2101 tests-su_08

2101 tests-su_08 - 1 Exam 1 I(7 pts Questions on...

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1 Exam 1 I. (7 pts.) Questions on Illustrative Financial Statement Extracts 1. Refer to Lockheed Martin Corporation on page 14. What was the gross margin for 2005? $__________________ 2. Refer to Papa John’s International on page 22. Prepare the adjusting journal entry that would have been made for the Utilities item at 12/25/2005: 3. Refer to Kellogg Company on page 42. If the company had 500,000 shares of stock outstanding (i.e., owned by shareholders) in 2005, determine its total net income for 2005: $ ____________________ II. (4 pts.) You have been asked by Samson Co. to determine the value of the ending inventory as of 12/31/08. Use the following codes to indicate whether or not the item should be included by Samson in its ending inventory: I--include in inventory D--do not include in inventory ___ 1.Goods in transit on 12/31/08, from a supplier, with terms FOB destination, amounted to $400. These goods had not arrived as of 12/31/08. ___ 2.On 12/31/08, goods in transit to customers, with terms FOB shipping point, amounted to $900 (expected delivery date of 1/10/09). ___ 3.Samson Co. received notice from a supplier that goods ordered before year-end had been delivered to the transportation company on 12/27/08. The terms were FOB shipping point. The shipment had not arrived by 12/31/08. ___ 4. On 12/31/08, Samson shipped $780 worth of goods to a customer, FOB destination. The goods are expected to arrive at destination no earlier than 1/8/09. III. (3 pts.) Suppose that an advance from a customer was recorded on 2/15/08 by crediting Revenues for $4,000. By 12/31, only $3,800 of the revenues has been earned. Prepare the necessary adjusting entry on 12/31/08.
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2 IV. (8 pts.) Using the following 12/31/08 adjusted trial balance of Whoop-D-Doo Co., prepare the necessary closing entries. Debits Credits Prepaid rent $1,800 Accounts receivable 23,000 Land 3,000 Retained earnings, 1/1/08 $38,220 Supplies 7,000 Rent expense 3,000 Income taxes expense 2,420 Dividends 1,000 Accumulated depreciation 4,400 Cash 15,000 Sales 18,000 Capital stock 10,000 Accounts payable 7,000 Equipment 26,000 Depreciation expense 4,000 Notes payable 8,600 $86,220 $86,220
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3 V. (3 pts.) The following information is given for 2008: Prepaid insurance -- beginning balance $2,900 Insurance expense for the period 10,800 Prepaid insurance -- ending balance 3,500 Cash payments of insurance premiums during 2008 amounted to: $ ______________ VI. (7 pts.) McKinnon Consulting Services opened for business in November 2008. From the opening until the end of the year, they engaged in the activities described below. Based on this information, prepare a trial balance. 1) Sold 26,000 shares of capital stock for $2.00 per share. 2) Purchased office equipment for $23,000 cash.
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2101 tests-su_08 - 1 Exam 1 I(7 pts Questions on...

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