Answer to version B of midterm

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online