DOC101008 fra 1 exam 2

DOC101008 fra 1 exam 2 - 'zACG 3103 F’09 PLEASE READ ALL...

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Unformatted text preview: 'zACG 3103 F’09 PLEASE READ ALL QUESTIONS CAREFULLY BEFORE ATTEMPTING TO ANSWER! s 2 _ Partl 20.points 1. If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in_receipts for disbursements when it is replenished. the journal entry to record ‘ replenishment should include credits to the following accounts a. Petty-Cash, $75. .57"- . t , t . Io. Petty Cash, $100. Q\é°©\i’*’:9r°‘r bemremeee Ci 0. Cash, 5; CashOver and Short, $5. Qb‘m Jam anew d.‘ Cash, $100 C 5% 2. If the month-end bank tatement ' element), 'uts‘téh‘dinwchuecks a $12,000, adeposr- .,000 was in transit at month end. and a 0 ask for $500 was edusly. charged by the bank against the ascetmt, the correct balance in the bank endis , - Bis.wa e- ' - . + tiles-o yr c $20; in u“ 23:: v «subdummnm We ’ 3. During periods of rising prices, a perpetual inventory systgn? 3.30% result in the same dollar amount of ending inventory as a periodic inventory system under which of the following invientory cost flow methods? - ' L- F0 , - Yes d. No - No 4. Opera Corp. uses the dollar—value LIFO method of computing its. inventory cost. Data fer the past four years is as follows: ' Year ended Inventory at Price December 31. End-of-year Prices Index 5 65,000 1.00 hemp 7 126,000 _ ,__,__-_ .1 .05 . Iii-hm" _ 2011- . 135.000 1.10 3313231.. What is the 2009 inventory balancs using dollar-value LIFO? . . $ .04. 1000‘ to?» .000 J‘ V09 0. $122,727. d. $135,000. / 01 {fit IUD '5‘ The market price of a $200,000, ten-year, 12% (pays interest semiannually) bond issue -:-“ ild ff r t f10°/' a - 2-92“ t. e e ecweraeo olS ZOOIDOQ X ‘2' lo x. kpvfifi 101,557,) Z‘ifi,093 Zea,va (‘9‘! 1°l5w") '3'? 5‘1 ; 75.37? 374.41! 6. amount should be recorded as the cost of a machine purchased December 31 2010, which is to be financed by making 8 annual payments of §6.000 each beginning; December 31. 2011? The applicable interest rate is 8%. - D a. $42,000 _ . - —- ‘O'ODOX (Pi-09 319/») b. $37,481 5.14%“ I'io_ gL-tfii’i‘taw 7. A machine is purchased by at the beginning of each of the next five years. The interest rate was 10%. 1; What was the cost of th'é'fiachine? EN; 3 ‘ I w$kfih\tfij SKJDQD X (Pvfop‘ SI \oglb) . b. $3.26 . LW» no Ell-=96) ‘ ' ‘ 301mg $1, 7 l1 flea as (a. -e.954 8. At the end of the fiscal year. Apha Airlines has an. outstanding purchase commltment re the purchase of 1 million gallons of jet fuel at a price of $4.60 per gallon for delivery dun r the coming summer. The company prices its inventory at the lower of cost or market. If m market price for jet fuel at the end of the year is $4.25, how would this situation b: reflectedin the annual financial statements? ‘ 7 g. ti-"éeoord unrealized gains of $350,000 and disclose the existence of the purchase commitment, I - . 9.1mm.- - w. . . . ' Weoora'0T1FeehfifigfiWfifiifififlfifiWfié’fififfifiwfifi‘pufidfchafse‘oommlmfib«rt-““‘"'““°‘$ 0. rec see the existence of the purchase commitment. ' W W” mfiQflt‘ffii '} 9. Fences and parking lots are reported on the baiance sheet as ' q‘MOCre-OO . W h j 1 v magmeee d. property and equipment. 10. The cost of land does not include X costs of grading, filling, draining, and clearing. . csts of- removing old buildings. ,tetsifiifé'fii‘i‘ie‘ntemthelimitect lives. ‘3 petal assssments ' A Part II 10 points Determine the unit value that should be used for inventory costing following "lower of 'cost or market value" as described in ARB No. 43. . _,B_ ___B_ L _D_ _E .f_ Cost V“ $2.35 $2.48 $2.25 $2.54 $2.34 $2.43 Replacement cost/ 2.26 2.55 2.20 2.52 2.32 2.46 Net realizable value v“ 2.50 2.50 2.50 2.50 2.50 2.50 Netrealizable value less normal profit ./ 2.30 230 2.30 2.30 2.30 2.30 Part III 16 points An inventory taken the morning after a large theft discloseslmm pbkfi‘otflg—oogs ‘an Sas of March 12. The following additional data is available from the books: inventory on hand, March 1 $ 84,000 Purchases received, March 1 — 1 _1 63,000 Sales (goods delivered to customers) 120,000 Past records indicate that sales are mad 3 r ' % above cost. Cit-\éoo Instructions . Estimate the inventory of goods en hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. Show appropriate titles for all amounts in your presentation. Miha‘fi \Nm’wfls 3“ , (Balboa , lbut'dmese‘s Q Ug‘gfii Gloom gasmsmue mmooo 3am new 7. 013 ii; ' ' L001 @053 - ‘ ' NE W i‘ 'V‘ w °mevfi‘”““““’7“"‘“"’“‘”‘ 7: l: (310%; Loci- (uwta <0 “New fights-507C) _, JIM % Accounts receivable - $80,000“ Allowance for doubtful accounts ' 730 Saies ' $340,000 Sales returns and allowances ‘ 8,000 Give j0urnai entries assum‘ - that the estimate of un ibles is determined by taking (1) 5% of gross acco ' 2) 1% of net sales. :15 _ V C2; $0M 133% {3:300 9199‘ «sat a ts pots v. 7 W 3) 33.000 gqew~ "i yflnfi 5-52.. immfifit}, t: h ' ‘_ Part IV 10 points A record of transactions for the month of May was as follows: Purchases Sales ‘ Mama—499%: MaH——~390—@«$719 W¢~~47300m©fi$4¥1fl O 8——-————-»-~—8GG—@~$4~.—39 bmonmcgwwjom " WGWW fissouming that perpetual invenfiory records are keptin dollars, determine the invg’r’lfit‘ég 133mg MN \ Qmmflmw l Uroo (:3 £4.10. ' i - i a ‘00 9 L-\ w 3. ‘3:ch BOG 3: “We; ' L\ Qt;ow V509 @ “MO Lg Sow! \OOD 9-) “"0 339‘”% (“E g Quromw; ‘80:? 9 W20 6 a ‘ . - "OD “‘33 2cm:- 6%”: \2 W 6‘ 3‘39thimi w» e u» w \q Qua-th m: e) LLHQ W Ciam at Eflo‘u‘m :3 \ W1 en’s;ng LA’LO ~22»: no 0 x" M - 0 fl \ to? 2,115 flees Nola. Q-ecemwake 330. 310‘; 56min 7—0.1309 B532 , Maid—ac 15,132.": Consullasm 7350,9195 ' $114.. W. 1.0.1306 _ 3t, 5:1 0n [gecemfier 2010) Green Company finished csultaton services and accefimnm ' ., exchange a promissory note with a face value otgecemae‘r-mgmcw 20¢. and a stated rate of 5%, with interest rggiyagle at the end of each year. he air value of the Part V 15 points kutlfigm services is not readily determinable and the note is not readily marketable. Ude the WM circumstances, the note is considered to have an appropriate imputed rate of_interest of . m, 33’“ Instructions 2.09;“: 2.1231 in 321'sth (a) Determine the present value of the note. (b) Prepare a Schedule of Note Discount Amortization for Green Company under the effective interest method. (Round to whole dollars.) Cash Effective I Un'amortized 1 Present interest Interest . - Discount Discount value Data (5%) (10%) Amortized Bala me of Note _ 12131110 _ y ' - ‘ 00.135 a: 12131111 m ,sso g5 53.”, 330 ‘gb‘; 12131112 «amass 30' ‘5‘ 037 R1 '10? $55 20.9. 12131113 "2.4;; see 5'3.