ACCT 229 TAMU LATEST 2026 EXAM QUESTIONS AND ANSWERS RATED A.pdf

ACCT 229 TAMU LATEST 2026 EXAM QUESTIONS AND
ANSWERS RATED A+
✔✔Definition of goodwill - ✔✔Cost to purchase - FMV

✔✔Closing entires - ✔✔Revenue
---- Income Summary
Income Summary
---- COGS, Exp
Income Summary
---- Retained Earnings
Retained Earnings
---- Dividends

✔✔Deferred Revenue - ✔✔Unearned revenue

✔✔Deferred Expense - ✔✔Prepaid expense

✔✔Accrued Asset/ Revenue - ✔✔Interest receivable, rent receivable

✔✔Accrued Liability/ Expense - ✔✔Wages payable, interest payable

✔✔SHE is increased with a - ✔✔Credit

✔✔Net Sales Formula - ✔✔Sales revenue
- Sale return and allowance
- Sale discount
---------------------
Net Sales

✔✔2/ 10 net 30 - ✔✔If you pay within 10 days you will get 2% off, or pay in full in 30
days

✔✔Perpetual Method - ✔✔- Keeps a running total of the inventory
- Recognizes a loss
- Inventory account

✔✔Perpetual journal entires - ✔✔- Purchase
Invt
----Acct pay
- Sale
Cash
----Sale rev
COGS
----Invt

, - ADJ
Losse
----Invt

✔✔Periodic Method - ✔✔- Update at end of period
- Use COGS formula
- All items purchased for resale are debited to purchases

✔✔Periodic journal entires - ✔✔- Purchase
Purchase
----Acct pay
- Sale
Cash
---- Rev
- ADJ
EI
COGS
----BI
---- Purch

✔✔COGS Formula - ✔✔Beg invt
+ Net purchases
----------------
GAS
- End invt
----------------
COGS

✔✔Net Purchases Formula - ✔✔Purchases
- Purchases returns and allowances
- Purchase discount
+ Freight in
------------------
Net Purchases

✔✔FOB Shipping - ✔✔- Buyer pays shipping

✔✔FOB Destination - ✔✔- Seller pays for shipping

✔✔FIFO - ✔✔- Advantage: ending inventory is most recent purchases
- Disadvantage: if prices are rising, matches oldest unit costs with current revenues =
overstatement of net income = inventory profits

✔✔LIFO - ✔✔- Advantage: in periods of rising prices, net income is always less = lower
taxes