Accounting 101 Assignment Problems 2015

Problem 1
The following is the data about purchases and sales of goods for AA company.

Date action quantity unit cost
1/1 inventory 12,000 $6.00
01/7 purchase 10,500 $7.00
01/22 purchase 11,200 $7.80

Sales:
1/9 sales 11,400 units
1/24 sales 12,200 units

Bases on above data,
1. Cost of goods sold under Periodic FIFO is
a. $78,780
b. $172,260
c. $60,600
d. $154,080

2. Ending inventory under Periodic LIFO is
a. $60,600
b. $172,260
c. $69,790
d. $78,780

3. Ending inventory under Periodic weighted average cost is: (round to 2 decimal places)
a. $163,069
b. $172,260
c. $78,780
d. $69,791

4. Cost of goods sold under Perpetual LIFO is
a. $154,080
b. 163,069
c. $172,260
d. $232,860
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Problem 2

On April 1, the inventory account of Logho Shop /showed merchandise inventory balance of $8800. These transactions occurred during April, 2014. Company uses PERPETUAL SYSTEM.

1. On 4/5 Purchased golf bags, clubs and balls on account from Ooland Co. $12,500, terms 3/10, n/60. The journal entry is

a. Debit inventory; credit cash
b. Debit purchases; credit accounts payable
c. Debit inventory; credit accounts receivable
d. Debit inventory; credit accounts payable

2. On 4/6 Paid freight $280.

a. Debit delivery expense; credit cash
b. Debit inventory; credit cash
c. Debit delivery expense; credit accounts payable
d. Debit cash; credit inventory

3. On 4/7 Received credit from Ooland Co. for merchandise returned $2000.

a. Debit inventory; credit accounts payable
b. Debit accounts payable; credit inventory
c. Debit returns; credit cash
d. Debit cash; credit inventory

4. On 4/9 Sold merchandise on account to members $9400, terms n/30. The cost of the merchandise = $4100.
a. Debit cost of goods sold for $4100; credit inventory for $4100
b. Debit accounts receivable for $4100; credit sales revenue for $4100
c. Debit inventory for $9400; credit sales revenue for $9400
d. Debit inventory for $9400; credit sales revenue for $9400

5. On 4/11 Paid Ooland Co. in full. The company will pay cash of
a. $10,185
b. $12,500
c. $12,780
d. $10,500

6. The inventory balance at the end of the month is
a. $8,800
b. $16,460
c. $5,345
d. $15,165
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Problem 3
The following are account balances of VGV company for the month of September 2013. Company buys and sells windows. Company uses PERIODICAL SYSTEM.

Inventory: 09/01/2013 $80,000
Purchases for September $330,000
Purchase discount $3,300
Sales revenue $920,000
Sales discount $12,000
Sales returns $18,000
Inventory: 09/30/2013 $40,000

1. The GROSS PROFIT for the month of September is
a. $126,330
b. $590,000
c. $920,000
d. $523,300

Problem 4
On July 31, 2012, Caton Company had a cash balance per
books of $20,809. The statement from Jackson State Bank on
that date showed a balance of $17,695. A comparison of the bank
statement with the cash account revealed the following facts.

1. The bank service charge for July was $125. In bank reconciliation, company will

a. Add this charge to the book balance
b. Add this charge to the bank balance
c. Subtract this charge from the book balance
d. Subtract this charge from bank balance

2. The bank collected a note receivable of $2,500 for Fenton Company on July 15, plus $500 of interest. The bank made a $50 charge for the collection. Caton has not accrued any interest on the note. $2500 of note and $500 of interest will be

a. Added to the book balance
b. Subtract from the bank balance
c. Subtract from the book balance
d. Add to the bank balance

3. The July 31 receipts of $7,193 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. These receipts will be

a. Added to the book balance
b. Subtracted from the bank balance
c. Subtracted from the book balance
d. Added to the bank balance

. Checks outstanding on July 31 totaled $1,980. These outstanding checks will be

a. Added to the book balance
b. Subtracted from the book balance
c. Added to the bank balance
d. Subtracted from the bank balance

5. . On July 31 the bank statement showed an NSF charge of $690 for a check received by the company from a customer, on account. This NSF amount will be

a. Added to the bank balance
b. Subtracted from the bank balance
c. Added to the book balance
d. Subtracted from the book balan