ACC 201 Module 3 – Quiz Chapters 4 & 5 (2014)

ACC 201 JUNE – AUG 2014 (1))
Assignment – Module 3 –
Quiz – Chapters 4 & 5

1.

Apr.
2

Purchased merchandise from Lyon
Company under the following terms: $6,300 price, invoice dated April 2,
credit terms of 2/15, n/60, and FOB shipping point.

3

Paid $353 for shipping charges on
the April 2 purchase.

4

Returned to Lyon Company
unacceptable merchandise that had an invoice price of $600.

17

Sent a check to Lyon Company for
the April 2 purchase, net of the discount and the returned merchandise.

18

Purchased merchandise from Frist
Corp. under the following terms: $13,050 price, invoice dated April 18,
credit terms of 2/10, n/30, and FOB destination.

21

After negotiations, received from
Frist a $3,654 allowance on the April 18 purchase.

28

Sent check to Frist paying for the
April 18 purchase, net of the discount and allowance.

Prepare journal entries to record
the following transactions for a retail store. Assume a perpetual inventory
system.

2.The following list includes selected permanent accounts
and all of the temporary accounts from the December 31, 2013, unadjusted
trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a
perpetual inventory system.

Debit

Credit

Merchandise inventory

$

34,200

Prepaid selling
expenses

5,500

Dividends

2,200

Sales

$

615,600

Sales returns and
allowances

23,393

Sales discounts

6,550

Cost of goods sold

302,875

Sales salaries expense

67,716

Utilities expense

19,699

Selling expenses

52,942

Administrative
expenses

136,048

Additional Information

Accrued sales salaries amount to
$1,700. Prepaid selling expenses of $2,200 have expired. A physical count of
year-end merchandise inventory shows $33,550 of goods still available.

(a)

Use the above account
balances along with the additional information, prepare the adjusting
entries.

(b)

Use the
above account balances along with the additional information, prepare
the closing entries.

3.

Case
X

Case
Y

Case
Z

Cash

$

2,700

$

290

$

1,400

Short-term investments

0

0

500

Current receivables

320

570

800

Inventory

2,325

2,140

3,350

Prepaid expenses

400

700

900

Total current assets

$

5,745

$

3,700

$

6,950

Current liabilities

$

2,340

$

1,380

$

3,850

Compute the current ratio and
acid-test ratio for each of the above separate cases.(Round your answers to 2 decimal places.)

4.Walberg Associates, antique dealers, purchased the contents
of an estate for $39,300. Terms of the purchase were FOB shipping point, and
the cost of transporting the goods to Walberg Associates’ warehouse was
$2,100. Walberg Associates insured the shipment at a cost of $330. Prior to
putting the goods up for sale, they cleaned and refurbished them at a cost of
$670.

Determine the cost of the
inventory acquired from the estate.

5.
award:
2.05
out of
5.00 points

Hemming Co. reported the following
current-year purchases and sales data for its only product.

Date

Activities

Units
Acquired at Cost

Units
Sold at Retail

Jan.

1

Beginning inventory

195

units

@ $13.80

=

$

2,691

Jan.

10

Sales

185

units

@$43.80

Mar.

14

Purchase

345

units

@ $18.80

=

6,486

Mar.

15

Sales

235

units

@$43.80

July

30

Purchase

495

units

@ $23.80

=

11,781

Oct.

5

Sales

205

units

@$43.80

Oct.

26

Purchase

695

units

@ $28.80

=

20,016

Totals

1,730

units

$

40,974

625

units

Hemming uses a periodic inventory
system.

(a)

Determine the costs assigned to
ending inventory and to cost of goods sold using FIFO.

(b)

Determine the costs assigned to
ending inventory and to cost of goods sold using LIFO.

(c)

Compute the gross margin for each
method.