1. At the beginning of 2012, Wilson Stores has an inventory of $300,000. Because
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Question
1. At the beginning of 2012, Wilson Stores has an inventory of $300,000. Because sales growth was strong during 2012, the owner wants to increase inventory on hand to $450,000 at December 31, 2012. If net sales for 2012 are expected to be $2,600,000, and the gross profit rate is expected to be 35%, compute the cost of the merchandise the owner should expect to purchase during 2012.
SB Hoffman, Inc. adjusts its books each month b...
$1,240,000. $1,840,000. $750,000. $1,690,000....4. The following information is available:
What is the return on equity? (round to the nearest number) 15%. 20%. 25%. 5%. references
Multiple Choice Difficulty: Medium MC Qu. 102 The following information is available: ... Learning Objective: 05-06 Use financial statement information to evaluate profitability and liquidity. 5. Leland Corp. has a note receivable from Jewel Co for $50,000. The note matures in 2 years and bears interest of 3%. Leland is preparing financial statements for the quarter ending June 30. Leland should make an adjusting entry: Debiting Interest Revenue for $375 and crediting Interest Receivable for $375. Debiting Interest Receivable for $375 and crediting Interest Revenue for $375. Crediting Interest Payable for $375 and debiting Interest Expense for $375. Debiting Interest Revenue for $1,500 and crediting Interest Receivable for $1,500. references
9. The need for adjusting entries results from timing differences between the receipt or disbursement of cash and the dates on the financial statements. True False references
SB Hoffman, Inc. adjusts its books each month b...
Hoffman, Inc. adjusts its books each month but closes its books at the end of the year. The trial balance at March 31 before adjustments is as follows:references Section Break SB Hoffman, Inc. adjusts its books each month b...
11.On March 1, Hoffman paid in advance for four months' insurance. The necessary adjusting entry at March 31 includes which of the following? A debit to Prepaid Insurance for $2,340. A credit to Prepaid Insurance for $2,340. A credit to Prepaid Insurance for $780. A debit to Prepaid Insurance for $780. 12.At March 31, the amount of supplies on hand is $520. What amount is reported in the March income statement for supplies expense?
rev: 08_15_2012
$0. $520. $1,300. $780. references Multiple Choice Difficulty: Medium MC Qu. 102 At March 31, the amount of supplies on hand ... Learning Objective: 04-03 Prepare adjusting entries to convert assets to expenses. 13.The equipment had an estimated useful life of five years. Compute the book value of the equipment at March 31, after the proper March adjustment is recorded. $25,567. $10,833. $15,167. $10,400. references Multiple Choice Difficulty: Medium MC Qu. 103 The equipment had an estimated useful life o... Learning Objective: 04-03 Prepare adjusting entries to convert assets to expenses. 14. According to service contracts, $4,810 of the Unearned Service Revenue has been earned in March. The amount of Service Revenue Earned to be reported in the March income statement is: $11,700. $20,410. $16,510. $21,320. references At the beginning of 2012, Wilson Stores has an inventory of $300,000. Because sales growth was strong during 2012, the owner wants to increase inventory on hand to $450,000 at December 31, 2012. If net sales for 2012 are expected to be $2,600,000, and the gross profit rate is expected to be 35%, compute the cost of the merchandise the owner should expect to purchase during 2012.
Explanation / Answer
1. $1,840,000.
Reason:
COGS =2,600,000*(1-35%) =$1690000
cost of the merchandise the owner should expect to purchase during 2012 =1690000 + 450,000 -300000=$1,840,000.
4. 15%
Return on equity = 30000/200000 = 15%
5. Debiting Interest Receivable for $375 and crediting Interest Revenue for $375.
9. True
11. A credit to Prepaid Insurance for $780.
Reason- $3,120/4= $780
12. $780
Reason $1,300 - $520 = $780
13. $15,167
Reason: $26,000/60 = $433; $10,400 + $433 = $10,833; $26,000 - $10,833 = $15,167
14.$21,320.
Reason- $16,510 + $4,810 = $21,320
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