Answer to version B of midterm

Answer to version B of midterm - 3500 Unearned rent revenue...

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ACCT2241 2007 Fall – Midterm B1 Page 1 of 2 pages Q1- 2each Q2- 1 each Q4- 2each 1 BS NE Cost or historical cost 2 IS Inc Going concern 3 CF NE Materiality 4 IS NE Reliability 5 BS Dec Time period NE NE NE Dec Dec QUESTION #3 (10) 5point each a. The FIFO 250*$3 + 500 * $4 +50*$5=$3,000 b. The weighted average (1 mark if simple average is used but the second part is correct) $3,800/950=$4 ; $4*800=$3,200 QUESTION #5 (18) 3 points each; Q5-3 points each= 18 Q6-3 points each = 24 Account Debit Credi t Account Debit Credit Cash 75000 April 8 Capital stock 75000 Supplies inventory 2500 Cash 2500 Equipment 75000 April 30 Cash 5000 Supplies exp 4200 A/P 70000 Supplies inventory 4200 October 1 Supplies inventory 850 Cash 20000 Cash 850 N/P 20000 December 31 A/R 7500 Interest expense 900 Revenue 7500 Interest payable 900 August 13 Cash 5000 Cash 24000 A/R 5000 Unearned rent revenue 24000 December 31 Salaries expense
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Unformatted text preview: 3500 Unearned rent revenue 8000 Cash 3500 Rent revenue 8000 October 3 A/R 5000 Service revenue 5000 October 13 Cash 4950 Sales discount 50 A/R 5000 QUESTION #7 (18) 1 (15) Revenue $33,000 1 CGS 12,000 1 Gross profit 21,000 2 Operating expenses: Depreciation expense 6,000 1 Selling expense 1,200 1 Unities expense 2,500 1 Wages expense 6,500 16,200 1 Operating income 4,800 2 Interest expense 1100 1 Income before taxes 3,700 2 Income tax expense 1,500 1 Net income $ 2,200 1 (3) The multi-step IS shows earnings from different sources (activities) and are of different recurring possibilities, thus allows better assessment of the performance and better prediction of the future. ACCT2241 2007 Fall Midterm B1 Page 2 of 2 pages...
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Answer to version B of midterm - 3500 Unearned rent revenue...

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