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2007-Win-test_2(solution)

2007-Win-test_2(solution) - MGT120 Term Test#2 Winter 2007...

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MGT120 Term Test #2 Winter 2007 Part A (10 marks) 1. a 2. c 3. c 4. c 5. b 6. d 7. c 8. a 9. a 10. b Part B (12 marks) a). Accumulated amortization 28,560 Loss on sale of capital asset 7,140 Computer 35,700 $35,700 x 80% = $28,560 b) Book value - old truck Cost $50,800 Less: accum am ( 30,480) Book value 20,320 Accumulated amortization $30,480 Smaller truck $24,320 Older automotive (large truck) $50,800 Cash $ 4,000
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c) Cost - residual Value = 50,000- 10,000 useful life 8 years = 5,000 Amortization (3years) = 15,00 0 Base 7,000 22,00 0 Original cost 50,000 special Base 7,000 57,000 Accumulated Amortization $22,000 Cash $45,000 Gain on Capital Assets $10,000 Capital Asset $57,000 d) Trademark amortized = 50,000/5 years = $10,000 per year Cash $86,000 Gain on Sale of Capital Asset $56,000 Trademark 30,000
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Part C (10 marks) 1a) Units Cost Sale - March 3 -75 Sale - March 15 -2000 Sale - Mar 18 -500 Sale - March 26 -5000 -7575 units Cost of Goods Available for Sale Opening Inventory 180 $14 2,520 $ Purchase Purchase - March 5 2700 14.2 38,340 $ Purchase - March 13 1050 15.2 15,960 $ Purchase - March 21 4700 15.8 74,260 $ Purchase - March 28 2800 16 44,800 $ Total Purchases 11250 173,360 $ Goods Available for Sale 11430 175,880 $ Less: Ending Inventory 2800 units x $16 2800 16 44,800 $ 1055 units x $15.80 1055 15.8 16,669 $ Total Ending Inventory 3855 61,469 $ Cost of Goods Sold 7575 114,411 $ 1b) Units Cost Inventory Opening Inventory 180 $14 2,520 $ Purchase - March 5 2,700 14.2 38,340 $ Purchase - March 13 1,050 15.2
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