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ACG 2024 Final Exam Solved
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ACG 2024 Final Exam Solved
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ACG 2024 Final Exam SolvedA check correctly written by a company for $321 was incorrectly recorded by that same
company as $312. On the bank reconciliation - ANS-$9 should be deducted from the
cash balance per books
A co,Amy's net credit sales are $750,000, average cash is $5,000, average inventory
totals $50,000, and average net account receivables is $60,000. How much is the
average collection period? - ANS-29.2 days
A company has the following accounts and balances:
Accounts payable- $40,000
Accounts receivable- $70,000
Accumulated depreciation- $50,000
Buildings- $500,000
Cash- $100,000
Common stock- $690,000
Equipment- $120,000
Inventory- $200,000
Investment in bonds- $20,000
Land- $150,000
Notes payable- $300,000
Patents- $10,000
Prepaid insurance- $20,000
Retained earnings- $150,000
Trademarks- $40,000
What are its current assets and property, plant, and equipment? - ANS-$390,000 and
$720,000
A company has the following asset account balances: buildings and equipment
$6,400,000. Accumulated depreciation $1,600,000. Patents $1,050,000. Inventory
$1,200,000. Goodwill $4,000,000. How much will be reported on the balance sheet
under property plant and equipment? - ANS-$4,800,000
A company has the following:
Dec. 1 Beg. Bal. 40 units. $42 per unit
Dec. 14 Purchase. 60 units. $43 per unit
Dec. 21 Purchase. 55 units. $44 per unit
The company sold 100 units at $75 each and has a tax rate of 20%. Assuming that a
periodic inventory system is used and operating expenses are $1,000, what is the
company's after tax net income using LIFO? - ANS-$1,716 (7,500-[(55 x $44) + (45 x
$43)] - 1,000) = 2,145 x 80%
A company purchased a truck for $50,000 on January 1 of its first year. The truck was
originally depreciated on a straight-line basis over 8 years with an estimated salvage
, value of $10,000. At the end of the fourth year, before year-end adjusting entries have
been recorded, the company decided to revise the estimated life of the truck to a total of
Armand to change its estimated salvage value to $2,000. How much depreciation
expense should be recorded for the fourth year? - ANS-$11,000
A company's gross profit rate is lower this year compared to the prior year. Which of the
following would not be a possible cause for this decline in the gross profit rate? - ANS-
The company began selling products with a higher markup
A corporation began the year with $3,500 of supplies on hand and recorded as assets.
On the last day of the accounting period, there are $1,100 of unused office supplies on
hand. What should the accountant do? - ANS-Debit supplies expense for $2,400 and
credit Supplies for $2,400
A Corporation declared a cash dividend of $2 per share on 50,000 shares of common
stock on July 15. The dividend is to be paid one month later on August 15 to
stockholders of record on July 31. The correct entry to be recorded on the date of
payment of August 15 will include a - ANS-Debit to the Dividends Payable account and
a credit to the Cash account
A corporation has the following:
Sales revenue- $430,000
Sales returns and allowances- $20,000
Sales discounts, $10,000
Cost of goods sold- $310,000
Operating expenses- $60,000
Other expenses- $10,000
How much is its gross profit? - ANS-$90,000
A corporation issued 1,000 shares of its $3 par value common stock for $12 per share
and later repurchased 50 of those shares for $9 per share. Which of the following will be
debited when the repurchase of the shares is journalized? - ANS-Treasury stock for
$450
A corporation issued 2,500 shares of $6 par value common stock for $7 per share.
Which of the following is included in the journal entry to record the issuance? - ANS-
Reddit to common stock for $15,000
A corporation issues a $500,000, 4%, 15-year mortgage note. The terms provide for
annual installment payments of $44,971. What is the remaining unpaid principal balance
of the mortgage payable account after the second annual payment? - ANS-$449,060
A corporation uses a perpetual inventory system. It purchased $3,000 of merchandise
on August 2 o account with terms of 1/10, n/30. It returned $250 of the merchandise of
August 4. It pays on August 12. Which of the following is part of the journal entry it
records when it pays on August 12? - ANS-Credit inventory for $27.50
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