NameAcct 220Final Exam Question 1 Suggeste.docx

Name:
Acct 220
Final Exam
Question 1: Suggested time 45 minutes: 40% points
a. General Journal Entries:
Date
Account
Debit
Credit

b. Adjusting Entries:
Date
Account
Debit
Credit

Final Exam
c. Adjusted Trial Balance:
Adjusted Trial Balance
Account Titles
Debit
Credit

Final Exam
d. Classified Balance Sheet:

Answer Sheet Page 3 of 8
Final Exam
e. Closing Entries:
Date
Account
Debit
Credit

a. Cost of Goods Available for Sale
b. Sales

c. Value of:
Ending Inventory
COGS
1) LIFO method
2) FIFO method
3) Average-cost method
Final Exam
Date
Account
Debit
Credit

Final Exam
a.Answer:
Year
Depreciation Expense
Total Accumulated Depreciation
End of Year Book Value

b.Answer:
Year
Depreciation Expense
Total Accumulated Depreciation
End of Year Book Value

c.
Answer
Final Exam
Question 5: Suggested time 10 minutes: 7% points:
Date
Account
Debit
Credit

Question 6: Suggested time 10 minutes: 4% points:
Date
Account
Debit
Credit

Final Exam
Multiple choice questions allocated 1% point each: Make your
selection by indicating the letter corresponding to your answer.
Suggested time is 60 minutes.
Question Number
Answer
Question Number
Answer
Question Number
Answer
7:
17:
27:
8:
18:
28:
9:
19:

29:
10:
20:
30:
11:
21:
31:
12:
22:
13:
23:
14:
24:
15:
25:
16:
26:

Final Exam
Experiment 5
The Slide Wire Potentiometer
Abstract:
In this experiment, we are going to calculate the
Electromotive force and the internal resistance for the three
unknown batteries. Also, our goal is to calculate the average
and Standard deviation of these three unknown batteries and do
a comparison for the E.M.F and Internal Resistance for the three
unknown batteries which are Old Battery, New battery, and
Daniel Cell. Afterwards, we will calculate the uncertainty for
the two cases (E.M.F. & Internal Resistance) for the unknowns.
We expect our results for E.M.F for the three unknowns to be
somewhat close to each other. For calculating E.M.F (and
internal resistance “r” for these three battery cells, we used
equation that are explained in the introduction.
Introduction:
We are going to observe how much or the maximum
Voltage the three unknown batteries can have which is the
Electromotive Force of a battery. As well we are going to
observe and calculate the Internal Resistance for these three
unknowns by changing the current in the battery and resistance.
Refer to the equations for better understanding:
Electromotive force >> or 2)
Either one can be used to calculate the Electromotive force.
Basically in equation 1 stands for Electromotive force for the
standard cell, “x” stands for the length we measure for our
unknowns (either New, Old, or Daniel cell) and “S” stands for

the length for the standard cell. On the other hand, in equation 2
the “X” stands for length we measure for the three unknown,
and stands for the voltage we set obtained from the Power
supply.
Internal Resistance >>
“r” is the internal resistance for any of the three unknowns,
stands for Electromotive force for our unknown batteries stands
for terminal voltage which we obtain using the following
equation:(x) and is the current (Amps) we calculate using this
equation: I= Ω. In our Daniel cell, we used 50 Ω as our standard
resistor because we were have trouble using 20 Ω.
Procedure:
Step 1: We assembled our circuit according to figure 1, and we
measured “S” length (cm) for the standard cell using a slide
wire and get the reading for the length when the galvanometer
reads zero current (just like we did in experiment 4). We did it
4 times, or 4 runs.
Step 2: We connected our new battery to slide wire
potentiometer, then we turned our switch towards the New
battery instead of the standard cell and we did the same
Procedure as step 1 to the length “X” using uniform slide wire
so we can calculate the Electromotive force for these unknowns.
In addition we prepared the solutions for the Daniel cell which
is copper sulfate and zinc sulfate. We did the same procedure
for the Old battery and Daniel cell.
Step 3: We got our calibrated standard resistor of 20Ohms, and
we connected it to our circuit instead of so we can calculate the
internal resistance for these three unknowns. We got our length
“X” for our new battery using the uniform slide wire. We did
the same procedure for Old battery, and Daniel Cell.
Apparatus:
Slide wire potentiometer, galvanometer (protective resistance),
knife switch DPDT, standard cell, new 1.5 volt dry cell, old 1.5
dry cell, decade resistor box, Daniel cell, copper sulfate, and
zinc sulfate.
Data:

