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ACC 422 Final Exam
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 67 units that cost $40 each. During June, the company purchased 202 units at $40 each, returned 8 units for credit, and sold 168 units at $67 each. Journalize the June transactions.
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. Compute the April 30 inventory and the April cost of goods sold using the FIFO method.
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. Determine the final lower of cost or market inventory value for each item.
Question 8 Kumar Inc. uses a perpetual inventory system. At January 1, 2013, inventory was $320,786 at both cost and market value. At December 31, 2013, the inventory was $428,714 at cost and $403,231 at market value. Prepare the necessary December 31 entry under:
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;
Question 10 (Gross Profit Method) 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 $30,400. Closing costs were $1,820. An old building was removed at a cost of $14,850. What amount should be recorded as the cost of the land?
Question 12 Garcia Corporation purchased a truck by issuing an $108,000, 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 $352,800. The estimated fair values of the assets are land $67,200, building $246,400, and equipment $89,600. At what amounts should each of the three assets be recorded?
Question 14 Fielder Company obtained land by issuing 2,000 shares of its $12 par value common stock. The land was recently appraised at $103,700. The common stock is actively traded at $50 per share. Prepare the journal entry to record the acquisition of the land.
Question 15 Navajo Corporation traded a used truck (cost $23,600, accumulated depreciation $21,240) for a small computer worth $4,366. Navajo also paid $1,180 in the transaction. Prepare the journal entry to record the exchange.
Question 16 Mehta Company traded a used welding machine (cost $10,080, accumulated depreciation $3,360) for office equipment with an estimated fair value of $5,600. Mehta also paid $3,360 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 $54,180. The truck is estimated to have a salvage value of $2,580 and a useful life of 206,400 miles. It was driven 29,670 miles in 2012 and 39,990 miles in 2013. Compute depreciation expense for 2012 and 2013.
Question 19 Lockhard Company purchased machinery on January 1, 2012, for $79,200. The machinery is estimated to have a salvage value of $7,920 after a useful life of 8 years.
Question 20 Jurassic Company owns machinery that cost $1,145,700 and has accumulated depreciation of $458,280. The expected future net cash flows from the use of the asset are expected to be $636,500.
Question 21 Everly Corporation acquires a coal mine at a cost of $501,600. Intangible development costs total $125,400. After extraction has occurred, Everly must restore the property
Question 22 Francis Corporation purchased an asset at a cost of $58,200 on March 1, 2012. The asset has a useful life of 8 years and a salvage value of $5,820. 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 $50,820. 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 $768,500, and sales of this product the first year totaled $390,630. Karen Austin anticipates earning $911,470 in additional future revenues from this product,
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 $66,000 of inventory, terms 2/10, n/30, FOB shipping point. Roley paid freight costs of $1,210. On July 3,
Question 27 Takemoto Corporation borrowed $93,000 on November 1, 2012, by signing a $95,093, 3-month, zero-interest-bearing note. Prepare Takemoto's November 1, 2012, entry; the December 31, 2012, annual adjusting entry; and the February 1, 2013, entry.