高数期末Word下载.docx

1、Problem A - I Multiple Choice （20 points）Circle the one best answer. 1. A private organization which establishes broad accounting principles as well as specific accounting rules is the a. Securities and Exchange Commission. b. Internal Revenue Service. c. Financial Accounting Standards Board. d. Cor

2、porate Board of Directors. 2. An increase in an expense a. increases revenues. b. increases assets. c. decreases liabilities. d. decreases stockholdersequity. 3. A company business with total stockholders equity of $85,000 paid a $10,000 business debt. As a result of this transaction, total stockhol

3、ders equity a. did not change. b. increased by $10,000. c. decreased by $10,000. d. increased to $95,000. 4. The right side of an account is always a. the debit side. b. the credit side. c. the balance of that account. d. carried forward to the next accounting period. 5. Posting is the process of a.

4、 preparing a chart of accounts. b. adding a column of figures. c. transferring journal entries to ledger accounts. d. recording entries in a journal. 6. The purpose of recording depreciation on productive assets is to a. reflect the decline in the market value of the assets each period. b. reduce in

5、come when the company has an exceptionally profitable year. c. be in conformity with the revenue recognition principle. d. allocate the original cost of productive assets to expense over its useful life. 7. Logan Company debited Prepaid Insurance for $840 on July 1, 2008 for a one-year fire insuranc

6、e policy. If the company prepares monthly financial statements, failure to make an adjusting entry on July 31 for the amount of insurance that has expired would cause a. assets to be overstated by $840 and expenses to be understated by $840. b. expenses to be overstated by $70 and assets to be under

7、stated by $70. c. assets to be overstated by $70 and expenses to be understated by $70. d. expenses to be overstated by $840 and assets to be understated by $840. 8. Which one of the following accounts is not closed at the end of an accounting period? a. Retained Earnings account b. Dividends accoun

8、t c. Service Revenue account d. Insurance Expense account 9. The second set of debit and credit columns on a worksheet is generally used for a. closing entries. b. the trial balance. c. the balance sheet figures. d. the adjustments. 10. Gross profit is calculated by subtracting a. total expenses fro

9、m total revenues. b. cost of goods sold from net sales. c. cost of goods sold from total revenues. d. operating expenses from net sales.Problem B - II Computation of Net Purchases/Cost of Goods Sold （10 points）Barkley Company uses a periodic inventory system and has the following account balances: B

10、eginning Inventory $50,000, Ending Inventory $80,000, Freight-in $12,000, Purchases $300,000, Purchase Returns and Allowances $8,000, and Purchase Discounts $6,000.InstructionsCompute each of the following:（a） Net purchases（b） Cost of goods available for sale（c） Cost of goods sold Problem B - III In

11、ternal Control over Cash Receipts and Disbursements （10 points）Six internal control principles related to cash transactions are discussed in the textbook. These principles, with code letters, are:Code Internal Control Principle A Documentation procedures B Establishment of responsibility C Independe

12、nt internal verification D Physical, mechanical, and electronic controls E Segregation of duties F Other controlsInstructions: Match the above principles to the following applications related to cash receipts and cash disbursements by placing the code in the space provided. Each code letter can be u

13、sed once, more than once, or not at all._ 1. Cash is received by one employee and recorded in the accounting records by another._ 2. Daily cash counts should be made by cashier department supervisors._ 3. Payments are approved by one employee while the disbursement is made by another._ 4. All checks

14、 are pre-numbered._ 5. Only the treasurer is authorized to sign checks. _ 6. Cash register tapes are used for over-the-counter receipts._ 7. Each check is compared with an approved invoice before being issued._ 8. Employee hours are tracked using a time clock._ 9. All personnel who handle cash shoul

15、d be bonded._ 10. Inventory is stored in a locked warehouse with restricted access.Problem B - IV Bank Reconciliation （15 points）Unruh Company received a bank statement for the month of October 2008, which showed a balance per bank of $3,600. The companys Cash account in the general ledger showed a

16、balance of $1,204 at October 31. Other information that may be relevant in preparing a bank reconciliation for October follows:1. The bank returned an NSF check from a customer for $480.2. The company recorded cash receipts of $340 on October 31 but this amount does not appear on the bank statement.

