ADMS2500F.MT99 - York University AK/ADMS 2500.03...

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1 York University AK/ADMS 2500.03 Introduction to Financial Accounting Term Test - VERSION A October 24, 1999 Name: Time: Questions: 2 hours and 15 minutes 50 Use the following Information for Questions 1 - 8 Sandra Kim owns and operates a swimming pool service, Clear and Calm. She ensures her customers' swimming pools are clean and chemically balanced. The company began operations on April 1, 1999 when Sandra gave $2,000 cash and a truck to the business. On April 1 the truck had an appraised value of 19,200 and Sandra expected it would be used by the business for eight more years (Sandra estimates the truck would be worth nothing at the end of eight years). During the month of April the following events happened: 1. Sandra invested the truck and $2,000 cash in Clear and Calm 2. Pool chemicals and cleaning supplies costing $750 were purchased on account 3. Five customers paid $60 each to have their pools serviced 4. Another 10 customers had their pools serviced, on account, for $60 each. They paid in May. 5. $250 of the amount owed for pool chemicals and cleaning supplies was paid 6. Sandra met with 4 new customers and received $60 in advance from each customer for pool services to commence in May 7. Sandra paid $150 for gas and oil used to operate the truck in April 8. On April 30 th , Sandra checked and found there were $100 of chemical and cleaning supplies left on hand 1. The entry to record the purchase of pool chemicals and cleaning supplies for $750 on account includes a) Credit cash $750 b) Credit supplies Expense $750 c) Credit Accounts Payable $750 d) Credit Owner’s Equity $750 e) None of the above Student Number: 2. Calculators are the only aid allowed. 3. The exam is two and a half hours in length and will run from approximately 2:45 pm to 5:00 pm. Budget your time wisely. 4. It is prudent practice to transfer your answers to the grading sheet after each question, and to proof your transfers. The proctors will announce when there are 10 minutes remaining and any answers not transferred should be recorded at this time. No one is to leave their seats in the last 10 minutes. When time is called, the proctors will go down the rows collecting your answer sheets and this exam paper. They will not wait and they will not accept your sheet once they have passed. Any violation of this protocol will result in a grade of zero recorded for the exam. 5. You are reminded that cheating is a serious offense which can result in expulsion from university. 1. Record your name and student number and answer all questions on the computer mark sense sheets provided. Instructions:
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2 2. Revenue for April was a) $900 b) $1,140 c) $600 d) $300 e) None of the above 3. Total Expenses for April were a) $800 b) $900 c) $1,000 d) $1,100 e) None of the above 4. An entry to record the cash received from customer advances for services to be rendered in May (transaction 6 above) a) would not be made in April as the services have not yet been rendered
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This note was uploaded on 01/24/2011 for the course ADMS 2500 taught by Professor Warner during the Spring '08 term at York University.

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ADMS2500F.MT99 - York University AK/ADMS 2500.03...

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