mid1-2008 Fall-SOL - $ 10,000 Accounts receivable 18,000...

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UGBA102A – Brooks EXAM 1 – ANSWER KEY Fall 2008 MULTIPLE CHOICE: 1. d 2. a 3. c 4. e 5. b 6. b 7. c 8. b 9. e 10. a PROBLEM 1 # Account Debit Credit a. Accounts receivable Sales revenue Cost of goods sold Inventory 400 250 400 250 b. Cash Unearned service revenue 300 300 c. Equipment Accounts payable AJE: Depreciation Accumulated depreciation ($36,000 / 120 months = $300) 36,000 300 36,000 300 d. Salary expense Cash 5,000 5,000 e. Prepaid insurance expense Cash AJE: Insurance expense Prepaid insurance expense ($36,000 / 6 months = $6,000) 36,000 6,000 36,000 6,000 f. Cash Note payable AJE: Interest expense Interest payable ($100,000 * 6% x 1/12 months = $500) 100,000 500 100,000 500 Page 1 of 2
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UGBA102A – Brooks EXAM 1 – ANSWER KEY Fall 2008 PROBLEM 2 Palini Company Balance Sheet As of December 31, 2008 Assets: Current assets: Cash
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Unformatted text preview: $ 10,000 Accounts receivable 18,000 Total current assets $ 28,000 Equipment 34,000 Less: Accumulated depreciation 5,000 Equipment - net 29,000 Total assets $ 57,000 Liabilities: Current liabilities: Accounts payable $ 7,000 Salaries payable 1,000 Total current liabilities 8,000 Stockholders equity Common stock $ 20,000 Retained earnings * 29,000 Total Stockholders equity $ 49,000 Total Liabilities and Stockholders equity $ 57,000 * 22,000 + 50,000 15,000 25,000 3,000 = $29,000 PROBLEM 3 Consulting Revenue Retained earnings 12,000 12,000 Retained earnings Salaries expense 5,000 5,000 Retained earnings Dividends 2,000 2,000 Page 2 of 2...
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mid1-2008 Fall-SOL - $ 10,000 Accounts receivable 18,000...

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