Suggeted Review Problems 初级会计期末复习模拟题库.docx

1、Suggeted Review Problems 初级会计期末复习模拟题库Suggested Review QuestionsApril 20161.Stevie Ice Cream sells ice cream in bulk to super markets. Stevie agrees to sell ice cream to Ralphs. Stevie receives $35,000 cash from Ralphs but has yet to deliver the ice cream. What should the journal entry be on Stevies

2、books to record this transaction when the cash is received?A.DR: Cash 35,000 CR: Revenue 35,000B.DR: Cash 35,000 CR: Unearned Revenue 35,000C.DR: Unearned Revenue 35,000 CR: Revenue 35,000D. No entryE. None of the above2.On December 15, 2015, USC Sandwich signs a catering contract for an off-campus

3、event that will take place in March 2016. The client pre-pays $20,000 in cash. What is the journal entry USC Sandwich records in December 2015? DR: Cash $20,000 CR: Unearned Revenue $20,0003.Tommy Trojan sells football equipment. USC agrees to purchase $8,000 worth of equipment from Tommy Trojan. Ac

4、cordingly, Tommy Trojan delivers the equipment to USC, which USC agrees to pay at a later date. What should the journal entry be on Tommy Trojans books to record the delivery of goods?A.DR: Accounts Receivable 8,000 CR: Sales Revenue 8,000B.DR: Accounts Receivable 8,000 CR: Unearned Revenue 8,000C.D

5、R: Cash 8,000 CR: Sales Revenue 8,000D.No entry E. None of the above4.Wages earned by the employees of Clock & Co., unpaid and unrecorded as of the year-end amount to $7,200. What is the corresponding adjusting journal entry to account for this at year-end?D.DR: Wages Expense $7,200 CR: Cash $7,200E

6、.DR: Wages Payable $7,200 CR: Wages Expense $7,200F.DR: Wages Expense $7,200 CR: Wages Payable $7,200D. No entry because wages have not been paid yetE. None of the above5.Clock & Co. has a three-year insurance premium which amounts to $3,600. The full balance is paid in cash and debited in full to p

7、repaid insurance on July, 1, 2011. The insurance contract begins coverage on July 1, 2011 and continues for the following three years until June 30, 2014. On December 31, 2011, what should be the adjusting journal entry?A.DR: Insurance Expense 600 CR: Prepaid Insurance 600B.DR: Insurance Expense 1,2

8、00 CR: Prepaid Insurance 1,200C.DR: Prepaid Insurance 600 CR: Insurance Expense 600D.DR: Prepaid Insurance 1,200 CR: Insurance Expense 1,200E. None of the above6.A firm had the following transactions for the month of October 2015: Received $40,000 for services to be provided evenly over the period O

9、ctober 1, 2015 to January 31, 2016. Paid $13,500 in cash expenses for October 2015. Received $13,800 from customers for services provided on account in September 2015. Collected $30,000 in cash for services provided in October 2015. Billed customers $102,000 for services provided on account during O

10、ctober 2015.Based on these transactions, how much accrual basis revenue did the firm earn during the month of October 2015?A.$155,800B.$142,000 = (40000/4) + 30,000+ 102,000 C. $185,800D. $128,500E. None of the above7.On September 30, 2015, ABC Inc. borrowed $200,000. The term of the loan is for 2 y

11、ears with an annual interest rate of 5%. The first interest payment is on March 31, 2016. The principle is due at the end of two years. What amount should be reported for interest expense on the income statement dated December 31, 2015?A.$5,000B.$2,500 = $200,000 x 0.05 x (3/12)C. $10,000D. No entry

12、 because no payment was madeE. None of the above8.USC pharmacy had $375,000 credit sales during the fiscal year 2015. It subsequently collected $245,000 from customers who bought on credit. During 2015, USC pharmacy recognized 24,000 of accounts receivable as uncollectable. At the beginning of 2015,

13、 USC pharmacy had the following balances:Accounts Receivables - $36,000Allowance for Doubtful Accounts $16,000Assume that USC pharmacy estimated that 5% of its credit sales in 2015 will be uncollectible.a)What is the balance of the carrying value of AR at the end of 2015 (net AR)?131,250b)What is th

14、e bad debt expense for 2015? 18,750 9.USC Ice Cream had $540,000 credit sales in the fiscal year 2015. During 2015, USC Ice Cream recognized 45,000 of accounts receivable as uncollectable. At the beginning of 2015, USC Ice Cream had the balances of the Allowance for Doubtful Accounts of 8,000.USC Ic

15、e Cream has the following aging schedule by the end of 2015: Age of Accounts Balance Receivable % Uncollectible0-30 days $150,000 2%31-120 days $100,000 8%Over 120 days $80,000 20%What is the bad debt expense for 2015? 64,00010.Revenues:Accounts Receivable (A) 1,891,466 1,775,274 1,687,380 Revenue (

