Test #1 Practice 3310
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1 Name: ______________________________________________ Student Number: ______________________________________ Date: _______________________________________________ ACCT 3310 Intermediate Financial Accounting I KWANTLEN POLYTECHNIC UNIVERSITY Practice Test #1 Question Topic Marks Minutes Question # 1 Adjusting Entries 20 marks 35 minutes Question # 2 Income Statement 15 marks 30 minutes Question # 3 Changes in Equity 5 marks 10 minutes Question # 4 SFP 20 marks 35 minutes 5 Bonus Marks Question # 5 Multiple Choice 20 marks 20 minutes TOTAL 80 marks 120 minutes NOTE – To save time you may use short forms for the Account Names in all questions including financial statements. Proper Titles and Headings and Subtotals are required.
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3 Question # 1 Adjusting Entries 20 marks 35 minutes The unadjusted trial balance of Isabel Ltd. at December 31, 2017 is as follows: Debit Credit Cash $ 10,850 Accounts receivable 56,500 Allowance for doubtful accounts $ 750 FV-NI investments 8,600 Inventory 58,000 Prepaid insurance 2,940 Prepaid rent 13,200 FV-OCI investments 14,000 Bond investment at amortized cost 18,000 Land 10,000 Equipment 104,000 Accumulated depreciation 18,000 Accounts payable 9,310 Bonds payable 50,000 Common shares 100,000 Retained earnings 103,260 Sales revenue 223,310 Rent revenue 10,200 Purchases 170,000 Purchase discounts 2,400 Freight-out 9,000 Freight-in 3,500
4 Debit Credit Salaries and wages expense 31,000 Interest expense 6,750 Miscellaneous expense 890 $517,230 $517,230 Additional information: 1. On November 1, 2017, Isabel received $10,200 rent from its lessee for a 12-month lease beginning on that date. This was credited to Rent Revenue. 2. Isabel estimates that 7% of the Accounts Receivable balances on December 31, 2017, will be uncollectible. On December 28, 2017, the bookkeeper incorrectly credited Sales Revenue for a receipt of $1,000 on account. This error had not yet been corrected on December 31. 3. After a physical count, inventory on hand at December 31, 2017, was $77,000. 4. Prepaid insurance contains the premium costs of two policies: Policy A, cost of $1,320, two-year term, taken out on April 1, 2017; Policy B, cost of $1,620, three-year term, taken out on September 1, 2017. 5. The regular rate of depreciation is 10% of cost per year. Acquisitions and retirements during a year are depreciated at half this rate. There were no retirements during the year. On December 31, 2016, the balance of Equipment was $90,000. 6. On April 1, 2017, Isabel issued at par value 50 $1,000, 11% bonds maturing on April 1, 2020. Interest is paid on April 1 and October 1. 7. On August 1, 2017, Isabel purchased at par value 18 $1,000, 12% Legume Inc. bonds, maturing on July 31, 2019. Interest is paid on July 31 and January 31. 8. On May 30, 2017, Isabel rented a warehouse for $1,100 per month and debited Prepaid Rent for an advance payment of $13,200. 9. Isabel’s FV-NI investments consist of shares with total market value of $9,400 as at December 31, 2017. 10. The FV-OCI investment is an investment of 500 shares in Hop Inc., with current market value of $25 per share as at December 31, 2017. Instructions (a) Prepare the year-end adjusting and correcting entries for December 31, 2017, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account. (b) Indicate which of the adjusting entries could be reversed.
5 Question # 2 Income Statement 15 marks 30 minutes Frederick Corp. is a public company and has 100,000 common shares outstanding. In 2017, the company reported income from continuing operations before income tax of $2,710,000. Additional transactions not considered in the $2,710,000 are as follows: 1. In 2017, Frederick Corp. sold equipment for $140,000. The machine had originally cost $80,000 and had accumulated depreciation to date of $36,000. The gain or loss is considered ordinary. 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $290,000 before tax. Assume that this transaction meets the criteria for discontinued operations. The loss on operation of the discontinued subsidiary was $90,000 before tax. The loss from disposal of the subsidiary was $200,000 before tax. 3. The sum of $520,000 was received as a result of a lawsuit for a breached 2014 contract. Before the decision, legal counsel was uncertain about the outcome of the suit and had not established a receivable. 4. In 2017, the company reviewed its accounts receivable and determined that $54,000 of accounts receivable that had been carried for years appeared unlikely to be collected. No allowance for doubtful accounts was previously set up. 5. An internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax) in a prior period. The amount was charged against retained earnings. Instructions Analyze the above information and prepare an income statement for the year 2017, starting with income from continuing operations before income tax. Calculate earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 25% on all items, unless otherwise indicated.) NOTE – To save time you may use short forms for the Account Names in all questions including financial statements. Proper Titles and Headings and Subtotals are required.