17、3. A check correctly written by Unruh and paid by the bank for $1,740 was incorrectly recorded in the cash payments journal for $1,470. The check was a payment on account.4. Checks which were written in September but still had not been presented to the bank for payment at October 31 amounted to $780

18、.5. The bank included a credit memorandum for $1,526, which represents a collection of a customers note by the bank for the company; principal amount of the note was $1,400 and the remainder was interest.6. The bank included a $20 debit memorandum for service charges for the month of October.7. Chec

19、ks written in October which have not been paid by the bank at October 31 amounted to $1,200.1. Prepare a bank reconciliation for Unruh Company for October which reconciles the balance per books and the balance per bank to their adjusted correct balances.2. Prepare the necessary adjusting entries for

20、 Unruh Company at October 31, 2008.Problem B - V Periodic Inventories （12 points）Carson Company uses the periodic inventory method and had the following inventory information available for the month of November.Date Transaction Units Unit Cost11/1 Beginning inventory 400 $311/5 Purchase No. 1 500 $5

21、11/12 Sale No. 1 40011/18 Purchase No. 2 500 $611/25 Sale No. 2 90011/30 Purchase No. 3 600 $7A physical count of units on November 30 revealed that 700 units were on hand.Answer the following independent questions and show computations supporting your answers.1. Assume that the company uses the ave

22、rage cost method. What is the dollar value of the ending inventory on November 30?2. Assume that the company uses the LIFO inventory method. What is the dollar value of the cost of goods sold during November?3. Assume that the company uses the FIFO inventory method. The dollar value of the ending in

23、ventory on November 30 is:Problem B - VI Accounts Receivable （10 points）Dolan Company uses the allowance method to account for uncollectible accounts. Prepare the appropriate journal entries to record the following transactions during 2008. You may omit journal entry explanations.June 20 The account

24、 of Ken Watts for $1,000 was deemed to be uncollectible and is written off as a bad debt.Oct. 14 Received a check for $1,000 from Ken Watts, whose account had previously been written off as uncollectible.Dec. 31 Use the following information for year-end adjusting entries:The balance of Accounts Rec

25、eivable and Allowance for Doubtful Accounts at year end are $131,000 and $2,900, respectively. It is estimated that bad debts will be 4% of accounts receivable.Problem B - VII Correcting Entries （9 points）An inexperienced accountant for Elston Company made the following incorrect entries.1. Notes Re

26、ceivable 21,600 Accounts Receivable 20,000 Interest Revenue 1,600 Facts: Accepted a $20,000, 1 year, 8% note from Joe Wood Company for balance due.2. Accounts Receivable 25,000 Sales 25,000 Accepted Visa credit card for $25,000; the service fee is 2%.3. Allowance for Doubtful Accounts 12,300 Notes R

27、eceivable 12,000 Interest Revenue 300Facts: M. Adler dishonored a $12,000, 10%, 3-month note because of bankruptcy. Adler is expected to pay. No interest had been accrued on the note.Prepare entries to correct Elston Companys books based on the facts given. Do not reverse out incorrect entries that

28、were recorded above, but rather correct the account balances so that they reflect the proper amounts.Problem B - VIII Notes Receivable （14 points）Prepare journal entries to record the following events:Jul. 1 Klein Company accepted an 8%, 3-month, $30,000 note dated July 1 from Greer Company for account balance due.Jul. 31 Klein accrued interest on the above note for the month of July.Oct. 1 Collected Greer Company note in full. Assume interest was correctly accrued on August 31 and September 30.Oct. 1 Assume instead that the note is dishonored and that no interest has