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(ACCT102)[2011](s)midterm~cmwongaa^_22766.pdf
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Question 1. Multiple Choices (22 marks, suggested time 20 minutes)
Choose the best answer for each question. Enter your answers in capital letters.
1.
B
12.
E
2.
D
13.
B
3.
C
14.
C
4.
A
15.
A
5.
B
16.
A
6.
A
17.
B
7.
A
18.
A
8.
E
19.
B
9.
C
20.
E
10.
E
21.
A
11.
A
22.
A
Question 2. Accounting Cycle (20 marks, suggested time 15 minutes)
1.
Debit
Credit
2010
Delivery fees revenue
85,000
Dec. 31
Rent expense
14,500
Wages expense
32,000
Depreciation expense-Equipment
4,000
Interest expense
2,900
Dividend
15,000
Retained earnings
16,600
2.
Focus Package Delivery
Balance Sheet
December 31, 2010
Assets
Current assets
Cash
$38,200
Accounts receivable
34,200
Prepaid expense
16,000
$88,400
Long-term assets
Equipment
55,000
Accumulated depreciation-- Equipment
(11,080)
43,920
Total assets
$132,320
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$16,200
Wages payable
4,120
$20,320
Long-term liabilities
Long-term notes payable
20,000
Total liability
$40,320
Common stock
$30,000
Retained earnings
62,000
Total stockholders' equity
92,000
Total liabilities and stockholders' equity
$132,320
Question 3. Inventory (26 marks, suggested time 30 minutes)
1. 1/10: 600. 1/25: 520.
2. 1/10: 680. 1/25: 650.
3. 1/10: 634. 1/25: 585.
*$1,480/140 units = $10.57/unit **$1,756/150 units = $11.71/unit
4. FIFO
The unit cost of each purchase is increasing.
5.
Product
Units on Hand
Unit Cost
Market Value
LCM
(Unit cost * Unites on hand)
A
10
$5
$6
5 x 10
B
50
8
7
7 x 50
C
35
10
11
10 x 35
Total
$750
6.
Debit
Credit
Dec. 31
Cost of Goods Sold
50
Inventory
50
7.
Year 1:
240,000 C 15,000 = $225,000
Year 2:
270,000 + 21,000 = $291,000
BI + PURCHASE - EI = COGS NI
Year 1 0 + 0 - (-15,000) +15,000 -15,000
Year 2 -15,000 + 0 - (+6,000) -21,000 +21,000
Question 4. Accounts Receivables (28 marks, suggested time 30 minutes)
1.
$96,000 x .010
=
$ 960
64,000 x .035
=
2,240
16,000 x .120
=