Sample final exam with solution v F19.pdf - ACC 1100 Sample...

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ACC 1100 Sample Final ExamFall 20191QUESTION ONESelected 20x1 balances of GNT Industries were made available as below:Accumulated other comprehensive income (loss), January 1($12,000)Common shares, January 1, 80,000 issued and outstanding$320,000Cost of goods sold$350,000Cash dividends declared on common shares$72,000Long-term debt$125,000Unrealized gain on FVTOCI investments$16,000Other operating expenses$339,500Preferred shares, January 1, $2, 6,000 issued and outstanding$80,000Retained earnings, January 1$206,000Revenues$840,000On March 31, 20x1, GNT declared and distributed a 3% stock dividend, which resulted in thedistribution of common shares with a market value of $34,320.On September 30, 20x1, GNT spent$2.6per share to repurchase and cancel 8,500 common shares.On December 20, 20x1, GNT declaredand paid a total cash dividends of $50,000.For the year ended December 31, 20x1, GNT reported$650,000 net earnings.Required1.Prepare in good format the Shareholders’ EquitySection of balance sheet for the as at December31, 20x1 for GNT Industries.Ignore section title.Calculate each amount to the nearest cent.2.Determine the respective amount of cash dividends paid to preferred shares and common sharesduring 20x1.
ACC 1100 Sample Final ExamFall 2019QUESTION TWOFor each of the following, circle the letter that corresponds with thebestresponse. Marks are notdeducted for incorrect answers.1.Which of the following scenarios would a company be in a position to recognize revenues at thecurrent time?I.computer consultant delivers software discs to clientII.sale of gift certificatesIII.receipt of cash for magazine subscription
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2.Which of the following revenue recognition methods allows a company to recognize revenuesbefore the contract is completed?I.Percentageofcompletion method.II.Completedcontract methodIII.Recovery method.
3.Graham construction company has just begun construction on a three year project on January 1,2000. The project costs for the next three years are expected to be $14,000,000 in the first year,$22,000,000 in the second year and $24,000,000 in year three. The company has negotiated for asales price of $75,000,000 for the total project, with payments being collected in each of theyears on January 1 of $20,000,000 in year one, $25,000,000 in year two and $30,000,000 in yearthree.Using the completed contract method, determine the amount of revenue that would be recordedin the first year of the project:
ACC 1100 Sample Final ExamFall 20193

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Term
Winter
Professor
Rob Shura
Tags
Depreciation, Generally Accepted Accounting Principles

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