Chapter 21:
Accounting Records
1.
Dotty and Peggy Marks recently opened The Hair Fair. They used $40,000 of their own money and took out a bank loan of $50,000. From the $90,000, they paid $60,000 for equipment and $4,000 for supplies. This left a cash balance of $26,000. They received another shipment of $3,000 worth of merchandise. They did not pay for this merchandise immediately. What was their owner's equity?
a.
$7,000.00
b.
$26,000.00
c.
$40,000.00
d.
$90,000.00
2.
The Marks, who recently opened The Hair Fair, used $40,000 of their own money and took out a bank loan of $50,000. They received two shipments of merchandise. They paid cash for the $4,000 shipment. They did not pay immediately for the $3,000 shipment. They also bought equipment for $60,000. This left a cash balance of $26,000. What were liabilities on their balance sheet?
a.
$40,000
b.
$53,000
c.
$60,000
d.
$93,000
3.
Kitten Kaboodle began the quarter with an inventory valued at $18,562. During the quarter, it received 864 cases of pet food valued at $10,368 and pet supplies valued at $3,456. The ending inventory was valued at $9,573. What was the cost of goods sold?
a.
$22,813
b.
$28,930
c.
$32,386
d.
$48,350
4.
Three months after opening Candy's Sweet Shoppe, Candy Baker prepares an income statement. Sales for the first three months totaled $58,154. There are no returns or allowances. Baker's inventory record shows that the goods she sold cost her $6,870. Records show that her operating expenses totaled $40,320. What is the net income?
a.
$6,870
b.
$10,964
c.
$17,834
d.
$58,154
5.
Candy's Sweet Shoppe analyzes its income statement for the quarter. Sales for the first three months totaled $58,154. There are no returns or allowances. Inventory records show that the goods sold cost $6,870. Records show that operating expenses totaled $40,320. To the nearest tenth of a percent, what is the gross profit as a percent of net sales?
a.
16.2%
b.
17.0%
c.
18.4%
d.
21.4%
6.
M & P Grocery prepares a quarterly income statement and compares it to the one for the previous quarter. During the first quarter, its net income was $54,678. During the second quarter, its net income was $59,879. Find the percent change from last quarter to this quarter to the nearest tenth of a percent.
a.
8.7% decrease
b.
8.7% increase
c.
9.5% decrease
d.
9.5% increase
7.
Three months after opening Hike and Bike, Josh Frank prepares an income statement. Sales for the first three months totaled $57,600. There were $876 in returns. Frank's inventory record shows that the goods he sold cost him $33,720. Records show that his operating expenses totaled $5,750. What is the net income?
a.
$17,254
b.
$23,880
c.
$27,970
d.
$56,724
8.
Hike and Bike analyzes its income statement for the quarter. Sales for the first three months totaled $57,600. There were $876 in returns. The inventory record shows that the goods sold cost $33,720. Records show that operating expenses totaled $5,750. To the nearest tenth of a percent, what is the gross profit as a percent of net sales?
a.
32.6%
b.
34.5%
c.
40.6%
d.
54.2%
9.
The Steakhouse prepares a quarterly income statement and compares it to the one for the previous quarter. During the first quarter, its net income was $147,564. During the second quarter, its net income was $154,589. Find the percent change from last quarter to this quarter to the nearest tenth of a percent.
a.
4.5% decrease
b.
4.5% increase
c.
4.8% decrease
d.
4.8% increase
10.
The Halfpipe began the quarter with an inventory valued at $12,112. During the quarter it received skateboards valued at $8,054 and clothing valued at $5,305. The ending inventory was valued at $10,569. What was the cost of goods sold?
a.
$14,902
b.
$15,874
c.
$25,471
d.
$36,040
Ch. 1-5
Ch. 6-10
Ch. 11-15
Ch. 16-20
Ch. 21-23
Ch. 1
Ch. 2
Ch. 3
Ch. 4
Ch. 5
Ch. 6
Ch. 7
Ch. 8
Ch. 9
Ch. 10
Ch. 11
Ch. 12
Ch. 13
Ch. 14
Ch. 15
Ch. 16
Ch. 17
Ch. 18
Ch. 19
Ch. 20
Ch. 21
Ch. 22
Ch. 23
