61. Bloom’s Garden Center CompanySelected data from the financial statements of Bloom’s Garden Center Company are provided below.    2012 2011 Accounts receivable $  71,000 $   48,000 Inventory 22,000 26,000 Total assets 530,000 460,000 Net sales 450,000 340,000 Cost of goods sold 240,000 290,000       Refer to the selected data provided for Bloom’s Garden Center Company. Which of the following would result […]

  21.The balance in accumulated depreciation on January 1 and December 31 is $12,000 and $9,000, respectively, during a year in which an asset with a cost of $4,000 and net book value of $0 was retired.  Depreciation expense for the current year is: a.$9,000. b.$3,000. c.$1,000. d.$7,000. 22.Which one of the following depreciation methods will typically result in the smallest amount of current taxes […]

  71) Allied Industrial has net sales of $1,200,000, net income of $85,000, average current assets of $53,000, average fixed assets of $184,000, and average total assets of $237,000. Allied Industrial’s fixed asset turnover ratio is: A) 5.06. B) 0.15. C) 6.52. D) 22.64. 72) Allied Industrial has net sales of $1,200,000, net income of $85,000, average current assets of $53,000, average fixed assets of […]

    137. Assume that the federal government implements a 10% payroll tax upon employers to finance health insurance for all citizens and residents. Stone will pay this tax instead of purchasing group health insurance. This will cause Stone’s total annual payroll-related expenses to:  A. Decrease by $15,000. B. Increase by $15,000. C. Decrease by $32,500. D. No change, because payroll taxes are withheld from employees’ pay.     On […]

  4) Which item is NOT an indication of confidentiality under the Standards of Ethical Conduct? A) Keep information confidential except when disclosure is authorized or legally required. B) Inform all relevant parties regarding appropriate use of confidential information. C) Refrain from using confidential information for unethical or illegal advantage. D) All of the above indicate confidentiality. 5) Which item is an indication of integrity […]

    41.Garst Manufacturing is working on two jobs. Cost is accumulated under a job order cost system, and overhead is applied on the basis of direct labor hours. The company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period:(a) Used […]

  45.Lila Harrison’s is the sole employee of ABC Grocers. Her gross pay for the week was $400. She had deductions of $50 for federal income tax, $25 for social security tax, and $5.80 for Medicare tax. The journal entry to record her salary would include:   A.a debit to Salaries Expense for $319.20 B.a debit to Salaries Expense for $400 C.a debit to Salaries Payable […]

    31.The purpose of adjusting entries is to:    A. Prepare the revenue and expense accounts for recording the revenue and expenses of the next accounting period.   B. Record certain revenue and expenses that are not properly measured in the course of recording daily routine transactions.   C. Correct errors made during the accounting period.   D. Update the owners’ equity account for the changes in owners’ equity […]

    137.Granite Company purchased a machine costing $120,000, terms 1/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,000. The machine requires special mounting and wiring connections costing $10,000. When installing the machine, $1,300 in damages occurred. Compute the cost recorded for this machine assuming Granite paid within the discount period.     A.$129,800.   B.$132,100.   C.$130,800.   D.$118,800.   […]

  140.Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for conversion to be $3.75. A total of 250,000 units of product were completed and transferred out as finished goods during the month, and 36,000 of equivalent units remained unfinished at the end of the month. The amount that should be reported in Finished […]