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128.Boulder, Inc. is computing its inventory at December 31, 2016. The following information relates to the five major inventory items regularly stocked for resale: ItemQuantity on HandEnding Inventory,December 31, 2016Unit Cost whenAcquired (FIFO)Net Realizable Value(Market) at December 31,2016 A100$40$35 B150$50$52 C25$100$80 D300$60$62 E700$15$12 Required: Using the lower of cost or market rule (LCM or net realizable value),.
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85.RJ Corporation has provided the following information about one of its inventory items: DateTransactionNumber of UnitsCost per Unit 1/1Beginning Inventory400$3,200 6/6Purchase800$3,600 9/10Purchase1,200$4,000 11/15Purchase800$4,200 During the year, RJ sold 3,000 units. What was cost of goods sold using the LIFO cost flow assumption under a periodic inventory system?  A. $11,680,000. B. $11,590,000. C. $11,480,000. D. $11,550,000. 86.RJ Corporation.
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102.Lincoln Restaurants reported net income in 2016 of $45.9 million and depreciation expense of $48.8 million. It also reported additions to property and equipment of $162.9 million. Which of the following disclosures would appear on the 2016 statement of cash flows? A. Depreciation of $48.8 million would be deducted from.
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Essay Questions 106.The following data were taken from the records of Lilo Corporation for the year ended December 31, 2016 before any adjustment for bad debt expense: Sales of merchandise for cash$150,000 Sales of merchandise on credit800,000 Sales returns and allowances10,000 Sales salaries expense80,000 Cost of sales610,000 Administrative expenses90,000 The following items have not been included in.
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125.The records of Atlantis Company reflected the following for the month of February: DateTransactionNumber of UnitsUnit Cost 2/1Beginning inventory600$3 2/2Purchase No.1500$4 2/5Sale No. 1700 2/12Purchase No. 2600$5 2/15Sale No. 2700 2/23Purchase No. 3900$6 2/28Ending inventory? Required: Determine the amount of ending inventory and cost of goods sold using the following periodic system inventory costing methods:  MethodInventoryCost of Goods Sold A.LIFO$$ B.FIFO$$   126.Rio Company.
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125.A. What are "cash equivalents"?B. Specifically where would cash equivalents appear on the financial statements?      127.Asia Company sold $10,000 of goods to Euro Company on credit on May 1. At the time of the sale, Asia recorded a debit to Accounts Receivable and a credit to Sales Revenue for $10,000..
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132.Determine the effect of the following transactions on the financial statement components identified. Code each item listed under the transaction with the letter A, B, or C, as follows. A. If the transaction results in an increase in the financial statement component. B. If the transaction results in a decrease.
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Essay Questions 109.The following information is available for Coca-Cola and PepsiCo:  Coca-ColaPepsiCo Net fixed assets (beginning of year)$4,168$5,266 Net fixed assets (end of year)4,4355,438 Net sales for the year19,88920,438 Net income for the year2,1772,183 Required: Compute the fixed asset turnover ratio for both Coca Cola and PepsiCo. Round your answers to two decimal places.    110.The following information.
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21.Inventory turnover is calculated as cost of goods sold divided by average inventory. 22.Inventory turnover under LIFO is greater than inventory turnover under FIFO when unit costs are increasing. 23.The average days to sell inventory decreases as inventory turnover increases. 24.An increase in inventory is subtracted from net income when.
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113.In Year 4, Landmark Restaurants reported the cost of property and equipment at $1,189.8 million and the accumulated depreciation at $224.2 million. In that same year, Coca Cola reported $10,149 million in long-lived, productive assets and accumulated depreciation on them of $4,058.Required: A. Estimate the approximate percent of remaining life.
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120.A company purchased equipment for $800,000 and has depreciated it using the straight-line method for the past 5 years when its original life was estimated to be 10 years with a $200,000 residual value. The equipment's utility to the company has declined because management expects the equipment to generate net.
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117.A recent annual report for Kirova Company contained the following data:  (in millions)  20162015 Accounts receivable$2,026$1,866 Less: Allowance for doubtful accounts5052 Net accounts receivable1,9761,814 Net sales (all are on credit)18,158 Required: A. Calculate the accounts receivable turnover ratio. B. Calculate the average days' sales in receivables for 2016 (rounded to the nearest day). C. Explain the meaning.
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137.Prepare the journal entries for the transactions listed below under each: Periodic inventory system and Perpetual inventory system. A.Purchased merchandise for cash, $1,000. B.Sold merchandise for $600 cash that had cost $480 (cost is 80% of the sales price). C.Accepted a sales return from a customer: sales price $30. A cash refund was.
