Exam 2 – If the beginning inventory for 2014 is overstated, the effects of this error on cost of goods sold for

| June 4, 2016

Question

Exam 2 – Question 1 to Question 37
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Question 1:

If the beginning inventory for 2014 is overstated, the effects of this error on cost of goods sold for 2014, net income for 2014, and assets at December 31, 2015, respectively, are

Question 2:

June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 40 units that cost $20 per unit. During the current month, the company purchased 240 units at $20 each. Sales during the month totaled 180 units for $43 each. What is the cost of goods sold using the LIFO method?

Question 3:

Niles Co. has the following data related to an item of inventory:

Question 4:

When using a perpetual inventory system

Question 5:

Which of the following is correct?

Question 6:

Keen Company’s accounting records indicated the following information:

Question 7:

Henke Co. uses the retail inventory method to estimate its inventory for interim statement

Question 8:

Why are inventories stated at lower of cost or market?

Question 9:

Why might inventory be reported at sales prices (net realizable value or market price) rather than cost?

Question 10:

At a lump-sum cost of $72,000, Pratt Company recently purchased the following items for resale:

Question 11:

Which of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset?

Question 12:

On August 1, 2014, Mendez corporation purchased a new machine on a deferred payment basis.

Question 13:

On January 2, 2014, Indian River Groves began construction of a new citrus processing plant.

Question 14:

During self- construction of an asset by Richardson Company, the following were among the costs incurred:

Question 15:

Orton Corporation, which has a calendar year accounting period, purchased a new machine for $60000 on April 1, 2010

Question 16:

Norton, Inc. purchased equipment in 2013 at a cost of $800,000.

Question 17:

Rock Company purchased a depreciable asset for $500,000 on April 1, 2012. The estimated salvage value is $50000

Question 18:

Worley Truck Rental uses the group depreciation method for its fleet of trucks. When it retires one of its trucks

Question 19:

Dennis Company purchases Miles Company for $4,200,000 cash on January 1, 2015. The book value of Miles company’s net assets reported on its December 31, 2014 financial statement was $3,800,000

Question 20:

Broadway Corporation was granted a patent on a product on January 1, 2004. To protect its patent, the corporation purchased on January 1, 2015 a patent on a competing product

Question 21:

Which of the following research and development expenditure should be capitalized and depreciated?

Question 22:

Wringlee, Inc. went to court this year and successfully defended its patent from infirnge-ment by a competitor

Question 23:

Which of the following is not considered a part of the definition of a liability?

Question 24:

On January 1, 2012, Bacon Co. leased a building to Horner Corp. for a ten-year term at an annual rental of $140,000.

Question 25:

Core Trading Stamp Co. records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees.

Question 26:

Greeson Corp. signed a three month, zero interest bearing note on November 1, 2014 for the purchase of $250,000 of inventory.

Question 27:

On January 1, Patterson Inc. issued $4,000,000, 9% bonds for $3756000. The market rate of interest for these bonds is 10%.

Question 28:

On January 1, 2014, Ellison Co. issues eight- year bonds with a face value of $4000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table Values are:

Question 29:

An early extinguishment of bonds payable, which were originally issues at a premium, is made by purchase of the bonds between interest dates. At the times of reacquisition

Question 30:

A corporation borrowed money from a bank to build to building. The long term note signed by the corporation is secured by a mortgage that pledges

Question 31: Matlock Corporation

Question 32:Flint Department store

Question 33:Moore corporation follows policy

Question 34:A machine that cost $300,000

Question 35: Sisco company purchased a patent

Question 36:Snow company begins operations………….

Question 37:Mann Inc,.which owes Doran company

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