16、R ) 1,891,466 1,775,274 1,687,380Provision for uncollectibleBad Debt Expense (E) 1,084 3,152 2,555 Allowance for uncoll. Acc. (XA) 1,084 3,152 2,555Write-Off of UncollectibleAllowance for uncoll. Acc. (XA) 6,471 820 8,055 Accounts Receivable (A) 6,471 820 8,055Cash CollectionsCash (A) 1,723,338 1,76

17、1,584 1,606,456 Accounts Receivable (A) 1,723,338 1,761,584 1,606,45611.Best Buy began the month of September 2012 with 175 Beatles play stations on hand at a cost of $34.00 each. On September 15 Best Buy purchased 315 Beatles play stations at $38 each and on September 24 Best Buy purchased 180 Beat

18、les play stations at $42 each. Best Buy sold 420 Beatles play stations on September 30. These play stations sell for $52.00 each.Compute ending inventory balance and the cost of goods sold (COGS) for the month of September using LIFO cost flow assumption. Goods available for sale: 175+315+180 =670Un

19、its sold: 420Units remaining: 670-420=250LIFO implies that newest units are sold first and oldest remain. The beginning inventory balance was 175 units; the first purchase was 315 units. Thus inventory balance in the end of the month is 175*34 + 75*38=8,80075 = (250-175)COGS = 180*42 + 240*38 = 16,6

20、80240 = (420-180)12.13.Assume that USC pharmacy is using a Straight Line deprecation method for the equipment it purchased on July 1st, 2015 (see Question 2). The salvage value of the equipment is $10,000 and the expected useful life is 15 years. What is the journal entry USC pharmacy made to record

21、 depreciation expense in 2015 with respect to this equipment? Account title Debit Credit Depreciation Expense 8,000 Accumulate Depreciation 8,000 Dep Expense = (250,000-10,000)/15*0.5 (for 6 months in 2015) 14.Assume that on January, 1st, 2016 USC pharmacy decided to impair the equipment it purchase

22、d on July 1st, 2015. The impairment value is $34,000. What is the journal entry USC pharmacy made to record the impairment? Account title Debit Credit Impairment Expense 34,000 Accumulate Depreciation (or Equipment) 34,00015.Assume that USC pharmacy purchased additional equipment on January 1st 2015

23、. The value of the equipment is $156,000, salvage value is $16,000, and its useful life is 8 years. For this equipment USC pharmacy uses double declining balance method. What is the journal entry USC pharmacy made to record depreciation expense in 2015 with respect to this equipment? Account title D

24、ebit Credit Depreciation Expense 39,000 Accumulate Depreciation 39,000 Dep Expense = 156,000/8*2 To answer questions 16-19, please use the following information regarding USC pharmacy:The book value of the property, plant and equipment by the end of the fiscal year 2015 (gross PP&E) is $810,000. The

25、 value of accumulated depreciation by the end of the fiscal year 2015 is $208,000. The book value of the property, plant and equipment by the end of the fiscal year 2014 (gross PP&E) is $710,000. The value of accumulated depreciation by the end of the fiscal year 2014 is $190,000. During the fiscal

26、year 2015, USC pharmacy:a.Purchased new PP&E at the amount of $160,000. b.Recorded an impairment of PP&E for $15,000 (the firm uses the accumulated depreciation account to record impairments).c.Recorded depreciation expense of $16,000. d.Sold an equipment for $36,000. 16.What is the book value (gros

27、s) of the equipment sold during the year? P&EBB 710,000Acquisitions 160,000 60,000 Sale EB 810,00017.What is the accumulated depreciation related to the equipment sold during the year? Accumulated Depreciation BB 190,000 Depreciation 16,000 Impairment 15,000 Sale 13,000 EB 208,00018.Did USC pharmacy

28、 recognize gain or loss on the sale of equipment? What is the amount of loss or gain? Net book value of the equipment sold = 60,000 13,000 = 47,000 Sale price = 36,000. Loss on the sale = 47,000-36,000 = 11,00019.What is the journal entry USC pharmacy made to record the sale of the equipment? Cash 3

29、6,000Accumulated depreciation 13,000 Loss 11,000 P&E 60,00020.21.What is the correct estimation of the coupon payment for a bond?A.Face Value x Market Rate of InterestB.Face Value x Coupon RateC.Book Value x Coupon RateD.Book Value x Market Rate of InterestE. None of the above22.What is the correct

30、estimation of the interest expense for a bond?A.Face Value x Market Rate of InterestB.Face Value x Coupon RateC.Book Value x Coupon RateD.Book Value x Market Rate of InterestE. None of the aboveTo answer questions 23-25, please use the following information regarding the bond issuance by USC pharmac

31、y:On January 2, 2015, USC pharmacy issued a 5-year bond with a par value of $920,000. The bond pays interest semiannually on June 30th and December 31st; the annual coupon rate is 9 percent. The bond was priced to yield 12 percent compounded semiannually (i.e., this is the market interest rate on the date of a bonds issuance). 23.Compute the issue price of the bond. Was the bond issued at premium or discount? Number of coupon payments = 10 (2 x 5 years)Mark