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7.
Please show all work and use answer choices included.
_____________________________________________________________________________________________________
A promissory note calling for payments of $1,100 at the end of each year for the next 13 years is offered for sale for $11,000.
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A. 2%
B. 4%
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10/1
10/5
10/10
10/12
10/15
10/22
A.
UTS
Balance: 2,000 uts. @ $6.00/ut
Purchased: 5,000 uts. @ $6.35/ut
Purchased: 8,000 uts. @ $6.50/ut
Sold 12,000 uts. for $10.00 ea.
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Sold 5,000 uts. for $10.00 ea.
I
Complete the perpetual inventory record (provided) for
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COST TOT
UTS
COST
TOT
UTS
COST
TOT
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Inventories (LO 3.2)
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Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of 10,000 boxes costing $1.50 per
box ($15,000), and he made the following purchases of candy during the year:
March 11
August 15
November 20
Ending inventory.
Cost of goods sold
Feedback
At the end of
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Table of Contents > Week 9: Operational and legal Considerations > Lecture Notes > 09 Operational and Legal Considerations
09 Operational and Legal Considerations -
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Calculating Capacity
• How many machines do you need?
• You expect your sales to be
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• How large is your plant?
per month
• How many workers do you need?
The machine:
• How much is the investment?
Capacity: 100 kgs per hour
• What are the operating costs?
Requires 2 people to operate it
Takes 8 ft x 40 ft space
• Cost per machine $15,000
Energy and maintenance: $5 per hour
• Cost of material and packaging:
$0.12 per bar
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(And click on download data)
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(January 2020 forecast) in China and Other Emerging Economies in Asia other than
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36- Which of the following is not true for dealer's market?
They give bid and ask prices
2005
Dealers can earn commission income
They are usually big scale brokerage houses
They are market makers
d)
e)
They are specialized in specific stocks
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Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances).
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Balance
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G2
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May 31
G2
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M. Muncel, Withdrawals
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Insurance Expense
Balance
Date
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Debit
Account Number 637
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May 31
G2
23,000
May 31
G2
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Services Revenue
Date
PR
Debit
Account Number 403
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Rent Expense
Balance
Date
PR
Debit
Account Number 640
Credit
May 31
G2
Depreciation Expense
Date
PR
Debit
76,000
Account Number 603
Credit
May 31
Income Summary
62
Balance
8,400
May 31
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Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets,
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Account Title
1. Long-term investment in stock
2. Depreciation expense-Building
3. Prepaid rent (2 months of rent)
4. Interest receivable
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5. Taxes payable (due in 5 weeks)
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Account Title
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What form is required?Explain why this is the correct form?
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The following information is available for Brownstone Products Company for the month of July:
Master
Actual
Budget
Units
3,500
4,000
Sales revenue
$ 54,300
$ 60,000
Variable manufacturing costs
10,000
16,000
Fixed manufacturing costs
13,000
14,000
Variable selling and administrative expenses
6,500
8,000
Fixed selling and administrative expenses
8,000
9,100
Required:
1. What was the master budget variance for July? Was this variance favorable or unfavorable?
es
2. Compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution margin and in
terms of operating income.
4. Prepare pro-forma budgets for activities within its relevant range of…
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Please make a detailed explanation on how to get the speficific items : 1,3,5,7,8,9,11,14 and 16
Format:
Given :________________
Formula:________________
Solution:________________
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[The following information applies to the questions displayed below.]
Altira Corporation provides the following information related to its merchandise inventory during the month of August
2021:
Aug.1 Inventory on hand–2,000 units; cost $5.30 each.
8 Purchased 8,000 units for $5.50 each.
14 Sold 6,000 units for $12.00 each.
18 Purchased 6,000 units for $5.60 each.
25 Sold 7,000 units for $11.00 each.
28 Purchased 4,000 units for $5.80 each.
31 Inventory on hand-7,000 units.
Required:
1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021,
balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method.
Cost of Goods…
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18. Using the following information, complete the income statement, statement of retained earnings, and balance sheet for RN Painting for the month of March 2018. The business
began operations on March 1, 2018.
