Reference no: EM132483777
Question 1 - During 2020, its first year of operations, Martha's Bakery had revenues of $69,900 and expenses of $31,600. The business had owner's drawings of $6,200. What is the amount of owner's equity at December 31, 2020, if the beginning balance was $-0-?
Question 2 - Roseanne Company's inventory records show the following data:
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Units
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Unit Cost
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Inventory, January 1
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10,000
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$9.00
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Purchases: June 18
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9,000
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$8.20
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November 8
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6,000
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$7.30
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A physical inventory on December 31 shows 7,000 units on hand. Under the FIFO method, the December 31 inventory is?
Question 3 - Compute Whiz Company's adjusted cash balance per books based on the following information:
Unadjusted cash balance per books $4,650
Deposit in transit $900
Check printing charge $20
Note collected by bank for Whiz $1,100
Question 4 - The following information is available for Edmiston Company.
Beginning accounts receivable $70,000
Ending accounts receivable $110,000
Net sales $900,000
Compute the average collection period (days sales in A/R). Use a 360 day year or 30 day month. (Round average collection period to 1 decimal place)
Question 5 - On March 1, 2021, Landon Company acquired real estate on which it planned to construct a small office building. The company paid $80,000 in cash. An old warehouse on the property was razed at a cost of $7,500; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,100 attorney's fee for work concerning the land purchase, $4,000 real estate broker's fee, $7,800 architect's fee, and $14,000 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land.