{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

final_exam_f2006_sample_solution

final_exam_f2006_sample_solution - University of Waterloo...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Term: Fall Year: 2006 Student Name Solution UW Student ID Number Course Abbreviation and Number AFM 101 Course Title Core Concepts of Accounting Information Section(s) 001, 002, 003 Instructors Duane Kennedy, Tom Schneider Date of Exam Thursday, December 14, 2006 Time Period Start time: 4:00 pm End time: 6:30 pm Duration of Exam 2.5 hours Number of Exam Pages 28 (including this cover sheet) Exam Type Special Materials Additional Materials Allowed Cordless calculators may be used. The calculator must be standalone with no communication or data storage features. Both the examination paper and multiple choice card must submitted. Marking Scheme: Question Score Question Score 1 (12 marks) 6 (8 marks) 2 (11 marks) 7 (12 marks) 3 (12 marks) 8 (8 marks) 4 (10 marks) 9 (40 marks) 5 (12 marks) Total score: 125 marks University of Waterloo Final Examination
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
AFM 101 Page 2 of 28 Question 1 (12 marks) A review of the financial records for Murray Company revealed the following information for 2006: Cash dividend on preferred shares $2,800 Amortization of premium on bonds payable 1,650 Cash balance, January 1, 2006 12,250 Amortization expense for equipment 7,000 Net income 25,000 Stock dividend on common shares 4,200 Expenditure for the purchase of equipment 9,000 Net decrease in accounts payable 1,100 Net decrease in accounts receivable 1,900 Purchase of office equipment in exchange for note payable 2,700 Cash received from sale of delivery truck 4,800 (net book value $6,100) Required: Prepare the statement of cash flows for Murray Company for 2006 using the indirect method. Please use the following table to complete this question.
Background image of page 2
AFM 101 Page 3 of 28 Murray Company Statement of Cash Flows For the Year Ended December 31, 2006 Operating Activities: Net Income $25,000 Add (deduct) items not affecting cash __________ Amortization of premium on bonds (1,650) Amortization of equipment 7,000 Net decrease in accounts payable (1,100) Net decrease in accounts receivable 1,900 Loss on sale of truck 1,300 _________________________ __________ Net cash flow from operating activities $32,450 Investing Activities: Purchase of equipment ($9,000) Sale of delivery truck 4,800 _________________________ __________ Net cash flow from investing activities (4,200) Financing Activities Dividend on preferred shares ($2,800) _________________________ __________ _________________________ __________ Net cash flow from financing activities 2,800 Net increase in cash $25,450 Cash balance, January 1, 2006 12,250 Cash balance on December 31, 2006 $37,700 Non-cash Investing and Financing Activities Purchase of office equipment in exchange for note payable $2,700 _________________________ _________________________
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
AFM 101 Page 4 of 28 Question 2 (11 marks) You were recently hired as an accountant at Steele Corporation. As one of your first responsibilities, you are asked to prepare the bank reconciliation for November, 2006. You obtain the following information from the company records and the bank statement: October 31 balance in the cash account in Steele’s ledger was $35,200 October 31 balance shown on the bank statement was $33,950 Company records show that cheques written in November were $58,750 The bank reported one NSF cheque in the amount of $355 Company records show deposits for the month of $49,800 Bank service charges, $39 The bank collected an outstanding note in the amount of $1,500 from Turner Co.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}