The Byrne Company had its entire inventory destroyed when a fire swept through the company’s warehouse on April 30, Year 2. Fortunately, the accounting records were locked in a fireproof safe and were not damaged. The following information for the period up to the date of the fire was taken from the accounting records:   Sales $ 560,000 Purchases    400,000 Beginning inventory      40,000   Required:Assuming that the gross margin has averaged 35% of their selling price, what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form and label your numbers!

Cassie Company’s bank statement contained a $75 service charge. Which of the following shows how recognizing this charge will affect Cassie’s financial statements?

The bank statement for Tetra Company contained the following items: a bank service charge of $10; a credit memo for interest earned, $15; and a $50 NSF check from a customer. The company had outstanding checks of $100 and a deposit in transit of $300. Which of the following will be caused by the entry to record the customer’s NSF check?

List at least three policies or procedures that can be taken to achieve strong internal control.  (Give me specifics.)

Burton Supply uses the perpetual inventory method.  At the end of the year Burton Supply had the following items in inventory.   Item Quantity Cost per Unit Market Value per Unit Total Cost Total Market LCM (Total Amount) A1 20 $ 100.00 $ 100.00 $ $ $ A2 30 $ 80.00 $ 85.00 A3 25 $ 175.00 $ 155.00 A4 10 $ 150.00 $ 160.00 Totals: $ $ $ SHOW ALL COMPUTATIONS TO RECEIVE CREDIT POINTS! Required:a) Determine the total cost amount of inventory Burton Supply shows on its books before any adjustment.b) Determine the total dollar amount of ending inventory using lower of cost or market applied to each individual inventory item.  Be sure to show Total Cost, Total Market, and LCM totals.  (See table above.)c) Prepare the journal entry necessary to adjust inventory, if any. Account Name Debit Credit

Define the terms FIFO and LIFO.  (In other words, what does it stand for AND what do they each mean?)

Jones Company sells exercise bikes. Its beginning inventory was 100 units at $200 per unit. During the year, Jones made two purchases of the bikes: first, a 300-unit purchase at $220 per unit, and then 200 units at $250 per unit. The ending inventory for the year was 250 units. Required:                                              SHOW AND LABEL ALL COMPUTATIONS! 1.  What is the total Cost of Goods Available? Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Jones uses each of the following inventory cost flow methods:2) FIFO  a.  Cost of Goods Sold     b.  Ending Inventory3) LIFO   a.  Cost of Goods Sold     b.  Ending Inventory4) Weighted average   a.  Cost of Goods Sold     b.  Ending Inventory (Round intermediate calculations to two decimal places. Round final answers to whole dollars.) Cost of Goods Sold Ending Inventory a) FIFO $ $ b) LIFO $ $ c) Weighted Average $ $

A transaction has been recorded in the T-accounts of Hough Company as follows: Cash debit 500 Notes Payable credit 500 Which of the following reflects how this event affects the company’s financial statements? Balance Sheet Income Statement Statement of Cash Flows Asset = Liabilities + Stockholders’ Equity Revenue − Expenses = Net Income A. + = + + n/a n/a − + = − +FA B. + = + + n/a n/a − n/a = n/a +OA C. + = n/a + + + − n/a = + +OA D. + = + + n/a n/a − n/a = n/a +FA

You’re finished!  Be sure to scroll up and make sure all your questions have been answered.  Once you’re sure you’ve finished, then submit the exam.  Be sure to read Chapter 5 next! There are 70 points that will need to be graded by your instructor.  So you could possibly get 70 more points (in addition to the points from the questions you already answered). Good luck! Mrs. S

This question is worth 4 points. LABEL YOUR NUMBERS! (You can use a t-account to prove your answers.) The balance in the Office Supplies account on May 1 was $1,800, supplies purchased during May totaled $6,000, and supplies on hand at May 31 was $3,600. 1. What amount of supplies will be shown as an expense on the Income Statement? 2. What amount of supplies will be shown on the Balance Sheet?