PDF_Midterm_Exam_Review_Slides_(APSCW_-_F2009)

PDF_Midterm_Exam_Review_Slides_(APSCW_-_F2009) - 10/22/2009...

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10/22/2009 1 Exam Review (Fall 2003 Midterm) 1. The firm issued 200 shares with a par value of $1 for $300. Course Packet, p. 24 Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] Cash Common Stock APIC +$300 +$200 +$100 IS: NOFX SSE: CC (Common Stock +200, APIC +100) +300 BS: CA (Cash) +300; CC (Common Stock +200, APIC +100) +300 SCF: FCF +300 Exam Review (Fall 2003 Midterm) 2. The firm purchased inventory for $200 cash. Course Packet, p. 24 Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] Inventory Cash +$200 –$200 IS: NOFX SSE: NOFX BS: CA (Cash –200, Inventory +200) NOFX SCF: OCF (Increase in Inventory) –200
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10/22/2009 2 Exam Review (Fall 2003 Midterm) 3. The firm sold merchandise costing $50 for $90 on account. Course Packet, p. 24 Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] AR Sales +$90 +$90 COGS Inventory –$50 –$50 IS: Revenue +90; Expense (COGS) –50 SSE: RE (NI) +40 BS: CA (AR +90, Inventory –50) +40; RE +40 SCF: OCF (NI +40, Increase in AR –90, Decrease in Inventory +50) NOFX Exam Review (Fall 2003 Midterm) 4. The firm collected $25 of accounts receivable and credited these customers by an additional amount of $5, discount for prompt payment. Course Packet, p. 25 Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] Cash Sales Discount AR +$25 –$30 –$5 IS: Revenue –5 SSE: RE (NI) –5 BS: CA (Cash +25, AR – 30) –5; RE –5 SCF: OCF (NI –5, Decrease in AR +30) +25
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10/22/2009 3 Exam Review (Fall 2003 Midterm) 5. The firm recognized depreciation on the headquarter building, which was purchased several years ago for $100, and has an estimated salvage value of $20 and useful life of 8 Course Packet, p. 25 years . Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] Depr Exp AD - Building –$10 –$10 IS: Expense (Depreciation) –10 SSE: RE (NI) –10 BS: Net PP&E (AD – Building) –10; RE –10 SCF: OCF (NI –10, Add Back Depreciation +10) NOFX Exam Review (Fall 2003 Midterm) 6. Four months before the end of the fiscal year, the firm purchased a one year insurance policy for the headquarter building for $12 cash. Course Packet, p. 25 Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] PPD Ins Cash +$12 –$12 Ins Exp PPD Ins –$4 –$4 IS: Expense (Insurance) –4 SSE: RE (NI) –4 BS: CA (Cash –12, PPD Insurance +8) –4; RE –4 SCF: OCF (NI –4, Increase in PPD Insurance –8) –12
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10/22/2009 4 Exam Review (Fall 2003 Midterm) 8. The firm recognized a bad debt expense of $10. Course Packet, p. 26 Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] Bad Debt Exp Allow for UA –$10 –$10 IS: Expense (BDE) –10 SSE: RE (NI) –10 BS: CA (Allow for UA) –10; RE –10 SCF: OCF (NI –10, Add Back BDE +10) NOFX Exam Review (Fall 2003 Midterm) 9. The firm declared dividends of $100 and paid $40. Course Packet, p. 26 Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] Dividends Dividends Pybl +$100 –$100 Dividends Pybl Cash –$40 –$40 IS: NOFX SSE: RE (Dividends) –100 BS: CA (Cash) –40; CL (Dividends Pybl) +60; RE –100 SCF: FCF (Dividends Paid) –40
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10/22/2009 5 Exam Review (Fall 2003 Midterm) 10. At the middle of the year, the firm borrowed $100 from a bank. Interest at a rate of 10% is paid annually (first payment at the middle of next year). All principal is due at Course Packet, p. 2 maturity, which is five years after the borrowing date.
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This note was uploaded on 02/27/2011 for the course BUSINESS 101 taught by Professor S during the Spring '10 term at Columbia College.

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PDF_Midterm_Exam_Review_Slides_(APSCW_-_F2009) - 10/22/2009...

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