073m2b - MIDTERM EXAM 2 November 2, 2007 Answer Book Name:...

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M IDTERM E XAM 2 November 2, 2007 Answer Book Name: __________________________ 4–Digit Course ID: ________ General Instructions : Answers must be written in this Answer Book to be graded. Any answers not in this answer book will not be reviewed or counted. This answer book must be turned in along with the exam booklet. If there is ambiguity in a question, answer to the best of your ability and note the assumptions you feel are appropriate next to your answer. Watch your time carefully. Correctly showing your 4-digit number in the space provided above will result in a 3-point bonus added to your score. ●This Exam Book starts on page 5 with a Cover Sheet. Page(s) Topic(s) Points Score 5 The Cover Sheet 3 6 Deferred Taxes 40 7 Current Tax Expense 20 7 Accounting for Uncollectibles #1 10 8 Accounting for Uncollectibles #2 36 Accounting for Inventory Errors 45 11 Inventory Methods and Systems 60 12 Capitalization of Interest In Construction Period 20 13 Accounting for Property, Plant & Equipment and Depreciation 33 Accounting for Construction Projects 36 Totals 300 Answer Book continues on next page. Answer Book Midterm 2: Your 4-Digit #_______ Exam Page 6:
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[073M2b] ■What is the firm’s Deferred Tax Expense in Year 6? $________ 20 points. If a credit, please indicate by placing your answer in parentheses. ■How large was the Kate Company’s Deferred Tax Expense in Year 7? $________20 points. If a credit, please indicate by placing your answer in parentheses. Exam Page 7: Current Tax Expense: ■What was the firm’s Current Tax Expense for Year 1 based on this information? $__________20 points. If a credit, please indicate by placing your answer in parentheses. Round any answer to the nearest dollar. Accounting for Uncollectible Accounts Receivable: First Situation (independent of the second situation): $__________10 points. Exam Page 8: Accounting for Uncollectible Accounts Receivable (continued): Second Situation (independent of the first situation): ■Determine the AUA balance at the end of Year 1 assuming Paul uses the percentage of sales method. $__________9 points. ■Determine the AUA balance at the end of Year 2 assuming Paul uses the percentage of sales method. $__________9 points. ■Determine BDE for Year 1 assuming Paul uses the aging method. $__________9 points. ■Determine BDE for Year 2 assuming Paul uses the aging method. $__________9 points. Accounting for Inventory Errors: ■Determine the firm’s proper Gross Margin for Year 1. $__________ 15 points. ■Determine the firm’s proper Cost of Goods Sold for Year 2. $__________15 points. ■Determine the firm’s proper ending Gross Margin at the end of Year 3. $_________15 points.
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073m2b - MIDTERM EXAM 2 November 2, 2007 Answer Book Name:...

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