ACC 422 Final Exam WileyPlus
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ACC 422 Final Exam WileyPlus
Question 1. Kraft Enterprises owns the following assets at December 31, 2012. What amount should be reported as cash?
Question 2. Presented below is information related to Rembrandt Inc.'s inventory.
Question 3. Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 74 units that cost $44 each. During June, the company purchased 222 units at $44 each, returned 9 units for credit, and sold 185 units at $74 each.
Question 4. Amsterdam Company uses a periodic inventory system. For April, when the company sold 700 units, the following information is available. Compute the April 30 inventory and the April cost of goods sold using the average cost method.
Question 5. Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available.
Question 6. (FIFO, LIFO, Average Cost Inventory) Esplanade Company was formed on December 1, 2011. The following information is available from Esplanade's inventory records for Product BAP.
Question 7. Floyd Corporation has the following four items in its ending inventory
Question 8 Kumar Inc. uses a perpetual inventory system. At January 1, 2013, inventory was $241,606 at both cost and market value. At December 31, 2013, the inventory was $322,894 at cost and $303,701 at market value.
Question 9. Boyne Inc. had beginning inventory of $15,000 at cost and $25,000 at retail. Net purchases were $150,000 at cost and $212,500 at retail. Net markups were $12,500; net markdowns were $8,750; and sales were $196,250.
Question 10. Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Question 11. Previn Brothers Inc. purchased land at a price of $27,400. Closing costs were $2,550. An old building was removed at a cost of $10,530. What amount should be recorded as the cost of the land?
Question 12. Garcia Corporation purchased a truck by issuing an $90,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck.
Question 13. Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $431,550. The estimated fair values of the assets are land $82,200, building $301,400, and equipment $109,600.
Question 14. Fielder Company obtained land by issuing 2,000 shares of its $11 par value common stock. The land was recently appraised at $91,800. The common stock is actively traded at $44 per share.
Question 15. Navajo Corporation traded a used truck (cost $22,600, accumulated depreciation $20,340) for a small computer worth $4,181. Navajo also paid $1,130 in the transaction. Prepare the journal entry to record the exchange.
Question 16. Mehta Company traded a used welding machine (cost $12,330, accumulated depreciation $4,110) for office equipment with an estimated fair value of $6,850. Mehta also paid $4,110 cash in the transaction. Prepare the journal entry to record the exchange.
Question 17. Depreciation is normally computed on the basis of the nearest
Question 18. Fernandez Corporation purchased a truck at the beginning of 2012 for $43,260. The truck is estimated to have a salvage value of $2,060 and a useful life of 164,800 miles. It was driven 23,690 miles in 2012 and 31,930 miles in 2013.
Question 19. Lockhard Company purchased machinery on January 1, 2012, for $77,400. The machinery is estimated to have a salvage value of $7,740 after a useful life of 8 years.
Question 20. Jurassic Company owns machinery that cost $955,800 and has accumulated depreciation of $382,320. The expected future net cash flows from the use of the asset are expected to be $531,000. The fair value of the equipment is $424,800.
Question 21. Everly Corporation acquires a coal mine at a cost of $496,800. Intangible development costs total $124,200. After extraction has occurred, Everly must restore the property (estimated fair value of the obligation is $99,360), after which it can be sold for $198,720.
Question 22. Francis Corporation purchased an asset at a cost of $42,800 on March 1, 2012. The asset has a useful life of 8 years and a salvage value of $4,280. For tax purposes, the MACRS class life is 5 years. Compute tax depreciation for each year 2012–2017.
Question 23. Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2012, for $54,600. The patent has a remaining legal life of 16 years. Celine Dion feels the patent will be useful for 10 years.
Question 24. Karen Austin Corporation has capitalized software costs of $757,100, and sales of this product the first year totaled $400,710. Karen Austin anticipates earning $934,990 in additional future revenues from this product, which is estimated to have an economic life of 4 years.
Question 25. Jeff Beck is a farmer who owns land which borders on the right-of-way of the Northern Railroad. On August 10, 2012, due to the admitted negligence of the Railroad, hay on the farm was set on fire and burned.
Question 26. Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, Roley purchased $73,000 of inventory, terms 2/10, n/30, FOB shipping point. Roley paid freight costs of $1,300.
Question 27. Takemoto Corporation borrowed $105,600 on November 1, 2012, by signing a $107,976, 3-month, zero-interest-bearing note.
Question 28. Whiteside Corporation issues $584,000 of 9% bonds, due in 15 years, with interest payable semiannually. At the time of issue, the annual market rate for such bonds is 10%.