ACC101 Problems

Problem 1 (13 points)
In the table below, indicate with an "X" in the proper column whether the account is a (nominal) temporary account or a (real) permanent account.

Problem 2 (5 points)
Calculate the current ratio in each of the following separate cases.

Problem 3 (29 points)
Ceres Computer Sales uses the perpetual inventory system and had the following transactions during December.

Problem 4 (13 points)
A company that uses a perpetual inventory system made the following cash purchases and sales:

1. Prepare general journal entries to record the March 16 sale assuming a cash sale and the FIFO method is used.
2. Prepare the general journal entry to record the March 16 sale assuming a cash sale and the LIFO method is used.