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Midterm Exam - SPRING 10 BUSI 100 MIDTERM...

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Unformatted text preview: SPRING 10 BUSI 100 MIDTERM NAME15EEQ52£3{Q£M\. SECTION 0006 _ _ PLEASE MAKE CERTAIN YOUR PID # AND YOUR SECTION # ARE ON YOUR OPSCAN SHEET CORRECTLY' YOU WILL LOSE A LETTER GRADE ON THIS MIDTERM IF THEY ARE INCORRECT! l. The father of accounting is A. 'Mack Brown B. John Bunting C. Butch Davis D. Luca Pacioli E. Carl Torbush 2. Which of the following is a Big Four firm? Ernst & Young B. Ford & Kuester Frasor & Lebo D. Jordan & Perkins Smith & Guthridge EIJOID' 7 <7 3. Cash from operating activities increased $78,000. 'Jfl'l Cash from investing activities decreased $62,000. 5iflo Cash from financing activities decreased $54,000. ‘ # Beginning cash was $300,000. What is ending cash? iifié A. $106,000 B. $262,000 C. $338,000 D. $416,000 E. $494,000 4. Where in the ledger does dues received in advance appear? “to A. assets . B. liabilities “ d C. owners' equ1ty D. revenues E. expenses ‘q731 5. Total assets and owners' equity were $300,000 and $90,000 at the beginning of the period. Assets decreased 30% during the period and liabilities decreased 40% during the period. ECKRL-ZIO (TC) What is owners' equity at the end of the period? A A. $336,000 B. $264,000 255 "MM" c. $210,000 D. $ 96,000 E. $ 84,000 6. Total assets and liabilities are $350,000 and $216,000 at the SKIP end of the period. Assets decreased 30% during the period and_;_,f; .3 liabilities increased 20% during the period. What was owners' ,q69. {G 3 ‘5 equity at the beginning of the period? 5'00? rag.“ n . -‘dq A. $ 89,231 _J¥r” $134,000 . N r» .1 c. $240,800 D. $275,000 E. $320,000 3~ ‘3_’7I' During the year, Gold Company's stockholders' equity x " increased from $50,000 to $80,000. Gold had dividends C) payable that decreased during the year by $4,000. Gold's net income for the year was $40,000. How much in dividends + ‘flD did Go d pay during the yea . . $36,000 . $30,000 “”ch‘)‘ ,6. $14,000 D. $10,000 E. $ 6,000 8. Which is a real or permanent account? A Dividends B. Interest Receivable 42. Rent Expense VD.‘ Sales Revenue E' Utilities Expense 10. 11. 13. 14. 15. 16. A debit increases the balances of ‘QK’ accounts payable and rent expense (87/¢ depreciation expense and unearned rent ,2? interest revenue and dividends J?’ rent receivable and common stock E. supplies expense and prepaid rent Which of the following is/are example(s) of deferral(s)? A. Dues Payable B. Interest Receivable C. Prepaid Rent D. Wages Paid in Advance E. Both of C and D If total assets equal seven times total owners' equity and total liabilities are $18,000, what are total assets? A. $ 3,000 B. $15,000 C. $21,000 D. $42,000 E. $126,000 If ending balance in accounts payable was $482, balance was $622 and payments on account during were $1,635, what were purchases on account for A. $2,117 B. $1,775 £1: $1,495 D. $1,104 E. ~_.:-' the beginning the year the year? $140 The Henry Company was started by a group of investors on January 1, 20x9 when the balance sheet was made up of total assets of $10,000 and total liabilities of $4,000. financial data for the first year of operation follows: 2OX9 Total assets (12/31) $18,000 Total liabilities (12/31) 6,000 Additional investments by owners 4,000 Cash dividends declared and paid 1,000 ”L3 '- Car‘i A O; h (to :4 32" G What was the retained earnings balance at January 1, 20x9? 139 $ 0 B. $ 4,000 c. $ 6,000 D. $10,000 E. What was the net income (loss) for the year 20x9? /Ar’ $5,000 A??’ ($2,000) c. $4,000 Jf/i ($5,000) E. $16,000 + .- $3,000 h____1_1_ What was the retained earnings balance on December 31, 20x9? A. $2,000 A5? ($1,000) c. $3,000 Jpr’ ($2,000) [/57 $10,000 Assume there were no additional capital contributions. beginning capital was $47,000, ending capital is $35,000, owner' s withdrawals were $33 , 000 , the amount of net income or loss for the period was A. net loss of $45,000 141-. *6»... ‘53 B. net loss of $21,000 C. net income of $12,000 D. net income of $21,000 41 7~ x :;(.$ E. net income of $45,000 A ,2“ Partial 9 1 :5 If and 17. 18. 19. 20. 21. 