Question 1 (8 points) Using the gross method of recording sales, what sales price should be recorded when an item with an $1,100 list price is sold with a 15% trade discount? The sales invoice...

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Question 1 (8 points)   Using the gross method of recording sales, what sales price should be recorded when an item with an $1,100 list price is sold with a 15% trade discount?  The sales invoice includes the terms 2/10, n/30? Question 1 options: $1,100 $1,078 $916.30 $935 Question 2 (8 points)   The expression 3/20, n/60 means: Question 2 options: a 3% discount is available if the invoice is paid within 20 to 60 days. a 15% discount (3 divided by 20) is available if the invoice is paid within 60 days. the invoice is paid in 3 to 20 days; otherwise interest for 60 days will be charged. if the 3% discount is not taken, the net amount is due within 60 days. Question 3 (8 points)   Alpha used a periodic inventory system.  Merchandise was purchased on account for $2,000.  The transaction was F.O.B. shipping point.  Freight of $100 was originally paid by the seller.  Alpha's journal entry to reflect this purchase includes debits to: Question 3 options: Accounts Payable for $2,100. Purchases for $2,100. Freight-out for $100. Freight-in for $100. Question 4 (8 points)   Bravo Company had beginning inventory of $75,000, purchased merchandise during the period for $200,000, and had ending inventory of $16,000.  How much was cost of goods sold? Question 5 (8 points)   Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used. > Alpha Company purchased on account $2,700 of merchandise from Bravo Company on May 2, 2016. > Alpha Company returned, to Bravo Company, $200 of this merchandise on May 3, 2016. > Freight charges related to this transaction of $150 were paid by Bravo Company. Use this information to prepare Alpha Company's General Journal entry (without explanation) for the payment for merchandise on May 15. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit                           Question 6 (8 points)   Saved Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used. > Alpha Company purchased on account $2,500 of merchandise from Bravo Company on May 2, 2016. > Alpha Company returned, to Bravo Company, $250 of this merchandise on May 3, 2016. > Freight charges related to this transaction of $150 were paid by Bravo Company. Use this information to prepare Alpha Company's General Journal entry (without explanation) for the payment for merchandise on May 12. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit                           Question 7 (22 points)   Saved Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise noted, FOB Destination will apply to all purchases & sales. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 400 units of widgets costing $10 each. Alpha prepares monthly income statements. The following events occurred during the month of Jan.:    Date Activity a. Jan. 3 Purchased on account 350 widgets for $11 each.  b. Jan. 5 Sold on account 500 widgets for $30 each. Paid freight out with cash of $150. c. Jan. 10 Purchased on account 650 widgets for $12 each. d. Jan. 11 Shipping cost for the January 10 purchased merchandise was $400 was paid with a cheque by Alpha directly to the freight company.  e. Jan. 12 Returned 50 widgets received from Jan. 10 purchase as they were not the correct item ordered. f. Jan. 13 Paid for the purchases made on Jan. 3. g. Jan. 21 Sold on account 550 widgets for $30 each. Paid freight out with cash of $250. h. Jan. 22 Authorize credit without return of goods for 50 widgets sold on Jan. 21 when customer advised that they were received in defective condition. i. Jan. 25 Received payment for the sale made on Jan. 5. j. Jan. 26 Paid for the purchases made on Jan. 10. k. Jan. 31 Received payment for the sale made on Jan. 21. Use this information to prepare the General Journal entries (without explanation) for the January events. If no entry is required then enter the date and write "No Entry Required." General Journal:   Date Accounts Debit Credit a.                             b.                                                 c.                             d.                             e.                             f.                                       g.                                                 h.                             i.                             j.                             k.                                 