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Essay Questions 112.McMillan Company uses the periodic inventory system. It has compiled the following information in order to prepare the financial statements at December 31, 2016: Gross sales during 2016$2,000,000 Sales returns and allowances during 201650,000 Beginning inventory, January 1, 2016100,000 Ending inventory, December 31, 2016120,000 Purchases during 2016750,000 Required: Calculate each of the following: A. Cost.
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117.Covey Company purchased a machine on January 1, 2016, by paying cash of $250,000. The machine has an estimated useful life of five years, is expected to produce 500,000 units, and has an estimated residual value of $25,000.Required: A. Calculate depreciation expense to the nearest whole dollar for each year.
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109.Indicate whether each of the accounts listed below normally will have a debit balance or a credit balance. Record your answer to the left of each account by entering either Dr or Cr. ____ 1.Allowance for doubtful accounts ____ 2.Bad debt expense ____ 3.Sales returns and allowances ____ 4.Credit card discounts ____ 5.Sales discounts ____ 6.Notes.
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112.On December 31, 2016, Colonial Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries: Accounts receivable$25,000 Allowance for doubtful accounts200credit balance Sales revenue (all credit sales) 400,000 Required: Prepare the necessary year-end adjusting entry related to uncollectible accounts for each of the following independent assumptions: A. An.
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True / False Questions 1.Tangible long-lived productive assets differ from intangible long-lived productive assets in that tangible assets have physical substance whereas intangible assets have no physical substance.  2.Patents, trademarks, and franchises are examples of tangible assets. 3.The fixed asset turnover ratio measures the amount of operating income generated per dollar.
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115.How much were inventory purchases when cost of goods sold was $250,000, beginning inventory was $20,000, and ending inventory was $25,000?    116.How much was ending inventory when sales revenue was $500,000, purchases were $310,000, beginning inventory was $22,000, and gross profit was $200,000.    117.Compute the missing amounts that are numbered.
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45.Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: DateTransactionNumber of UnitsCost per Unit 1/1100$800 5/5Purchase200$900 8/10Purchase300$1,000 10/15Purchase200$1,100 During the year, Lauer sold 750 laptop computers. What was cost of goods sold using the FIFO cost flow assumption?  A. $725,000. B. $740,000. C. $735,000. D. $720,000. 46.Lauer.
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62.On January 1, 2016, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,000. A. The annual depreciation expense is $6,000. B. The December 31, 2016 book value was $35,000..
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55.Maxim Corp. has provided the following information about one of its products: DateTransactionNumber of UnitsCost per Unit 1/1Beginning Inventory200$140 6/5Purchase400$160 11/10Purchase100$200 During the year, Maxim sold 400 units. What is cost of goods sold using the average cost method?  A. $48,000. B. $64,000. C. $50,000. D. $62,000. 56.Which of the following statements is false?  A. Companies.
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11.Depreciation is the process of allocating a long-lived asset's cost over its productive life. 12.Depreciation is the process of estimating a long-lived asset's current market value. 13.If depreciation expense is calculated without taking into account the asset's residual value, depreciation expense will be overstated. 14.The book value of a depreciable.
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115.Cyclone Inc. reported the following figures from its financial statements for the years 2015 through 2017:  201720162015 Net credit sales$717,422$1,110,178$591,786 Gross profit560,421960,434498,605 Net income (net loss)(92,788)70,77647,811 Cash flow from operating activities106,850509,707204,496 Accounts receivable68,64890,56256,454 Required: A. Calculate the accounts receivable turnover for 2017 and 2016. B. Calculate the average collection period for 2017 and 2016.    116.Matrix Corp. reported.
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52.Which of the following statements is incorrect? A. Ordinary repairs and maintenance decrease net income. B. Capital expenditures decrease assets. C. Ordinary repairs and maintenance are recurring in nature. D. Additions and improvements to a depreciable asset occur infrequently. 53.Which of the following statements is incorrect? A. Replacement of a truck's tires would be.
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99.Redwing Company sold inventory costing $500 to a customer on account for $700. Which of the following correctly describes the collection of $686 cash when the customer takes advantage of a sales discount?  A. Operating expenses increase $14. B. Accounts receivable decreases $686. C. Current assets decrease $14. D. Gross.
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11.The FIFO inventory method allocates the earliest inventory purchase costs to ending inventory. 12.The LIFO inventory method allocates the oldest inventory purchase costs to cost of goods sold. 13.During periods of decreasing unit costs, use of the LIFO inventory method will result in a higher amount of ending inventory than.
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119.Select the appropriate answer choice A through G (listed below) to correspond with the following numbered items on a bank reconciliation. There may be more than one letter selection for the numbered item. 1.Balance per bank statement, June 30 $XXX  Plus(1)_____  Minus(2)_____  Correct cash balance, June 30 $XXX 2.Balance per company books, June 30 $XXX  Plus(3)_____  Minus(4)_____  Correct cash balance, June.
