Professional Documents
Culture Documents
10 MARKS
1.
2.
3.
Which of the following businesses would not have cost of goods sold?
A. A jewellery store
B. A grocery store
*C. A law firm
C. A manufacturer of batteries
4. The bank has recorded in our account a deposit of $6,200 that belonged
to another company. To complete the month-end bank reconciliation, the
company should
A.advise the bank and no further action would be required.
B. advise the bank and add the deposit to the company's general ledger
balance.
C. advise the bookkeeper preparing the bank reconciliation to ignore the
error.
*D.advise the bank and deduct the error from the bank statement
balance.
5. Which of the following is true under the perpetual inventory system?
A. One entry is required to record a sales return.
B. Cost of goods sold cannot be determined unless a physical inventory
is taken.
*C.Two entries are required to record a sale.
C. A separate account for purchases is required.
6.
In 2013, C Co. had an inventory turnover ratio of 6.11 while P Co. had
an inventory
turnover ratio of 10.67. Which of the following might
most accurately explain the difference in their ratios?
A. C Co. had less inventory on hand in relation to their amount of
cost of goods sold.
B. C Co. has a lower sales figure so cost of goods sold is lower
leading to a higher
turnover ratio.
*C. C Co. takes a longer number of days to sell their inventory.
D. C Co. has a poor credit rating.
7.
"Toys 4 U" had cost of sales in 2012 of $8,191 million and $7,710
million in 2011. Their merchandise inventory in 2012 was $1,902 million
and $2,464 million in 2011. What was their inventory turnover in 2012?
A. 3.64
B. 3.53
C. 4.31
*D. 3.75
8.
9.
10.
10
2011
(1)
2010
$227,600
145,400
(5)
84,300
80,100
(2)
47,000
8,000
6,000
$ 36,000
(6)
Additional information
Purchase of merchandise inventory $141,000
$132,000
Cash payments to suppliers
(4)
127,000
REQUIRED
Calculate the missing amounts for items (1) through (10).
(8)
160,000
1.
229,700
2.
40,300
7.
12,200
3.
10,300
8.
152,200
4.
128,200
5.
147,500
QUESTION THREE
6.
27,100
9.
86,000
10.
49,000
10 MARKS
The following information is available for Joanne Corporation for the month of
August, 20x5:
1.
2.
The August 31, 20x5 deposit of $3,567 is not recorded on the bank
statement.
3.
The following cheques were written and in July and August 20x5 but
have not yet been cashed by the bank:
#315RaysPlumbingService
#367HandiHouse
$1,211
565
#368HydroCanada
1,897
#369ReceiverGeneralforCanada
2,540
#370DollcoPrinting
1,874
4.
NSF.
5.
6.
Cheque # 356 for office supplies was incorrectly recorded in the books
of accounts in the amount of $1,985. The correct amount (and the
amount that cleared the bank account) is $1,598.
7.
8.
A cheque in the amount of $876 cleared the bank account. This cheque
was written by JoAnn Corporation and was charged to our account by
mistake.
9.
$15,275.
REQUIRED
Prepare a bank reconciliation as at August 31, 20x5.
Balance per bank
15,275
16,733
3,567
(8,087)
Adjusted balance
13,089
NSF cheque
S/c and interest
Cheque error
13,089
Revised balance
QUESTION FOUR
10 MARKS
Messi Inc. had a beginning inventory on January 1 of 200 units of soccer balls
at a cost of $9 per unit. During the year, purchases were as follows:
UNITS
UNIT COST
TOTAL COST
February 20
600
$10
$6,000
May 5
500
12
6,000
August 15
600
11
6,600
December 8
300
13
3,900
Messi uses a periodic inventory system. At the end of the year, a physical
inventory count determined that there were 300 units on hand.
REQUIRED
Fill in the following blanks
a.
24,300
b.
3,900
c.
d.
e.
20,400
20,986