Question 8 (15 points)   Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: Date Activity Quantity Unit Price 5/1 Beginning Inventory 100 $10 5/5 Purchase 200 $11 5/15 Purchase 300 $13 5/25 Purchase 150 $15 Sales were 500 units at $20.  Using the FIFO method, determine the dollar values following for the month of May: 1. Ending Inventory 2. Cost of Goods Available for Sale 3. Cost of Goods Sold     Question 9 (15 points)   Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 400 units of widgets costing $10 each. Alpha prepares monthly income statements. The following events occurred during the month of Jan.:    Date Activity a. Jan. 3 Purchased on account 350 widgets for $11 each.  b. Jan. 5 Sold on account 500 widgets for $30 each. c. Jan. 10 Purchased on account 650 widgets for $12 each. d. Jan. 12 Returned 50 widgets received from Jan. 10 purchase. e. Jan. 13 Paid for the purchases made on Jan. 3. f. Jan. 21 Sold on account 550 widgets for $30 each. g. Jan. 25 Received payment for the sale made on Jan. 5. h. Jan. 26 Paid for the purchases made on Jan. 10. i. Jan. 31 Received payment for the sale made on Jan. 21. Using the Weighted Average method, determine the dollar values following for the month of January: (Enter only whole dollar values.) 1. Ending Inventory 2. Cost of Goods Available for Sale 3. Cost of Goods Sold  Question 10 (7 points)   Baltimore Company's complete assets and liabilities are Accounts Receivable $800, Equipment $10,000, Accounts Payable $4,650, Prepaid Rent $2,000, Supplies $400, Bank Loan $3,100, and Tools $300. Baltimore's total liabilities are: (All account balances are normal.) Question 11 (7 points)   Baltimore Company's complete assets and liabilities are Accounts Receivable $1,950, Equipment $8,000, Accounts Payable $5,700, Prepaid Rent $2,050, Supplies $825, Bank Loan $3,400, and Tools $435.  Baltimore's total equity is: (All account balances are normal.) Question 12 (7 points)   Baltimore Company experienced a total increase in stockholders' equity of $22,000 during the current year.  Stockholders' equity was increased by additional issuances of $60,000 capital stock during the year.  No dividends were paid.  Expenses incurred during the year were $80,000.  How much was Baltimore's revenue for the year? Question 13 (7 points)   Baltimore Company experienced an increase in total assets of $17,500 during the current year.  During the same time period, total liabilities increased $7,100.  Shareholders made no investments during the year and no dividends were paid.  How much was Baltimore's net income Question 14 (7 points)   Annapolis Corporation's trial balance included debits to expense accounts of $170,000, credits to revenue accounts of $171,000, and debits to the Dividends account of $50,000.  Based on this information, what is the amount of the company's net income or loss.  Enter a loss as a negative number. Question 15 (7 points)   Baltimore Company reports total assets and total liabilities of $231,000 and $115,000, respectively, at the conclusion, of its first year of business. The company earned $85,500 during the first year, and distributed $25,000 to shareholders as dividends. How much did shareholders initially invest in the business? Question 16 (7 points)   During June, Bravo Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues.  On that date, Bravo properly recognized Unearned Revenue.  The adjusting entry to record on July 31 includes: Question 7 options: a credit to Unearned Revenue for $400 a credit to Revenue for $2,000 a debit to Cash for $2,000 a debit to Unearned Revenue for $400 Question 17 (7 points)   On January 7, Bravo purchased supplies on account for $1,000, and recorded this purchase to the Supplies account.  At the end of January, Bravo had $600 of these supplies still on hand.  The proper adjusting journal entry at January 31 would: include a debit to Accounts Payable for $400 include a debit to Supplies for $1,000 include a credit to Supplies for $400 include a debit to Supplies Expense for $600 Question 18 (7 points)   On January 1, 20X1, Bravo Company borrowed $26,000 to purchase equipment.  The loan is to be repaid plus interest of 10% per year, on December 31, 20X2.  Prepared the general journal adjusting entry (without explanation) needed for December 31, 20X1. If no entry is required then write "No Entry Required." General Journal Date Accounts Debit Credit
Answered Same DaySep 04, 2021

