ACCTG 201 - Practice Exam 2

ACCTG 201 - Practice Exam 2 - W I. When a depositor...

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Unformatted text preview: W I. When a depositor roceitnes a bank floternent indicating a 'WSF cheek“. he should i A. credit therzaeh account forthcomountot'lhcchcek. ‘ '1'“; VP" '_ ‘1 ' ‘ B. credit the cash account for the amount of the check. C. credit :1 special receivable for the amount of the check D. debit sales revenue. 2. Apple Company’s bank statement showed an ending hoiaocc offiiflfl‘t}. Items appearing in the bent: reeonciiiotion included: outstanding checks. $590; deposits in transiL 51990: hook oeniee charges. SID: and mango Commy's check erroneously charged to Apple's hank accoum by the bank. SI 11]. The correct cash balance at the end of the month ehoold he reported as e. $4.5m '~ “I, ff” H. 35.39:} . ' - ’; J, -c. 55.51:: _ - _ 1). some t _. -_ l ' 3. Albert Componjr-r uses: the allowance method to account for bad debts. The entry to write-off a bad account {one that will never be collected} should he: 4. The cash atch and the December hank Statement of Harris Column} showed the following: Deposits male by Harris Company outing Decanter 592.000: deposit-r reflected on the Dru-robot hank steternenLS‘ElSflI}; and deposits in flesh on November 3!}. $9,001}. Therefore- the deposits in Intuit at the end cit—December amounted to A. S 3.90!) -B. 5 fiflflfl C. 5 3.909 D. Silalflflfl 5. Credit termo offllfl‘. will} indicate theta A- two percent discount for early payment is available ifthe invoice is paid before the tenth day of the month following the month the sale. B. two percent discount for early payment is available within ten days of the invoice date. C. ten petumt discount for early payment is available if the invoice in paid within two days of the date of the invoice- D. two percent diseount for early payment is atailahie if the invoice is paid after the tenth day, but before [he thirtieth day of the invoice date. 6. The 1913 reeords ofTorn Company showed beginning inventory. moon; Cost of goods sold. 514313}; and ending inventory. $3.1}flfi- The purchases amount for HR. wt A. $12.90!] 2-' ‘. a- sweet} “7"” _ v *'-'*-'_ e- a neon - ._ .r -o. Station ' -, .-_ — r: r‘ 3'. lWhich ofihe following may he used to caleulate ending inventory {El} under the periodic inventory ayetem'? A. Bi+P+CGS=EL -E. Bl+P~CGS=EL C. Bl-P+CGS=EL D. EI+P+GM. ___. 3. When primate rising: A. LIFO will result in lower net income and a higher inventory valuation than I.Ir‘ill l B. LIFO will result in higher net income and lower inventory valuation than will Fl C. FIFE} will result in lowernet income and a lower inventory valuation than will I «D. F FFD will result in higher net income and a higher inventory valuation than will 9. Maer Company uses the periodic FIFO method to value inventory and had the following transactions in the period. What are the eost of goods sold and coding interttorzur balances in dollars tor the period? Date Transaction # of Units Coetpet’ unit L lr’ i Beginning balance too 35 ' _ 57 5’ 1:2 Purchase ":5 4 t I Jo NS Sale ’35 r I no Sale to :- .' .- ,9 CUES Ending Inventory A. 15-15 HS R. 535 1.5 C- 5513 25f] - D. fill-l] EDD It}. The following information Was token floor the 1913 income statement of Milburn Company: Fret:th income. Sllfiflfi; Total operating expenses. $2ll.flflfl; Soles revenue. $1 Zflflflfl. Compute cost of goods Enid. I K _:r j; ufli. $ scone. ’ ' B- Siflfmllfl C. 5 l $3.900 D. 5! l 2110i} 11. During the audit of Virginia Company’s I‘JB financial statemenLet the auditors dioeoeerod that the 19:1. ending inventor}.r had but-en overstated by $1 flflflfl and that the 193 ending inventory had been overstated by same- Before the effect of these errors. 193 pretax imorne turd been computed 33 51 00.13%. What slmuld be reported as the correct 1913 income before taxes? i If). oil.- A t 93,3013. 5.1.3; 13. stunner] ac. 31132.net) n. finance ' 12. Lowe Complain.r plnetmsed a machine at a cash cost ofSlSDflD and is depreciating it over a till-year estimated useful life with a residual Willi! of 53.001}. At the beginning of the eighth glean a major overhaul on it 1was completed at a east of 33,1101}, and the total estimated useful life was changed to IE years with the residtml value unchanged. Dapreciation expense for year 3 would be (assuming straight-tine} depreciation II." I'Il __ e 5120“- _' ’5 '3' $2329" ' . - -- " TI)“. --.