Inventory data:
30 units @ $4.00 each
120 units @ $4.30 each
60 units @ $4.20 each
90 units @ $4.40 each
Inventory Purchase:
17 units
25 units
A) $846
B) $421
C) $863
D) 47
Turner Corporation returned $150 of goods originally purchased on credit from Morgan as:
A) Accounts Payable $150
B) Purchase Returns and Allowances $150
C) Inventory $150
D) Accounts Payable $150
Jamison, Inc. is a regional air cargo carrier. Jamison made a $4,500 improvement of its airplanes. If Jamison's accountant expensed this amount, which of the following statements is true?
A) The entry will overstate the balance sheet for the year
B) The entry will improperly understate net income for the year
C) The entry will improperly overstate net income for the year
D) The entry is the correct treatment
Equipment costing $210,000 was destroyed when it caught on fire. At the time of the fire, the accumulated depreciation on the equipment was $84,000. An insurance claim for $240,000 was received based on the replacement cost of the equipment. To record the insurance proceeds and the disposition of the equipment, will result in:
A) A credit to the Accumulated Depreciation account for $84,000
B) A gain on disposal of $30,000
C) A gain on disposal of $114,000
D) A credit to the Equipment account of $126,000