ACCTG 311 Fall 2023 Sample Final Exam

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Ashworth College *

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311

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Accounting

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Jan 9, 2024

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pdf

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Uploaded by PresidentEnergyAardvark4

University of Alberta School of Business Department of Accounting and Business Analytics Accounting 311, Fall 2023 Sample Final Exam, Instructor: Stringer Last Name First Name I.D. Number

ACCTG 311 Sample Final Exam Page 2 of 18 INSTRUCTIONS - Read these instructions carefully. 1. This is a closed-book exam. You may use a non-programmable calculator . 2. Check that you have a complete exam. 3. Answer questions in the space provided. Please write neatly. 4. Carefully read the question and its requirements in their entirety before answering. 5. Clearly show and label all calculations to facilitate the awarding of marks. Explicitly state any special assumptions that you make in answering a question. 6. Please round all numbers to two (2) decimals , unless otherwise indicated. 7. Common abbreviations and point form are acceptable. 8. You are responsible for ensuring that all pages are handed in. 9. Please stop writing when you are instructed to. Failure to cease writing or discussing your exam with others before handing it in, may result in a zero (0) being awarded for your exam. 10. You will have 2 hours (120 minutes) to write the final. There are a total of 100 marks available. QUESTION MARKS AVAILABLE MARKS AWARDED 1 13 2 7 3 14 4 14 5 10 6 12 7 10 8 15 9 5 TOTAL 100

ACCTG 311 Sample Final Exam Page 3 of 18 Question 1: (13 marks) At December 29, 2022, the balance sheet accounts for McCord Restaurant Ltd. were as follows: Accounts payable $ 10,000 Furniture $ 105,000 Accounts receivable $ 20,000 Inventory $ 15,000 Building $ 100,000 Land $ 200,000 Cash $ 30,000 Notes payable $ 145,000 Common shares $ ? Retained earnings $ 75,000 The following transactions occurred during the next two days: • Shareholders invested an additional $35,000 cash in the business. • The company paid $5,000 of accounts payable. (No payment was made on the notes payable.) Assume that $15,000 of the notes payable will be paid in 2023. Required: Prepare a classified balance sheet (statement of financial position) at December 31, 2022 in good form. There is additional space provided on the next page.

ACCTG 311 Sample Final Exam Page 4 of 18 Question 2: (7 marks) On January 1, 2023, Lannister Corporation issued $800,000, 8%, 10-year bonds at face value. Interest is payable semi-annually on July 1 and January 1. Lannister Corporation has a calendar year end. Required: Prepare all journal entries related to the bond issue for 2023. No journal entry descriptions are required.

ACCTG 311 Sample Final Exam Page 5 of 18 Question 3: (14 marks) On March 31, 2023, Carl’s Candies Inc. (CCI)’s general ledger contained the following credit account balances: Accounts payable $ 38,200 Property tax payable $1,410 Interest payable (Note 1) $690 Payroll remittances payable (Note 2) $5,120 GST payable $6,200 Wages payable $1,800 Unearned revenue $14,000 Long-term debt, 9% interest (Note 1) $92,000 Note 1: The Company makes blended payments of principal and interest on the long-term debt of $3,700 on the 1 st day of every month. Interest to March 31 has been correctly accrued. Note 2: CCI uses one account for all payroll remittances. This account includes CPP payable, EI payable, and Income taxes payable. Required (parts a, b, c, d & e): The following transactions occurred during the month of April 2023. Prepare the entry required on the date noted to record each transaction. If no entry is required please state “no entry”. a) April 1: paid the monthly payment on the long-term debt. b) April 6: sold merchandise for cash of $36,000 plus GST at 5%. The cost of the goods sold was $21,000. CCI uses a periodic system of inventory control.

ACCTG 311 Sample Final Exam Page 6 of 18 Question 3, continued c) April 9: provided services for customers who had made advance payments in March of $4,500. Ignore any GST. d) April 15: made a payment to the Receiver General for all GST and payroll taxes owing from the previous month. e) April 26: paid payroll. This payroll covered time worked from March 26 – April 22 inclusive (28 days). Daily wages are $300. Payroll deductions, as a percentage of total wages, included CPP of 5%, EI of 2% and income tax of 25%. CCI is required to pay CPP equal to the employee amount and EI equal to 1.4 times the employee amount.

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