1. If Year 1 equals $800, Year 2 equals $1040, and Year 3 equals $1060, the percentage to be
assigned for Year 2 in a trend analysis, assuming that Year 1 is the base year, is
130%.
102%.
133%.
77%.
2. Whispering Winds Corp. just began business and made the following four inventory purchases in
June:
June 1
160 units $1109
June 10 210 units
1638
June 15 210 units
1764
June 28 160 units
1408
$5919
A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using
the FIFO inventory method, the amount allocated to ending inventory (rounded to whole dollar) for
June is
$1387.
$1760.
$1744.
$1421.
3. Wildhorse Co. purchased office supplies costing $7560 and debited Supplies for the full amount.
At the end of the accounting period, a physical count of office supplies revealed $2700 still on
hand. The appropriate adjusting journal entry to be made at the end of the period would be:
debit Supplies Expense, $4860; credit Supplies, $4860.
debit Supplies Expense, $2700; credit Supplies, $2700.
debit Supplies, $2700; credit Supplies Expense, $2700.
debit Supplies, $4860; credit Supplies Expense, $4860.
4. Nash’s Trading Post, LLC began the year with $93200 in its Common Stock account and a debit
balance in Retained Earnings of $40000. During the year, the company earned net income of
$20000 and declared and paid $6700 of dividends. In addition, the company sold additional
common stock amounting to $24400. Based on this information, what should the transaction
analysis show for the ending total of all stockholders’ equity accounts?
$170900
$90900
$184300
$122100
5. Use the following data to determine the total amount of working capital.
Bramble Corp.
Balance Sheet
December 31, 2017
Cash
$127100
Accounts receivable
125000
Inventory
Prepaid insurance
Stock investments (longterm)
Land
Buildings
Less: Accumulated
depreciation
213400
86100
$153500
Common stock
$363500
28900
273200
$455600
254500
284500
$336500
(64100)
272400
Trademarks
202600
Total assets
$1565600
$283100
Accounts payable
Salaries and wages
payable
Mortgage payable
Total liabilities
Retained earnings
746500
Total stockholders’
$1110000
equity
Total liabilities
and
stockholders’ $1565600
equity
$623700
$399200
$369200
6. Blossom Company purchased merchandise inventory with an invoice price of $13400 and credit
terms of 2/8, n/30. What is the net cost of the goods if Blossom Company pays within the
discount period?
$10184
$13132
$13196
$13400
7. Assume the following cost of goods sold data for a company:
2018
$1292860
2017
2016
1219000
1018000
If 2016 is the base year, what is the percentage increase in cost of goods sold from 2016 to 2018?
20%
27%
6%
127%
8. Use the following data to determine the total dollar amount of assets to be classified as
investments.
Windsor, Inc.
Balance Sheet
December 31, 2017
Cash
$69000
Accounts receivable
104500
Inventory
Prepaid insurance
Stock investments (longterm)
Land
Buildings
Less: Accumulated
depreciation
104500
76500
Accounts payable
Salaries and wages
payable
Mortgage payable
Total liabilities
$129500
Common stock
$268200
13300
154500
$297300
196000
196500
$215500
(64500)
151000
Trademarks
115500
Total assets
$1053500
Retained earnings
488000
Total stockholders’
$756200
equity
Total liabilities
and
stockholders’ $1053500
equity
$340500
$196000
$300500
$0
