Teddy Bear Inc. paid cash to purchase 200 units of Inventory. They paid $18.00 each for the first hundred units and $20.00 each for the second hundred uruts. Teddy Bear Inc. then sold 100 units for $100 each. If all transactions occurred in cash, which of the following statements is correct? Multiple Choice Cash flow from operating activities 56,200 assuming the weighted average inventory cost flow method is used Cash flow from operating activities is $8,000 assuming the last in, first-out (UF) Inventory cost flow method is used Cash flow from operating activities as $8.200 assuming the first in first out (FFO) inventory cost tow method is used Cash flow from operating activities $6.200, regardless of the inventory cost flow method used Save LEX Toy Rocket Inc. purchased two hundred toy rockets during the year. The first one hundred rockets cost $16.00 each and the second one hundred rockets cast $18.00 each. The company sold one hundred toy rockets for $24.00 each. Which of the following statements is true? Multiple Choice Ending inventory will be higher if the company uses the first in first out (FFO) rather than the weighted average inventory cost flow method Cost of goods sold will be higher if the company uses the FIFO rather than the weighted average inventory cost how method The dollar amount assigned to cost of goods sold will be the same no matter which inventory cost flow method is used Gross margin will be higher if the company uses last-in, first-out (LIFO) rather than the FIFO inventory cost flow method A company sells it's products for $100 each. If they sell 20 units this year, which inventory cost flow method will result in the highest amount of revenue? Multiple Choice LIFO FIFO Weighted Average None of the above Saved On January 1 Year 1, the Accounts Receivable balance was $30,600 and the balance in the Allowance for Doubtful Accounts was $3700. On Janowy 15. Year 1 an $1,070 uncollectible account was written oft. What is the net realizable value of accounts receivable immediately after the write off? Multiple Choice $29.530 $25,830 $26.900 $27.970 Hammer Time, Inc. sells premium hammers to construction companies. During the year, the company purchases 2.000 hommets for $20,000. In the long-term, what will the company record as cost of goods sold (assuming they eventually sell all the hammers)? Multiple Choice Less than $30 000 More than $30.000 Equal to $30,000 It depends on which inventory cost flow method the company chooses The Miller Company earned $109,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts During Year 1. Miller collected $75,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account What is the net realizable value of Miller's receivables at the end of Year 1? Multiple Choice $30,730 $3050 $37.270 $34000 Required information The following information applies to the questions displayed below.) The following transactions apply to Jova Company for Year 1, the first year of operation: 1. Issued $15,500 of common stock for cash. 2. Recognized $64,500 of service revenue earned on account. 3. Collected $57,600 from accounts receivable. 4. Pald operating expenses of $36.000. 5. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account The following transactions apply to Jova for Year 2: 1. Recognized $72,000 of service revenue on account. 2. Collected $65,600 from accounts receivable, 3. Determined that $890 of the accounts receivable were uncollectible and wrote them off. 4. Collected $300 of an account that had previously been written off 5. Pald $48,400 cash for operating expenses. 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account. Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2 Complete this question by entering your answers in the tabs below. 31 Required C1 Required C2 Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balance with a minus son Not all cells require input.) Assets JOVA COMPANY Accounting Equation for Year 1 Stockholders' Equity - Liabilities Common Retained stock Earnings + Event Account Titles for Retained Earnings Cash NRV Accounts Receivable 1 + 2 3 + + + 4 5 Bal + + Reguld Required C2 > Complete this question by entering your answers in the tabs below. Show less Required C1 Required ca Organize the transaction data in accounts under an accounting equation for Year 2. For event 4, reinstate the customer's account receivable in 4a and record the receipt of payment on account in 4b. (Enter any decreases to account balances with a minus sign. Not all cells require input.) JOVA COMPANY Accounting Equation for Year 2 Stockholders' Equity Liabilities Common Retained Stock Earnings Assets NRV Accounts Receivable Event Account Titles for Retained Earnings Cash Bal + + 1 2 + 3 4a 4b 5 6 Bal Which of the following terms is used to describe the process of expense recognition for property, plant and equipment? Multiple Choice Amortization Depreciation Depletion Revision Seve E On January 1, Year 1. Marino Moving Company paid $64,000 cash to purchase a truck. The truck was expected to have a four year set life and a $4.000 vape value. If Marino uses the straight-line method, the amount of depreciation expense recognized on the Year 2 income statement Multiple Choice $16.000 $32.000 $15,000 $10.000 On January 1, Year 1. Marino Moving Company paid $64.000 cash to purchase a truck. The truck was expected to have a four year usetile and a $4.000 salvage value. I Marino uses the straight-line method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year I will affect the Company's financial statements? Income Statement Assets