Spring 2011 Simulations Test I

Spring 2011 Simulations Test I - Spring 2011, Simulations...

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Spring 2011, Simulations Test I Valrie Chambers, Accounting 3321 Using Excel and/or Word, submit the answers to the following questions, showing all work: 1. This year Ann has the following stock transactions. What amount is included in her gross income if Ann paid a $200 selling commission for each sale? 2. Henry works part-time on auto repairs and restoration projects. This year Henry was paid $5,400 for repairs to his neighbor's auto. Henry's neighbor promised to pay Henry another $2,200 in cash next year. Henry's brother borrowed $4,100 in cash in December of this year and gave him a negotiable promissory note for $4,300 due in three months with interest. Henry sold the note in January for $3,500. Finally, Henry restored a car for the football coach. The coach paid him with a pass to next year's football games. The pass is worth $750. Compute Henry's gross income assuming that he uses the cash basis of accounting. 3. Wendell is an executive with CFO Tires. At the beginning of this year the corporation loaned
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This note was uploaded on 03/27/2012 for the course ACCT 3321 taught by Professor Chambers during the Spring '09 term at Texas A&M University, Corpus Christi.

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