1. A company recorded 2 days of earned wages of $1800 for its employees on January 31. On February 9, it paid its employees $7,800 for these wages earned and for other wages earned through February 9. What are the journal entries for February 31 and 9 ?

2. A company has sales of $376,800 and its gross profit is $158,300. What is your cost of goods sold?

3. Big Box Store has operated at an average gross profit rate of 30% for several years. It had $107,000 in sales during the second quarter of this year. If you started the quarter with $18,700 of inventory at cost and purchased $72,700 of inventory during the quarter, What is your ending inventory estimated by the gross profit method ?

4. If assets are $410,000 and liabilities are $199,000, then how much is the equity ?

5. High Step Shoes had annual revenues of $187,000, expenses of $104,700, and dividends of $18,800 for the current year. The pre-closing retained earnings account had a balance of $299,000. What is the entry to close the Income Summary account at the end of the year, after the income and expense accounts have been closed?

6. Rico's Taqueria had cash receipts from operating activities of $35,000; cash outflows from investing activities of $30,000 and cash outflows from financing activities of $20,000. Calculate the net increase or decrease in cash.

7. A business purchases merchandise with a list price of $28,500. The company receives a trade discount of 40% from the seller. The seller also offers credit terms of 1/10, n/30. Assuming no returns and payment was made within the discount period, what is the net cost of the merchandise?

8. The Salmone Company reported the following purchases and sales of its one product. Salmone uses a perpetual inventory system. Determine the cost assigned to the cost of goods sold using FIFO.

Close Activities Units Purchased at Cost Units sold at a lower price

May 1 Beginning inventory 180 units @ $13

5 Purchase 235 units @ $15

10 Sales 155 units @ $23

15 Purchase 115 units @ $16

24 Sales 105 units @ $24

Answer rating: 100% (QA)

1Journal entries January 31 Wages Expense 1800 Wages Payable 1800 February 9 Wages Payable 7800 Cash ... View the full answer