3rd Nine Weeks Extra Credit - Accounting II

Dorothy's Dress Shop had the given beginning inventory and purchases for dyeable dress pumps, stock number LL123. At the end of the year, 32 units remained in the ending inventory. The market price for these shoes was $25.00 per pair as of December 31. What is the value of ending inventory using the lower of cost or market computed under the LIFO method?

• $704.00

• $800.00

• $835.20

• $864.00

Ashton discovered that a sale on account to Paula Company on March 10 for $750 was incorrectly charged to Paul Company. The journal entry to correct this error is:

• debit Accounts Payable/Paul Company, $750; credit Accounts Payable/Paula Company, $750

• debit Accounts Payable/Paula Company, $750; credit Accounts Payable/Paul Company, $750

• debit Accounts Receivable/Paula Company, $750; credit Accounts Receivable/Paul Company, $750

• debit Accounts Receivable/Paul Company, $750; credit Accounts Receivable/Paula Company, $750

Cole's Custom Designs offers custom skateboards and skateboard gear for sale. Alice is the accountant for the company, and she is currently preparing the Departmental Margin statements. Based on the information provided, what is the Merchandise Available for Sale for the Skateboards Division?

• $7,290

• $8,700

• $8,800

• $15,500

The Daisy Company wants to determine the gross profit for the past quarter. Per the general ledger, sales are equal to $152,000, beginning inventory is equal to $67,330, net purchases are equal to $87,800, and estimated ending inventory has been calculated to be $83,650. Based on this information, what is the gross profit for the Daisy Company?

• $63,180

• $71,480

• $80,520

• $88,820

The Peterson's Piano Company would like to determine Cost of Goods Sold for the past quarter. Per the general ledger, sales are equal to $2,312,350, beginning inventory is equal to $952,000, net purchases are equal to $875,200, and estimated ending inventory has been calculated to be $783,650. Based on this information, what is the Peterson's Piano Company's Cost of Goods Sold?

• $706,850

• $860,450

• $863,650

• $1,043,550

The accountant for the Eckland Company is preparing a Statement of Gross Profit with Component Percentages. Based on the information provided, what is the component percentage for the Cost of Merchandise Sold for the Clothing Division

• 40%

• 46%

• 47%

• 53%

The January 1 beginning balance of the Prepaid Insurance account was $6,500. What is the correct adjusting entry to journalize the prepaid insurance adjustment?

• debit Prepaid Insurance, $6,500; credit Insurance Expense, $6,500

• debit Insurance Expense, $3,300; credit Prepaid Insurance, $3,300

• debit Prepaid Insurance, $3,200; credit Insurance Expense, $3,200

• debit Insurance Expense, $6,500; credit Prepaid Insurance, $6,500

Big Daddy D's Clothing Corporation recorded net income of $132,000 after federal income tax. The correct closing entry to record net income in the Retained Earnings account is:

• debit Income Summary, $132,000; credit Net Income, $132,000

• debit Net Income, $132,000; credit Income Summary, $132,000

• debit Income Summary-General, $132,000; credit Retained Earnings, $132,000

• debit Retained Earnings, $132,000; credit Income Summary-General, $132,000

Based on the information provided, the correct adjusting entry to journalize the Uncollectible Accounts Expense is:

• debit Allowance for Uncollectible Accounts, $3,556.20; credit Uncollectible Accounts Expense, $3,556.20

• debit Uncollectible Accounts Expense, $355,620; credit Allowance for Uncollectible Accounts, $355,620

• debit Uncollectible Accounts Expense, $3,556.20; credit Allowance for Uncollectible Accounts, $3,556.20

• debit Allowance for Uncollectible Accounts, $355,620; credit Uncollectible Accounts Expense, $355,620

The estimated Federal Income Tax Expense recorded for the year was $10,000. What is the correct adjusting entry to journalize the Federal Income Tax Expense adjustment?

• debit Federal Income Tax Payable, $2,280; credit Federal Income Tax Expense, $2,280

• debit Federal Income Tax Expense, $2,280; credit Federal Income Tax Payable, $2,280

• debit Federal Income Tax Expense, $10,000; credit Federal Income Tax Payable, $10,000

• debit Federal Income Tax Payable, $10,000; credit Federal Income Tax Expense, $10,000