22. Which accounts appear on which financial statement? Balance Sheet Income Statement A. Cash, revenues Expenses, payables B. Cash, unearned revenue Revenues, expenseSs/ C. Expenses, payables Revenues, land D. Inventory, revenues Expenses, receivables E. Receivables, land Revenues, supplies Which of the following is/are example(s) of accrual(s)? A. Deferred Subscriptions Revenue B. Interest Receivable )3f Prepaid Dues (E) Unearned Rent Revenue E. Both of B and D Adjusting entries impact accounts in the following manner: Deferrals Accruals .4C’ Increase Assets Increase Liabilities B. Decrease Assets Increase Liabilities C. Increase Assets Decrease Liabilities /B7 Decrease Assets Decrease Liabilities jfi/ Increase Liabilities Increase Assets The AppleChill Company began operations on January 1, 2009. During 2009, AppleChill collected $88,000 for management services. $24,000 of the amount collected was from a contract to provide services for one year beginning March 1, 2009. An additional $12,000 of management services had been performed but had not been collected by year—end. The amounts of revenue that should be reported under the accrual basis and the cash basis, respectively, are A. $ 72,000 and $ 88,000 B. $ 96,000 and $ 88,000 .-: _ ‘ ,e./ $ 96,000 and $112,000 " ' ‘HHZ D. $112,000 and $ 88,000 5fi% . .3?” $124,000 and $112,000 IL?) ., . L“ Which of the following accounts would be larger in amount on an adjusted trial balance than on a trial balance? Accumulated Depreciation Insurance Payable Rent Receivable All of these None of these [31100033, Which of the following would be improper in a closing entry? Debiting retained earnings for net loss Debiting revenue accounts Crediting expense accounts Crediting retained earnings for net income Crediting retained earnings for net loss MUCH]? 23. 24. 25. 26. TYL'T‘E NI: TA “n, of. 27. HR '7: AI: TA 'TL_ 9E LJ NE D | H2. H2 28 l'fil'fi. oi 29. TIL "‘1 N1” _' Ax”: U 0. %x;\; 117 (3% ‘NE U C A company recorded the receipt of cash on account by debiting Accounts Payable and crediting Accounts Receivable. What will the trial balance show because of this error? )C Too much for accounts payable /A§. Too much for accounts receivable C. Too little for cash «’ D. All of these E. None of these Accruals involve the recording of expenses or revenues A. before cash is paid or received after cash is paid or received 23. at the same time cash is paid or received (D. either before or at the same time cash is paid or received z/E. either after or at the same time cash is paid or received Deferrals involve the recording of expenses or revenues A. before cash is paid or received B. after cash is paid or received C. at the same time the cash is paid or received D. either before or at the same time cash is paid or received E. either after or at the same time cash is paid or received A company failed accrued interest to record the $27,000 adjusting entry for on monies it loaned. Total assets are A. $27,000 understated B. $27,000 overstated )2? $54,000 overstated fifi $54,000 understated 2E. correctly stated A company recorded the $42,000 adjusting entry for the earning of rent received in advance by debiting revenues and crediting assets. Total liabilities are “AQCQ A. $42,000 understated _ B. $42,000 overstated A¢(fi C. $84,000 overstated D. $84,000 understated E. correctly stated A company recorded the $33,000 adjusting entry for the expiration of prepaid rent by debiting assets and crediting revenues $33,000. Total owners’ equity is A. $33,000 understated B. $33,000 overstated C. $66,000 understated D. $66,000 overstated E. correctly stated A company recorded the $19,000 adjusting entry for accrued interest expenses on monies it borrowed by debiting liabilities and crediting assets $19,000. Net income is A. $19,000 understated B. $19,000 overstated C.' $38,000 understated D. $38,000 overstated E. correctly stated __ 117; TE Uri." “T“: TL. 0!: r4 "1 1‘1 30. Use the information below to answer the following: l/l/X8 12/3l/X8 Prepaid dues $2,700 $ 1,500 Dues receivable $ 600 $ 100 Cash received for dues $ 31,000 What is accrual basis dues revenue for the year? A. $32,700 B. $32,200 C. $31,700 D. $30,500 E. $29,800 31. Use the information below to answer the following: 1/1/X8 12/3l/X8 . (ac Unearned interest $3,000 $ 3,800 .1 Interest payable $ 200 $ 400 3‘" Accrual basis interest expense $ 80,000 What is cash paid for interest for the year? /éf $80,800 B. $80,600 )Zf $80,200 pf $79,800 E. $79,400 Use the following information to answer 32 and 33: 1/l/X8 12/31/X8 Unearned rent revenue $4,000 $ 4,200 Rent payable $3,200 $ 3,500 Rent receivable $6,400 $ 6,000 Prepaid rent $1,900 $ 1,800 Rent expense f$ 58,000 Rent revenue $ 80,000 32. How much cash was received for rent during the year? A. $79,400 B. $79,800 C. $80,000 D. $80,200 E. $80,600 33. How much cash was paid for rent during the year? A. $57,300 B. $57,600 c. $57,800 D. $58,200 E. $58,400 34. Which of the following items found on a bank reconciliation requires a journal entry to properly state the cash balance? A. Bank service charge /B. Bank error C. Deposit in transit D. Outstanding checks E. None of these require an entry Lgnc7 35. Princeton Company desires to triple the $24,000 beginning cash balance. Expected receipts are $98,000. Expected disbursements are $150,000. How much cash must be borrowed? ‘12 A. $228,000 B. $124,000 -J§5?- C. $100,000 D. $ 76,000 "”5 E. $ 4,000 36. In a bank reconciliation, the difference between a check deposited by us for $458 but erroneously recorded in our cash receipts journal for $485 should be Added to the bank statement balance Subtracted from the bank statement balance Added to the book balance Subtracted from the book balance Ignored until the next year DJUOCUID' 37. The sales discount terms “3/15, n/60” approximate which of the following annual rates (assume a 360—day year)? A. 6% B. 20% X C. 24% D. 27% f; - —-— E. 36% MC! H 35"} ._- f 38. In which category will unrealized gains and unrealized losses be included in the determination of net income? available—for sale securities held-to—maturity debt securities trading securities all of these none of these [1100503, 39. Larry uses the percentage of sales method to estimate uncollectible accounts. Net credit sales for the current year amount to $4,000,000 and management estimates 2% will be uncollectible. Allowance for uncollectible accounts prior to adjustment has a credit balance of $2,900. The ending allowance balance on the balance sheet will be A. $82,900 )3.” $80,000 2. c. $77,100 ("fl-00°93“ 2; 5,800 ‘ C :2 g 2 900 {£63000 40. Doug uses the aging method to estimate uncollectible accounts. The aging schedule reveals $3,570 of uncollectible accounts. Prior to adjustment, allowance for uncollectible accounts has a debit balance of $75. The bad debt expense on the income statement will be A. $ 75 B. $ 150 (C? $3,495 “D. $3,570 E. $3,645 Use the following to answer questions 41-45 on the next page: The Sweaty Athletic Club presented the following accrual basis statements at the end of 20X2: Comparative Balance Sheets December 31 a _ 414.415) 20x2 20x1 , Cash (HG: $8,875 $1,600 "I 11"? 1%5 Dues Receivable ”1&7; .5- 2,800 1,800 [C900 -" ‘R’ént Receivabl 350 990+Cgf0 ccru erest Receivable 225 400 k_yPrepaid_R§fit> _ wfqé 900 2,335 10$ Supplies 370 300 Available—for—Sale Investments 3,000 5,375 Furniture and Fixtures 4,600 3,650 Accumulated Depreciation (1,120) (450) {éfgfi $20,000 $16,000 ' Accounts Payable (supplies only) 3,400 $7,100 («“RériE—P—ayF—Ea Ie“ 77“: m 723 1,770 700 W. 305— 820 1,025 Dues Received in Advance 500 425 Unearned Interest 550 150 #063 Accrued General Expenses 1,260 1,350 Notes Payable 1,300 500 Members' Equity 10,400 4,750 w Supplemental Information: (6‘40?) Rent revenue in 20x2 $8,400 ”(10" F: .._____1 fl ‘11:: Cash paid for rent in 20x2 1,265 #12? “‘ Dues revenue in 20x2 5,150 ” Purchase of AFS investments in 20x2 3,500 Loss on sale of AFS investments in 20x2 2,120 Z 515' 3 Supplies expense in 20x2 1,470 “E,L;: L1“ ' All purchases of supplies were made on account. «5.505% f q . "1 3 Cash received for 1nterest in 20x2 1,675 Furniture and fixtures with an original cost of 1,000 and accumulated depreciation of 300 were sold for 900 in 20x2. Payments of 400 were made on notes payable in 20X2. There were no dividends or other distributions to members. The only change this year in Members' Equity is for closing the excess of accrual basis revenues over accrual basis expenses. 41. 42. 43. 44. 45. What m U O w W What m U O w W What m U 0 w W What is cash received for rent in 2OX2? $9,245 $8,835 $7,965 $7,555 None of the above. is accrual basis rent expense in 2OX2? $ 700 $1,430 $1,500 $3,570 None of the above. is cash received for dues in 2OX2? $6,225 $6,075 $4,225 $4,075 None of the above. is cash received from sale of available—for—sale investments in 2OX2? m U O m V $7,995 $7,255 $4,495 $3,755 None of the above. is accrual basis interest revenue in 2OX2? $1,100 $1,450 $1,900 $2,250 None of the above. (AFS) ...
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