Instruction to be followed.

> There are 10 problems/questions:

>> you have one attempt per question

>> 1 is a general journal problem

>>> a text entry general journal is provided

>>> there are enough journal lines for this problem

>>> for credit accounts use the space bar (about 5 spaces) to right indent

>> 1 schedule problem

>>> a text entry schedule journal is provided

>>> there are enough lines & columns for this problem

>> 3 multiple fill in the boxes short answer question (dollar amount & must be filled in the order asked)

>>> where there are multiple boxes/answers you must answer in the order that the questions are asked

>> 5 single fill in the box short answer questions

>>> if a dollar amount (in the fill in the box(es) question) is the answer then you must use a $ sign and must use commas. There are no (say again - NO) pennies or decimal values

>>> if a number of shares (in the fill in the box(es) question) is the answer then you must use whole numbers without any dollar signs

>> there are no pennies, there are no percentage signs, and for single or multiple fill in the box questions do not enter any words, brackets or any calculations

> I am providing these detailed instructions because the LEO quiz grading function is very exact in nature. It is like an IRS form, fill it in wrong and say hello to Ms. IRS AuditJ!!

> I grade general journal entries off line and provide individual feedback.

> Any questions about the quiz content must be addressed to me only via the LEO pager or email system.

.

Question 1 (24 points)



Floopy uses the periodic inventory method for inventories. Prepare the journal entries for each of the following transactions. Do not provide any journal explanations. If no entry is necessary, write "no entry." Floopy uses the net method for recording inventory transactions.

>> On January 5, year 2, purchased $17,000 of garden tillers on account from Flip, terms 2/10, n/30, FOB destination. Freight charges were $200.

>> On January 10, year 2, returned garden tillers worth $2,000 to Flip due to defects.

>> On January 24, year 2, paid for tillers purchased from Flip.

>> On January 28, year 2, purchased $30,000 of lawn mowers from Flam, terms 3/10, n/30, FOB shipping point. The freight charges were $820.

>> On February 6, year 2, paid for the lawn mowers purchased on January 28, year 2, from Flam.

Question 1 options:

Date Account Debit Credit
Save

Question 2 (16 points)



On February 1, 2016, Bravo Company had a store fire that destroyed a considerable amount of the inventory. The December 31, 2015 physical inventory count was $48,000. January purchases & sales were $50,000 and $90,000 respectively. Gross profit rate is normally 25%. The selling price of inventory that was recovered and still in salable condition has a selling price of $5,000. Prepare a schedule to support Bravo Company's insurance claim for the loss of inventory using the gross profit method. Use the form provided.

Question 2 options: Blank Answer Form:

Bravo Company

Schedule of Inventory Loss

February 1, 2016

Save

Question 3 (5 points)



On January 1, 2014, Flop Co. purchased a patent for $714,000. The patent is being amortized over its remaining legal life of fifteen years expiring on December 31, 2028. During 2019, Flop determined that the economic benefits of the patent would not last longer than thirteen years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2019?

Question 3 options:



Save

Question 4 (5 points)



Flop Co.'s trial balance of income statement accounts for the year ended December 31, year 2, included the following:

Accounts	Debit	Credit
Sales		$575,000
Cost of Sales	$240,000
Administrative expenses	70,000
Loss on sale of equipment	10,0000
Sales commissions	50,000
Interest revenue		25,000
Freight out	25,000
Loss on early retirement of long-term debt	20,000
Uncollectible accounts expense	15,000	_______
Totals	$420,000	$600,000

Other information:

Finished goods inventory:

January 1, year 2 $400,000

December 31, year 2 360,000

Flop's income tax rate is 30%. In Flop's year 2 multiple-step income statement,

What amount should Flop report as income after income taxes from continuing operations?

Question 4 options:



Save

Question 5 (5 points)



On November 1, year 2, management of Flop Corporation committed to a plan to dispose of Flip Company, a major subsidiary. The disposal meets the requirements for classification as discontinued operations. The carrying value of Flip Company was $8,000,000 and management estimated the fair value less costs to sell to be $6,500,000. For year 2, Flip Company had a loss of $1,000,000. How much should Flop Corporation present as loss from discontinued operations before the effect of taxes in its income statement for year 2?

Question 5 options:



Save

Question 6 (5 points)



Flip, Inc. was incorporated on January 1, year 1, with proceeds from the issuance of $750,000 in stock and borrowed funds of $110,000. During the first year of operations, revenues from sales and consulting amounted to $82,000, and operating costs and expenses totaled $64,000. On December 15, Flip declared a $13,000 cash dividend, payable to stockholders on January 15, year 2. No additional activities affected owners' equity in year 1. Flip's liabilities increased to $120,000 by December 31, year 1. On Flip's December 31, year 1 balance sheet, total assets should be reported at current assets?

Question 6 options:



Save

Question 7 (5 points)



The following information pertained to Frack Co. for the year:

Purchases	$102,800
Purchase discounts	10,280
Freight in	15,420
Freight out	5,140
Beginning inventory	20,560
Ending inventory	30,840

What amount should Frack report as cost of goods sold for the year?

Question 7 options:



Save

Question 8 (10 points)



On December 15, 2015, Frack purchased goods costing $100,000. The terms were FOB shipping point. Costs incurred by Frack in connection with the purchase and delivery of the goods were as follows:

Normal freight charges	$3,200
Handling costs	2,200
Insurance on shipment	200
Abnormal freight charges for express shipping	1,200

The goods were received on December 17, 2015. What is the amount that Frack should charge to:

a. inventory

b. current period expense

Question 8 options:





Save

Question 9 (15 points)



Bravo Company sells one farm machinery product. December 31, 2013, Bravo adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $150,000. Inventory data are as follows:

Year	Inventory at Year End Prices	Base Year (2013) Index
2014	$241,500	1.05
2015	253,000	1.15
2016	390,625	1.25

What is the Dollar-Value LIFO inventory at (round all ending inventory dollar values to the next whole dollar):

1. December 31, 2014

2. December 31, 2015

3. December 31, 2016

Question 9 options:







Save

Question 10 (10 points)



During January 2015 the following events occurred for the Widgets inventory item:

Date	Event	Quantity & Unit Value
1/1/15	Balance	1,400 u @ $24
1/8/15	Sold	400 u @ $50
1/9/15	Purchase	100 u @ $37
1/10/15	Sold	1,000 u @ $40
1/14/15	Purchased	800 u @ $36
1/24/15	Purchase	700 u @30
1/29/15	Sold	500 u @ $44

Perpetual inventories are maintained. What cost should be applied to ending inventory for Widgets using the following cost flow methods:

1. FIFO

2. LIFO

Answer rating: 100% (QA)

Lets begin with each question Question 1 General Journal Entries Journal Entries 1 January 5 year 2 Debit Inventory 17000 Credit Accounts Payable 1700... View the full answer