ch_21_questions x
Ch 21: Accounting Records
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
____ 1. Assets are $18,254.00 in cash, $67,099.00 in merchandise, and $15,334.00 in supplies. Liabilities are $35,000.00 owed to the bank and $568.50 owed in taxes. Find the owner’s equity.
|
a. |
$66,881.50 |
c. |
$55,781.50 |
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|
b. |
$65,118.50 |
d. |
$42,887.50 |
Figure 21.3. Use this table with the question(s) below, as needed.
|
Balance Sheet Zimmerman Appliances July 25 |
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|
Assets |
Liabilities |
|||||
|
Cash |
$125,500 |
Notes payable |
$30,000 |
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|
Computer hardware |
150,000 |
Bank loan |
110,000 |
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|
Computer software |
32,000 |
Total liabilities |
140,000 |
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|
Store fixtures |
15,000 |
Owner’s Equity |
||||
|
Capital |
$182,500 |
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|
Total liabilities and |
||||||
|
Total assets |
322,500 |
owner’s equity |
____ 2. Use Figure 21.3. What are the total liabilities for Zimmerman Appliances?
|
$117,000 |
$120,000 |
|
$210,000 |
$140,000 |
Figure 21.4. Use the following information with the question(s) below, as needed.
Matson’s Hair Styling Salon has $22,000 in cash, $9,500 in inventory, $4,000 in supplies, a bank loan for $11,275, and taxes owed of $2,500.
____ 3. Use Figure 21.4. What is Matson’s owner equity?
|
$21,000 |
$23,985 |
|
$21,900 |
$21,725 |
____ 4. Cellular Services has $9,489 in cash and $15,800 in equipment. The company owes the bank
$15,000
. What is the owner’s equity?
|
$25,289 |
$15,000 |
|
$10,289 |
$11,850 |
____ 5. Murphy’s Hardware began the quarter with an inventory valued at $18,950.00. During the quarter, it received 50 buckets that cost $3.59 each, 75 rakes at $22.45 each, and 35 shovels at $14.85 each. The ending inventory was valued at $15,300.00. What was the cost of goods sold?
|
$5,925.00 |
$6,033.00 |
|
$7,455.00 |
$8,424.00 |
____ 6. Creative Calendars had a beginning inventory of $11,475, receipts of $3,025, and ending inventory of $12,700. Find the cost of goods sold.
|
$1,600 |
$1,800 |
|
$1,780 |
$1,200 |
____ 7. Allen’s Shoe Shop started the month with inventory valued at $4,689.53. During the month, it received 10 boxes of sandals at $28.00 each, 15 boxes of boots at $35.25 each, and 20 boxes of socks at $30.17 a box. The ending inventory for the month was valued at $3,879.78. Find the cost of goods sold.
|
$1,589.56 |
$2,896.22 |
|
$3,282.45 |
$2,221.90 |
____ 8. Alexandria’s Window Company had sales this month of $84,995. Several items were returned for a total of $7,358. Find Alexandria’s net sales for the month.
|
$77,358 |
$76,872 |
|
$77,637 |
$80,395 |
____ 9. Oswego Coin Shop had sales this month of $35,758 and returned merchandise of $4,500. Cost of goods sold was $12,000 and total operating expenses were $7,453. Find the net income.
|
$11,984 |
$12,998 |
|
$11,805 |
$11,008 |
____ 10. Cost of goods sold is $21,418.10 and net sales are $38,942.76. What is the cost of goods sold as a percent of net sales?
|
5 8 percent |
56 percent |
|
59 percent |
5 5 percent |
____ 11. Sales returns at Smith’s Camera Shop were $349.55 and net sales were $13,982.00. What are the sales returns as a percent of net sales?
|
2.5 percent |
1.5 percent |
|
8.2 percent |
2.2 percent |
Figure 21.7. Use this table with the question(s) below, as needed.
|
Balance Sheet
The Turner Company May 21 |
|||
|
$55,000 |
$23,000 |
||
|
Merchandise inventory |
21,000 |
Accounts payable |
7,000 |
|
Supplies |
9,900 |
||
|
$85,900 |
|||
|
$55,900 |
|||
|
and owner’s equity |
____ 12. Use Figure 21.7. Find the current ratio.
a.
2.9:1
current ratio
c.
2.7:1 current ratio
1.9:1 current ratio
d.
2.1:1 current ratio
____ 13. Last month net wages were $35,680. This month net wages are $40,690. What is the percent change?
|
14 percent |
16 percent |
|
15 percent |
17 percent |
____ 14. Last week cost of goods sold was $7,486. This week cost of goods sold is $6,042. What is the percent change?
|
– 19.3 percent |
– 18.2 percent |
| 19.3 percent | 18.2 percent |
____ 15. Operating expenses for last year were $33.8 (thousands) and for this year $35.5 (thousands). What is the percent change?
|
–5 percent |
–8 percent |
| 5 percent | 8 percent |
Short Answer
16. Creative Candies started the quarter with inventory valued at $3,198.21. During the quarter, it received 8 cases of gummy worms at $18.45 per case, 5 boxes of lollipops at $6.75 a box, and 5 cases of assorted chocolates at $21.35 per case. The inventory at the end of the quarter was valued at $2,875.69. Find the cost of goods sold.
17. A company that makes taxicabs prepares an annual income statement for distribution to its stockholders. Last year net sales totaled $15.8 million. Cost of goods sold totaled $8.7 million. Operating expenses included salaries and wages of $1.5 million, and utilities and supplies of $0.7 million. What is the net income for the year?
18. Cost of goods sold was $21,854.03. Net sales were $43,582.45. What is the cost of goods sold as a percent of net sales?
19. Salaries were $4,582.35. Net sales were $9,256.79. What is the cost of salaries as a percent of net sales?
20. Total assets are $92,579 and total liabilities are $32,000. What is the current ratio?
Ch 21: Accounting Records
Answer Section
MULTIPLE CHOICE
1. ANS: B DIF: Average REF: Section 21-1
2. ANS: D DIF: Basic REF: Section 21-2
3. ANS: D DIF: Average REF: Section 21-2
4. ANS: B DIF: Average REF: Section 21-2
5. ANS: C
DIF: Average REF: Section 21-3
6. ANS: C DIF: Basic REF: Section 21-3
7. ANS: D DIF: Average REF: Section 21-3
8. ANS: B DIF: Basic REF: Section 21-4
9. ANS: B
DIF: Average REF: Section 21-4
10. ANS: D DIF: Basic REF: Section 21-5
11. ANS: A DIF: Basic REF: Section 21-5
12. ANS: A DIF: Basic REF: Section 21-5
13. ANS: A DIF: Average REF: Section 21-6
14. ANS: A DIF: Average REF: Section 21-6
15. ANS: B DIF: Average REF: Section 21-6
SHORT ANSWER
16. ANS:
$610.62
DIF: Average REF: Section 21-3
17. ANS:
$4.9 million
DIF: Average REF: Section 21-4
18. ANS:
50.1 percent
DIF: Average REF: Section 21-5
19. ANS:
49.5 percent
DIF: Average REF: Section 21-5
20. ANS:
2.9:1
DIF: Average REF: Section 21-5
