MGTB05_FE_Review_Q_only_V2-_2011F_Semester

MGTB05_FE_Review_Q_only_V2-_2011F_Semester - MGTB05H3...

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MGTB05H3 FINANCIAL ACCOUNTING I – 2011 Fall Session 1 Final Exam Review Questions Question 1 Use the following information for questions 1 through 13: Poole Company paid or collected during 2011 the following items: Insurance premiums paid $ 12,400 Interest collected 25,900 Salaries paid 125,200 The following balances have been excerpted from Poole's balance sheets: December 31, 2011 December 31, 2010 Prepaid insurance $ 1,200 $ 1,500 Interest receivable 3,700 2,900 Salaries payable 12,300 10,600 1. The insurance expense on the income statement for 2011 was: a) $ 9,700. b) $12,100. c) $12,700. d) $15,100. e) $12,400. 2. The interest revenue on the income statement for 2011 was: a) $19,300. b) $25,100. c) $26,700. d) $32,500. e) $25,900 3. The salary expense on the income statement for 2011 was: a) $102,300. b) $123,500. c) $126,900. d) $148,100. e) $125,200.
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MGTB05H3 FINANCIAL ACCOUNTING I – 2011 Fall Session 2 4. Gerald’s Department Store is a merchandising company that uses the periodic inventory system. Selected account balances are listed below: Sales $175,000 Purchases 90,000 Inventory (Beginning) 23,000 Inventory (Ending) 17,000 Purchase returns and allowances 3,000 Purchase discounts 7,000 Transportation-in 4,000 Sales discounts 8,000 Sales returns and allowances 5,000 Gerald's gross profit is: a) $68,000 b) $72,000 c) $78,000 d) $85,000 e) Not determinable from the information given 5. Fillmore uses the periodic inventory system. June 1 On hand, 50 units @ $15.00 each $ 750.00 5 Purchased 115 units @ $15.10 each 1,736.50 14 Purchased 75 units @ $15.20 each 1,140.00 Total cost of goods available for sale $3,626.50 30 On hand, 90 units If Fillmore uses the FIFO inventory method, the amount assigned to the June 30 inventory would be: a) $1,354.00 b) $1,366.50 c) $1,590.42 d) $1,594.00 e) Not determinable from the information given
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MGTB05H3 FINANCIAL ACCOUNTING I – 2011 Fall Session 3 6. Based on a physical count of inventory on December 31, 2011, Roz Corporation had $120,000 of inventory in its warehouse on December 31, 2011. The following additional information is available: Goods costing $7,100 were purchased from a supplier and in transit to Roz on December 31, 2011, with terms F.O.B. shipping point (the goods arrived at Roz’s warehouse on January 6, 2012). Goods costing $1,200 were returned by a customer on December 31, 2011. The customer had purchased the goods from Roz for $1,850. The goods were processed and returned to the warehouse on January 3, 2012; a credit note was issued to the customer on the same date. The correct amount of inventory to be reported by Roz on its December 31, 2011 balance sheet is: a) $128,950. b) $128,300. c)
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MGTB05_FE_Review_Q_only_V2-_2011F_Semester - MGTB05H3...

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