During May, Team Shirts spent 4,000 to buy 800 T-shirts. In May, Team Shirts sold 300 of them for 15 each. The rest were sold for cash of 12 each in June. Net income for May and June was ________.
A) 4,500 in May and 6,000 in June
B) 3,000 in May and 3,500 in June
C) 1,500 in May and 2,500 in June
D) 500 in May and 6,000 in June
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Q. 2) Why is there usually no control goal called update validity?
a. Input and update completeness achieve update validity.
b. Input validity guarantees update validity.
c. Update accuracy guarantees update validity.
d. Input accuracy achieves update validity.
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Q. 3) Match each of the following steps in the bank reconciliation process to the situations below. Some of the steps may be used more than once.
a. Add to the balance on the bank statement
b. Add to the balance on the company's books
c. Deduct from the balance on the bank statement
d. Deduct from the balance on the company's books
_____ 1. NSF check
_____ 2. Team Shirts correctly deposited a check for 153. The bank recorded the check as 135.
_____ 3. Outstanding checks
_____ 4. Monthly service fees charged by the bank
_____ 5. Deposits in transit
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Q. 4) Banks providing check printing and processing will typically assess fees known as ____________________.
Fill in the blank(s) with correct word
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Q. 5) During the year, The Mane Event, Inc. had sales of 300,000 and had expenses of 240,000. The owners were paid 20,000 in dividends. Net income for the year equals ________.
A) 90,000
B) 60,000
C) 50,000
D) 40,000
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Q. 6) Which of the following accounts will not be found in the Cost of Merchandise Sold section of the income statement for a company using the periodic inventory method?
a. Purchases
b. Freight In
c. Selling Expense
d. Merchandise Inventory
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