Financial Accounting I Final Practice Exam 1 - Solution

7/21/2019 Financial Accounting I Final Practice Exam 1 - Solution

1/5

Practice Exam 3 - Solution

Accounting 3000

Practice Final Exam Solutions

1. B

$180 million 4% = $7.2 million

2. D

Ti! in"entor# !oul e exclue ecau!e it a not #et reace it! e!tination& 'eretitle (a!!e!.

3. )4. )

Te!e trea!ur# on! 'oul e cla!!i*ie in current a!!et! a! !ort-term in"e!tment!. +*(urca!e 'itin tree mont! o* teir maturit#& te# coul e cla!!i*ie a! ca!e,ui"alent!. Te lan !oul e re(orte in PPE non-current a!!et! at $40&000.

/. D

. )

Te in!urance (remium! o* $30&000 'ere care in error to in!urance ex(en!e on te2008 income !tatement!. Te (remium! !oul a"e een allocate e,uall# at $10&000(er #ear *or 2008& 200& an 2010. Tere*ore& te einnin retaine earnin! at 200 areuner!tate # $20&000. Te correcte retaine earnin! 'oul e te einnin alance(lu! correction o* te error $200&000 12&000 = $220&000.

7. B

2003 e(reciation ex(en!e $100&000 x 20% = 20&000 x 512 = 1/&0002004 e(reciation ex(en!e $8/&000 x 20% = 17&000200/ e(reciation ex(en!e $8&000 x 20% = 13&00

6ccumulate e(reciation at te einnin o* 200 $4/&00Boo "alue at te einnin o* 200 = $/4&400De(reciation ex(en!e *or 200 = /4&400 10&000 5 4 = 11&100Boo "alue at 1253150 $43&300.

1


2/5


8. 6. D10. 6

+m(airment te!t *or 9oo'illSte( 1 )om(are :; an B; o* re(ortin unit. :; = 700 an B; = /80.

6n im(airment lo!! mu!t e reconi


3/5


Sum o* te #ear>! iit! = 8?52 = 33r #ear o* te a!!et>! u!e*ul li*e

$120&000 !al"ae "alue x 53 = $18&000 e(reciation ex(en!eSal"ae "alue = $12&000

18. 6

9oo'ill i! not amorti! co!t.

21. B

De(letion in 200 = $14&000 20&000 = $8.20 (er ton 4&000 = $32&800

22. B23. B24. 6

Enin in"entor# i! a!!ume to con!i!t o* 700 allon! *rom einnin in"entor#700 x $7.20 = $/&040

2/. D

2. D27. B

)@9S i! uner!tate # $//&000 an e(reciation ex(en!e i! uner!tate # 10&000& !onet income i! o"er!tate # $/&000.

28. B

3


4/5


Aetaine earnin! 'a! uner!tate # $33&000 at te en o* 2007. et income i!o"er!tate # $/&000 in 2008 !ee ao"e& !o retaine earnin! 'ill e o"er!tate #$32&000 at te en o* 2008.

2. )

30. D31. B

Salarie! Pa#ale40&000 151 Balance

)a! (ai *or 'ae!Aeuction in liailit# 1/&000

143&000 Cae! ex(en!e !ol"e *or ti!

18&000 12531 Balance

Salarie! ex(en!e = $143&000

32. 6 Pre(ai +n!urance

151 Balance &000 $/&000 +n!urance u!e = ex(en!e

Purca!e 2&000 !ol"e *or ti!

12531 Balance 3&000

+n!urance ex(en!e = $/&000.

33. D34. B3/. B

3. D

Total e,uit# increa!e # $124&000 178&000 /4&000. +* ca(ital !toc 'ent u( #$132&000& ten retaine earnin! mu!t a"e ecrea!e # $8&000. +* $2&000 o*i"ien! 'ere (ai& ten net income mu!t a"e een $18&000.

37. 638. B

4


5/5


&000&000 20% 00&000 5 3 = 100&000 (u

Documents

Financial Accounting I Final Practice Exam 1 - Solution