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Unformatted text preview: 70-122 Fall 2007 Name_______________Introduction to Accounting Section_____________Professor Nan Final Exam(Version A Solution)Instructions: This is a close-book, close-notes exam. You are allowed to use a non-programming calculator. There are two required parts with totally 100 points (Part I: 30 points, and Part II: 70 points). Partial credits will be awarded in Part II. Make sure your name and section are legible and your answer is neatly presented.Good luck!Part I: Multiple choice questions. Please circle the right answer (30 points, 3 points each)(3 in B)1. Carlos Construction Co. leases an equipment for 3 years. The lease payment for each year is $10,000, and the useful life of that equipment is 4 years. The interest rate is 10%. What is the interest expense for the first year for this equipment?A. $2,107.73 B. $2,486.85C.$2,263.89D. No interest expense on the equipment(7 in B)2. BlueHill Issued 50,000 shares of common stock on July 1, 2006. On January 12, 2007 BlueHill purchased 7,000 shares back and put them in treasury. On May 1, BlueHill resold 2,000 shares of treasury stock. On October 1, 2007, BlueHill issued a 3-for-1 split on all its outstanding shares. On December 1 2007, BlueHill declared a 10% stock dividend. What is the number of common shares outstanding on December 31, 2007?A. 135,000 B. 141,900C. 148,500D. 165,000(6 in B)3. ClearWater Co. had sales of $9,000,000 in the year 2005, and bad debts were estimated to be 1.5% of sales. During the year the total write off of accounts receivables was $10,000. What should be the bad debt expense for ClearWater in 2005, assuming income statement method?...
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This note was uploaded on 04/09/2008 for the course ACC 70122 taught by Professor Nam during the Fall '07 term at Carnegie Mellon.
- Fall '07