· The e.m.f listed on the standard cell E = 1.01912 V
· The voltage of the power supply VAB = 2.0 V
a. New Battery:
· The balance position of the standard cell s = 55.0 cm
Length X (Centimeters) for Dry Cell
Length X(cm) for Loaded Dry Cell
Run 1
74.2
73.3
Run 2
77.2
75.0
Run 3
73.9
75.9
Run 4
76.1
73.6
Run 5
74.4
74.4
b. Old Battery:
Length X (Centimeters) for Old Dry Cell
Length X (cm) for Loaded Old Dry Cell
Run 1
77.6
5.4
Run 2
77.4
6.6
Run 3

75.2
6.3
Run 4
77.7
6.2
Run 5
77.3
5.3
c. Daniel cell:
Length X (Centimeters)for Daniel Cell
Length X(cm) for Loaded Daniel Cell
Run 1
54.5
33.5
Run 2
57.2
34.3
Run 3
56.4
34.9
Run 4
55.6
34.2
Run 5
55.5
35.2
Calculations:
· New Dry Cell:

x (cm)
xt (cm)
I (A)
r (Ω)
74.2
73.3
1.37
1.36
0.0679
0.246
77.2
75.0
1.43
1.39
0.0695
0.587
73.9
75.9
1.37
1.41

0.0703
-0.527
76.1
73.6
1.41
1.36
0.0682
0.679
74.6
74.4
1.38
1.38
0.0689
0.0538
· Old Dry Cell:
x (cm)
xt (cm)

I (A)
r (Ω)
77.6
5.4
1.48
0.103
0.00516
267
77.4
6.6
1.48
0.126
0.00631
215
75.2
6.3
1.44
0.120
0.00602
219
77.7
6.2
1.49
0.119
0.00593
231
77.3
5.3
1.48
0.101
0.00507
272

· Daniell Cell:
x (cm)
xt (cm)
I (A)
r (Ω)
54.5
33.5
1.02
0.630
0.0315
12.5
57.2
34.3
1.08
0.645

0.0322
13.4
56.4
34.9
1.06
0.656
0.0328
12.3
55.6
34.3
1.05
0.645
0.0322
12.4
55.5
35.2
1.04
0.662
0.0331
11.5
Conclusion:
The Experiment went as expected. We had a little
disagreement, we expected the Electromotive force on the New

battery to be higher than the E.M.F of the Old battery, although
they are pretty much close (not that big of a difference). The
reason for that is common sense, a “New battery” will have
higher E.M.F. (max volts) in a circuit, than an old battery which
is constantly used. Also, for our internal resistance we were
satisfied since our internal resistance for our Old battery was
much higher than the internal resistance for the new battery; in
which we expected that since Internal resistance for a dry cell
rises as the battery ages. While E.M.F pretty much stays the
same.
Questions:
1, If we use a voltmeter we would have a different measurement
for our voltage, because when using voltmeter we would have
current flowing through the battery. While in slide wire
potentiometer is adjusted in which no current flow through
(terminal voltage) or Vt would give more accuracy when
calculating the electromotive force. Therefore, the measured
potential would be higher that the potential goes through the
potentiometer.
2, Yes, we experienced quite a shift for the internal resistance
in the New battery and Daniel cell, especially Old battery.
3, It is advisable to recheck the potentiometer because the
standard cell has an average e.m.f. Es at 200C marked on each
cell. The variation of Es with temperature in the 200C to 300C
range is negligible compared to the errors inherent in the used
of the slide wire used in this laboratory.
4, Yes, the measurements would get effected if the leads were
long or short. We would have a different values for the internal
resistance for the unknowns. Because to calculate internal
resistance we depended on Vt and I in which I = Vt / 20
according to our lab manual. So if you change the 20 Ohms to
different value, you would obtain different values for the

