2007-Win-test_(solution) - MGT120 Term Test #1 Winter 2007...

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MGT120 Term Test #1 Winter 2007 Part A (15 marks – 1 mark each) 1. B 2. C 3. A or D 4. B 5. A 6. D 7. B 8. D 9. A 10. A 11. D 12. D 13. A 14. D 15. C Part B (16 marks) a) Supplies expense (6,000 – 1,800) 4,200 Supplies 4,200 b) Insurance expense (4,000/24 * 6months) 1,000 Prepaid insurance 1,000 c) Amortization expense ($40,000/5years/12months*4months) 2667 Accumulated amortization 2,667 d) Salaries expense ($2,400/5days * 4days) 1,920 Salaries payable 1,920 e) Transportation revenue 4,000 Unearned revenue 4,000 f) Bad Debt Expense 200 Allowance for Doubtful Accounts 200 f) Income tax expense (24,013 x 25%) 6,003 Income tax payable 6,003
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Masterful Moving Corporation Income Statement for the period ended December 31, 2007 Transportation Revenue 81,000 $ Expenses Salaries Expense 18,920 Supplies expense 16,200 Other expenses 17,750 ** Insurance expense 1,000 Bad Debt expense 450 Amortization expense 2,667 Total expenses 56,987 Net income before taxes 24,013 Income taxes 6,003 net Income 18,010 $ ** you must assume that the allowance of $250 was included in other expenses
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2007-Win-test_(solution) - MGT120 Term Test #1 Winter 2007...

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