### Cash And Credit Sales – Final Quiz – Accounting & Finance

The key terms in these Accounting chapters include Accounts Payable, Debit, Credit, Debit And Credit, Cash And Credit Sales, Cowboy Ice Cream, Final Quiz Packets – Accounting & Finance

How much of the \$625,000 purchase price for the land and building should Cowboy Ice Cream allocate to the land?

281,250

After Cowboy Ice Cream remodels the building, what is the total amount in the building account?

874350   + 95000(Remodeling Expense-Capital Exp)  343750 + 95000= 438750

At the end of the day, the cash register’s record shows \$1,258, but the count of cash in the cash register is \$1,249. The correct entry to record the cash sales is

Debit Cash \$1,249; Credit Sales \$1,249.

Debit Cash Over and Short \$9, credit Sales \$9.

Debit Cash \$1,258; credit Sales \$1,258.

Debit Cash \$1,249; debit Cash Over and Short \$9; credit Sales \$1,258. – Correct

Debit Cash \$1,258; credit Cash Over and Short \$1,249; credit Sales \$9.

A company has the following information

A favorable variance of \$5,400 is which variance?

Total sales variance

Sales volume variance

Sales price variance

If a check correctly written and paid by the bank for \$748 is incorrectly recorded in the company’s books for \$784, how should this error be treated on the bank reconciliation?

Subtract \$36 from the bank’s balance.

Add \$36 to the book balance.  Correct

Subtract \$36 from the bank’s balance and add \$45 to the book’s balance.

Add \$36 to the bank’s balance.

Subtract \$36 from the book balance.

##### Explanation

\$784 – \$748 = \$36 too much deducted from the company’s cash account balance that must be added back to cash.

How much of the \$625,000 purchase price for the land and building should Cowboy Ice Cream allocate to the land?

281,250

After Cowboy Ice Cream remodels the building, what is the total amount in the building account?

874350   + 95000(Remodeling Expense-Capital Exp)  343750 + 95000= 438750

Grays Company has inventory of 21 units at a cost of \$9 each on August 1. On August 3, it purchased 31 units at \$11 each. 23 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 23 units that were sold?

\$152.

\$211. – Correct

\$215.

\$483.

\$217.

Explanation

(21 units * \$9) + (2 units * \$11) = \$211.00

After purchasing and installing the freezer, what is the total amount that Cowboy Ice Cream should have in the equipment account?

4,289

What is the book value of the freezer at the end of year one?

3,719.14

A company purchased \$3,500 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned \$700 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:

Debit Merchandise Inventory \$2,800; credit Cash \$2,800.

Debit Cash \$2,800; credit Accounts Payable \$2,800.

##### Debit Accounts Payable \$2,800; credit Merchandise Inventory \$84; credit Cash \$2,716.– Correct

Debit Accounts Payable \$3,500; credit Cash \$3,500.

Debit Accounts Payable \$2,800; credit Cash \$2,800.

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