Comprehensive Practice Examinations

Comprehensive Practice Examinations - Dr. M.D Chase...

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Dr. M.D Chase Long Beach State University Accounting 201 Examination 2 Review Chpts 4-8 Page 1 Exercise 1: The following information is available for Moose Company: 2003 2002 Accounts receivable $ 220,000 $180,000 Cost of goods sold 600,000 650,000 Inventory (ending) 90,000 70,000 Net cash provided by operating activities 130,000 85,000 Net sales 1,200,000 900,000 Capital expenditures 30,000 25,000 Dividends 20,000 10,000 Instructions Compute the following for 2003: (a) Inventory turnover ratio (b) Days in inventory (c) Receivables turnover ratio (d) Average collection period
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Dr. M.D Chase Long Beach State University Accounting 201 Examination 2 Review Chpts 4-8 Page 2 Exercise 2: Shane Company received a bank statement for the month of October 2003, which showed a balance per bank of $3,900. The company's Cash account in the general ledger showed a balance of $1,506 at October 31. Other information that may be relevant in preparing a bank reconciliation for October follows: 1. The bank returned a NSF check from a customer for $91. 2. The company recorded cash receipts of $930 on October 31 but this amount does not appear on the bank statement. 3. A check correctly written and paid by the bank for $1,650 was incorrectly recorded in the cash payments journal for $1,560. The check was a payment on account. 4. Checks that were written in September but still had not been presented to the bank for payment at October 31 amounted to $690. 5. The bank included a credit memorandum for $1,590, which represents a collection of a customer's note by the bank for the company; principal amount of the note was $1,500 and the remainder was interest. 6. The bank included a $25 debit memorandum for service charges for the month of October. 7. Checks written in October which have not been paid by the bank at October 31 amounted to $1,250. Instructions 1. Prepare a bank reconciliation for Shane Company for October, which reconciles the balance per books and the balance per bank to their adjusted correct balances. 2. Prepare the necessary adjusting entries for Shane Company at October 31, 2003.
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Dr. M.D Chase Long Beach State University Accounting 201 Examination 2 Review Chpts 4-8 Page 3 Exercise 3: Mike Company uses the periodic inventory method and had the following inventory information available for the month of November. Date Transaction Units Unit Cost 11/1 Beginning inventory 500 $4 11/5 Purchase No. 1 600 $6 11/12 Sale No. 1 (300) 11/18 Purchase No. 2 500 $8 11/25 Sale No. 2 (600) Answer the following independent questions and show computations supporting your answers. 1. Assume that the company uses the average cost method. What is the dollar value of the ending inventory on November 30?
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This note was uploaded on 04/29/2010 for the course ACCT 201 taught by Professor John during the Spring '08 term at CSU Long Beach.

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Comprehensive Practice Examinations - Dr. M.D Chase...

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