2006SummerTest1Sol - 175,000 Cash 175,000 10. Cash 165,000...

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MGT120 Summer 2006 Test #1 – St. George Part A (9 marks) 1. C 2. C 3. D 4. A 5. C 6. C 7. D 8. D 9. A Part B (10 marks) Net Income Total Assets Total Liabilities Shareholders’ Equity a. over 350 NE under 350 over 350 b. over 650 over 650 NE over 650 c. under 4,500 under 4,500 NE under 4,500 d. under 900 NE over 900 under 900 e. over 2,600 over 2,600 NE over 2,600 Part C ( 4 Marks) a) $25,700 - $2,300 = $23,400 b) $250,000 x 0.03 = $7,500 $300 + $7,500 = $7,800 $84,000 - $7,800 = $76,200 Part D (20 marks) 1. Jan 1, 2001 Cash 375,000 Common Shares 375,000 2. Jan 1, 2001 Land 85,000 Building 340,000 Cash 50,000 Common Shares 375,000 3. July 1, 2001 Equipment 100,000 Cash 50,000 Notes Payable 50,000 December 31, 2001 Interest Expense 2,500 Interest Payable 2,500 4. December 31, 2001 Amortization Expense 5,000 Accumulated amortization 5,000 5. December 31, 2001 Amortization Expense 11,333 Accumulated amortization 11,333 6. Inventory 200,000 Accounts Payable 200,000 7. Cash 40,000
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Accounts Receivable 175,000 Sales 215,000 8. COGS 160,000 Inventory 160,000 9. Accounts Payable
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Unformatted text preview: 175,000 Cash 175,000 10. Cash 165,000 Accounts Receivable 165,000 11. Cash 20,000 Unearned Revenue 5,000 Rent Revenue 15,000 12. Selling & Admin Expenses 30,000 Cash 30,000 13. Tax Expense 6,350 Cash 3,000 Taxes Payable 3,350 14. Dividends 4,000 Dividends Payable 1,000 Cash 3,000 A. J. Smith Company Income Statement For the year ended December 31,2001 Revenue Sales 215,000 Rent Revenue 15,000 230,000 Expenses Cost of Sales 160,000 Amortization Expense - Equipment 5,000 Amortization Expense - Building 11,333 Interest Expense 2,500 Selling & Admin Expenses 30,000 Total Expenses 208,833 Net Income before income taxes 21,167 Income tax (30%) 6,350 Net Income $ 14,817 A. J. Smith Company Statement of Retained Earnings for the year ended December 31, 2001 Opening Retained earnings Net Income $ 14,817 Less: Dividends 4,000 Retained earnings, December 31,2001 $ 10,817...
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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.

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2006SummerTest1Sol - 175,000 Cash 175,000 10. Cash 165,000...

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