post acc111 final exam all parts [ not including answer for part 3 qustion 3 and 5 ]

• Question 1

3 out of 3 points

The accounting equation is:

• Question 2

3 out of 3 points

The Statement of Retained earnings shows:

• Question 3

3 out of 3 points

The Income Statement shows:

• Question 4

3 out of 3 points

Which of the following regarding retained earnings is false?

• Question 5

3 out of 3 points

In regard to current liabilities which of the following is false?

• Question 6

3 out of 3 points

Which of the following are current assets?

• Question 7

3 out of 3 points

In reference to accrual accounting which of the following is true?

• Question 8

3 out of 3 points

During November 200X John painted a barn. The customer does not pay John until January this next year. Which of the following statements is correct?

• Question 9

3 out of 3 points

Payment of a dividend will:

• Question 1

3 out of 3 points

A company was recently formed with $ 50,000 cash contributed to the company by stock-holders. The company then borrowed $ 20,000 from a bank and bought $ 10,000 of supplies on account. The company also purchased $ 50,000 of equipment by paying $ 20,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet?

• Question 2

3 out of 3 points

A company purchases $23,000 of supplies in the current month and promises to pay for them next month. How would the company record a liability for the supplies?

• Question 3

3 out of 3 points

A company was recently formed with $ 100,000 cash contributed to the company by stock-holders. The company then borrowed $ 50,000 from a bank and bought a $ 20,000 vehicle for cash. They also purchased $10,000 of equipment by paying $ 2,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet?

• Question 4

3 out of 3 points

A company has net sales of $500,000 and cost of goods sold of $400,000. The company’s gross profit percentage is:

• Question 5

3 out of 3 points

A $ 1,000 sale is made on May 1 with terms 2/ 10, n/ 30. What amount, if received on May 9, will be considered payment in full?

• Question 6

3 out of 3 points

The 200X records of Thompson Company showed beginning inventory of $6,000, cost of goods sold of $14,000 and ending inventory of $8,000. The cost of purchases for 200X was:

• Question 7

3 out of 3 points

Post Company began the current month with $10,000 in inventory, then purchased inventory at a cost of $35,000. The inventory at the end of the month was $20,000. The cost of goods sold would be:

• Question 8

3 out of 3 points

A company lends its CEO $150,000 for 3 years at a 6% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for:

• Question 9

0 out of 3 points

Post Company lends Blue Company $40,000 on April 1, accepting a 4 month, 4.5% interest note. Post Company prepares financial statements on April 30. What adjusting entry should they make?

• Question 10

3 out of 3 points

On January 1, 200X Jones Company purchased a machine for $20,000. The machine had a salvage value of $2,000 and a useful life of 5 years. Using straight line depreciation, the accounting entry for recording depreciation expense for 200X would be:

• Question 11

3 out of 3 points

Post Company uses straight- line depreciation for all of its depreciable assets. Post sold a piece of machinery on December 31, 2009, that it purchased on January 1, 2009 for $ 2,000. The asset had a five year life and zero residual value. Accumulated depreciation was $400. If the sales price of the used machine was $ 1,200, the resulting gain or loss on disposal was which of the following amounts?

• Question 12

3 out of 3 points

On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate. Your interest expense for 200X will be:

• Question 13

3 out of 3 points

Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. How much interest will be paid over the life of the bond?

• Question 1

Needs Grading

Sales Revenue $1000

Beginning Inventory $400

Purchases $500

Available for Sale ?

Ending Inventory $300

Cost of Goods Sold ?

Gross Profit ?

Operating Expenses $100

Net Income ?

Selected Answer: Available for Sale- $800

Cost of Goods Sold- ($300)

Gross Profit- $500

Net Income- $300

Correct Answer:

Sales $1000

Beginning inventory $400

Plus purchases $500

Cost of goods available for sale $900

Less ending inventory ($300)

Cost of goods sold ($600)

Gross profit $400

Operating expenses ($100)

Net income $300

Response Feedback: [None Given]

• Question 2

Needs Grading

Assume you serve on the board of a local golf and country club. In preparation for renegotiating the club’s bank loans, the president indicates that the club needs to increase its operating cash flows before the end of the current year. The club’s treasurer reassures the president and other board members that he knows a couple of ways to boost the club’s operating cash flows. First, he says, the club can sell some of its accounts receivable to a collections company that is willing to pay the club $97,000 up front for the right to collect $1 00,000 of the overdue accounts. That will immediately boost operating cash flows. Second, he indicates that the club paid about $200,000 last month to relocate the 18th fairway and green closer to the clubhouse. The treasurer indicates that although these costs have been reported as expenses in the club’s own monthly financial statements, he feels an argument can be made for reporting them as part of land and land improvements (a long-lived asset) in the year-end financial statements that would be provided to the bank. He explains that, by recording these payments as an addition to a long-lived asset, they will not be shown as a reduction in operating cash flows.

Required:

1. Does the sale of accounts receivable to generate immediate cash harm or mislead anyone? Would you consider it an ethical business activity?

2. What category in the statement of cash flows is used when reporting cash spent on long-lived assets, such as land improvements? What category is used when cash is spent on expenses, such as costs for regular upkeep of the grounds?

3. What facts are relevant to deciding whether the costs of the 18th hole relocation should be reported as an asset or as an expense? Is it appropriate to make this decision based on the impact it could have on operating cash flows?

4. As a member of the board, how would you ensure that an ethical decision is made?

• Question 3

Needs Grading

Following is the adjusted trial balance of Post Company. Based on this information prepare a Balance Sheet, Income Statement and Statement of Retained Earnings.

POST COMPANY

ADJUSTED TRIAL BALANCE

Debit Credit

Cash 80,000

Accounts Receivable 11,100

Prepaid Insurance 1,500

Equipment 4,000

Accumulated Depreciation 200

Supplies 500

Accounts Payable 700

Wages Payable 300

Unearned Revenue 1,500

Contributed Capital 80,000

Retained Earnings 0

Sales 17,000

Gas Expense 400

Supply Expense 300

Insurance Expense 200

Depreciation Expense 200

Wage Expense 500

Dividends 1,000

99,700 99,700

• Question 4

Needs Grading

Explain the closing entry process and prepare the closing entries in journal form based on the information in question 3.

• Question 5

Needs Grading

POST INC. BANK RECONCILIATION

Cash balance per bank $8,500

Cash balance per books (general ledger) $7,320

Outstanding checks $2,150

Check mailed to the bank for deposit had

not reached the bank by the statement

date. $600

NSF check returned by the bank for

accounts receivable $200

July interest earned on the bank statement $10

Check no. 700 for misc. expense cleared

the bank for $200; erroneously recorded

in the Matrix books for $20

Prepare a bank reconciliation.

Shown the accounting entries that must be made by Matrix in journal entry and T-Account format.

Selected Answer: [None Given]

Response Feedback: [None Given]