Spring99Test2

Spring99Test2 - SPRING 99 1. BA 71 TEST #2 NAME_ SECTION_...

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SPRING 99 BA 71 TEST #2 NAME_________________ SECTION_____ 1. The total assets and total liabilities at the beginning and the end of the year for Oscar Company are listed below: Assets Liabilities Beginning of year $200,000 $ 50,000 End of year $250,000 $ 85,000 There were no additional investments in the business. Dividends of $25,000 were paid. What is net income? 1. $15,000 2. $25,000 3. $35,000 4. $40,000 5. $50,000 2. When the bookkeeper for the Spielberg Company made a payment of $700 to a vendor on account, she debited “Cash” for $700 and credited “Accounts Payable” for $700. The correcting entry necessary for Spielberg Company to properly reflect this transaction would be: A. Cash 700 Accounts Payable 700 B. Accounts Payable 1400 Cash 1400 C. Accounts Receivable 700 Accounts Payable 700 D. Cash 1400 Accounts Payable 700 Accounts Receivable 700 E. Accounts Receivable 700 Accounts Payable 700 Cash 1400 3. Paltrow Company’s total liabilities are one-third of its total assets. Owners’ equity is $400,000. What are total assets ? A. $ 200,000 B. $400,000 C. $ 600,000 D. $800,000 E. $1,200,000 Ch 1 3 1
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4. In a bank reconciliation, outstanding checks are A. Added to the bank statement balance B. Subtracted from the bank statement balance C. Added to the book balance D. Subtracted from the book balance E. Divided by the outstanding checks 5. In a bank reconciliation, the difference between a check written by us for $190 but erroneously recorded as a cash disbursement for $910 should be A. Added to the bank statement balance B. Subtracted from the bank statement balance C. Added to the book balance D. Subtracted from the book balance E. Ignored until it is canceled 6. St. Patrick’s Company uses the percentage of sales method to estimate uncollectibles. Net credit sales for the current year amount to $1,000,000 and management estimates 3% will be uncollectible. Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $1,900. The balance in the Allowance for Uncollectible Accounts on the balance sheet will be A. $ 1,900 B. $ 3,800 C. $28,100 D. $30,000 E. $31,900 7. St. Joseph’s Corporation ages accounts receivable to estimate uncollectibles. The aging schedule reveals $2,570 of uncollectible accounts. Prior to adjustment, allowance for uncollectible accounts has a credit balance of $35. The expense reported on the income statement for uncollectibles will be 1. $2,605 2. $2,570 3. $2,535 4. $ 70 5. $ 35 Ch 4 4 5 5
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Use the following information to answer questions 8 and 9: 1/01 Beginning inventory 70 units @ $10 per unit 3/05 Purchases 50 units @ $12 per unit 5/27 Purchases 40 units @ $13 per unit 9/18 Purchases 60 units @ $14 per unit 12/31 Ending inventory 35 units 8. What is ending inventory on a periodic FIFO basis? A.
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This note was uploaded on 03/30/2008 for the course BA 71 taught by Professor Staff during the Fall '07 term at UNC.

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Spring99Test2 - SPRING 99 1. BA 71 TEST #2 NAME_ SECTION_...

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