E (Click the icon to view the account balances.)
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- How would you interpret this formula: 'Income Statement' ! C5 Ocell C5 from the Income Statement named cell in the current work sheet O cell C5 from the Income Statement tab in the work book O cell C5 from the named range of Income Statement in the file name cell from the file named Income Statement that is copied to C5arrow_forwardMy first question is...are my general journal entries correct? Second question is...What number would be the warrant revenue for year 1? Please see attachments, Thank you!arrow_forwardSelect the letter of the item below that best matches the definitions that follow. a. Data Files CD ________ b. Lists ________ c. Forms ________ d. Registers ________ e. Reports and graphs ________ f. Restoring a backup ________ g. Icon bar ________ h. Home page ________ i. Backing up a file ________ 1. One click access to QuickBooks Accountant Centers and Home page. 2. The process of rebuilding a backup file to a full QuickBooks Accountant file ready for additional input. 3. Electronic representations of paper documents used to record business activities such as customer invoices, vendor bills, and checks. 4. A big-picture approach of how your essential business tasks fit together organized by logical groups such as customers, vendors, and employees. 5. Groups of names such as customers, vendors, employees, items, and accounts. 6. Contains backups of all the practice files needed for chapter work and completion of assignments. 7. The process of creating a copy of a…arrow_forward
- 1.A(n) ______________________________ is the attribute whose value is unique for every entity that will appear in the database. 2.______________________________ is a measure of the highest level of participation that one entity can have in another entity. 3.In set theory, a two-dimensional collection of information is called a(n) ______________________________. 4.A(n) ______________________________ is an information system that assists managers with unstructured decisions by retrieving and analyzing data for purposes of identifying and generating useful information. 5.A(n) ______________________________ is mainly about collecting and presenting information and less about doing additional processing and calculations. 6.A(n) ______________________________ is a computer-based system that supports collaborative intellectual work such as idea generation, elaboration, analysis, synthesis, information sharing, and decision making. 7.A computer's ability to imitate human decision…arrow_forward3. Itco uses a perpetual inventory system. During the month of October the following transactions took place: 10/1 10/5 10/10 10/12 10/15 10/22 A. UTS Balance: 2,000 uts. @ $6.00/ut Purchased: 5,000 uts. @ $6.35/ut Purchased: 8,000 uts. @ $6.50/ut Sold 12,000 uts. for $10.00 ea. Purchased: 4,000 uts. @ $6.75/ut Sold 5,000 uts. for $10.00 ea. I Complete the perpetual inventory record (provided) for the above transactions using the FIFO valuation system. COST TOT UTS COST TOT UTS COST TOTarrow_forwardAll entries are posted from journal to _______.arrow_forward
- 1. MC.14.81.ALGO 2. MC.14.96.ALGO 3. MC.11.69.ALGO 4. MC.11.112.ALGO 5. MC.15.86.ALGO 6. MC.15.125 7. MC.16.71.ALGO 8. MC.16.86.ALGO 9. MC.17.87.ALGO 10. MC.17.129 11. MC.18.58.ALGO 12. MC.18.45.ALGO 13. MC.20.81.ALGO Mocha Company manufactures a single product by a continuous process, involving three production departments. The records. indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. Department 2 has transferred-in costs of $390,000 for the current period. In addition, work in process at the beginning of the period for Department 2 totaled $75,000, and work in process at the end of the period totaled $90,000. The journal entry to record the flow of costs into Department 3 during the period is Oa. Work in Process-Department 3…arrow_forwarddsquiere X Brainly.com X Membersh X Q suffolk hon X Onelogin x Student el x Q Ross McM x b Answered: xb Home | bar xb Home | ba xa Warren Ca. X https://ims.labyrinthelab.com/user_hw_assigmnent questions.php?q=SnhCbUpldHdwYzZES3NrWklmVHBtSi95cFPCRkSXWnJYOVYOеESuSzZuZmVML2FuMjBxZnc4UEtrcU A PSB 3-9 Calculate Federal (Percentage Method, Pre-2020 Form W-4), State, and Local Income Tax Withholding For each employee listed, use the percentage method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to Publication 15-T. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1: Armand Giroux (single; O federal withholding…arrow_forwardAttributes about an entity- Select one O a. Database ОБ. Record О с. Field O d. Filearrow_forward
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ISBN:9781337280570
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Publisher:South-Western College Pub