Book Value Cash + of Truck A. Not affected (45,000) B. Not affected (45,000) C. Not affected (15,000) D. Not affected (15, 000) Balance Sheet - Liabilities + Stockholdeca' Kquity Accounta Retained Payable +. Common Stock Earnings Not affected Not affected (45,000) Not affected Not affected (45,000) Not affected Not affected 15,000 Not affected Not affected (15,000) Revenue Not affected Not affected Not affected Not affected Exponas - Not Income 45,000 145,000) 45,000 (45,000) 15,000 115,000) 15,000 125.000) Not af Not ar 115,000) Opera Not att Multiple Choice Option A Option B Multiple Choice Option A Option Option Option D On January 1, Year 1. Friedman Company purchased a truck that cost $52,000. The truck had an expected useful life of 200,000 miles over 8 years and an 59.000 salvage value. During Year 2. Friedman drove the truck 27000 miles. Friedman uses the units of production method What is depreciation expense in Your ?? (Round your intermediate calculations to 3 decimal places.) Multiple Choice $7020 $5,805 $5,375 $6,500 Rlley Company borrowed $24,000 on April 1, Year 1 from Titan Bank. The note Issued by Riley carried a one year term and a 4% annual interest rate. Riley earned cash revenues of $900 during Year 1 and $500 during Year 2. Assume no other transactions Based on this information alone, what are the amounts of total liabilitles that would appear on Rileys December 31 balance sheets for Year 1 and Year 2 respectively? Multiple Choice $24.000 and 50 O $24720 and $0 $24.720 and $24580 5720 and $260 Madison Company issued an interest-bearing note payable with a face value of $8.400 and a stated interest rate of 8% to Metropolitan Bank an Augent Yeat The note carried a one-year term. Based on this information alone, what is the amount of total abilities appearing on Madison's balance sheet as of December 3t Your Multiple Choice $8.792 $8 GBD 59072 SR 400 m Next > Houston Company borrowed $20,000 from Dallas Company on March 1 Year 1. Houston Issued a note payable that had a one you term and the annual interest rate is 8%. On December 31, Year 1, which of the following financial statements will the note payable and related interest be shown on? Multiple Choice O Income Statement and Statement of Stockholders' Equity Balance Sheet and Income Statement Balance Shoot only Balance Sheet and Statement of Stockholders' Equity When calculating interest expense on a 6-month note, multiply the principal by the interest rate, and then multiply by (6 +12) True or Flse True False Shane Company would like to raise $100,000 to expand it's business. To do so, Shane Co. has decided to issue (selt) 100 bonds for $1.000 each. Shane Co. is offering to pay investors 8% interest each year for five years. Indicate whether each of the following statements about Shane Company is true or false. a) If the market rate of interest for similar bonds is 8%, then Shane Company will sell thelr bonds at a discount. (Click to select) b) If the market rate of interest for similar bonds is 10%, then Shane Company will sell their bonds for less than $1.000 each. (Click to select) c) If Shane Company's bonds are sold at 105, then the stated interest rate of the bonds is higher than the market rate for similar bonds. (Click to select) d) If Shane Company's effective rate is 6.5%, then the stated interest rate of the bonds is higher than the market rate for similar bonds. (Click to select) e) In five years, Shane Company will pay back the face value of bonds ($100,000) that were sold at a premium. (Click to select) Marvin Company issues $125,000 of bonds at face value on January 1. The bonds carry a 6% annual stated rate of interest. Interest is payable in cash on December 31 of each year. Which of the following shows the effect of the first interest payment on the financial statements? Balance Sheet Income statement Stockholders Aaseta - Liabilities + Equity Revenue Expense Net Income Statement of Cash Flow A. (7,500) (7,500) Not affected Not affected Not affected Not affected (7,500) Financing activity B. (7,500) Not affected (7,500) Not affected 7,500 (7,500) 07.500) Financing activity c. (7,500) (7,500) Not affected Not affected Not affected Not affected (7.500) Operating activity D. (7,500) Not affected (7,500) Not affected 7.500 (7,500) (7,500) Operating activity Multiple Choice Option A Option Ortir Multiple Choice Option A Options Option Option On January 1. Year 1. Victor Company issued bonds with a $700.000 face value, a stated rate of interest of 4%, and a 5 year term to matany. The bonds sold 24 Interest is payable in cash on December 31 of each year. Victor uses the straight-line method to amortize bond discounts and premium What is the carrying value of the bond liability at December 31, Year 3? Multiple Choice $683.200 O $674,800 $691600 $666,400 23 24 Next > On January 1. Year 1, Denver Company issued bonds with a face value of $89.000, a stated rate of interest of and a 5 year term to maturity. The bonds were sold at 103. Denver uses the straight-line method to amortize bond discounts and premiums. What is the amount of interest expense during you Multiple Choice $8010 $7,476 $8.544 $80250 On January 1 Year 1. Victor Company issued bonds with a $700,000 face value, a stated rate of interest of 4%, and a 5-year term to maturty The bonds sold 194 Interest is payable in cash on December 31 of each year. Victor uses the straight line method to amortire bond discounts and premiums. What is the carrying value of the bond liability at December 21 Year 3? Multiple Choice $683.200 $674,800 $691,600 $666.400