-: - C. 53.10:}. _ to 71-5 -- r- z a. issue. ~:~ _ T. I; if 13. The records of Pam Company showed the following about a machine on January 1, HI I: Purchased If] ttttfl for Hindu Accumulated depreciation at January 1. 19H. 526.4% On Jul},r l- 19H. the machine was sold for Elflfifl. Depreciation for the first six months of 19H was $1.46?. The gain or loss on dispgsal‘would be a. slam gain ‘t " 5f '1' 1'4“:- B. 5 ti”: gain. C. $1.660 loss. . . . *D. S l331oss. ' I f - 3 __ , .Jz (:7 rr- , _ [4. Sure Company purchased a machine on January 1, WA, at a cash east et'512.flt)fl_ The estimated useful life is “'1 years and the estimated residual value is $3,flflfl. The company will use the declining-balance method based on a lit} percent acceleration rate. Depreciation expense for the second year will be .4. ELSE}. _ '3. H.530 I I ' C. ilfiifl' 3;; U. 5 9m}. .5. Mmifi l:ortthan},r recently purchased a truelt. The price negotiated with the dealer Ia sssnaa. L-Iattinelli also paid tastes of $6.001] on the purchase. slipping and mega-Him costs of $95!}. and immune for the first year of operation of $1.060. For the met. what amount should be debited to the asset account 1|liedrtieles'i' _ .1- :i. sssnaa , a. sstssn 1. -» C. sstnaa w o. saissn " it} E. 393.9% 1a. Helmtmt Corp-oration made a basket purehase ol'land. a building and equipment. paying a total offljflflflflfl. Market values for the assets were not available. but the appraised values were EEMJHJID for the land. situation for the building. and SEDUJDDG for equipment. What amounts should he recorded in the Land. Building. and Equipment accounts. rospeetively‘? A. $3flfl.flflfl.$9llfl.fll}fl. and Sfiflflflflfl. B. 31 .Sflllflfifl. 3 —l]-. and E —l}-. 'C. SERGE}. $T5flflfifl. and 5500.0W. D. 55m.flflfl. ssmnaa. and $5flflflflfl. E. 5i -lJ-. $ | .Sfl‘flfiflfl, and $ -{l-. t ‘f- The current [or working capital} ratio is eornptlted as follows Mt. cufltnt assets divided by total mm. current assets divided by current liabilities (1. current liabilities divided by total assets D. eunent liabilities divided current assets. IE- Un Saptember 1. 19A. Dawn Equipment signed a one-year. Wit interest-bearing note payable for Sillflll. Assuming that Dawn maintains its books on a calendar year basis1 the amount of interim esp-ease that should be rationed in the HE income statement for this nolelroandodtothenearestdollaflwouldhe IL . _.,_ -- J .I .. gt.— A. $35? 5 ' out 14 L» Lu II .I 1'- 1:. Un Jolt l. 1939.. Wilson. Inn, borrowed Sllflflfl from First Bank on a. one your. 3% note peyihle. interest is payable onfleoinlher 3L [Elliot-id on lune 3D. 1931 the due date ot'the note- The journal enlzrjtIr requiIed on wee-omitting.” s hooks to record tlte interest paid mDeeemt-er 31.193, would includes A. debit to interest Expense for $96K}. I '3 Bi eredit to htterest Expense for $9611 C. credit to Cash for 5450. ii. debit to Notes Payable for $480. 23. Jake Compost is int'olx-ed in a lawsuit. The liabilin uttieh could arise as a result oi" this lawsuit should he recorded on the books if the probability oflake owing money as a result of the lawsuit is A. remote and the amount can be reasonably B. probable and the amount cannot be reasonably estimated. C'.H reasonably possible and the amount eon he reasonably estimated- lit. probable and tlte aotomu can be reasonably estimated 943. Kristen‘s grandmother promises to give her 51,1101) at the end of five years. How much is the tt'tonejt.r worth today, assuming Kristen eould invest the t'ntztt'tejtr and earn a 6% animal rate ofretum? [Round to the neanest notion- Present Value of 5! Present 1|t-"itiiue of'an Annuityol‘Sl Periods Discount Rate of 6% Periods Discount Rate {Ill-6% 1 [1.9434 1 (1.9434 2 0,3994] 2 LEE 34 3 {1.3396 3 2.6T3fl 4” 9.1931 4 3.465] 5 HINTS 5 4.2[34 Future 1'tt'aiue of 5] Future Value of an Annuity of $1 Pet-iods Discount Rate of 5% Periods Discount Rate of so {i lflfl 1 1-56 1 HI} 2 1. [235 2 Elle 3 1.19 I ll 3 31336 4 1.3325 4 4.3?45 3 LEE 3' 5.5311 a-A. 'i'tl'i'. 15. $4,212. C. $1,333. D. $5,631 E. $l.flfifl. ...
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This note was uploaded on 04/23/2008 for the course ACCTG 201 taught by Professor Wasson during the Spring '03 term at San Diego State.

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ACCTG 201 - Practice Exam 2 - W I. When a depositor...

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