MBA800X13 - LastName |_|_|_|_|_|_|_|_|_|_|_|_| FirstName

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Last Name | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | First Name | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | MBA 800 Exam I Summer 2006 Instructions: 1. Read each question carefully and answer fully.     All firms use a  calendar year. 2. Problems (other than multiple choice) not supported by relevant and  readable computations are subject to point loss.  Where appropriate,  terms like   A net income, @   A net loss, @   etc. must be included with  number answers. 3. Budget your time carefully.  It is generally better to finish half of each  problem than to complete all of half the problems.   Students who  continue to work on exams after instructed to stop will receive a zero  on this exam. 4. It is the student's responsibility to verify that all the listed problems  and   pages   are   contained   is   this   booklet.     Unanswered   questions  receive zero points regardless of reason. Problem Pages Approximate Points Approximate Time I 2-5 40 25 – 31 minutes II 5-6 25 16 – 19 minutes III 6-10 75 49 – 58 minutes Total 140 90 - 108 minutes
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Problem I The Taylor Company had the following balance sheet on 31 December 2006: Assets 31-Dec-06 Liabilities Cash 4,000 $ Accounts Payable 4,000 $ Accounts Receiveable 2,000 Total Liabilities 4,000 $ Prepaid Rent 5,000 Stockholders' Equity 12,000 Common Stock 9,000 $ Accumulated Depreciation, PPE (3,000) Retained Earnings 7,000 Total Equity 16,000 $ Total Assets 20,000 $ Total Liabilities and Equity 20,000 $ Part A. The following transactions occurred during 2007. REQUIRED: Record them in journal form 1 Jan. 1 Jan. Bought new Property, Plant & Equipment for $10,000. It will have a 5-year life and no salvage value. 1 Jan. Issued a note to a local bank and received $20,000. The note requires interest payment at 10% p.a., with the first payment due on 1/1/08. 2 Feb. Purchased $8,000 of inventory on account. 3 March. Sold some inventory for $6,000, half in cash and half on account. 4 April. Issued additional stock. Received $9,000 in cash and Land worth $2,000. 22 April. Paid $6,000 of amount owed from 2 Feb. 2
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11 May. Received $1,000 of amount owed from 3 March. 1 June. A new, 12-month lease is signed at the new rate of $1,100 a month. As required, the firm paid the total annual amount of $13,200 today. The old lease (reflected in prepaid rent above) expired. It had a $1,000 per month amount, all 12 months paid in advance. 18 September. Paid $5,500 in wages. 31 October. Paid a dividend of $1,000. 31 Dec.
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MBA800X13 - LastName |_|_|_|_|_|_|_|_|_|_|_|_| FirstName

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