Accounting Question

complete this quiz using excel, thanks!

Quiz 2 Test Prep
Student Name:
1. During December, A Company started doing business and had gross credit trade sales of $800,000,
terms 2/10 Net 30. The cost of goods sold of $480,000, selling general administration costs of $100,000,
Interest Expense of $10,000; and an income tax rate of 30%.
a. Prepare an income statement
b. Prepare journal entries Assuming gross method and all payments for the trade sales were made
within 9 days.
2. AG Inc. made a $80,000 sale on account with the following terms: 3/15, n/30. AG receives $40,000 of
cash within the discount period and the remaining amounts after the discount period. Record all JEs,
assuming the gross method.
3, On January 1, 2019, Miller Corporation had retained earnings of $18,000,000. During 2019, Miller
reported gross revenues of $2,000,000 returns and allowances of $200,000 and expenses of $500,000. They
declared dividends of $500,000, and issued common stock for $1,000,000. What were Miller’s retained
earnings on December 31, 2019?
Transactions for the month of June were:
Purchases
June 1
(balance) 2,200 @ $3.00
3
3,300 @ 3.10
7
1,800 @ 3.30
15
2,700 @ 3.40
22
750 @ 3.50
June 2
6
9
10
18
25
Sales
900 @ $5.50
2,400 @ 5.50
1,500 @ 5.50
600 @ 6.00
2,100 @ 6.00
300 @ 6.00
Compute a) cost of ending inventory; b) cost of goods sold and c) gross profit
4 Assuming LIFO
5 Assuming FIFO
6. Assuming Weighted Average
7. On December 31, it was determined that ending inventory on hand was $200,000. Accounts Receivable
ending balance was $50,000. For the year – Beginning inventory was $50,000. Purchases of inventory
totaled $300,000. Sales revenues (all sales on credit) totaled $400,000. For year-ending it was
determined: that the net realizable value (NRV) of inventory was $185,000. And the NRV of Accounts
receivable was $48,000. The A4DA account has a $1,000 beginning balance with no write-offs this year.
Prepare the income statement for the very limited facts given. Tax rate is 40%.
8. What does GAAP stand for?
9. For each of the following accounts, indicate whether the account is an asset (A), liability (L), or stockholders’
equity (SE) and whether the account has a normal debit (Dr) or normal credit (Cr) balance.
Retained Earnings
Accumulated Depreciation
Sales Discount
Allowance for Doubtful Accounts
Returns and Allowances
Bad Debt Expense
Wages Payable
Gross Sales
10. Smith Corporation has provided the following information:
Cash sales totaled $125,000.
Credit sales totaled $279,000.
Cash collected from customers for services yet to be provided totaled $38,000.
$11,000 of dividend revenue
$7,700 of Interest income
$5,000 of dividends paid
$50,000 of SGA (selling, general administrative) expenses
How much were Smith’s operating income? / What is net income before tax?
_______________________
11. Assets, liabilities, and stockholders’ equity are all found within which of the following financial statements?
A. Balance sheet
B. Income statement.
C. Statement of retained earnings.
D. Statement of stockholders’ equity.
12.
Which of the following events will cause retained earnings to increase?
A. Dividends declared by the Board of Directors.
B. Net income reported for the period.
C. Net loss reported for the period.
D. Issuance of stock in exchange for cash.
13. Gross Sales are 100. Sales-discounts 10. Bad Debt Expense is 30. COGS is 30. Interest Expense is 10. Tax
Rate is 20%. Accounts Receivable balance is 30. Prepare closing entry
14. An aging of Accounts Receivable shows $100,000 of current sales, which we assume will become
uncollectible at a rate of 1%. Receivables of $70,000 that are approximately 60-90 days old are estimated
uncollectible at a rate of 10%. Older receivables of $20,000 are most likely uncollectible at a rate of 20%. The
amount in allowance for doubtful accounts has a (credit) balance of $1,000. What is the required Journal
entry to update the allowance account?
15. On October 1 – An investor purchased 100 shares of stock (100%) of ABC Co. for $3,500,000. The
3,500,000 was paid directly to ABC in exchange for ABC common stock. ABC Company purchased equipment
for $180,000; paying $30,000 cash and financing (through a long-term note) the remaining portion. The
interest rate is 5%, payable on January 1st of each year. ABC Company prepaid a year’s (12months) worth of
insurance and rent. Insurance payment was $48,000 and the rent was $72,000.
ABC had the following transactions after 10/1:
ABC purchased the following inventory on credit: 10/1 10,000 units at $20/unit. 11/1 5,000 units at $30/unit
12/1 5,000 units at $25/unit.
ABC sold 18,000 units on account for $40/unit. Terms are 3/10, N45. ABC uses LIFO. ABC received $360,000
in cash within 5 days of the sales; and received the remaining amounts after year-end.
ABC was given $30,000 in cash for inventory that will be delivered after year-end (delivered next year).
ABC paid $25,000 for advertising. ABC paid $20,000 for miscellaneous supplies. Cash was paid for both.
Paid $80,000 in cash for salaries for the year. The end of the year was in the middle of the week and the total
unpaid salary expense for the year was $5,000. This $5,000 will not be paid until first week of next year.
Sold services for $50,000 in cash. We had to return $10,000 back to customer as a return and allowance due
to unsatisfactory work of our soon-to-be-fired employee.
At year-end the amount of supplies on-hand was $3,000. The equipment was depreciated by $20,000 by
year-end. We paid $400,000 of our accounts payable balance by year-end. We estimate 1% of credit tradesales to be uncollectible. The tax rate is 40%. Round all numbers to the nearest dollar.
ABC declared and paid a dividend of $30,000.
Prepare a Balance Sheet and Income Statement in good form for the year-ended 12/31/2015. Also provide
closing entries.