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Unformatted text preview: NAME: S t u d e n t N o . : ACCOUNTING 101 Examination 1 FALL, 2003 INSTRUCTIONS: 1. This is a 107 point, 120 minute exam. Budget your time to achieve maximum points. 2. Answer the problems in the space provided within this booklet, and present your work in an orderly fashion to facilitate the awarding of partial credit. For partial credit, you must show work. Partial credit can only be given for answers that are presented in a clear and logical manner. 3. Note that if you wish your exam to be considered for re-grade, it must be completed in pen. Exams completed in pencil CANNOT be accepted for re-grade due to unfortunate experiences in the past. 4. There are 14 numbered pages in this booklet. Make sure that you have all of the pages. 5. The exam is closed book. You are only allowed one 8.5 x 11 inch paper ( double-sided ) for notes. 6. Please print your name and student number in the space provided on the first page and on all subsequent pages . Question Points Assigned Points Scored Question 1 40 Question 2 13 Question 3 20 Question 4 10 Question 5 24 Total 107 Accounting 101, Spring 2003 Name: S S # : Mid-term Examination 1 Page 1 Question 1: (40 points) Presented below is the 2001 year-end Balance Sheet for Philly Car Wash . Its fiscal year ends December 31. Philly Car Wash Balance Sheet December 31, 2001 Assets Liabilities Cash $ 15,000 Accounts payable $ 2,000 Supplies Inventory 7,000 Unearned revenue 4,000 Prepaid rent 2,000 Salaries payable 2,000 Prepaid insurance 4,000 Equipment (Gross) 24,000 Owners Equity Accumulated Depreciation (8,000) Common stock 24,000 Retained earnings 12,000 Total Assets $44,000 Total Liabilities and Owners Equity $44,000 Philly Car Wash sells individual car washes for $5 per vehicle. All of these sales are for cash. In addition, Philly Car Wash sells booklets that contain 10 coupons each. Each coupon is good for one car wash. Philly Car Wash sells each booklet of 10 coupons for $40 and recognizes the same amount of revenue for each coupon. All booklet sales are for cash. The balance in the Unearned Revenue account refers to coupons which were still unused as of the end of year 2001. The company rents the land and building containing its car wash but owns its own equipment. Information concerning transactions and other events occurring during year 2002 is provided below: 1. During the year the company sold 350 booklets of coupons. 2. During the year the company washed 3600 cars. For those car washes, the company received 2500 individual coupons and cash for the rest. 3. During the year the company paid $7,000 in cash to its employees (i.e. salaries). Its 2002 ending balance in Salaries payable was $2500. 4. During the year of 2002, the company had a number of transactions with its suppliers: a) It bought supplies at a cost of $1000 on account....
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This note was uploaded on 05/20/2010 for the course ACCT 101 taught by Professor Briancadman during the Spring '10 term at Penn College.
- Spring '10