midterm_s2005_answer_key

midterm_s2005_answer_key - Answer Key Question 1 (35 Marks)...

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Unformatted text preview: Answer Key Question 1 (35 Marks) (Question 6) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. D B D D D C B C D B B C B C A A D C A D E C A B B C C B D C D C C B C Page 1 Question 2 (10 Marks) (Question 5) 1. I; 2. H; 3. E; 4. A; 5. D; 6. F; 7. G; 8. C; 9. B; 10. K Question 3 (6 Marks) (Question 3) T ra n s a c tio n D e b it C re d it $ 3 ,2 0 0 A. B. C. A llo w a n c e fo r d o u b tfu l a c c o u n ts 8 0 0 + 3 ,0 0 0 – 6 0 0 B ad debt expense 1 5 0 ,0 0 0 x 2 % A c c o u n ts re c e iv a b le 5 0 ,0 0 0 – 1 4 8 ,5 0 0 + ( 2 0 0 ,0 0 0 x 7 5 % ) – 6 0 0 $ 3 ,0 0 0 $ 5 0 ,9 0 0 Question 4 (16 Marks) (Question 4) 1. SE, Cr 2. A, Dr 3. SE, Cr 4. L, Cr 5. A, Dr 6. A, Dr 7. L, Cr 8. A, Dr Page 2 Question 5 (8 Marks) (Question 2) (A ) T ra n s a c tio n B e g in n in g fin a n c ia l p o s itio n B o r r o w e d $ 2 0 ,0 0 0 c a s h u s in g a n o te p a y a b le , f a c e a m o u n t $ 2 0 ,0 0 0 . C o lle c te d a c c o u n ts re c e iv a b le fo r c a s h , $ 5 ,0 0 0 . P a id a c c o u n ts p a y a b le , $ 1 ,0 0 0 c a s h . P u r c h a s e d o ff ic e s u p p lie s o n c r e d it, $ 1 ,0 0 0 . S o ld s to c k to n e w in v e s to r s f o r $ 5 ,0 0 0 o f cash . P a id a $ 1 0 ,0 0 0 n o te p a y a b le . E n d in g fin a n c ia l p o s itio n . (B ) A s s e ts $ 7 5 ,0 0 0 + 2 0 ,0 0 0 + 5 ,0 0 0 - 5 ,0 0 0 - 1 ,0 0 0 + 1 ,0 0 0 + 5 ,0 0 0 - 1 0 ,0 0 0 $ 9 0 ,0 0 0 L ia b ilitie s $ 2 5 ,0 0 0 + 2 0 ,0 0 0 S to c k h o ld e rs ’ E q u ity $ 5 0 ,0 0 0 - 1 ,0 0 0 + 1 ,0 0 0 + 5 ,0 0 0 - 1 0 ,0 0 0 $ 3 5 ,0 0 0 $ 5 5 ,0 0 0 C a s h in c r e a s e , $ 1 9 ,0 0 0 ( + 2 0 ,0 0 0 + 5 ,0 0 0 – 1 ,0 0 0 + 5 ,0 0 0 – 1 0 ,0 0 0 ) Question 6 (10 Marks) (Question 1) A. P la n ts S u p re m e , In c . In c o m e S ta te m e n t F o r th e M o n th E n d e d J a n u a ry 1 , 2 0 A R e v e n u e ( $ 5 0 ,0 0 0 + $ 3 ,0 0 0 ) … … .. E x p en ses: C o s t o f g o o d s s o ld … … … … … … S a la rie s … … … … … … … … … … . T e le p h o n e … … … … … … … … … . O ffic e s u p p lie s u s e d … … … … … . E le c tric ity … … … … … … … … … . R e n t… … … … … … … … … … … .. N e t in c o m e … … … … … … … … … . $ 5 3 ,0 0 0 $ 3 0 ,0 0 0 4 ,5 0 0 100 100 200 800 3 5 ,7 0 0 $ 1 7 ,3 0 0 B . 1 7 ,3 0 0 – 3 ,0 0 0 + 8 0 0 = $ 1 5 ,1 0 0 O R $ 5 0 ,0 0 0 – 3 0 ,0 0 0 – 4 ,5 0 0 – 1 0 0 – 1 0 0 – 2 0 0 = $ 1 5 ,1 0 0 Page 3 ...
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This note was uploaded on 01/30/2011 for the course AFM 101 taught by Professor Kennedy during the Spring '08 term at Waterloo.

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