Accounting FNU Accounting Worksheet

Description

1- (a) If operations for an accounting period resulted in cash sales of $25,000, sales on account of $30,000, and expenses paid in cash of $50,000, did the business incur a net income or a net loss for the period?

(b) What is the amount of net income or net loss?

(c) If liabilities are $65,000 and owner’s equity is $35,000, the amount of the assets is:

(d) If assets are $205,000 and owner’s equity is $75,000, the amount of the liabilities is:

  • 2- There are four steps that are involved in the closing process. What are the four journal entries that are required in closing the temporary accounts?

  • 3- The following balance sheet data for Lester’s Company are shown below:

2011: Current Assets = $288,000; Current Liabilities = $120,000

2010: Current Assets = $171,000; Current Liabilities = $ 90,000

(a) Calculate the working capital for 2011 and 2010.

(b) Calculate the current ratio for 2011 and 2010.

  • 4-During the current year, merchandise sold for $775,000. The cost of the merchandise sold was $426,250.

(a) What is the amount of gross profit?

(b) What is the gross profit percentage (gross profit divided by sales)?

(b) Who bears the freight when the terms of the sale are FOB destination?

  • 6- The following items were available for sale during the year:

Beginning inventory ……………………………………. 10 units at $61

First purchase ……………………………………………… 40 units at $62

Second purchase …………………………………………. 35 units at $65

Third purchase ……………………………………………. 15 units at $63

(a) Based on the periodic system, the total cost of the 23 units in inventory at the end of the year, according to the first-in, first-out (FIFO) method is:

(b) Based on the data, the total cost of the 23 units in inventory for the last-in, first-out (LIFO) method is:

7-Merchandise inventory is reported on which financial statement and in what section?