2003 Fall Accounting_011_exam_2___Fall_2003_answer_key

# 2003 Fall Accounting_011_exam_2___Fall_2003_answer_key -...

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Temple University Fox School of Business and Management Dr. Steven Balsam Accounting 011 Exam #2 November 3/5, 2003 Instructions: You have 60 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!

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Multiple Choice 12 questions, 5 points each 1. How much must be invested now to receive \$30,000 for 15 years if the first \$30,000 is received today and the rate is 9%? a. \$241,821 b. \$263,585 c. \$450,000 d. \$219,376 From table 6-5 (present value of annuity due table) the factor for 15 years and 9% 8.78615. 30,000 * 8.78615 = \$263,585 2. What will be the balance on September 1, 2010 in a fund which is accumulated by making \$24,000 annual deposits each September 1 beginning in 2003, with the last deposit being made on September 1, 2010? The fund pays interest at 8% compounded annually. a. \$255,279 b. \$214,148 c. \$181,440 d. \$137,918 From table 6-3 (future value of ordinary annuity table) the factor for 8 years and 8% is 10.63663. 24,000 * 10.63663 = 255,279. 3. During the year, Jantz Company made an entry to write off a \$4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was \$80,000 and the balance in the allowance account was \$4,500. The net realizable value of accounts receivable after the write-off entry was a. \$80,000. b. \$79,500. c. \$71,500. d. \$75,500. Balance in A/R after write off 76.000 less balance in allowance account after write off 500 yields \$75,500. A trial balance before adjustments included the following: Debit Credit Sales \$425,000 Sales returns and allowance \$14,000 Accounts receivable 53,000 Allowance for doubtful accounts 760
4. If the estimate of uncollectibles is made by taking 1% of net sales, the amount of the adjustment is a. \$3,350. b. \$4,110. c. \$4,250. d.

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## This note was uploaded on 05/19/2008 for the course ACCT 3511 taught by Professor Balsam during the Spring '07 term at Temple.

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2003 Fall Accounting_011_exam_2___Fall_2003_answer_key -...

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