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Exam 3: Accounting for Merchandising Businesses

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Question 81

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Waco Company's Cost of Goods Sold for 2012 was $302,000.Which of the following statements is true?

A) If the ending balance in Merchandise Inventory for 2012 was $100,000,the Cost of Goods Available for Sale was $402,000.
B) If the ending balance in Merchandise Inventory for 2012 was $100,000,the Cost of Goods Available for Sale was $202,000.
C) If the beginning balance in Merchandise Inventory for 2012 was $50,000,the Cost of Goods Available for Sale was $352,000.
D) If the beginning balance in Merchandise Inventory for 2012 was $50,000,the Cost of Goods Available for Sale was $252,000.

E) A) and C)
F) B) and C)

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Question 82

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Hanson Company uses a periodic inventory system.For 2012,its beginning inventory was $74,000; purchases of inventory were $328,000; and inventory at the end of the period was $89,000.What was the amount of Hanson's cost of goods sold for 2012?

A) $343,000
B) $328,000
C) $313,000
D) $165,000

E) B) and D)
F) All of the above

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Question 83

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Scott Company is a merchandising business that was started in 2012.Scott uses the perpetual inventory system.It experienced the following events during 2012. 1.Acquired $25,000 cash by issuing common stock 2.Purchased inventory on account that cost $14,000,terms 2/10,n/30 3.Sold inventory that had cost $8,400 for $15,000 cash 4.Paid for the merchandise referred to in event 2,within the discount period Required: a)Record the events in the financial statements model below; include column totals. b)Prepare an income statement for 2012. c)What is the amount of total assets at the end of 2012?