Question 1
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.
> Alpha Company purchased on account $2,500 of merchandise from Bravo Company on May 2, 2016.
> Alpha Company returned, to Bravo Company, $250 of this merchandise on May 3, 2016.
> Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare the compound General Journal entry (without explanation) for the payment for merchandise on May 12. If no entry is required then write "No Entry Required."
Question 2
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.
> Alpha Company purchased on account $2,600 of merchandise from Bravo Company on May 2, 2016.
> Alpha Company returned, to Bravo Company, $300 of this merchandise on May 3, 2016.
> Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare the General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."
Question 3
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.
> Alpha Company sold on account $3,000 of merchandise to Bravo Company on May 2, 2016. Selling price was $5,000
> Bravo Company returned, to Alpha Company, $300 of this merchandise on May 3, 2016. Merchandise was sold for $500
> Freight charges related to this transaction of $150 were paid by Alpha Company.
Use this information to prepare the compound General Journal entry (without explanation) for the payment for merchandise on May 12. If no entry is required then write "No Entry Required."
Question 4
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.
> Alpha Company sold on account $2,500 of merchandise to Bravo Company on May 2, 2016. Selling price was $4,000
> Bravo Company returned, to Alpha Company, $250 of this merchandise on May 3, 2016. Merchandise was sold for $400
> Freight charges related to this transaction of $150 were paid by Alpha Company.
Use this information to prepare the General Journal entry (without explanation) for the payment for merchandise on May 15. If no entry is required then write "No Entry Required."
Question 5
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the net method is used.
> Alpha Company purchased on account $2,600 of merchandise from Bravo Company on May 2, 2016.
> Alpha Company returned, to Bravo Company, $250 of this merchandise on May 3, 2016.
> Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare the General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."
Question 6
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the net method is used.
> Alpha Company purchased on account $2,600 of merchandise from Bravo Company on May 2, 2016.
> Alpha Company returned, to Bravo Company, $250 of this merchandise on May 3, 2016.
> Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare the compound General Journal entry (without explanation) for the payment for merchandise on May 15. If no entry is required then write "No Entry Required."
Question 7
Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016:
|
Date
|
Activity
|
Quantity
|
Unit Price
|
|
5/1
|
Beginning Inventory
|
175
|
$10
|
|
5/5
|
Purchase
|
200
|
$12
|
|
5/15
|
Purchase
|
300
|
$15
|
|
5/25
|
Purchase
|
150
|
$16
|
Sales were 545 units at $25. Using the LIFO method, determine the dollar values following for the month of May:
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
Question 8
Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016:
|
Date
|
Activity
|
Quantity
|
Unit Price
|
|
5/1
|
Beginning Inventory
|
150
|
$10
|
|
5/5
|
Purchase
|
200
|
$12
|
|
5/15
|
Purchase
|
300
|
$14
|
|
5/25
|
Purchase
|
150
|
$16
|
Sales were 525 units at $20. Using the FIFO method, determine the dollar values following for the month of May:
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
Question 9
Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: (Round all per unit calculations to the nearest penny.)
|
Date
|
Activity
|
Quantity
|
Unit Price
|
|
5/1
|
Beginning Inventory
|
100
|
$10.10
|
|
5/5
|
Purchase
|
200
|
$11.15
|
|
5/15
|
Purchase
|
300
|
$13.00
|
|
5/25
|
Purchase
|
150
|
$15.00
|
Sales were 545 units at $25.00. Using weighted-average method, determine the dollar values following for the month of May: (Enter only whole dollar values.)
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
Question 10
The following is a partial Adjusted Trial Balance for Alpha Company for the month:
|
Alpha Company
|
|
Adjusted Trial Balance (partial)
|
|
January 31, 2016
|
|
Accounts
|
Debit
|
Credit
|
|
Inventory
|
$2,750
|
|
|
Sales
|
|
$12,500
|
|
Sales Discounts
|
200
|
|
|
Sales Returns & Allowances
|
1,200
|
|
|
Purchases
|
4,000
|
|
|
Purchases Discounts
|
|
150
|
|
Purchase Returns & Allowances
|
|
450
|
|
Freight In
|
50
|
|
|
Advertising Expense
|
150
|
|
|
Depreciation Expense
|
145
|
|
|
Freight Out
|
70
|
|
|
Income Tax Expense
|
500
|
|
|
Salaries Expense
|
500
|
|
|
Utilities Expense
|
100
|
|
Additionally, Inventory for December 31, 2015 was $2,700. Prepare a multiple-step income statement.
What amount should Alpha Company report on a Multi-Step Income Statement for the following items:
1. Net Sales
2. Cost of Goods Available for Sales
3. Gross Profit
4. General & Administrative Expenses
5. Income before Taxes
Question 11
On March 15, 2016 the Smoky Bear Company inventory storage facility was completely destroyed in a fire. Offsite accounting records reflect the normal gross profit rate is 40% of sales. Sales to the date of the fire were $1,500,000. The April 30, 2016 inventory value was $500,000. Two purchases were made during March, before the fire, for the values of $500,000 and $700,000. Using the Gross Profit Method determine the estimated inventory loss due to the fire.
Question 12
The following are selected account balances for Charlie Company's operations for the FY ended December 31, 2016. (All balances are normal):
|
Accounts
|
Amount
|
|
Net Sales
|
$225,500
|
|
Administrative Expenses
|
22,000
|
|
Selling Expenses
|
12,000
|
|
Cost of Goods Sold
|
175,250
|
|
Interest Expense
|
2,000
|
|
Income Tax Expense
|
1,000
|
|
Prepaid Expenses
|
$5,000
|
|
Interest Receivable
|
$1,000
|
What is the Net Profit on Sales ratio for the year 2016? (Enter the value as a percentage rounded to one decimal place. Example, 0.105134 would be entered as 10.5%)
Question 13
The following are selected account balances for Charlie Company's operations for the FY ended December 31, 2016. (All balances are normal):
|
Accounts
|
Amount
|
|
Net Sales
|
$225,500
|
|
Administrative Expenses
|
22,000
|
|
Selling Expenses
|
12,000
|
|
Cost of Goods Sold
|
175,250
|
|
Interest Expense
|
2,000
|
|
Income Tax Expense
|
1,000
|
|
Prepaid Expenses
|
$5,000
|
|
Interest Receivable
|
$1,000
|
What is the Gross Profit Margin ratio for the year 2016? (Enter the value as a percentage rounded to one decimal place. Example, 0.105134 would be entered as 10.5%)
Question 14
Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are normal):
|
Alpha Company
|
|
December 31
|
|
Accounts
|
2016
|
2015
|
|
Merchandise Inventory
|
$1,200,000
|
$800,000
|
|
Office Supplies
|
25,000
|
20,000
|
|
Sales
|
3,000,000
|
2,500,000
|
|
Cost of Goods Sold
|
2,500,000
|
1,600,000
|
|
Freight Out
|
15,000
|
10,000
|
What is the FY 2016 inventory turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times. (Example 1.123 would be entered 1.1 time)