Exam1-06-solution

Exam1-06-solution - Ev-MBAC 6020 Midterm solution, Spring...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Ev-MBAC 6020 Midterm solution, Spring 2006page 1Problem 1 (a) two assets: damage deposit $60,000 and prepaid rent $55,000 ($60,000 * 11/12)(b) leasehold improvement $24,000 ($9.000+$15,000)(c) display equipment $99,200 [( $100,000 * 98%)+$1,200](d) no asset no economic exchange(e) inventory $25,000(f) no asset, but reduce inventory by $500(g) no asset no economic exchange(h) cash $100(i) prepaid advertising $1,000Problem 2 Part A: Im sorry, ladies, but according to GAAP, your company could not recognize revenue until two criteria are met: (1) your company has received a measurable asset and (2) your company has done what the customer is paying it to do. It doesnt appear that those are met by what you are describing. May I introduce myself, . . . . Part B: a. nob. yes accountants assume that if the magazines are deliverd to the post office they are delivered to the customer.c. no, this is a liabilityd. noe. nof. yesg. yesh. noProblem 3Senvos Corporation Balance SheetAs of March 31, 2005ASSETSLIABILITIES AND OWNERS' EQUITYCurrent AssetsLIABILITIEScash...
View Full Document

Page1 / 4

Exam1-06-solution - Ev-MBAC 6020 Midterm solution, Spring...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online