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# wholesaler

wholesaler

Turnadot & Sons is a small wholesaler of decorative cast iron objects. The following events, related to a special customer order, occur as described below:
• August 5, 2005: Turnadot receives the special order for 200 outdoor planters at a selling price of \$50 each, including delivery at a future convenient time and location. The customer, with whom Turnadot has had a long-term, trouble-free relationship, pays \$3,000 as a deposit and agrees to pay the rest on delivery. Turnadot immediately orders \$4,000 worth of planters from its supplier and pays a \$1,000 deposit for them.
• August 27, 2005: Turnadot pays \$3,000 balance due to the supplier upon delivery of the planters to its warehouse.
• September 5, 2005: The customer calls for delivery of the planters, and pays the balance of \$7,000 when they arrive at the customer site.
What is the dollar gross margin earned by Turnadot on the special order for 200 planters?
• \$2,000
• \$7,000
• \$9,000
• \$6,000

2. The next 6 questions refer to Quentin Company’s December 31, 2004 Balance Sheet.
Quentin began 2004 with the following non-current asset balances: Plant and equipment (net) \$59,000; Patent (net) \$28,000. No long-term assets were purchased or sold during the year. How much amortization and depreciation expense did Quentin record during 2004?
• \$3,000
• \$4,000
• \$7,000
• Cannot be estimated

3. Quentin’s 2004 net income was \$5,000. No dividends were declared or paid during 2004. What was Quentin’s retained earnings balance on December 31, 2003?
• \$39,000
• \$49,000
• \$34,000
• Cannot be estimated

4. Quentin’s current ratio on December 31, 2004 is:
• 1.25
• 0.80
• 0.53
• 1.125

1. Quentin’s total debt to equity ratio on December 31, 2004 is:
• 2.12
• 1.52
• 1.19
• 0.53

2. Quentin Company’s year-end 2004 total assets equals its year-end 2004 total liabilities and owners’ equity. This is most likely the result of the company following the:
• Historical Cost concept
• Dual-aspect concept
• Materiality concept
• Money measurement concept

3. Quentin’s December 31, 2003 inventory T-account debit balance was also \$56,000. During 2004, its inventory purchases amounted to \$25,000, and there were no inventory-related write-downs or losses. What was Quentin’s 2004 cost of goods sold expense?
• \$5,000
• \$67,000
• \$20,000
• \$45,000

4. The next 6 questions refer to Carlita Company’s 2004 Income Statement.
Carlita’s 2004 gross margin percentage is:
• 50%
• 33%
• 30%
• 25%

1. During 2004, Carlita’s competitor Farside had double the sales of Carlita, but it also earned a gross margin of \$30,000. Farside’s 2004 gross margin percentage was:
• 25%
• 50%
• 12.5%
• Insufficient information; cannot be calculated

2. Carlita began 2004 with a retained earnings account balance of \$132,000. During 2004, it declared and paid dividends of \$5,000. Its December 31, 2004 retained earnings account balance is:
• \$132,000
• \$120,000
• \$139,000
• Cannot be calculated

3. Carlita’s 2004 return on sales percentage is:
• 25%
• 16.67%
• 15%
• 10%

4. Carlita began 2004 with an interest payable account balance of \$13,000. During 2004, it paid \$5,000 in interest to its lenders. On December 31, 2004, its interest payable account balance is:
• \$15,000
• \$10,000
• \$13,000
• Cannot be calculated

1. Carlita began 2004 with a taxes payable account balance of \$3,000. On December 31, 2004, its taxes payable account balance is \$7,000. How much did Carlita pay to the tax authorities during the year?
• \$2,000
• \$6,000
• \$4,000
• Cannot be calculated

2. On January 1, 2005, Jon Sports has a bond payable of \$200,000. During 2005, it pays off \$20,000 of the outstanding bond principal and issues a new \$70,000 bond. There are no other transactions related to the bond payable account.
What is Jon Sports’ December 31, 2005 bond payable balance?
• A debit balance of \$250,000
• A credit balance of \$150,000
• A debit balance of \$150,000
• A credit balance of \$250,000

3. The next 7 questions are based on Panjim Trading Company’s cash T-account for 2005.
Based on Panjim’s 2005 cash T-account, which one of the following statements must be true?
• During 2005, Panjim’s total merchandise sales were \$60,000
• During 2005, Panjim’s total merchandise purchases were \$44,000
• During 2005, Panjim issued \$75,000 of debt
• Panjim did not record any tax expense for 2005

4. Panjim began 2005 with salaries payable balance of \$75,000. It had 2005 salary expense of \$80,000. Its 2005 ending salaries payable balance must be:
• \$95,000
• \$55,000
• \$155,000
• \$105,000