ACC 422 Final Exam Guide 1 Click Here to Buy the Tutorial http://www.uophelp.com/ACC-422-/product-16683-ACC-422-Final-Exam-Guide-1 For more course tutorials visit www.uophelp.com 1. Kraft Enterprises owns the following assets at December 31, 2012. Cash in bank– 67,516 Checking account balance 26,445 savings account Cash on hand 9,478 Postdated checks 753 Certificates of deposit (180Cash refund due from IRS 40,324 94,754 day) What amount should be reported as cash? Question 2 Presented below is information related to Rembrandt Inc.’s inventory. (per unit) Skis Boots Parkas Historical Cost 273.79 152.75 76.37 Selling Price 312.70 208.95 106.27 Cost to distribute 27.38 11.53 3.60 Current replacement cost 292.52 151.31 73.49 Normal profit margin 46.11 41.79 30.62 Determine the following: Question 3 Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 67 units that cost \$40 each. During June, the company purchased 202 units at \$40 each, r eturned 8 units for credit, and sold 168 units at \$67 each. Journalize the June transactions. Question 4 Amsterdam Company uses a periodic inventory system. For April, when the company sol d 700 units, the following information is available. Compute the April 30 inventory and the April cost of goods sold using the average cost m ethod. Question 5 Amsterdam Company uses a periodic inventory system. For April, when the company sol d 600 units, the following information is available. Compute the April 30 inventory and the April cost of goods sold using the FIFO method. Question 6 (FIFO, LIFO, Average Cost Inventory) Esplanade Company was formed on December 1, 2011. The following information is ava ilable from Esplanade’s inventory records for Product BAP.

Purchases Units Unit Cost January 1, 2012(beginning inventory) 762 8.00 January 5, 2012 1,524 9.00 January 25, 2012 1,651 10.00 February 16, 2012 1,061 11.00 March 26, 2012 762 12.00 A physical inventory on March 31, 2012, shows 2,032 units on hand. Prepare schedules t o compute the ending inventory at March 31, 2012, under each of the following inventory methods. Assume Esplanade Company uses the periodic inventory method. Question 7 Floyd Corporation has the following four items in its ending inventory. Determine the fin al lower of cost or market inventory value for each item. Question 8 Kumar Inc. uses a perpetual inventory system. At January 1, 2013, inventory was \$320,7 86 at both cost and market value. At December 31, 2013, the inventory was \$428,714 at c ost and \$403,231 at market value. Prepare the necessary December 31 entry under: Question 9 Boyne Inc. had beginning inventory of \$15,000 at cost and \$25,000 at retail. Net purchas es were \$150,000 at cost and \$212,500 at retail. Net markups were \$12,500; net markdow ns were \$8,750; and sales were \$196,250. Compute ending inventory at cost using the co nventional retail method. Question 10 (Gross Profit Method) Astaire Company uses the gross profit method to estimate inventory for monthly reportin g purposes. Presented below is information for the month of May. Question 11 Previn Brothers Inc. purchased land at a price of \$30,400. Closing costs were \$1,820. An old building was removed at a cost of \$14,850. What amount should be recorded as the c ost of the land? Question 12 Garcia Corporation purchased a truck by issuing an \$108,000, 4-year, zero-interestbearing note to Equinox Inc. The market rate of interest for obligations of this nature is 1 0%. Prepare the journal entry to record the purchase of this truck. Question 13 Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cas h payment of \$352,800. The estimated fair values of the assets are land \$67,200, building \$246,400, and equipment \$89,600. At what amounts should each of the three assets be re corded? Question 14 Fielder Company obtained land by issuing 2,000 shares of its \$12 par value common stoc k. The land was recently appraised at \$103,700. The common stock is actively traded at \$ 50 per share. Prepare the journal entry to record the acquisition of the land. Question 15

Navajo Corporation traded a used truck (cost \$23,600, accumulated depreciation \$21,240 ) for a small computer worth \$4,366. Navajo also paid \$1,180 in the transaction. Prepare t he journal entry to record the exchange. Question 16 Mehta Company traded a used welding machine (cost \$10,080, accumulated depreciation \$3,360) for office equipment with an estimated fair value of \$5,600. Mehta also paid \$3, 360 cash in the transaction. Prepare the journal entry to record the exchange. Question 17 Depreciation is normally computed on the basis of the nearest A). full month and to the nearest dollar. B). day and to the nearest cent. C). day and to the nearest dollar. D). full month and to the nearest cent. Question 18 Fernandez Corporation purchased a truck at the beginning of 2012 for \$54,180. The truck is estimated to have a salvage value of \$2,580 and a useful life of 206,400 miles. It was d riven 29,670 miles in 2012 and 39,990 miles in 2013. Compute depreciation expense for 2012 and 2013. Question 19 Lockhard Company purchased machinery on January 1, 2012, for \$79,200. The machiner y is estimated to have a salvage value of \$7,920 after a useful life of 8 years. (a) Compute 2012 depreciation expense using the double-declining balance method. (b) Compute 2012 depreciation expense using the doubledeclining balance method assuming the machinery was purchased on October 1, 2012. Question 20 Jurassic Company owns machinery that cost \$1,145,700 and has accumulated depreciatio n of \$458,280. The expected future net cash flows from the use of the asset are expected t o be \$636,500. The fair value of the equipment is \$509,200. Prepare the journal entry, if a ny, to record the impairment loss. Question 21 Everly Corporation acquires a coal mine at a cost of \$501,600. Intangible development co sts total \$125,400. After extraction has occurred, Everly must restore the property (estima ted fair value of the obligation is \$100,320), after which it can be sold for \$200,640. Ever ly estimates that 5,016 tons of coal can be extracted. If 878 tons are extracted the first yea r, prepare the journal entry to record depletion. Question 22 Francis Corporation purchased an asset at a cost of \$58,200 on March 1, 2012. The asset has a useful life of 8 years and a salvage value of \$5,820. For tax purposes, the MACRS c lass life is 5 years. Compute tax depreciation for each year 2012â&#x20AC;&#x201C;2017. Question 23 Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2012, f or \$50,820. The patent has a remaining legal life of 16 years. Celine Dion feels the patent