mid2-2008 Fall - UGBA102A Multiple choice Problem 1 Problem...

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UGBA102A Exam 2 FALL 2008 Multiple choice (30) NAME: Problem 1 (18) SID #: Problem 2 (16) Problem 3 (18) GSI: Problem 4 (18) SECTION: TOTAL MULTIPLE CHOICE (3 points each) – Put the correct answer on the scantron sheet: 1. Land is acquired for a purchase price of $60,000. The purchaser paid $3,000 to remove an old building, a real estate broker’s fee of $1,200, $2,500 to install a parking lot and $500 to an architect to design the new building on the land. At what amount should the land account be debited? a) $60,000 b) $64,200 c) $66,700 d) $67,200 e) $63,000 2. Venus Company’s bank statement at June 30 showed an ending balance of $5,000. Additional information at June 30 included: outstanding checks were $500, deposits in transit were $1,000, bank service charges were $10, and the bank erroneously credited a deposit to Venus Company’s bank account for $110. The correct cash balance at June 30 should be: a) $4,610 b) $5,000 c) $5,390 d) $5,500 e) $5,610 3. At December 31, 2007 (fiscal year-end), ending inventory is understated by $1,000. Which of the following would be true for the fiscal year-ended December 31, 2008? a) Beginning inventory will be overstated. b) Net income will be understated. c) Purchases will be overstated. d) Cost of goods sold will be understated. e) Gross profit will be understated. Page 1 of 7
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UGBA102A Exam 2 FALL 2008 4. When a company writes off an accounts receivable, the journal entry to record the transaction would include a a) debit to bad debt expense. b) debit to accounts receivable. c) debit to the allowance for doubtful accounts. d) debit to sales revenue. e) credit to cash. 5. If a company uses a periodic inventory system, the following entry would be made to record the purchase of merchandise on credit: a) Debit to purchases and credit to accounts payable. b) Debit to accounts receivable and credit to sales revenue. c)
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This note was uploaded on 02/04/2010 for the course PHYSICS 7B taught by Professor Packard during the Spring '08 term at University of California, Berkeley.

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mid2-2008 Fall - UGBA102A Multiple choice Problem 1 Problem...

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