ACCT310
Quiz 2
University of Maryland University
College
ACCT310 Intermediate Accounting I
PART 1
Use
the following to answer questions 1-3, pertaining to periodic inventory system:
A company just starting business made the following four
inventory purchases in June:
|
June
|
1
|
150
units
|
$
390
|
|
June
|
10
|
200
units
|
585
|
|
June
|
15
|
200
units
|
630
|
|
June
|
28
|
150
units
|
495
|
|
$2,100
|
|||
A
physical count of merchandise inventory
on June 30 reveals that there are 300 units on hand. 1.
Using
the LIFO inventory method, the value of the ending inventory on June 30 is
A)
$830.
B) $653.
C) $1,447.
D) $1,564.
2. Using
the FIFO inventory method, the amount allocated to cost of goods sold for June
is
A)
$653.
B)
$1,272.
C)
$1,447.
D)
$968.
E)
$1,132.5
3.
Using the average-cost method, the amount allocated to the ending inventory on
June 30 is
A)
$2,100.
B)
$1,500.
C)
$575.
D)
$900.
Use
the following to answer questions 4-6:
July 1 Beginning inventory 10 units at $90
5 Purchases
60 units @ $84
14 Sale
45 units
21 Purchases
30 units @ $87
30 Sale
30 units
4. Assuming
that a perpetual inventory system is used, what is the ending inventory on a
FIFO basis?
A)
$2,748
B)
$2,754
C)
$2,175
D)
$5,796
5. Assuming
that a perpetual inventory system is used, what is the ending inventory on a
LIFO basis?
A)
$2,748
B)
$2,754
C)
$2,160
D)
$5,796
6. Assuming
that a perpetual inventory system is used, what is the ending inventory
(rounded) under the average-cost method?
A)
$2,750
B)
$2,151
C)
$2,406
D)
$2,772
Use the following to answer questions 7-9:
Blue Company had the following transactions during
2008:
|
1.
|
Issued $45,000 of par value common
stock for cash.
|
|
2.
|
Repaid a 6 year note payable in the
amount of $13,000.
|
|
3.
|
Acquired land by issuing common stock
of par value $60,000.
|
|
4.
|
Declared and paid a cash dividend of
$2,000.
|
|
5.
|
Sold a long-term investment (cost
$3,000) for cash of $7,000.
|
|
6.
|
Acquired a long-term investment in
stock for cash of $5,000.
|
7. What
is the net cash provided by financing activities?
A) $13,000
B) $25,000
C) $14,000
D) $30,000
8. What
is the net cash provided by investing activities?
A) $6,000
B) $16,000
C) ($3,000)
D) $2,000
9Largor Company reported a net income of $3,000 for
the year ended December 31, 2008. During the year, accounts receivable
increased $7,000, merchandise inventory decreased $5,000, accounts payable
decreased by $10,000, and depreciation expense of $5,000 was recorded. During
2007, operating activities
A) used net cash of $4,000.
B) used net cash of $14,000.
C) provided net cash of $14,000.
D) provided net cash of $9,000.
10 Using the percentage of receivables method for
recording bad debts expense, estimated uncollectible accounts are $12,000. If
the balance of the Allowance for Doubtful Accounts is $2,000 credit before
adjustment, what is the amount of bad debts expense for that period?
A) $10,000
B) $8,000
C) $12,000
D) $2,000
11. A company has net credit sales of $900,000 for
the year and it estimates that uncollectible accounts will be 2.5% of sales. If
Allowance for Doubtful Accounts has a credit balance of $1,000 prior to
adjustment, its balance after adjustment will be a credit of
A) $18,000.
B) $19,000.
C) $23,500.
D) $17,000.
12. JV
issued 8% stated rate bonds with a face amount of $200 million. The bonds
mature on
December 31, 2033 (20 years). The market rate
of interest for similar bond issues was 10%
(5%
semiannual rate). Interest is paid semiannually (3%) on June 30 and December
31,
beginning
on June 30, 2014. What is the issue
price of the bonds? Write only the
final
answer on
the final answer. Do not show work.
Data related to the inventories of XYZ
Medical Supply are presented below:
13. In applying the LCM rule,
the inventory of surgical equipment would be valued at:
A. $230.
B. $240.
C. $170.
D. $152.
14. In applying the LCM rule, the inventory of surgical supplies
would be valued at:
A. $115.
B. $90.
C. $80.
D. . $69
E. $79
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