2006WinterTest1Sol - MGT120 Winter 2006 Test #1 St. George...

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MGT120 Winter 2006 Test #1 – St. George February 15, 2006 Part A ( 10 marks) 1. B 2. A 3. C 4. B 5. C 6. D 7. C 8. C 9. A 10. D Part B (15 marks) Part 1 1. Dr Supplies Expense 700 Cr Supplies 700 2. Dr Salaries Expense 500 Cr Salaries Payable 500 3. Dr Unrealized loss on investment 250 Cr Short term investment 250 4. Dr. Unearned service revenue 3,500 Cr Service Revenue 3,500 5. Dr Amortization expense 2,000 Cr Accumulated amortization 2,000 6. Dr Allowance for doubtful account 500 Cr Accounts Receivable 500 7. Dr Insurance Expense 4,200 Cr Prepaid Insurance 4,200 Part 2 Balance Sheet December 31, 2004 Assets Liabilities Current Liabilities $35,300 Accounts payable $11,000 Salary payable 500 Unearned service revenue 6,300 Total liabilities 17,800 800 800 52,650 Shareholders’ Equity
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$20,000 Common shares 27,000 Retained earnings 22,650 14,800 Total S/H equity 49,650 Total liabilities and $67,450 S/H equity $67,450 - calculate current ratio or quick ratio - reasonable explanation of liquidity position which supports the quantitative results
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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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2006WinterTest1Sol - MGT120 Winter 2006 Test #1 St. George...

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