First Section Practice Problems 2

First Section Practice Problems 2 - P ractice Problems 1....

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Practice Problems 1. Supplies inventory had a $15,000 balance at the beginning of September 2010 and had a balance of $25,000 at the end of September. There was $200,000 of supplies purchased during September. What was supplies expense during the month of September? a. $190,000 b. $15,000 c. $25,000 d. $200,000 2. Which of the following transactions would not have an impact on assets? a. Wages being incurred but not yet paid. b. Wages being incurred and paid. c. Purchase of equipment on credit. d. Payment of a dividend that was declared earlier in the month. 3. WTS Inc. purchases a piece of equipment on January 1 , 2010 that cost $210,000 with an estimated useful life of 5 years and a residual value of $10,000. What is the book value of the equipment on December 31, 2010? a. $210,000 b. $10,000 c. $0 d. $170,000 4. Mackenzie Inc.’s inventory balance on January 1 st was $100,000 and $225,000 on December 31 st . Would this show up as a reduction or increase to net income when calculating cash flow from operations?
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5. Whitfield Inc. borrows money from a bank.
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This note was uploaded on 12/17/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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First Section Practice Problems 2 - P ractice Problems 1....

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