2006 Exam - University of Waterloo Final Examination Term...

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
University of Waterloo Final Examination Term: Fall Year: 2006 Student Name UW Student ID Number Course Abbreviation and Number AFM 101 Course Title Core Concepts of Accounting Information Section(s) 001, 002, 003 Instructors Duane Kennedy, Tom Schneider Date of Exam Thursday, December 14, 2006 Time Period Start time: 4:00 pm End time: 6:30 pm Duration of Exam 2.5 hours Number of Exam Pages 28 (including this cover sheet) Exam Type Special Materials Additional Materials Allowed Cordless calculators may be used. The calculator must be standalone with no communication or data storage features. Both the examination paper and multiple choice card must submitted. M ARKING S CHEME : Question Score Question Score 1 (12 marks) 6 (8 marks) 2 (11 marks) 7 (12 marks) 3 (12 marks) 8 (8 marks) 4 (10 marks) 9 (40 marks) 5 (12 marks)
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Total score: 125 marks 2
Image of page 2
Question 1 (12 marks) A review of the financial records for Murray Company revealed the following information for 2006: Cash dividend on preferred shares $2,800 Amortization of premium on bonds payable1,650 Cash balance, January 1, 2006 12,250 Amortization expense for equipment 7,000 Net income 25,000 Stock dividend on common shares 4,200 Expenditure for the purchase of equipment9,000 Net decrease in accounts payable 1,100 Net decrease in accounts receivable 1,900 Purchase of office equipment in exchange for note payable 2,700 Cash received from sale of delivery truck 4,800 (net book value $6,100) Required: Prepare the statement of cash flows for Murray Company for 2006 using the indirect method. Please use the following table to complete this question.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Murray Company Statement of Cash Flows ____________________ Operating Activities: _________________________ __________ _________________________ __________ _________________________ __________ _________________________ __________ _________________________ __________ _________________________ __________ _________________________ __________ _________________________ __________ Net cash flow from operating activities __________ Investing Activities: _________________________ __________ _________________________ __________ _________________________ __________ Net cash flow from investing activities __________ Financing Activities _________________________ __________ _________________________ __________ _________________________ __________ Net cash flow from financing activities __________ _________________________ __________ _________________________ __________ Cash balance on December 31, 2006 __________ Non-cash Investing and Financing Activities _________________________ _________________________ _________________________
Image of page 4
Question 2 (11 marks) You were recently hired as an accountant at Steele Corporation. As one of your first responsibilities, you are asked to prepare the bank reconciliation for November, 2006. You obtain the following information from the company records and the bank statement: October 31 balance in the cash account in Steele’s ledger was $35,200 October 31 balance shown on the bank statement was $33,950 Company records show that cheques written in November were $58,750 The bank reported one NSF cheque in the amount of $355 Company records show deposits for the month of $49,800 Bank service charges, $39 The bank collected an outstanding note in the amount of $1,500 from Turner Co. The bank recorded six deposits during the month totaling $47,150 The October bank reconciliation listed outstanding cheques of $5,100 and a deposit in transit for $6,350 The bank cleared cheques totaling $59,250 during November Required: Prepare the bank reconciliation using the following table: Steele Corporation Bank Reconciliation November 30, 2005 Company’s Books Bank Statement Ending cash balance per books Ending cash balance per bank statement Additions Additions Deductions Deductions Ending correct cash balance Ending correct cash balance
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern