
On November 15, 2011, Beta Company purchased 500 shares of Aquarium Suppliers Corporation for a short term investment at $60 per share. (Aquarium Suppliers has 1,000,000 shares of common stock issued and outstanding.) At December 31, 2011, the market value of Aquarium Suppliers was $52 per share. Which of the following is the entry needed on Beta s books at year-end?
Debit Loss on sale of trading investments, credit Investments | ||
Debit Fair value adjustment, credit Unrealized holding loss | ||
Debit Unrealized holding loss, credit Common stock | ||
Debit Unrealized holding loss, credit Fair value adjustment |
3 points
QUESTION 38
Check Number 6135 for $576 was incorrectly entered as $657. Which adjustment needs to be made?
Decrease the book balance. | ||
Decrease the bank statement balance. | ||
Increase the book balance. | ||
Increase the bank statement balance. |
3 points
QUESTION 39
Which of the following defines Gross profit?
Sales revenue less Sales returns and allowances | ||
Sales revenue less Operating expenses | ||
Net sales revenue less Sales discounts | ||
Net sales revenue less Cost of goods sold |
3 points
QUESTION 40
Which of the following would be included in the entry to record a dishonored note receivable by the payee?
A debit to Accounts receivable | ||
A debit to Interest revenue | ||
A debit to Notes receivable | ||
A credit to Interest expense |
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