sample exam 1 solutions_2013-2014

8/12/2019 Sample Exam 1 Solutions_2013-2014

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Answer Key

Sample Exam 1

Dr. Goh Beng Wee

Question 1 (10 mars!

SMU Foods

Bank Reconciliation

July 31, 2008

BANK:

Balance, July 31 !,000

Add: "e#osit in t$ansit 2,18%

11,18%&ess: 'utstandin( c)ecks:

*)eck No+

120 8%0

121 2,%00

122 2,3-- .%,/1-

Adusted ank alance, July 31 %,-!

B''KS:

Balance, July 31 ,022

Add: F4 collection o5 $ent /2%Bank collection o5 di6idend $e6enue 1,200

Book e$$o$710 c)eck

$eco$ded as 10 2/0 2,1!%

-,21/

&ess: NSF c)eck %

F4 #ayent o5 insu$ance 2/%

Se$6ice c)a$(e 28 ./8

Adusted ook alance, July 31 %,-!

"A4 A**'UN4S AN" 9&ANA4;'NS'S4+RF+ "B;4 *R";4

May 31 *as) /2%

Rent Re6enue /2%

Rent Re6enue y F4 de#osit

31 *as) 1200

"i6idend Re6enue 1200

"i6idend $e6enue collected y ank+

31 *as) 2/0

Accounts ayale < Bill *o#any 2/0

*o$$ection o5 c)eck 11!

31 Accounts Recei6ale < 9=> *o#any %

*as) %

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NSF c)ecks+

31 ;nsu$ance ?#ense 2/%

*as) 2/%

F4 #ayent o5 insu$ance e?#ense+

31 Miscellaneous ?#ense 28*as) 28

Bank se$6ice c)a$(e+

2



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Question " (10 mars!

@2 a$ks

1 1-0 units 10+%0 1,-80

100 units 11+00 1,100

200 units 11+%0 2,300

%,080

@3 a$ks

2 *alculation o5 C;n6ento$y loss on 6aluationD: .2 a$ks

;n6ento$y loss on 6aluation

E .200 units ? .11+%0 10+/% G .100 units ? .11+00 10+/% E 1/%

Jou$nal ent$y: .1 a$k

;n6ento$y loss on 6aluation1 1/%

;n6ento$y2 1/%

@% a$ks

3 *ost o5 (ood sold unde$ F;F' E 20 units 10+%0 E 2,%20

;n6ento$y loss on 6aluation unde$ F;F' E 1/% 5$o ao6e

4otal in6ento$y e?#ense E 2,%20 G 1/% E 2,-!% .2 a$ks

*ost o5 (oods sold unde$ &;F' E 200 units 11+%0 G 0 units 11+00 E 2,/0

;n6ento$y loss on 6aluation unde$ &;F' E -0 units ? .11+00 10+/% E 1%4otal in6ento$y e?#ense E 2,/0 G 1% E 2,/%% .2 a$ks

4)e$e5o$e ana(eent Hould #$e5e$ F;F'+ .1 a$kI 0 a$ks i5 no calculations

1 Alte$nati6es: C&oss on H$itedoHn o5 in6ento$yD o$ C*ost o5 (oods soldD2 Alte$nati6e: C$o6ision 5o$ in6ento$y lossD

3



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Question # (10 mars!

Solutions:1 1-0,000 < 10,000 E 1%0,000 % E 30,000 #e$ yea$ Book 6alue as at 1 July 200 E 1-0,000 < ?30,000 E 1-0,000 < 120,000 E $0%000

2 NeH de#$eciation 5$o 1 July 200 E 0,000 .8 E 10,000Book 6alue as at 31 "ec 200% E 1-0,000 < $x#0%000 & 1.'x10%000 E 1-0,000 < 1#'%000 E 2%,000

3 "R *as) 30,000 "R Acc "e#n 13%,000

*R ui#ent 1-0,000*R Lain on Sale %,000

"R &oss o5 "is#osal 2-,000 "R Acc "e#n 13%,000

*R *as) 1,000*R ui#ent 1-0,000

Question $ (10 mars!

@2 a$ks #e$ ou$nal ent$y, total - a$ks

1a *as) 8,/%3

"iscount on Bonds ayale 1%,2/

Bond ayale 100,000

1 ;nte$est ?#ense 3,3!0

"iscount on Bond ayale 3!0

*as) 3,000

1c ;nte$est ?#ense 3,0-

"iscount on Bond ayale 0-

*as) 3,000

@2 a$ks

2 ;nte$est e?#ense:June 30, 209% 3,3!0

"ecee$ 31, 209% 3,0-

-,/!-

@2 a$ks

3 Balance s)eet #$esentation:

Bond ayale 100,000

"iscount on Bond ayale 1,%1

8%,%!



