1. Flynn Company uses a perpetual inventory system and reported $525,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $67,900 of inventory and sold inventory that had cost $40,500. At the end of the month, the physical count of inventory shows $545,000 on hand. How much shrinkage occurred during the month?
$33,100
$20,000
$47,900
$7,400
2. Purrfect Pets uses the perpetual inventory system. At the beginning of the quarter, Purrfect Pets has $49,000 in inventory. During the quarter the company purchases $10,750 of new inventory from a vendor, returned $1,100 of inventory to the vendor, and took advantage of discounts from the vendor of $390. At the end of the quarter the balance in inventory is $36,000. What is the cost of goods sold?
$24,250
$13,000
$23,750
$22,260
3. On January 1, a company lends a corporate customer $162,000 at 4% interest. The amount of interest revenue that should be recorded for the quarter ending March 31 equals:
$540.
$6,480.
$1,620.
$2,160.
4. A company lends its supplier $166,000 for 3 years at a 10% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for:
$24,900.
$16,600.
$8,300.
$49,800.
5. On the maturity date of a $10,200, 3-month, 10% note, the borrower sends a check that includes the principal and all of the interest due on the note. What is the amount of the borrower’s check?
$10,200
$13,260
$10,455
$11,220
6. On September 1, a company purchased a vehicle for $118,000 with a residual value of $3,000. The estimated useful life is 8 years and the company uses the straight-line method. What is the depreciation expense for the year ended December 31?
$14,375
$4,792
$4,917
$3,594