winter08 - CONCORDIA UNIVERSITY DEPARTMENT OF ACCOUNTANCY...

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CONCORDIA UNIVERSITY FINANCIAL ACCOUNTING DEPARTMENT OF ACCOUNTANCY COMM 217 ALL SECTIONS SUGGESTED SOLUTION MID-TERM EXAMINATION WINTER 2008 Question 1 (21 marks) Multiple-choice (1.5 marks per correct answer) 1. d 2. a 3. d 4. d 5. c 6. b 7. b 8. c 9. c 10. c 11. d 12. b 13. c 14. a
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Req. 1 (9 marks) a) Wages expense . ..................................................... 2,000 Wages payable . ............................................ 2,000 Interest receivable . .................................................. 1,000 Interest revenue . ........................................... 1,000 ($10,000 x 10%) Land . ....................................................................... 15,000 Note payable . ................................................ 15,000 Amortization expense . ............................................. 1,500 Accumulated amortization . ............................ 1,500 ($15,000 – 0) / 10 years. The equipment has been amortized for 3 years, 2004, 2005 and 2006. Total accumulated amortization is $4,500 or $1,500 per year. This indicated that the salvage value is zero. Retained earnings . .................................................. 10,000 Dividend payable . .......................................... 10,000 Income tax expense . ............................................... 12,900 Income tax payable . ...................................... 12,900 $43,000* x 30% = $12,900. * Income before income taxes = ($140,500 - $2,000) + $1,000 – ($64,000 + $500 + $5,500 +
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This note was uploaded on 12/09/2009 for the course ACCO comm 217 taught by Professor Mroz during the Fall '09 term at Concordia Canada.

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winter08 - CONCORDIA UNIVERSITY DEPARTMENT OF ACCOUNTANCY...

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