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119.William Company uses the periodic inventory system and has provided the following data:   Units Amount Beginning inventory 6,000$30,000 Purchases32,000 192,000 Sales28,000 280,000 Required: A. Calculate the following using both: FIFO and LIFO inventory methods.      FIFO    LIFO 1. Ending inventory$_______$_______ 2. Cost of Goods Sold$_______$_______ 3. Gross profit$_______$_______ B. In times of rising unit costs, how does pretax income using FIFO compare to pretax income.
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True / False Questions 1.The use of raw materials in the manufacturing process is reported as an operating expense on the income statement. 2.Manufactured goods transferred out of work in process are reported as finished goods on the balance sheet. 3.Inventory inspection costs are reported as operating expenses on the income.
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95.Carr Corporation has provided the following information for its most recent month of operation: sales $8,000; beginning inventory $1,000; ending inventory $2,000 and gross profit $5,000. How much were Carr's inventory purchases during the period?  A. $9,000. B. $5,000. C. $6,000. D. $4,000. 96.Carp Corporation has provided the following information.
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True / False Questions 1.When a liability is initially recorded, it is recorded at the future amount of all payments. 2.A current liability is always a short-term obligation expected to be paid within one year of the balance sheet date. 3.The accrual of interest results in an increase liabilities and a.
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Multiple Choice Questions 32.Which of the following would not be classified as property, plant and equipment on a balance sheet? A. Land held for investment. B. Equipment used in the manufacturing process. C. A building used as corporate headquarters. D. A natural resource being mined. 33.Which of the following accounts would not be considered a.
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72.On January 1, 2016, Wasson Company purchased a delivery vehicle costing $40,000. The vehicle has an estimated 6-year life and a $4,000 residual value. Wasson uses the units-of-production depreciation method and Wasson estimates that the vehicle will be driven 100,000 miles. What is the vehicle's book value as of December 31,.
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134.Sideline Company reported net income for 2015 of $70,000 and in 2016 of $84,000 (both after income taxes at a 30% rate). It was discovered in 2016 that the ending inventory for 2015 was understated by $2,000 (before any income tax effect).Required: Calculate the correct net income (after income tax.
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128.On July 10, 2016, Rex Company sold merchandise at an invoice price of $5,000 with terms of 2/10, n/30.Required: Prepare the journal entries required below by indicating the account code of the appropriate account for each debit and credit and enter the dollar amounts for each item. Account Code ACash BAccounts receivable CSales revenue DSales.
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122.Required: A. Compute the missing amounts in the income statement under three different inventory costing methods: (Ignore income taxes.)  FIFOLIFOAverageCost Sales revenue (3,000 units)$90,000$90,000$90,000 Cost of goods sold:   Beginning inventory (1,000 units @ $10 per unit)  10,000  10,000  10,000  Purchases (4,000 units @ $12 per unit) (1) (7)(13)  Goods available for sale(2)(8)(14)  Ending inventory (2,000 units)(3)(9)(15)     Cost of goods.
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65.The inventory turnover  A. reflects how many times, on average, that the inventory balance was sold during the year. B. is increased when accounts receivable increases. C. is decreased if inventory balances decrease from the beginning of the year to the end of the year. D. is improved if cost.
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130.Frankel Feed purchased a new machine on January 1, 2016. Relevant information is as follows: Cost when acquired$26,000 Estimated residual value2,000 Estimated useful life10 years Accumulated depreciation at the end of year 5 (assume straight-line depreciation) 12,000 It is now the beginning of year 6 and the management reevaluated the estimates related to the.
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Multiple Choice Questions 35.A company reported the following information for its most recent year of operation: purchases, $100,000; beginning inventory, $20,000; and cost of goods sold, $110,000. How much was the company's ending inventory?  A. $10,000. B. $20,000. C. $15,000. D. $30,000. 36.Coleman Company has provided the following information: beginning inventory,.
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131.Dows Company prepared income statements that reflected pretax income of $21,000 for 2015 and $30,000 for 2016. An audit has determined that there were two errors in the inventory amounts as follows:  Amount ReportedCorrect Amount Ending inventory, 2015$15,000$14,000 Ending inventory, 201618,00016,000 Required: Determine the correct pretax income amount for each year (show computations; assume.
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123.A comparison of the balance in Cottonwood Company's cash account per its books as of April 30, 2016 and the bank statement dated April 30, 2016 revealed the following information: CodeItem A.Ending Cash balance per books (unadjusted)$5,520 B.Ending balance per bank statement (as of April 30, 2016)5,170 C.Customer’s NSF check returned by bank Shown.
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105.Which of the following statements is correct when inventory unit costs are decreasing?  A. FIFO's cost of goods sold will be the largest among the inventory costing methods. B. LIFO's income tax will be the lowest among the inventory costing methods. C. Ending inventory using the FIFO cost method will.
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