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Question ' (1 mars!

"$ *$ a ;n6ento$y &oss *ost o5 (oods sold 1%,000 ;n6ento$y 1%,000

Sala$y ?#ense 1,%0- Sala$y ayale 1,%0-

2%10 ? 3% E 1%0-

c '55ice ui#ent -,000 Lene$al o55ice e?#ense -,000

"e#$eciation e?#ense %,00 Accuulated de#$eciation 5o$ '55ice

eui#ent

%,00

.%-,000 < 2,00010 E %00

d "e#$eciation e?#ense 13,800 Accuulated "e#$eciation 5o$ "eonst$ation

ui#ent13,800

-,000 ? 2% ? !12 E 13,800

e ;nte$est e?#ense %00

;nte$est #ayale %00

%0,000 ? 12 ? 112 E %00

5 Oa$$anty e?#ense 10,%%8 stiated Ha$$anty #ayale 10,%%8

( Accounts #ayale 10,000 *as) 10,000

) Rent e?#ense -,000

$e#aid $ent -,000

.1-,000 2 ? !12 E -,000

%



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i AlloHance 5o$ uncollectile accounts /,/00 Accounts $ecei6ale /,/00

Uncollectile account e?#ense !,!00 AlloHance 5o$ uncollectile accounts !,!00

"esi$ed endin( alance in AlloHance ac E 100,000 ? 0+% G 1%0,000 ? 1G 100,000 ? G %0,000 ? 10 E 11,000Uncollectile e?#ense E 11,000 G //00 < 8800 E !!00

+ Retained ea$nin(s 12,%00 '$dina$y S)a$e "i6idend #ayale 10,000 $e5e$ence S)a$e "i6idend #ayale 2,%00100,000 ? 0+1 % ? %0,000 E 12%00

ac) ou$nal ent$y 2 a$ks, total E 12 ? 1+% E 18 a$ks

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!,%00

Add: "e#$eciation e?#ense 3,280 2

atent ao$tiPation e?#ense 230 1

&oss on sale o5 Kui#ent 2%0 1

"ec$ease in accounts $ecei6ale .net 1,3!0 1J2

"ec$ease in in6ento$ies 10 1J2

;nc$ease in incoe ta?es #ayale 30 1J2

;nc$ease in Ha(e #ayale 20 1J2

&ess: Lain on Sale o5 &and .80 1

Lain on Sale o5 atent .-001

;nc$ease in #$e#aid ites .0 1J2

"ec$ease in accounts #ayale .2-0 1J2

13,3/0

.20,2-0 1

3,!20 1J2

1,2%0 1J21,!20 1J2

.13,1/0

3,2301J2

.,130 2

.!00

./00

,1003,00

1

*as) FloHs 5$o Financin( Acti6ities

Net inc$ease in cas)

*as), "ec 31, 200-*as), "ecee$ 31, 200/

Emily )n*.

Adustents 5o$ di55e$ences etHeen net incoe and

Statement o+ ,ash -low

-or ear En/e/ De*emer #1 "00

Net *as) FloHs 5$o '#e$atin( Acti6ities

Net incoe

cas) 5loHs 5$o o#e$atin( acti6ities

Net cas) #$o6ided y o#e$atin( acti6ities

*as) FloHs 5$o ;n6estin( Acti6ities

Su((ested

a$ks

$oceeds 5$o sale o5 eKui#ent $oceeds 5$o sale o5 #atent

Net cas) used 5o$ in6estin( acti6ities

ayent 5o$ #u$c)ase o5 uildin(

$oceeds 5$o sale o5 land

$oceeds 5$o issuance o5 coon stock

ayent o5 di6idends

Net cas) #$o6ided y 5inancin( acti6ities

total a$ksE

2ote3 the mar allo*ate/ to /epre*iation expense an/ payment o+ /i4i/en/ shoul/

e 1 mar ea*h instea/ o+ "% hen*e maing the total mars 1" instea/ o+ 1$.

/



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5A67 B

M*Q

Q1 " Q1- A

Q2 B Q1/ A

Q3 " Q18 *

Q " Q1! *

Q% A Q20 *

Q- * Q21 B

Q/ * Q22 "

Q8 " Q23 *

Q! * Q2 "

Q10 " Q2% "

Q11 " Q2- B

Q12 " Q2/ *

Q13 * Q28 *

Q1 B Q2! A

Q1% A Q30 B

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sample exam 1 solutions_2013-2014

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