In reconciling the checking account, Morris Company noted the following items for the month of October: Ending book balance $5,775 Deposits in transit $1,250 Outstanding checks $2,075 NSF check $ 450 Bank service charges $ 25 Bank interest expense $ 250 Ending bank balance $ 5,875 balance at the end of October? What is the correct cash $5,000 $5,050 $4,000 $5,750 Ending Book balance $5,775 NSF Check ($450) Bank service charge (25) Bank int expense (250) ----------------------------------------- Ending Book balance $5,050 - Adjusted Target Company had 2009 and 2010 ending inventory of $2,000 and $4,000 respectively. In 2010, Target made $7,000 worth of purchases. What was Target’s cost of goods sold in 2010? $5,000 $11,000 $6,000 $3,000 COGS = Beg Inv + Purchases Ending Inv – = 2000 + 7000 4000 – = $5,000 Under the perpetual inventory system, There is a purchase account involved As inventory is sold, no entry is needed To account for ending inventory, purchases account is closed and cost of goods sold is created
In reconciling the checking account, Morris Company noted the following items for the month of October: Ending book balance $5,775 Deposits in transit $1,250 Outstanding checks $2,075 NSF check $ 450 Bank service charges $ 25 Bank interest expense $ 250 Ending bank balance $ 5,875 What is the correct cash balance at the end of October? $5,000 $5,050 $4,000 $5,750 Ending Book balance $5,775 NSF Check ($450) Bank service charge (25) Bank int expense (250) ----------------------------------------- Ending Book balance $5,050 - Adjusted Target Company had 2009 and 2010 ending inventory of $2,000 and $4,000 respectively. In 2010, Target made $7,000 worth of purchases. What was Target’s cost of goods sold in 2010? $5,000 $11,000 $6,000 $3,000 COGS = Beg Inv + Purchases – Ending Inv = 2000 + 7000 – 4000 = $5,000 Under the perpetual inventory system, There is a purchase account involved As inventory is sold, no entry is needed To account for ending inventory, purchases account is closed and cost of goods sold is created
ACCT_284__AB__Clem_euroy_acct_284_exam_review_answers.docx