Acc/291 Week 3
13. Use this information to calculate the following:
Sales returns $ 700 Rent expense 1,288 Sales discounts 950 Depreciation expense 600 Cost of merchandise sold 7,600 Gross sales 20,900 Advertising expense 1,650 Salary expense 2,900 Heat expense 900
A. Net sales
B. Gross profit
C. Total operating expenses
D. Net Income
14.A truck costing $25,000 with a residual value of $5,000 was purchased by Rim Corporation. The truck’s estimated life is 10 years. At the end of Year 2, what is the book value using declining-balance method? Assume a depreciation rate of twice the straight-line method.
15.A toy store has a beginning inventory of eight sets of paints at a cost of $1.25 each. During the year, the toy store purchased three at $1.50, five at $2, six at $2.50, and ten at $3. By the end of the year, 21 sets were sold. Calculate the following: …show more content…
A.The number of paint sets in stock B.The cost of ending inventory under LIFO C.The cost of ending inventory under FIFO D.The cost of ending inventory under Weighted Average
16.Pete’s Warehouse has a market value of $5,000,000.
The property in Pete’s area is assessed at 40% of the market value. The tax rate is $105.10 per $1,000 of assessed value. What is Pete’s property tax?
17.Jim Smith, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $200 deductible. Jim was at fault in an accident that caused $1,800 damage to the other auto and $600 damage to his own. Also, the courts awarded $13,000 and $8,000 respectively, to the two passengers in the other car for personal injuries. How much does the insurance company pay, and what is Jim’s share of responsibility?
18.Jeff Sellers bought 200 shares of Radio Shack stock at $22.35. Eight months later, he sold the stock at $31.76. Assuming a 2% commission charge, what is the bottom line for
Jeff?
19.Sales at Sullivan Realty totaled 10 homes for the month. They were as follows:
$182,900 $189,000 $160,000 $210,000 $175,000 $158,000 $ 99,000 $126,000 $185,000 $109,000
Calculate the mean and median.
20.The property of Al’s garage is worth $300,000. Al has a fire insurance policy of $180,000 that contains an 80% coinsurance clause. What will the insurance company pay on a fire that causes $210,000 damage? If Al met the coinsurance requirement, how much would the insurance company have to pay?
21.Earl Miller plans to buy a boat for $19,500 with an interest charge of $2,500. Earl figures he can afford a monthly payment of $650. If Earl has to pay 36 equal monthly payments, by how much can he afford the boat per month?
22.Peter Mabel sold a total of 400 Oatmeal ($1.50) and Wheat ($2) breads during the Labor Day weekend. How many of each did Pete sell if total sales were $700?
23.Mel’s Furniture received an invoice dated September 27 for five bedroom sets at $3,000 each. The invoice indicated a trade discount of 5/8/3. The seller of the furniture prepaid the freight of $200. Terms were 2/10 EOM. Assuming Mel pays on November 2, what amount would be paid? (Be sure to include the freight cost.)
24. Mobilee Oil Company accepted a $10,000, 120-day note, dated March 3, at 8.5% to settle a past due accounts receivable. Mobilee Oil discounted the note to raise cash on May 10 at a discounted rate of 9%. What proceeds did Mobilee Oil receive?
25.Ray Long wants to retire in Arizona when he is 70 years of age. Ray is now 50. He believes he will need $130,000 to retire comfortably. To date, Ray has set aside no retirement money. Assume Ray gets 14% interest compounded semiannually. How much must Ray invest today to meet his $130,000 goal?
Sales returns $ 700 Rent expense 1,288 Sales discounts 950 Depreciation expense 600 Cost of merchandise sold 7,600 Gross sales 20,900 Advertising expense 1,650 Salary expense 2,900 Heat expense 900
A. Net sales
B. Gross profit
C. Total operating expenses
D. Net Income
14.A truck costing $25,000 with a residual value of $5,000 was purchased by Rim Corporation. The truck’s estimated life is 10 years. At the end of Year 2, what is the book value using declining-balance method? Assume a depreciation rate of twice the straight-line method.
15.A toy store has a beginning inventory of eight sets of paints at a cost of $1.25 each. During the year, the toy store purchased three at $1.50, five at $2, six at $2.50, and ten at $3. By the end of the year, 21 sets were sold. Calculate the following: …show more content…
A.The number of paint sets in stock B.The cost of ending inventory under LIFO C.The cost of ending inventory under FIFO D.The cost of ending inventory under Weighted Average
16.Pete’s Warehouse has a market value of $5,000,000.
The property in Pete’s area is assessed at 40% of the market value. The tax rate is $105.10 per $1,000 of assessed value. What is Pete’s property tax?
17.Jim Smith, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $200 deductible. Jim was at fault in an accident that caused $1,800 damage to the other auto and $600 damage to his own. Also, the courts awarded $13,000 and $8,000 respectively, to the two passengers in the other car for personal injuries. How much does the insurance company pay, and what is Jim’s share of responsibility?
18.Jeff Sellers bought 200 shares of Radio Shack stock at $22.35. Eight months later, he sold the stock at $31.76. Assuming a 2% commission charge, what is the bottom line for
Jeff?
19.Sales at Sullivan Realty totaled 10 homes for the month. They were as follows:
$182,900 $189,000 $160,000 $210,000 $175,000 $158,000 $ 99,000 $126,000 $185,000 $109,000
Calculate the mean and median.
20.The property of Al’s garage is worth $300,000. Al has a fire insurance policy of $180,000 that contains an 80% coinsurance clause. What will the insurance company pay on a fire that causes $210,000 damage? If Al met the coinsurance requirement, how much would the insurance company have to pay?
21.Earl Miller plans to buy a boat for $19,500 with an interest charge of $2,500. Earl figures he can afford a monthly payment of $650. If Earl has to pay 36 equal monthly payments, by how much can he afford the boat per month?
22.Peter Mabel sold a total of 400 Oatmeal ($1.50) and Wheat ($2) breads during the Labor Day weekend. How many of each did Pete sell if total sales were $700?
23.Mel’s Furniture received an invoice dated September 27 for five bedroom sets at $3,000 each. The invoice indicated a trade discount of 5/8/3. The seller of the furniture prepaid the freight of $200. Terms were 2/10 EOM. Assuming Mel pays on November 2, what amount would be paid? (Be sure to include the freight cost.)
24. Mobilee Oil Company accepted a $10,000, 120-day note, dated March 3, at 8.5% to settle a past due accounts receivable. Mobilee Oil discounted the note to raise cash on May 10 at a discounted rate of 9%. What proceeds did Mobilee Oil receive?
25.Ray Long wants to retire in Arizona when he is 70 years of age. Ray is now 50. He believes he will need $130,000 to retire comfortably. To date, Ray has set aside no retirement money. Assume Ray gets 14% interest compounded semiannually. How much must Ray invest today to meet his $130,000 goal?