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BMGT310-final-mock - BMGT310 Prof S Brown 2011 Final Sample...

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BMGT310 Prof. S. Brown 2011 - Final - Sample Questions In the interests of being fair to all students, I cannot answer questions during the test. If you think there are ambiguities resulting in multiple or no correct answers to the multiple-choice questions, choose the answer that you believe to be the BEST . If I subsequently agree that the question was erroneous, I will adjust all scores accordingly. Questions may be structured as multiple choice questions, or as short numerical questions. 1 [This question is adopted from a recent CPA exam] The following balances were reported by Mall Co. at December 31, 2004 and 2005: 12/31/04 12/31/05 Inventory $240,000 $285,000 Accounts payable 78,000 55,000 Mall paid suppliers $520,000 during the year ending December 31, 2005. What amount should Mall report for cost of goods sold in 2005? Use the following information for the next three questions: Olsen Company paid or collected during 2007 the following items: Insurance premiums paid $ 10,800 Interest collected 43,900 Salaries paid 125,800 The following balances have been excerpted from Olsen's balance sheets: December 31, 2007 December 31, 2006 Prepaid insurance $ 2,500 $ 1,200 Interest receivable 4,900 5,700 Salaries payable 12,800 11,300 2 What is the insurance expense on the income statement for 2007? 3 What is the interest revenue on the income statement for 2007? 4 What is the salary expense on the income statement for 2007? 5 Chen Company's account balances at December 31, 2007 for Accounts Receivable and the Allowance for Doubtful Accounts are $320,000 debit and $600 credit. Sales during 2007 were $900,000. It is estimated that 1% of sales will be uncollectible. What was the bad debt expense for the year? 6 [This question is adopted from a recent CPA exam] At January 1, 2005, Jamin Co. had a credit balance of $260,000 in its allowance for uncollectible accounts. Based on past experience, 2% of Jamin’s credit sales have been uncollectible. During 2005, Jamin wrote off $325,000 of uncollectible accounts. Credit sales for 2005 were $9,000,000. In its December 31,2005 balance sheet ,what amount should Jamin report as allowance for uncollectible accounts? 7 A fire destroyed the Samson Company's warehouse on March 15, 2007. Only goods with a normal selling price of $12,500 and a net realizable value of $5,000 were saved. The following information is available from the company's records: Inventory in warehouse, 1/1/07: $277,000 Purchases, 1/1/07-3/15/07 $620,000 Purchase returns $8,000 Freight-in $10,000
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Sales, 1/1/07-3/15/07 $851,500 Sales returns $11,500 For the period from 2003 through 2006, Samson had a gross profit of $2,400,000 on net sales of $6,000,000. What is Samson's inventory loss from the fire using the gross profit method.? What would your answer be if you were told that Samson's mark-up on costs was 30% for the period 2003 to 2006 (rather than that the gross profit had been $2,400,000 on net sales of $6,000,000)? 8 Compute the ending inventory for Sapp Company using dollar-value LIFO for using the information below.
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