2005summerTest1Sol - 225 (see calculation) Other...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
University of Toronto MGT120 Summer 2005 - Test #1 Part A ( 10 marks) 1B 2B 3C 4A 5B 6D 7A 8A 9B 10 D Part B ( 12 marks) Deferred Revenue/expense Accrued Revenue/expense estimate Adjusting Journal Entries 1 Deferred expense Insurance Expense 1,600 Prepaid Insurance 1,600 2 Accrued expense Wages expense 900 wages payable 900 3 Deferred Revenue Unearned maintenance revenue 225 Revenue 225 4 Estimate Depreciation expense 2,500 Accumulated depreciation 2,500 (15000-3000/ 48 months) 5 Deferred Revenue Unearned Service Revenue 700 Revenue 700 6 Accrued expense Interest expense 600 Interest payable 600 7 Accrued expense Property tax expense 500 Accounts payable 500 8 Accrued revenue Accounts Receivable 2,000 Revenue 2,000 Part C ( 20 marks) McDonald's Corporation Income Statement For the year ended December 31, 1994 Revenue 2,700 Expenses: Cost of sales 820 Depreciation 226 Insurance expense 37 interest expense 100 wages expense 1,510 2,693 Net income 7 McDonald's Corporation Balance Sheet December 31, 1994 Assets Cash 429 (see calculation) 669
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 225 (see calculation) Other Liabilities 5024 Prepaid insurance expenses 124 (see calculation) Paid in Capital 1026 Property & equipment, at cost 13,459 (see calculation) Retained Earnings 5255 Cash 186 Notes & A/P 589 Inventories 50 (see calculation) Less: accumulated depreciation (3,604) (see calculation) Other asets 1,291 from trial balance 11,974 11974-Revenue in cash 2200 Inventory purchased 827 Cash collect for a/r 590 Payment-747 Paid insurance premiums-42 669 Paid other liabilities-148 Paid notes & a/p-747 Other Liabilities 5172 Paid interest expense-100 payment-148 Paid payroll-1510 5024 429 Retained earnings 5248 Receivables 315 Net Income 7 Revenue on credit 500 5255 cash collected-590 225 Inventory 43 Purchased inventory in credit 827 inventory sold-820 50 Accumulated dep 3,378 depreciation 226 3604 Prepaid insurance expense 119 paid premiums 42 insurance expense-37 124...
View Full Document

This note was uploaded on 01/16/2011 for the course MGT 120 taught by Professor Zuliani during the Winter '08 term at University of Toronto- Toronto.

Page1 / 2

2005summerTest1Sol - 225 (see calculation) Other...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online