Exam 8: Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Thermalite Corporation uses the perpetual inventory system and the net price method.Prepare Thermalite's journal entries to record the following transactions:

In a perpetual inventory system that uses the gross method which of the following is true?

Purchase Discounts Lost should be:

If a firm overstates its ending inventory,how are its income statement and balance sheet affected for the current and next year?

Wildcat Supply had a beginning balance of $600 in Utilities Payable account at the start of the year and an ending balance of $1,000.During the year Wildcat paid $4,000 cash to the utilities company.How much utilities expense was incurred during this year?

Which of the following is not part of the expenditure process?

The net method records

Which of the following entries reflects the use of a periodic inventory system?

Orleans Enterprises purchased $37,500 of merchandise on account,terms 2/10,n/30.Assuming Orleans uses the net price method to account for purchase discounts,and it pays for the merchandise on the 30th day after the invoice date,the journal entry to record the payment would include a:

Kinsey Company had beginning inventory of $50,000,ending inventory of $54,000,and cost of goods sold of $240,000.What was the cost of goods purchased?

Which of the following payroll items is not used to determine net pay?

Which of the following is not a special journal?

JAFCO,Inc.reported insurance expense of $137,000,prepaid insurance of $8,300 at the beginning of the year,and prepaid insurance of $5,600 at the end of the year.Cash payments for insurance during the year were:

A company,using the net method,purchased inventory for $3,000 and term 2/10 net 30 but did not pay the bill in time to take advantage of the discount.The cost recorded in the inventory account after this event would be?

Orleans Enterprises purchased $37,500 of merchandise on account,terms 2/10,n/30. Assuming Orleans uses the net price method to account for purchase discounts,the Journal entry to record the purchase would include a:

Lacross Corporation purchased $50,000 inventory on account with terms of 1/10 net 30 on September 1,2010. Required: Assume periodic inventory system and net method (A.)Make the entries to record the purchase of the inventory and subsequent payment of amount due on Sept 30,2010 Assume perpetual inventory system and gross method (B.)Make the entries to record the purchase of the inventory and subsequent payment of the amount due on Sept 9,2010.

Which of the following entries is made when a discount is taken and the perpetual system uses the gross method?

Omni Manufacturing reported cost of goods sold of $547,000,beginning and ending inventory of $76,400 and $68,600,respectively,and beginning and ending accounts payable of $39,700 and $27,500,respectively.Cash payments for merchandise inventory during the year were:

Which of the following entries reflects the use of a perpetual inventory system?

The following information was taken from the accounting records of Trego Farms in 2010.For each of the following determine the amount of cash Trego Farms paid for the item given the data presented below.