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Practice Midterm 2_1 - The actual midterm 2 will likely...

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The actual midterm 2 will likely vary from this format and content. Practice Midterm 2 BUSACC 0030 Part I Multiple Choice Questions (30 points) 1.Harris Company issued 10,000 shares of its common stock for cash. The journal entry to record the stock issue would include A) a credit to Cash. B) a debit to Common Stock. C) a credit to Common Stock. E) a credit to Retained Earnings. 2. Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works estimated that $5,000 of the current $98,000 of accounts receivable would be uncollectible. The allowance for doubtful accounts had a $400 credit balance at year-end prior to adjustment. The amount of bad debt expense that should appear in Rosco's income statement for the year is 3. The books of Tweed Company provided the following information: Beginning balances: Accounts receivable $ 50,000 Allowances for doubtful accounts (a credit) 3,000 Transactions during the year: Sales revenue (of which 1/2 were on credit) 2,000,000 Collections on accounts receivable 980,000 Accounts written off as uncollectible 4,000 Past collection experience has indicated that 1% of credit sales normally is not collected. Therefore, an adjusting entry for bad debt expense should be made in the amount of
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4. The Walt Disney Company reported revenue of $25,269 million for 2001. Their accounts receivable balance was $3,343 million in 2001 and $3,599 million in 2000. Cash collected from customers equals 5. The following information was available to the accountant of Zolo Company when preparing the monthly bank reconciliation: Outstanding checks: #643 for $ 620 #651 for 45 Bank service charges $ 30 Deposits in transit $ 150 Customer note receivable collected by bank $ 300 Cash balance per bank statement $1,055 Cash balance per books (prior to reconciliation) $ 270 The corrected cash balance following completion of the reconciliation was A) $695. B) $635. C) $690. D) $540. 6. Retail Company reported the following amounts on its 20D income statement: Purchases, $80,000; Beginning 20D inventory, $25,000; and Cost of goods sold, $90,000. Therefore, the 20D ending inventory was 7. The following information was taken from the 20B income statement of Milburn Company: Pretax income, $12,000; Total operating expenses, $20,000; Sales revenue, $120,000. Compute cost of goods sold.
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