Mgmt 200 Spring 2009 Exam 1

Mgmt 200 Spring 2009 Exam 1 - First name: _ Last name: _...

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First name: ___________ Last name: ______________ PUID: ________________________ Purdue University Krannert School of Management MGMT 200 – Introductory Financial Accounting Spring 2009 Exam 1 – February 23, 2009 This exam consists of 4 questions on 11 pages (excluding this cover page) for a total of 100 points. Time allowed: 90 minutes. Answer all questions. To ensure full credit and to maximize partial credit, clearly show all supporting calculations. The exam is closed book. A calculator is permitted. GOOD LUCK . Question 1 (25 points) ________ Question 2 (25 points) ________ Question 3 (25 points) ________ Question 4 (25 points) ________ TOTAL (100 points) ________
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Question 1. Journal entries and ledger accounts (25 points) Marathon Graphics Corporation (MGC) has been in business for several years. It has two stores in California and sells a wide variety of sports related trophies and awards. Required: a. Prepare the journal entry (entries) for each of the following transactions that occurred during 2008. If no entry is required, state “None required”. 1. MGC purchased land and building for a third store for $980,000 on March 31, 2008. MGC paid $210,000 cash and signed a ten-year note for the balance of the purchase price. The land was valued at $420,000 and the building at $560,000. 2. During 2008 MGC purchased new inventory from various suppliers for $244,000. All purchases were on credit with terms ranging from 30 to 60 days. 3. During 2008 sales totaled $620,000. Of this amount $490,000 was for cash sales and the remainder was on account. 4. On December 17, 2008 MGC received an advance payment of $45,000 cash from a customer for a special order to be completed and shipped to the customer in March 2009. The full price of the order is $90,000 and the balance is due on delivery. Question 1 continued over . . . Mgmt 200 – Exam 1 – Spring 2009 – page 1
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Question 1 continued 5. The items sold in transaction 3 had cost MGC $258,000 to acquire. 6. During 2008 MGC collected $136,000 from their credit account customers. 7. During 2008 MGC paid $223,000 to suppliers for inventory previously purchased on account (transaction 2). 8.
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This note was uploaded on 01/29/2010 for the course MGMT 201 taught by Professor Rowe during the Spring '08 term at Purdue University-West Lafayette.

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Mgmt 200 Spring 2009 Exam 1 - First name: _ Last name: _...

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