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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