Acc124Exam2Fall2003SOLN(2)

Acc124Exam2Fall2003SOLN(2) - NAME EXAM#2 FALL 2003...

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NAME____________________ EXAM #2 FALL 2003 SOLUTIONS EXAM #2 / FALL 2003 / 1
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NAME____________________ PROBLEM 1 – Investments (20 Points) DATE TRANSACTION DEBIT CREDIT Feb. 14 Investment in AFS Securities $57,310 Cash $57,310 1,000 sh * $55/sh + $2,310 April 30 Investment in AFS Securities $20,900 Cash $20,900 500 sh * $40/sh + $900 July 26 No entry Sept. 28 Cash (100sh@$68 - $340) $6,460 Gain on Sale of AFS Sec. $1,250 Investment in AFS Sec. $5,210 $57,310 / 1,100 sh = $52.10/sh $52.10/sh * 100 sh = $5,210 Oct. 28 Cash $600 Investment Revenue $600 Dec. 31 Securities Fair Value Adjustment $15,000 Unrealized gain on AFS Securities (Equity) $15,000 Fair Value 1000 @ $72 + 500 @ $32 = $88,000 Cost 1000 @ $52.10 + $20,900 = $73,000 EXAM #2 / FALL 2003 / 2
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NAME____________________ PROBLEM 2 – Revenue Recognition (20 Points) Installment Sales Method (10 points) Deferred gross profit = Installment receivable balance * gross profit percentage $24,000 = 24% of 2004 installment receivables $24,000 / 24% = $100,000
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This homework help was uploaded on 04/10/2008 for the course ACT 123 taught by Professor Venuti during the Fall '07 term at Hofstra University.

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Acc124Exam2Fall2003SOLN(2) - NAME EXAM#2 FALL 2003...

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