Question : 15) Joyful Praises Corporation has total advertising expenses of $84,000: : 1177341

Accounting

15) Joyful Praises Corporation has total advertising expenses of $84,000: $32,000 for radio advertising and $52,000 for print advertising. The print advertising is allocated to Departments A and B based on net sales generated in each department. Department A has net sales of $558,000 and Department B has net sales of $186,000. How much of the print advertising should be allocated to Department A?

A) $13,000

B) $39,000

C) $63,000

D) $21,000

16) If the gross sales for the computer department are $3,700 and the book department gross sales are $6,300, what is the allocation for advertising expense of $750 to these departments, based on gross sales?

A) Computer department $425; book department $325

B) Computer department $375; book department $375

C) Computer department $277.50; book department $472.50

D) Computer department $462.50; book department $287.50

17) Windermere Corporation has 25,000 square feet in department A; 20,000 square feet in department B; and 55,000 square feet in department C. Janitorial services as based on square footages in each department. How will the $35,000 of janitorial services be allocated?

A) $19,250 to C; $7,000 to B; and $8,750 to A.

B) $19,250 to A; $7,000 to B; and $8,750 to C.

C) Split evenly ($11,666.67) to each department.

D) Cannot be determined by given information.

18) Which of the following is not a direct departmental expense in a sales department?

A) Sales salaries

B) Delivery expense for related items

C) Advertising for the sales department

D) All are direct departmental expenses.

19) If the property, plant, and equipment can be traced to a specific department, depreciation expense is a(n):

A) direct expense.

B) indirect expense.

C) cash expense.

D) sales expense.

20) Compute net income for the housewares department, when gross profit is $550,000, direct expenses $235,000, indirect expenses are $110,000 and sales are $875,000.

A) ($20,000)

B) $530,000

C) $205,000

D) $325,000

21) If there is a total of 50,000 square feet of floor space, and the hardware department utilizes 12,500 square feet, what percent of the total square footage is in hardware?

A) 20%

B) 25%

C) 40%

D) 80%

22) Which of the following indirect expenses would most likely be allocated on the basis of gross sales?

A) Rent expense

B) Utilities expense

C) Miscellaneous expense

D) None of the above

23) Advertising expense totaled $40,000. If indirect advertising costs are allocated based on gross sales per department, what amount would be allocated to the Jewelry department if $10,000 of advertising is indirect?

Gross Sales: Jewelry, $60,000; Glassware, $50,000; Watches, $40,000.

A) $16,000

B) $4,000

C) $20,000

D) $3,333

24) Advertising expense totaled $20,000. If indirect advertising costs are allocated based on gross sales per department, what amount would be allocated to the glassware department if $5,000 of advertising is indirect?

Gross Sales: jewelry, $80,000; glassware, $30,000; watches, $40,000.

A) $1,000

B) $1,333

C) $2,500

D) $2,667

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July 1, 2023

11) Net income appears on the worksheet:

A) only in the balance sheet credit column.

B) only in the income statement credit column

C) in the income statement debit column and balance sheet debit column

D) in the income statement debit column and balance sheet credit column

12) Net loss appears on the worksheet:

A) in the income statement credit column and balance sheet debit column.

B) only in the income statement credit column.

C) in the income statement debit column and balance sheet credit column.

D) only in the balance sheet debit column.

13) The prepaid rent account has a balance that is $400 less in the worksheet's balance sheet debit column than in the worksheet's trial balance debit column. This would be the result of a:

A) $400 entry to prepaid rent in the worksheet's adjustments debit column.

B) $400 entry to prepaid rent in the worksheet's adjustments credit column.

C) $400 entry to rent expense in the worksheet's adjustments credit column.

D) mistake in cross-adding the worksheet.

14) Salary expense has a balance of $65,400 in the trial balance debit column of a worksheet. The adjustments credit column contains a $500 credit to salary payable. The adjusted trial balance column will show:

A) salary expense with a debit balance of $64,900.

B) salary expense with a debit balance of $6,500.

C) salary expense with a debit balance of $65,900.

D) salary payable with a credit balance of $65,900.

15) Interest expense on a worksheet's trial balance debit column has a $3,400 balance and a $4,000 balance on the worksheet's income statement debit column. The difference is due to:

A) an entry in the adjustments credit column for $600 to interest expense.

B) an entry in the adjustments debit column for $4,000 to interest expense.

C) an entry in the adjustments credit column for $4,000 to interest expense.

D) an entry in the adjustments credit column for $600 to interest payable.

16) On a worksheet, the income statement debit column equals $190,800 and the income statement credit column equals $195,600. From this data, it can be determined that:

A) the company had a net loss of $4,800 added to the income statement credit column.

B) the company had a net income of $4,800 added to the income statement debit column.

C) the company had a net loss of $4,800 added to the income statement debit column.

D) the company had a net income of $4,800 added to the income statement credit column.

17) Which of the following appears in the balance sheet debit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts payable

18) Which of the following appears in the income statement credit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts receivable

19) If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:

A) $4,800 debit.

B) $6,300 credit.

C) $3,300 credit.

D) $3,300 debit.

20) After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

A) net income of $3,400.

B) net loss of $3,400.

C) $74,100 net loss.

D) $74,100 net income.