Reference no: EM132436053

ACC T 221 Intermediate Accounting Assignment - Sandhills Community College, USA

Question 1 - Given below are account balances for Charlie Company:

Gross sales, $100,000

Sales returns and allowances, $4,000

Selling expenses, $12,000

Cost of goods sold, $44,000

Interest expense, $3,000

How much is the gross profit margin?

Question 2 - Merchandise is sold on account on January 16, terms 2/10, n/30, and recorded by debiting Accounts Receivable and crediting Sales for $2,000. If payment occurs on January 21, the journal entry would include a credit to:

Accounts Receivable for $2,000

Accounts Receivable for $1,960

Sales Discounts for $40

Cash for $1,960

Question 3 - Merchandise was returned to a supplier. The goods were previously purchased on account. The goods had not been paid for and there were no discounts. Assuming a periodic system, what journal entry is needed by the purchaser to record the return?

Debit Accounts Payable, and Credit Purchase Discounts.

Debit Accounts Payable, and Credit Inventory.

Debit Accounts Payable, and Credit Purchase Returns and Allowances.

Debit Accounts Payable, and Credit Purchases.

Question 4 - Alpha Company provided the following data concerning its income statement: sales, $1,035,000; purchases, $389,000; beginning inventory, $205,000; ending inventory, $292,000; operating expenses, $111,000; freight-in, $5,000; sales discounts, $19,000; purchases discounts, $15,000; sales returns & allowances, $128,000; and purchases returns & allowances, $35,000. The data are complete and provide the basis for preparation of an income statement. How much is net income?

Question 5 - Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.

Alpha Company sold on account $2,500 of merchandise to Bravo Company on May 2, 2016. Selling price was $4,000. Freight charges related to this transaction of $150 were paid by Alpha Company.

Bravo Company returned, to Alpha Company, $250 of this merchandise on May 3, 2016. Merchandise was sold for $400

Use this information to prepare Alpha Company's General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."

Question 6 - Alpha Company replenished a $500 petty cash fund. The petty cash box contained vouchers of $87 for postage, $173 for supplies, $58 for gasoline, and cash on hand of $180. The journal entry to reflect replenishment would include a:

debit to Cash Short for $2

credit to Cash or $180

credit to Cash for $318

credit to Petty Cash for $2

Question 7 - Annapolis Company's bank statement indicated an ending cash balance of $9,340. Alpha's accountant discovered that outstanding checks amounted to $515 and deposits in transit were $680. Additionally, the bank statement showed service charges of $30. What is the correct adjusted ending cash balance?

Question 8 - Baltimore Company uses aging to estimate un-collectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:

The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar.

Question 9 - Dorchester Company had the following balances at the end of 2018 and 2019 respectively:

Net Credit Sales - $935,000 for 2018 and $952,000 for 2019.

Accounts Receivable - $84,000 for 2018 and $111,000 for 2019.

Allowance for Doubtful Accounts - $5,000 for 2018 and 5,500 for 2019

Calculate the accounts receivable turnover ratio to one decimal place.

Question 10 - Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:

Sales were 470 units at $20. Using the FIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Question 11 - Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:

Sales were 550 units at $20. Using the LIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Question 12 - Easton Company had average inventory for the year of $640,000 and an inventory turnover ratio of 11.9. What was the company's Days Outstanding in Inventory? Assume a 365 day year. Round to one decimal place.