Glasgow Enterprises started the period with 80 units in beginning inventory that cost $1.90 each. During the period, the company purchased inventory items as follows: Purchase Number of Items Cost 1 400 $2.40 2 100 $2.50 3 60 $2.90 Glasgow sold 265 units after purchase 3 for $7.80 each. What is Glasgow’s cost of goods sold under FIFO?

Glasgow Enterprises started the period with 70 units in beginning inventory that cost $2.50 each. During the period, the company purchased inventory items as follows: Purchase Number of Items Cost 1 360 $3.00 2 120 $3.10 3 60 $3.50 Glasgow sold 380 units after purchase 3 for $9.60 each. What is Glasgow’s ending inventory under weighted-average? Note: Round your intermediate computation to 2 decimal places.

A company determined that a $9,700 account receivable was uncollectible. Which of the following shows how the write-off of this receivable will affect the company’s financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Equity Revenues − Expenses = Net Income A. = + − $ 9,700 = $ (9,700) $ (9,700) OA B. $ (9,700) = + $ (9,700) − $ 9,700 = $ (9,700) C. = + − = D. $ (9,700) = $ (9,700) + − $ 9,700 = $ (9,700)

On January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was expected to have a four year useful life and a $4,000 salvage value. If Marino uses the straight-line method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 will affect the Company’s financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Cash + Book Value of Truck = Accounts Payable + Common Stock + Retained Earnings Revenue − Expense = Net Income A. + (45,000) = + + (45,000) − 45,000 = (45,000) B. + (45,000) = + + (45,000) − 45,000 = (45,000) C. + (15,000) = + + 15,000 − 15,000 = (15,000) (15,000) OA D. + (15,000) = + + (15,000) − 15,000 = (15,000)

On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1. How will the entry to record the declaration of the dividend on March 1 affect the financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue − Expense = Net income A. = (9,000) + (9,000) − 9,000 = (9,000) B. = 9,000 + (9,000) − = C. (4,500) = + (4,500) − = (4,500) FA D. = 4,500 + (4,500) − =

Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-declining-balance method. Which of the following choices accurately reflects how the recognition of the first year’s depreciation would affect the financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue − Expense = Net Income A. (32,000) = + (32,000) − 32,000 = (32,000) (32,000) Operating activity B. (16,000) = + (16,000) − 16,000 = (16,000) C. (36,000) = + (36,000) − 36,000 = (36,000) (36,000) Operating activity D. (36,000) = + (36,000) − 36,000 = (36,000)

On December 31, Year 1, Kardashian Company recorded an adjusting entry to recognize $5,710 of uncollectible accounts expense. Which of the following shows how this entry will affect Kardashian’s financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenues − Expenses = Net Income A. $ (5,710) = + $ (5,710) − $ 5,710 = $ (5,710) $ (5,710) OA B. $ (5,710) = + $ (5,710) − $ 5,710 = $ (5,710) C. $ (5,710) = + $ (5,710) − $ 5,710 = $ (5,710) $ (5,710) FA D. $ (5,710) = $ (5,710) + − $ 5,710 = $ (5,710)

Blake Company established a petty cash fund in the amount of $400. At the end of the accounting period, the petty cash box contained receipts for expenditures amounting to $180 and $215 in cash. If the company records both the disbursements and replenishments to the fund, what effect will replenishing the fund have on total assets and expenses? Total Assets Expenses A. −$ 180 +$ 185 B. −$ 185 +$ 185 C. −$ 185 +$ 180 D. −$ 180 +$ 180

Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000 shares of $6.00 par value common stock. As of December 31, Year 3, Gilligan’s stockholders’ equity accounts report the following balances: Common stock, $6 par, 500,000 shares authorized, 55,000 shares issued and outstanding $ 330,000 Paid-in capital in excess of par – Common 440,000 $ 770,000 Retained earnings 1,400,000 Total stockholders’ equity $ 2,170,000 At the end of Year 3, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $22 per share. What is the number of shares outstanding after the stock dividend is issued?

On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1. How will the May 1 payment of the dividend affect the financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue − Expense = Net income A. = 4,500 + (4,500) − = (4,500) FA B. (4,500) = (4,500) + − = (4,500) FA C. (9,000) = (9,000) + − = (9,000) IA D. = + − =