University Temple Fox School of Business and Management Dr. Steven Balsam
Accounting 011 Exam #1 September 23, 1999
Instructions: You have 150 minutes. Answer the questions on the pages provided and please remember to show all work so that you may receive partial credit. Also please put your name on each page in case the pages get separated. Good luck!
Problem 1 (75 points) Beta Alpha Psi started a sideline business selling Hot Dogs on September 26, 1999. During the remainder of 1999 the following transactions occurred. October 1 1 2 3 6 Invested $1,000 cash in business Purchased grill at cost of $500 paying cash Purchased 500 Hot Dogs and Rolls at cost of $100 paying cash Placed advertisement in Ambler Gazette at cost of $50 Sold 300 Hot Dogs (and Rolls) receiving $300 in cash.
Required: 1. Prepare the journal entries 2. Post the entries to the following accounts: i. Cash ii. Inventory (Hot Dogs & Rolls) iii. Equipment-Grill iv. Accounts Payable v. Stockholders Equity vi. Cost of Goods Sold vii. Advertising Expense viii. Revenue 3. Prepare a trial balance as of December 31, 1999. 4. Prepare the following i. income statement ii. balance sheet iii. statement of owners equity iv. statement of cash flows
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Use this page for your journal entries ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________
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Use this page for your ledger accounts
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Use this page for your trial balance
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Use this page for your income statement
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Use this page for your statement of owner's equity
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Use this page for your balance sheet
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Use this page for your statement of cash flows
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Problem 2 (25 points) Calculate the following 1. Future value of $10,000 invested for 3 years (compounded annually) at a rate of 8% per year.
2. Present value of $20,000 to be received 5 years in the future. Relevant discount rate is 10% per year, to be compounded annually.
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3. Present value of an ordinary annuity of $1,000 per year for 10 years (semiannual compounding-annual rate 12%).
4. Present value of a bond promising quarterly payments of $1,000 at the end of each quarter for 10 years and 50,000 at the end of ten years. The risk-adjusted discount rate is 8 percent per year.
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