Acc 561 Final Exam 3

ACC 561 FINAL EXAM 3 1. At September 1, 2017, Baxter Inc. reported Retained Earnings of $423,000. During the month, Baxter generated revenues of $60,000, incurred expenses of $36,000, purchased equipment for $15,000 and paid dividends of $6,000. What is the balance in Retained Earnings at September 30, 2017 $441,000 credit 2. The investigation of materials price variance usually begins in the Purchasing department 3. Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only 3,300 units. Total yards used for production were 3,960. How much is the total materials variance $900 U 4. La More Company had the following transactions during 2016: Sales of $9,000 on account Collected $4,000 for services to be performed in 2017 Paid $3,750 cash in salaries for 2016 Purchased airline tickets for $500 in December for a trip to take place in 2017 What is La More’s 2016 net income using accrual accounting $5,250 5. Based on the following data, what is the amount of working capital Account Payable $64,000 Accounts receivable 114,000 Cash 70,000 Intangible Assets 100,000 Inventory 138,000 Long-term investments 160,000 Long-term liabilities 200,000 Short-term investments 80,000 Notes payable (short-term) 56,000 Property, plant, and equipment 1,340,000Prepaid insurance 2,000 $284,000