Acc 201 Exam Number 2 – extra credit

Acc 201
Exam Number 2 – extra trustworthiness
October 19, 2011
Name _______________________

14. Wolf Camera Shop Inc. uses the lower-of-cost-or-market reason restraint its schedule. The controlthcoming postulates are helpful at December 31.

Market
Units Cost/Unit Value/Unit
Cameras
Minolta 5 $175 $165
Canon 7 148 152
Light Meters
Vivitar 15 125 119
Kodak 10 115 135

Instructions
What totality should be reputed on Wolf Camera Shop’s financial declarations, lofty the lower-of-cost-or-market administration is applied?

15. Johnson Company reports the controlthcoming restraint the month of June (presume interrupted schedule) .

Date Explanation Units Item Require Total Require
June 1 Inventory 225 $5 $1,125
12 Purchase 525 6 3,150
23 Purchase 750 7 5,250
30 Inventory 270

(a) Compute the require of the issue schedule and the require of commodities sold beneath (1) FIFO, (2) LIFO, and (3) medium require.

16. Plato Company reports the controlthcoming restraint the month of June.

Date Explanation Units Item Require Total Require
June 1 Inventory 225 $5 $1,125
12 Purchase 525 6 3,150
15
23 Sale
Purchase (570)
750
7
5,250
30 Inventory 930

Instructions
(a) Calculate the require of the issue schedule and the require of commodities sold restraint each require issue self-confidence, using a incessant schedule way. Presume a sale of 570 items occurred on June 15 restraint a selling value of $8. (Note: Restraint the medium-require way, plump item require to three decimal places.)

17. The counsel beneath relates to the Cash declaration in the ledger of Remington Company.
Estimate September 1—$25,725 Cash certaintyed—$96,000.
Estimate September 30—$26,100 Checks written—$95,620.

The September bank declaration shows a estimate of $24,635 on September 30 and the controlthcoming memoranda.

Credits Debits
Collection of $2250 music plus curiosity-behalf $50 $2,300 NSF check: J. E. Hoover $635
Curiosity-behalf earned on checking declaration $65 Safety certainty punch rent $75

At September 30, certaintys in transit were $6,695, and uncollected checks totaled $3,575.

Instructions
Prepare the bank amity at September 30.

19. The superintendence of Morton Company estimates that trustworthiness sales restraint August, September, October, and November accomplish be $180,000, $210,000, $230,000, and $160,000, respectively. Experience has shown that collections are made as follows:

In month of sale 25%
In leading month following sale 60%
In cooperate month following sale 10%

Instructions
Determine the collections from customers in October and November. Show perfect computations.

20. Erickson Company had a $400 trustworthiness estimate in Perfectowance restraint Doubtful Declarations at December 31, 2010, antecedently the running year’s supplies restraint uncollectible declarations. An aging of the declarations receivable orthodox the controlthcoming:
Estimated Percentage
Uncollectible
Running Declarations $140,000 1%
1–30 days elapsed due 15,000 3%
31–60 days elapsed due 12,000 6%
61–90 days elapsed due 5,000 12%
Over 90 days elapsed due 7,000 30%
Total Declarations Receivable $179,000
Instructions
(a) Prepare the adjusting record on December 31, 2010, to own unwell debts charge.