The assignment will be for you to go over each of your missed questions and:

1. Describe why you picked the wrong answer.

2. Describe the correct answer and defend why it was correct. For instance, the transaction would have increased accounts payable because it increased something the company owed.  The accounts payable account is credited because liabilities are increased with a credit entry.  For calculation problems enter the calculation leading up to the solution. For more essay type problems refer back to the sources as to why it is correct.

3. You will need to be detailed about your responses to receive full credit.  The submissions for the Exam 1 Part 2 reached expectations overall but some of you need to be more specific and expand on your responses.

4. Late assignments will not be accepted.

Question 3

0 out of 5 points

Incorrect On January 15th of the current year, Gardian Gardens sold $4,000 worth of trees to a customer with the credit terms 2/10 net 30.

Gardian uses the perpetual method to record transactions.

The customer made the correct payment on January 23rd.

The inventory that was sold cost the company $2,500

How would Gardian record the sale on January 15th using the net method?

.

Selected Answer: IncorrectB.

Accounts Receivable              $3,920

Sales Discount                              80

Sales                           $4,000

Cost of Goods Sold               $2,500

Inventory                      $2,500

Correct Answer: CorrectC.

Accounts Receivable              $3,920

Sales                           $3,920

Cost of Goods Sold               $2,500

Inventory                      $2,500

 Question 10

0 out of 2 points

Incorrect Goodwill is not amortized or evaluated for impairment because it is assumed to have an unlimited useful life.
Selected Answer: Incorrect True
Correct Answer: Correct False

 Question 11

0 out of 3 points

Incorrect Poker Company has provided the following information for 2019:

1) The allowance for doubtful accounts balance at the beginning of the year was $5,000 (credit balance).

2) The allowance for doubtful accounts balance at the end of the year (after adjusting entries) was $2,500 (credit balance).

3) Accounts receivable written-off as uncollectible during 2019 amounted to $4,500.

How much bad debt expense did Poker Company record in 2019? Do not use decimals or dollar signs.

Selected Answer: Incorrect 7000
Correct Answer:
Evaluation Method Correct Answer Case Sensitivity
CorrectExact Match 2000
CorrectExact Match 2,000

· Question 15

0 out of 3 points

Incorrect When a company uses a __________ inventory method, they compute and record Cost of Goods Sold only once at the end of the period.
Selected Answer: IncorrectB.

Perpetual

Correct Answer: CorrectA.

Periodic

· Question 16

0 out of 5 points

Incorrect The information below relates to Mister Ed’s inventory purchases and sales for September.  Mr. Ed’s utilizes a FIFO cost flow assumption.

  Units Purchase/Sale Price (per Unit)
Sept. 1, Beginning Inventory 10 $100
Sept. 3, Purchase 15 $110
Sept. 5, Sale 10 $200
Sept. 9, Purchase 25 $125
Sept. 15, Sale 14 $250

Assume Mr. Ed utilizes a periodic inventory system.  What is Mister Ed’s ending inventory for September (in dollars)? Do not use decimals or dollar signs.

Selected Answer: Incorrect 2540
Correct Answer:
Evaluation Method Correct Answer Case Sensitivity
Correct Exact Match 3235
Correct Exact Match 3,235

· Question 17

0 out of 5 points

Incorrect The information below relates to Cougar Corp’s inventory purchases and sales for May.  Cougar Corp utilizes a FIFO cost flow assumption.

  Units Purchase/Sale Price (per Unit)
May 1, Beginning Inventory 10 $100
May 3, Purchase 15 $110
May 5, Sale 15 $200
May 9, Purchase 25 $120
May 15, Sale 16 $250

Assume Cougar Corp utilizes a perpetual inventory system.  What is Cougar Corp’s Cost of Goods Sold (COGS) for May (in dollars)? Do not use decimals or dollar signs.

Selected Answer: Incorrect 2775
Correct Answer:
Evaluation Method Correct Answer Case Sensitivity
Correct Exact Match 3,370
Correct Exact Match 3370

Question 20

0 out of 3 points

Incorrect Why are classifications important to balance sheet users?
Selected Answers: IncorrectA.

Helps evaluate liquidity

IncorrectB.

Helps evaluate profitability

Correct Answers: CorrectD.

All of the above

这20题是个多选题,a和b是我选的,(我记得我当时abcd全选了)是错了。就是all那个是对的。

Question 22

0 out of 3 points

Incorrect Long-term liabilities include:
Selected Answer: IncorrectD.

All of these answer choices are correct.

Correct Answer: CorrectC.

Deferred income taxes and most lease obligations.

· Question 25

0 out of 5 points

Incorrect Queen’s company used the allowance method of accounting for uncollectible accounts.

On June 6th, the company wrote off a $4,000 uncollectible account of one of its customers.

On July 10th Queen’s company received a check for the full $4,000 from the customer.

The entry to record the recovery of the account on July 10th would be:

Selected Answer: IncorrectD.

Allowance for Doubtful Accounts      $4,000

Accounts Receivable                             $4,000

Accounts Receivable                            $4,000

Cash                                                       $4,000

Correct Answer: CorrectB.

Cash                                            $4,000

Accounts Receivable                         $4,000

Accounts Receivable                $4,000

Allowance for Doubtful Accounts    $4,000

· Question 26

0 out of 5 points

Incorrect   On January 1, 2019 Georgio lent $56,002 to Strings Attached Inc., accepting Strings’ 2-year, $69,000, zero-interest-bearing note. The implied interest rate is 11%.   (Round answers to 0 decimal places, e.g. 5,275.

What is the carrying value of the note after interest revenue is recorded for 2019 (round to the nearest dollar)?

Selected Answer: Incorrect 5600
Correct Answer:
Evaluation Method Correct Answer Case Sensitivity
Correct Exact Match 62,162
Correct Exact Match 62162

· Question 27

0 out of 5 points

Incorrect Equestrian Roads sold $120,000 of goods and accepted the customer’s $120,000 10%, 1-year note in exchange.

Assuming 10% approximates the market rate of return, how much interest would be recorded for the year ending December 31 if the sale was made on July 31?

Do not use decimals or $ in your answer. 

Selected Answer: Incorrect 6000
Correct Answer:
Evaluation Method Correct Answer Case Sensitivity
Correct Exact Match 5,000
Correct Exact Match 5000