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Unformatted text preview: BMGT310 Prof. S. Brown 2010 - Final - Sample Questions In the interests of being fair to all students, I cannot answer questions during the test. If you think there are ambiguities resulting in multiple or no correct answers to the multiple-choice questions, choose the answer that you believe to be the BEST. If I subsequently agree that the question was erroneous, I will adjust all scores accordingly. Questions may be structured as multiple choice questions, or as short numerical questions. 1 [This question is adopted from a recent CPA exam] The following balances were reported by Mall Co. at December 31, 2004 and 2005: 12/31/04 12/31/05 Inventory $240,000 $285,000 Accounts payable 78,000 55,000 Mall paid suppliers $520,000 during the year ending December 31, 2005. What amount should Mall report for cost of goods sold in 2005? 520-45-23=452 Use the following information for the next three questions: Olsen Company paid or collected during 2007 the following items: Insurance premium s paid $ 10,800 Interest collected 43,900 Salaries paid 125,800 The following balance s have been excerpted from Olsen's balance sheets: Dece m b er 31, 2007 Dece m b er 31, 2006 Prepaid insurance $ 2,500 $ 1,200 Interest receivable 4,900 5,700 Salaries payable 12,800 11,300 2 What is the insurance expens e on the incom e statem ent for 2007? 9500 3 What is the interest revenue on the incom e statem ent for 2007? 43100 4 What is the salary expens e on the incom e statem ent for 2007? 127300 5 Chen Company's account balance s at Dece m b er 31, 2007 for Accounts Receivable and the Allowance for Doubtful Accounts are $320,000 debit and $600 credit. Sales during 2007 were $900,000. It is estimated that 1% of sales will be uncollectible. What was the bad debt expens e for the year? 9000 6 [This question is adopted from a recent CPA exam] At January 1, 2005, Jamin Co. had a credit balance of $260,000 in its allowance for uncollectible accounts. Based on past experienc e, 2% of Jamins credit sales have been uncollectible. During 2005, Jamin wrote off $325,000 of uncollectible accounts. Credit sales for 2005 were $9,000,000. In its Dece m b er 31,2005 balance she et ,what amount should Jamin report as allowance for uncollectible accounts? 115,000 7 A fire destroyed the Sams on Company's warehous e on March 15, 2007. Only goods with a normal selling price of $12,500 and a net realizable value of $5,000 were saved. The following information is available from the of $12,500 and a net realizable value of $5,000 were saved....
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