Question : 61. Ahi Corporation purchased merchandise account from Yudder Inc. December 12, : 1224930

 

 

61. Ahi Corporation purchased merchandise on account from Yudder Inc. on December 12, 2012. On December 13, 2012, Ahi returned damaged merchandise to Yudder and was granted an adjustment on its account. Ahi uses the periodic inventory system. What effect does the merchandise return have on Ahi’s accounting equation? A. Assets and equity decrease.B. Assets and liabilities decrease.C. Liabilities decrease and equity increases.D. Liabilities and equity decrease.

 

62. Shelton Brothers, Inc.Shelton Brothers uses a periodic inventory system. It purchased merchandise from BXP on account Inc. on July 7, 2012, for $15,000. The credit terms were 1/10, n/30. Shelton paid the amount due on July 15. Refer to the information provided for Shelton Brothers, Inc. What effect does recording the purchase of merchandise on July 7, 2012, have on Shelton’s accounting equation? A. Assets and liabilities increase.B. Liabilities increase and equity decreases.C. Assets and equity increase.D. Liabilities and equity decrease.

 

63. Refer to the information provided for Shelton Brothers, Inc. The effect of recording the payment on July 15th will include: A. a decrease to Purchases for $15,000.B. an increase to Inventory for $14,850.C. a decrease to Cash for $15,000.D. a decrease to Accounts Payable for $15,000.

 

64. Entee CorporationEntee Corporation uses a periodic inventory system. The following information is available for the month of November. 

Nov.

1

On hand, 50 units at $15 each

$   750.00

 

5

Purchased, 115 units at $15.10 each

1,736.50

 

16

Purchased, 75 units at $15.20 each

1,140.00

 

 

Total cost of goods available for sale

$3,626.50

 

30

On hand, 90 units

 

 

 

 

 

Refer to the information provided for Entee Corporation. How many units did Entee sell during November? A. 50B. 90C. 100D. 150

 

65. Entee CorporationEntee Corporation uses a periodic inventory system. The following information is available for the month of November. 

Nov.

1

On hand, 50 units at $15 each

$   750.00

 

5

Purchased, 115 units at $15.10 each

1,736.50

 

16

Purchased, 75 units at $15.20 each

1,140.00

 

 

Total cost of goods available for sale

$3,626.50

 

30

On hand, 90 units

 

 

 

 

 

Refer to the information provided for Entee Corporation. If Entee uses the FIFO inventory costing method, the amount assigned to the November 30th inventory would be: A. $1,354.00B. $1,366.50C. $1,368.00D. $1,359.94

 

66. Entee CorporationEntee Corporation uses a periodic inventory system. The following information is available for the month of November. 

Nov.

1

On hand, 50 units at $15 each

$   750.00

 

5

Purchased, 115 units at $15.10 each

1,736.50

 

16

Purchased, 75 units at $15.20 each

1,140.00

 

 

Total cost of goods available for sale

$3,626.50

 

30

On hand, 90 units

 

 

 

 

 

Refer to the information provided for Entee Corporation. If Entee uses the LIFO inventory costing method, the cost of goods sold for November would be: A. $1,354.00B. $2,260.00C. $2,272.50D. $2,296.08

 

67. Entee CorporationEntee Corporation uses a periodic inventory system. The following information is available for the month of November. 

Nov.

1

On hand, 50 units at $15 each

$   750.00

 

5

Purchased, 115 units at $15.10 each

1,736.50

 

16

Purchased, 75 units at $15.20 each

1,140.00

 

 

Total cost of goods available for sale

$3,626.50

 

30

On hand, 90 units

 

 

 

 

 

Refer to the information provided for Entee Corporation. If Entee uses the weighted average cost method, the amount assigned to the November 30th ending inventory would be: A. $1,359.94B. $1,486.50C. $1,356.27D. $1,362.60

 

68. Shirey Co.Shirey uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January. 

Jan.

1

Beginning inventory: 10 units at $2 each

$   20

 

20

Purchased 90 units for $3 each

270

 

 

 

Cost of goods available for sale

290

 

 

 

 

 

Refer to the information provided for Shirey. If Shirey uses FIFO inventory costing method, how much is cost of goods sold for January? A. $230B. $232C. $240D. $250

 

69. Shirey Co.Shirey uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January. 

Jan.

1

Beginning inventory: 10 units at $2 each

$   20

 

20

Purchased 90 units for $3 each

270

 

 

 

Cost of goods available for sale

290

 

 

 

 

 

Refer to the information provided for Shirey. If Shirey uses the LIFO inventory costing method, how much is inventory on the balance sheet at the end of January? A. $40B. $50C. $58D. $60

 

70. Shirey Co.Shirey uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January. 

Jan.

1

Beginning inventory: 10 units at $2 each

$   20

 

20

Purchased 90 units for $3 each

270

 

 

 

Cost of goods available for sale

290

 

 

 

 

 

Refer to the information provided for Shirey. If Shirey uses the weighted average method of inventory costing, how much is cost of goods sold for January? A. $230B. $250C. $240D. $232

 

71. Billit CorporationBillit Corporation is a merchandising company. Selected account balances are listed below. 

Sales

$500,000

Purchases

225,000

Beginning inventory

16,000

Ending inventory

30,000

Operating expenses

148,000

Income tax expense

10,000

Beginning retained earnings

53,000

Dividends

15,000

 

 

Calculate the cost of goods sold for Billit Corporation. A. $221,000B. $239,000C. $241,000D. $211,000

 

72. Croggins Cane Company has a beginning balance in its inventory account of $15,000 and the ending balance is $10,000. Cost of goods sold is $80,000. According to the cost of goods sold model, what was the amount of inventory purchased during the year? A. $55,000B. $75,000C. $70,000D. $65,000

 

73. Silvermark EnterprisesThe following information is from Silvermark’s 2012 accounting records. 

Gross purchases

$201,000

Transportation-in

8,000

Inventory, January 1, 2012

26,500

Inventory, December 31, 2012

28,100

Purchase returns and allowances

9,000

 

 

Refer to the information provided for Silvermark Enterprises. How much will Silvermark report as net purchases for 2012? A. $200,000B. $209,000C. $218,000D. $201,600

 

74. Silvermark EnterprisesThe following information is from Silvermark’s 2012 accounting records. 

Gross purchases

$201,000

Transportation-in

8,000

Inventory, January 1, 2012

26,500

Inventory, December 31, 2012

28,100

Purchase returns and allowances

9,000

 

 

Refer to the information provided for Silvermark Enterprises. Using the cost of goods sold model, how much will Silvermark report as its cost of goods sold in its 2012 income statement? A. $193,600B. $198,400C. $185,600D. $190,400

 

75. If a company does not update the inventory and cost of goods sold accounts during the period, it means company is using: A. the periodic inventory system.B. the perpetual inventory system.C. both the periodic and the perpetual inventory system.D. neither the periodic nor the perpetual inventory system.