mid1_f03 - Name _ ID #_ ACCOUNTING 15.501/516 FALL 2003...

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Name _________________________ ID #_________________________ ACCOUNTING 15.501/516 FALL 2003 MIDTERM I EXAM GUIDELINES 1. This exam contains 8 pages, in two parts. Please make sure your copy is not missing any pages. 2. The exam must be completed within 80 minutes. 3. The total number of points in this exam is also 80, so budget about 1 minute / point. Avoiding spending too much time on any one question. Question Topic Points I Recording the effects of transactions: William’s Merchandize Distribution 30 II Accounts receivable, inventories, and cash flow: Abercrombie & Fitch 50 4. Please work the problems in a clear, readable manner and show all computations. We will not grade what we cannot read. 5. If you feel that assumptions are necessary to solve a problem, please state your assumption and why it was necessary. 6. Calculators may be used for computations on this exam. 7. Good luck. Page 1 of 8
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Q UESTION I: T RANSACTIONS : W ILLIAM S M ERCHANDIZE D ISTRIBUTION (30 POINTS ) William’s Merchandize Distribution (WMD) is a wholesale grocery distributor. Using the Balance Sheet Equation worksheet provided below, record the effects of the transactions shown on page 6 (2 points each). Calculate the ending balances of each account when you are done recording the transactions (2 points). Compute net income for the year ended December 31, 2002 (2 points). Cash Receivables Inventories Prepaid Rent Property, at Cost, Less Accum. Depr. Current Liabilities Noncurrent Liabilities Contributed Capital Retained Earnings R/E Explanation 1/1/2002 Balances 150,000 95,000 896,000 51,000 1,372,000 988,000 579,000 240,000 757,000 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 12/31/2002 Balances Net Income for the period ended December 31, 2002: Page 2 of 8
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QUESTION II: ABERCROMBIE & FITCH (50 POINTS) Abercrombie & Fitch (A&F) is a large and growing retail chain of 597 stores in the U.S (adding 112 stores in the last year). The last two pages of this exam contain the balance sheets and income statements from A&F’s February 1, 2003 annual report to shareholders (with minor modifications). ACCOUNTS RECEIVABLE AND REVENUE RECOGNITION (15 POINTS)
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mid1_f03 - Name _ ID #_ ACCOUNTING 15.501/516 FALL 2003...

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