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]