1. On November 15, 2011, Beta Company purchased 500 shares of Aquarium Suppliers Corporation for a short term investment at $60 per share. (Aquarium Suppliers has 1,000,000 shares of common stock issued and outstanding.) At December 31, 2011, the market value of Aquarium Suppliers was $52 per share. Which of the following is the entry needed on Beta s books at year-end?
Debit Loss on sale of trading investments, credit Investments
Debit Fair value adjustment, credit unrealized holding loss
Debit unrealized holding loss, credit Common stock
Debit unrealized holding loss, credit Fair value adjustment
2. If an investor company buys stocks in another company to hold for investment (representing less than 20% of the investee stock and they do not plan to sell the stocks in the near future, that investment would be classified as a(n):
trading equity investment.
available-for-sale debt investment.
available-for-sale equity investment.
held-to-maturity debt investment.
A fund for petty cash of $200 has $17 remaining in cash, $3 in miscellaneous cash receipts and an additional $180 specific cash receipts. The debit to Cash short and over would be:
$0.
$17.
$180.
$183.
3. On October 1, 2014, Allen Jewelry Company accepted a 4-month, 10% note for $2,400 in settlement of an overdue account receivable. If the company accrues interest at year-end only, how much interest revenue should be accrued on December 31, 2014?
$80
$60
$240
$40
4. Which of the following inventory costing methods yields the lowest cost of goods sold when costs are rising during the accounting period?
Specific-unit-cost
Average-cost
Last-In, First-Out
First-In, First-Out
5. A company that uses periodic inventory provides the following information:
Beginning inventory $4,000
Purchases $120,000
Purchase discounts $2,400
Purchase returns and allowances $800
At the end of the period, the company does an inventory count and finds $16,000 of inventory on hand. How much is the Cost of goods sold?
$104,800
$111,200
$108,000
$128,800