ACCT125 Quiz 2 of 3

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1/1Beginning inventory10 units @ $10 per unit
2/28Purchases40 units @ $12 per unit
5/10Purchases50 units @ $14 per unit
9/20Purchases30 units @ $16 per unit
12/31Ending inventory50 units
   
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Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.
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Nov. 1
Inventory25 units at $20
10
Purchased30 units at $21
30
Purchased10 units at $22
 Sold35 units
   
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Which of the following would be added to the balance per books on a bank reconciliation?
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Common shares outstanding
115,000
Preferred stock dividend declared and paid
$40,000
Net income
$350,000
  
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The issuance of common stock affects both paid-in capital and retained earnings.
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If the market rate of interest is greater than the contractual rate of interest, bonds will sell
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