Exam 1 w Answers

Exam 1 w Answers - Name: _________________________ Section...

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Unformatted text preview: Name: _________________________ Section (that you attend): 8:30______ 10:30______ 1:30______ AMIS 522 - FALL 2006 - EXAM 1 - WEDNESDAY OCTOBER 11, 2006 VERSION 3 Instructions - READ CAREFULLY! 1. The exam consists of ____ pages including the cover sheet. Be sure that you have a complete exam before beginning. If not, raise your hand, and I will give you another copy. Factor tables are provided for your use. 2. From the time that I start the exam, you will have 108 minutes to complete it. I will track time every 15 minutes. 3. Print only your name on this page of the exam. We will be using the Bubble sheet for the objective portion of the exam. Only #2 pencils are permitted on the Bubble sheet. Please record your answers on the exam and the Bubble sheet as well. Please bubble in your name (LAST, FIRST, MIDDLE) and your Version # above in the "Special Codes" section, IN COLUMN K. 4. Questions are permitted during the Exam. I may chose to answer or not answer your question. If the question clarifies some information in the exam, I will announce it to the class. 5. All pages of the exam must be returned with the exam. Those with missing pages will receive no credit for the Exam. 6. If you are still in the room when I call time, stop writing immediately and place your writing instrument on the desk. Failure to do so will cost you 25 points. 7. If you finish early, check your work to avoid careless errors. If you wish to leave early, place your exam in the box on my desk and leave quietly in consideration of those remaining. Please do not let the door slam when you leave. Page 1 8. Any instances of cheating or copying from neighbors will result in a grade of 0 for the exam. 9. Grades will be available in Carmen on Monday. Good luck! 10. Points will be assigned to the Exam as follows: 25 objective questions @ 5 points each = 125 Problem A = 35 Problem B = 35 Problem C = 35 Problem D = 35 TOTAL POINTS 265 1. On January 1, 2003, an investor paid $97,000 for bonds with a face amount of $100,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2004 (assume annual interest payments and amortization)? A) $9,700. B) $7,760. C) $9,870. D) $8,380. 2. The unamortized balance of discount on bonds payable is reported on the balance sheet as: A) A prepaid expense. B) An expense account. C) A current liability. D) A contra-liability. 3. On January 1, 2003, Soul Mate Inc. issued 1,000 of its 8%, $1,000 bonds at 96. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2013. Soul Mate paid $50,000 in bond issue costs. Soul Mate uses straight-line amortization....
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Exam 1 w Answers - Name: _________________________ Section...

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