Cambridge College

If Thomas uses a first-in, first-out perpetual inventory system, the total cost of the inventory for carburetor 2642J at March 31 is a. $196,115 b. $197,488 c. $201,300 d. $263,825

If Thomas uses a last-in, first-out periodic inventory system, the total cost of the inventory for carburetor 2642J at March 31 is a. $196,115 b. $197,488 c. $201,300 d. $268,400

Dalton Company adopted the dollar-value LIFO inventory method on January 1, 2013. In applying the LIFO method, Dalton uses internal price indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 1 for the two years following the adoption of LIFO: Under the dollar-value LIFO method the inventory at December 31, 2014, should be a. $128,000 b. $129,800 c. $130,800 d. $140,800 Beginning in 2011, International Financial Reporting Standards are tested ...

[This is a variation of Exercise 8-1 modified to focus on the periodic inventory system.] John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2013: 1. John’s purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash. 2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier. 3. Merchandise costing ...

The Phoenix Corporation’s fiscal year ends on December 31. Phoenix determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company’s controller has asked for your help in deciding if the following items should be included in the year-end inventory count. 1. Merchandise held on consignment for Trout Creek Clothing. 2. Goods shipped f.o.b. destination on December 28 that arrived at the customer’s location on January 4. 3. Goods p...

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2013 is available: Aug. 1 Inventory on hand—2,000 units; cost $6.10 each. 8 Purchased 10,000 units for $5.50 each. 14 Sold 8,000 units for $12.00 each. 18 Purchased 6,000 units for $5.00 each. 25 Sold 7,000 units for $11.00 each. 31 Inventory on hand—3,000 units. Required: Determine the inventory balance Altira would report in its August 31, 2...

The following information is taken from the inventory records of the CNB Company: Beginning inventory, 9/1/13 5,000 units @ $10.00 Purchases: 9/7 3,000 units @ $10.40 9/25 8,000 units @ $10.75 Sales: 9/10 4,000 units 9/29 5,000 units 7,000 units were on hand at the end of September. Required: 1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September’s ending inventory. 2. Repeat requirement 1 a...

Kelly Corporation shipped goods to a customer f.o.b. destination on December 29, 2013. The goods arrived at the customer’s location in January. In addition, one of Kelly’s major suppliers shipped goods to Kelly f.o.b. shipping point on December 30. The merchandise arrived at Kelly’s location in January. Which shipments should be included in Kelly’s December 31 inventory?

On December 28, 2013, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the gross method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2014. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.

At the beginning of 2013, a company adopts the dollar-value LIFO inventory method for its one inventory pool. The pool’s value on that date was $1,400,000. The 2013 ending inventory valued at year-end costs was $1,664,000 and the year-end cost index was 1.04. Calculate the inventory value at the end of 2013 using the dollar-value LIFO method.

McIntyre Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $1,850, and there is no undeposited cash on hand. (a)Assuming no errors occurred during journalizing or posting, what caused this unusual balance? (b)Is the $1,850 credit balance in the cash account an asset, a liability, owner’s equity, a revenue, or an expense?

Jose Loder established Bronco Consulting on August 1, 2014. The effect of each transaction and the balances after each transaction for August are shown below.

On October 1, 2014, Kevin Bosley established Sunrise Realty. Kevin completed the following transactions during the month of October: a. Opened a business bank account with a deposit of $18,000 from personal funds. b. Purchased office supplies on account, $3,200. c. Paid creditor on account, $1,800. d. Earned sales commissions, receiving cash, $36,750. e. Paid rent on office and equipment for the month, $4,000. f. Withdrew cash for personal use, $3,000. g. Paid automobile expenses (includi...

D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets and the liabilities of the business on July 1, 2014, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,000; Land, $75,000; Accounts Payable, $40,000. Business transactions during July are summarized as follows: a. Joel Palk invested addi...

The following is a list of well-known companies. 1. Alcoa Inc. 2. Boeing 3. Caterpillar 4. Citigroup Inc. 5. CVS 6. Dow Chemical Company 7. eBay Inc. 8. FedEx 9. Ford Motor Company 10. Gap Inc. 11. H&R Block 12. Hilton Hospitality, Inc. 13. Procter & Gamble 14. SunTrust 15. Walmart Stores, Inc. a. Indicate whether each of these companies is primarily a service, merchandise, or manufacturing business. If you are unfamiliar with the company, use the Internet to locate the company...

Kendra Gorman is the owner and operator of Mega Concepts, a motivational consulting business. At the end of its accounting period, December 31, 2013, Mega Concepts has assets of $1,250,000 and liabilities of $475,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Kendra Gorman, capital, as of December 31, 2013. b. Kendra Gorman, capital, as of December 31, 2014, assuming that assets increased by $225,000 and liabilities increased by...

The following selected transactions were completed by Reuben’s Delivery Service during October: 1. Received cash from owner as additional investment, $20,000. 2. Purchased supplies for cash, $900. 3. Paid rent for October, $3,000. 4. Paid advertising expense, $2,500. 5. Received cash for providing delivery services, $23,100. 6. Billed customers for delivery services on account, $41,750. 7. Paid creditors on account, $4,500. 8. Received cash from customers on account, $36,200. 9. Dete...

From the following list of selected items taken from the records of Hoosier Appliance Service as of a specific date, identify those that would appear on the balance sheet: 1. Accounts Receivable 2. Cash 3. Fees Earned 4. Land 5. Ming Hu, Capital 6. Supplies 7. Supplies Expense 8. Utilities Expense 9. Wages Expense 10. Wages Payable

A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2014, is shown below. The cash balance as of June 1, 2013, was $58,000. Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2014.

a. Arrowhead Delivery Service is owned and operated by Gates Deeter. The following selected transactions were completed by Arrowhead Delivery Service during August: 1. Received cash from owner as additional investment, $25,000. 2. Paid creditors on account, $3,750. 3. Billed customers for delivery services on account, $22,400. 4. Received cash from customers on account, $11,300. 5. Paid cash to owner for personal use, $6,000. Indicate the effect of each transaction on the accounting equat...