“ H2159“: 1c '5 ' ‘ .7 _ aglfia 1,3413%: ' w 9|.ia-1 e3 LAQQIQLXD at 5% x L wwos 311W.) 2-. Z'Hths swim 1» (9v 31mm . :1 . I“1531312. : é ' On May 1, Dexter, Inc. factored $800.0000f accounts receivable with Quick " '. -' Gift” recourse basis. Under the arrangement. Dexter was'to handle disputes concerning service. and Quick Finance was to make the collections handle the sales discounts, and absorb the credit losses. Quick Finance assessed f1, ancechar e of % f the total accounts receivable factored and retained an amount equalto 2 o o a total receivables to cover sales'discounts. ' instructions Prepare the journal entry required on Dexter‘s books on May 1. C otsvx '1 ewe-aa- “3‘” Q goacm Part Vi 10 points 1) Mocl Co. began construction of a small building. The following expenditures were incurred for construction: ‘ q m o n *1“ 5 March 1 $ 75,000 April 1 $ 74,000 May '1 180,000 _ June 1 270,000 July 1 100,000 The building was completed and occupied on To help pay for construction $50,000 was. borrowed on March 1 on a 12%,, three-yfimotgpwaflmble. The only other debt outstanding during ifie year was a $500,000, 10% note issued two years‘ggg, Instructions 7 (8) Calculate the weighted-average accumulated expenditures. (b) Calculate avoidable interest. Haw Hum CM; at: C \ bll gnome“? *1 ll 1013300 $000.303 Lint-WC) '3 C) ‘3; 'L\'l ,Ultgo (33.3.: qugg \ 5e" is. \wa ~5c~ch¢m A‘lma, ‘R"C.R\‘L.La§‘ mum-t“ Q) seams, ' Part Vlt 10 point . Loewe . he? am f Flint Co. records Burchase discounts lost and usem Prepare journal entries in general journal form fort -e following: (a) Purchased merchandise costing $900 with terms 2110, n130. _ 3““ (b) Payment was made thirty days after the purchase. P") \(Neoérovfi ‘ 33} Rcemnxb mekee " " ‘ ’ ‘88:; Q3) Racnunzt‘.) (PMWLWR— bfemoxwv‘ré Vote-i“ - Coeh Cited) Equipment that cost and has accumul ' ' ' I I V ‘ i ated d equupment With a fair value of $32,000 and $8,000 :prec'auon 0f 63 000 s eXChanged for commer . I ha ca I F_____ “High is receive . The exchange lacked Igstructions ‘ If repare the em f equipment. W or the “Change Show a check of the amount recorde for' the new “$43 E k) m "t ‘ Ca 9? eh « v.5! 90 ' GAGA“ . ' (9% (cage to , $“oba vww _ W , , “mm-w- u-----—-"-w'“'*' " r “’V “ " “ —-fi gram-"3H:“MI i (.‘SDioeD-‘b’iimulfi '1 H.130“? " at Jr gfimg {40119513} 60;, Q ‘3‘; iWD I mm — Zeiwbmuow : mu 51 $19 l‘ V“ an coo ” t’a’moo gem _ '2‘. 2001’s 74 23mm” 1 AW" gg'gw . “age; a: .W New ‘Eow Part Vlll 9 points 1) What are the two methods of recording accounts receivable transactions when'a cash discount situation is involved? Which is more theoretically correct? .\\\€J3<’ 9i Gems-3» V‘Mk‘w /X OCR Va“ We; {3‘ frAv’i-"etaflng bQG-Mgflfi i 5r W.» {finCpca‘chéf‘fig We» “like” was» Mme “ ' ivwfi " Mable." eats: «at; women. cap Mt \K-fiwmk‘ A73 kt (NM Woes. (we’re CAMQQAJ“; levies“ 2) What are the differences between factoring, assigning and pledging accounts receivable? ' FQCA’DUWE) -—+- Gitul‘ 5 owl CherQns-3 \éaM/ PKUL *0“ (LCLEV‘N . l - , _ .1 I. DOL...) (2&va ho lam-fiber $621K we» Prim... Ptfiifififh‘r‘acz Me \ - t v - J ‘ a.) Camus mails Lamgawté 5(5ka film," m {Hut-r i}? 0 mole. ,C_ +0 Semarang, samexmmj) Cami slim (Le\le.c;«lwvw3 on M . Pr l (L P\€’d‘:3‘ mi: *" QWMR‘siflE’ X13 bacm‘ \f‘to (5n ca. we Fir-i rig-- is leilfffiJtfiecA, 3) What are the major uses of the gross profit method? To Wuxcfiw GR: Wee.“ "Wm 6.22:3" We“; Q (Lemme?) tweaked 7 / 3 e e e “a ...
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DOC101008 fra 1 exam 2 - 'zACG 3103 F’09 PLEASE READ ALL...

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