Answer To: Question 1 (8 points) Using the gross method of recording sales, what sales price should be recorded...

Yash answered on Sep 06 2021
149 Votes
Question 1 (8 points)
 
Using the gross method of recording sales, what sales price should be recorded when an item with an $1,100 list price is sold with a 15% trade discount?  The sales invoice includes the terms 2/10, n/30?
Question 1 options:
    
    $1,100
    
    $1,078
    
    $916.30
    
    $935
Question 2 (8 points)
 
The expression 3/20, n/60 means:
Question 2 options:
    
    a 3% discount is available if the invoice is paid within 20 to 60 days.
    
    a 15% discount (3 divided by 20) is available if the invoice is paid wit
hin 60 days.
    
    the invoice is paid in 3 to 20 days; otherwise interest for 60 days will be charged.
    
    if the 3% discount is not taken, the net amount is due within 60 days.
Question 3 (8 points)
 
Alpha used a periodic inventory system.  Merchandise was purchased on account for $2,000.  The transaction was F.O.B. shipping point.  Freight of $100 was originally paid by the seller.  Alpha's journal entry to reflect this purchase includes debits to:
Question 3 options:
    
    Accounts Payable for $2,100.
    
    Purchases for $2,100.
    
    Freight-out for $100.
    
    Freight-in for $100.
Question 4 (8 points)
 
Bravo Company had beginning inventory of $75,000, purchased merchandise during the period for $200,000, and had ending inventory of $16,000.  How much was cost of goods sold?
Solution
Cost of goods sold = $2,59,000
Question 5 (8 points)
 
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.
> Alpha Company purchased on account $2,700 of merchandise from Bravo Company on May 2, 2016.
> Alpha Company returned, to Bravo Company, $200 of this merchandise on May 3, 2016.
> Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare Alpha Company's General Journal entry (without explanation) for the payment for merchandise on May 15. If no entry is required then write "No Entry Required."
General Journal:
    Date
    Accounts
    Debit
    Credit
     15 May
    Bravo Company 
    2,500 
     
     
     To Bank
     
    2,500 
     
     
     
     
Question 6 (8 points)
Saved
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.
> Alpha Company purchased on account $2,500 of merchandise from Bravo Company on May 2, 2016.
> Alpha Company returned, to Bravo Company, $250 of this merchandise on May 3, 2016.
> Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare Alpha Company's General Journal entry (without explanation) for the payment for merchandise on May 12. If no entry is required then write "No Entry Required."
General Journal:
    Date
    Accounts
    Debit
    Credit
    May 12 
     Bravo Company
    2,250
     
     
     To Bank
     
    2,205 
     
     To Discount Received
     
    45 
Question 7 (22 points) 
Saved
Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise noted, FOB Destination will apply to all purchases & sales. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 400 units of widgets costing $10 each. Alpha prepares monthly income statements. The following events occurred during the month of Jan.: 
     
    Date
    Activity
    a.
    Jan. 3
    Purchased on account 350 widgets for $11 each. 
    b.
    Jan. 5
    Sold on account 500 widgets for $30 each. Paid freight out with cash of $150.
    c.
    Jan. 10
    Purchased on account 650 widgets for $12 each.
    d.
    Jan. 11
    Shipping cost for the January 10 purchased merchandise was $400 was paid with a cheque by Alpha directly to the freight company. 
    e.
    Jan. 12
    Returned 50 widgets received from Jan. 10 purchase as they were not the correct item ordered.
    f.
    Jan. 13
    Paid for the purchases made on Jan. 3.
    g.
    Jan. 21
    Sold on account 550 widgets for $30 each. Paid freight out with cash of $250.
    h.
    Jan. 22
    Authorize credit without return of goods for 50 widgets sold on Jan. 21 when customer advised that they were received in defective condition.
    i.
    Jan. 25
    Received payment for the sale made on Jan. 5.
    j.
    Jan. 26
    Paid for the purchases made on Jan. 10.
    k.
    Jan. 31
    Received payment for the sale made on Jan. 21.
Use this information to prepare the General Journal entries (without explanation) for the January events. If no entry is required then enter the date and write "No Entry Required."
General Journal:
     
    Date
    Accounts
    Debit
    Credit
    a.
    Jan 3 
    Purchase Account
    3,850 
     
     
     
     To Account Payable
     
    3,850 
     
     
     
     
     
    b.
     Jan 5
     Accounts Receivable
    15,000 
     
     
     
     Freight Out
     150
     
     
     
     To Sales
     
    15,000 
     
     
     To Cash
     
    150 
     
     
     
     
     
    c.
     Jan 10
    Purchase Account
    7,800 
     
     
     
     To Account Payable
     
    7,800 
     
     
     
     
     
    d.
    Jan 11 
    Freight In 
     400
     
     
     
     To Bank
     
    400 
     
     
     
     
     
    e.
     Jan 12
     Account Payable
    600 
     
     
     
     To Purchase...
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