internal resistance for the three unknowns.
5, Yes, the values are almost the same for E.M.F using equation
3 and using equation 5. However, equation 5 is probably more
accurate since you are using the length “S” and E.M.F for the
standard battery also.
For the New battery using equation 3: 74.2cm () = 1.48 Volts
For the New battery using equation 5: = 1.01912V( ) = 1.37
Volts
6, Comparing the values for and “r” from our analysis, we see
that “r” (internal resistance) varies more as the battery ages.
The reason is because the internal resistance increases as the
battery becomes old because as battery gets old, chemicals
inside the battery resist any current flowing inside of the battery
resulting in higher Internal resistance.
I = 1.36
20
= 0.0679A
I=
1.36
20
=0.0679A
r = 1.37−1.36
0.0679
= 0.147Ω
r=

1.37-1.36
0.0679
=0.147W
)
(
V
X
e
)
(
V
V
T
εx =
1.37+1.43+1.37+1.41+1.38
5
=1.39V
e
x
=
1.37+1.43+1.37+1.41+1.38
5
=1.39V
σεX =
(1.36−1.39)2 +...+ (1.38−1.39)2
5−1
= 0.03V
se

X
=
(1.36-1.39)
2
+...+(1.38-1.39)
2
5-1
=0.03V
r = 0.246+...+ 0.0538
5
= 0.208Ω
r=
0.246+...+0.0538
5
=0.208W
σ r = (0.246− 0.208)
2 +...+ (0.0538− 0.208)2
5−1
= 0.5
sr=
(0.246-0.208)
2
+...+(0.0538-0.208)
2
5-1
=0.5

Ω
W
)
(
V
X
e
)
(
V
V
T
εx =1.47V
e
x
=1.47V
σεX = 0.02V
se
X
=0.02V
r = 241Ω
r=241W
σ r = 27V

sr=27V
)
(
V
X
e
)
(
V
V
T
εx =1.05V
e
x
=1.05V
σεX = 0.02V
se
X
=0.02V
r =12.4Ω
r=12.4W
σ r = 0.6V
sr=0.6V

εX =1.01912×
74.2
55.0
=1.37V
e
X
=1.01912´
74.2
55.0
=1.37V
VT =1.01912×
73.3
55.0
=1.36V
V
T
=1.01912´
73.3
55.0
=1.36V
University of Maryland University College
Final Examination
Acct220: Principles of Accounting I
For this exam, omit all general journal entry explanations.
Ensure to include correct dollar signs, commas, underlines &
double underlines where required.

Question 1: 40% points:
Floppy Company's December 31, 2014 trial balance is as
follows:
Floppy Corporation
Trial Balance
December 31, 2014
Account
Debit
Credit
Cash
$43,500
Accounts Receivable
53,500
Allowance for Doubtful Accounts
1,500
Notes Receivable
30,000
Merchandise Inventory
55,000
Land
20,000
Building
150,000
Accumulated Depreciation, Building
$15,000
Equipment
50,000

Accumulated Depreciation, Equipment
21,000
Goodwill
26,000
Accounts Payable
25,000
Long Term Notes Payable
75,000
Common Stock, $10 par, 2,000 shares authorized & outstanding
20,000
Retained Earnings
147,000
Sales Revenue
700,000
Salaries Expense
150,000
Utilities Expense
3,500
Cost of Goods Sold
350,000
Administrative Expenses
55,000
Sales Expenses
15,000
_______

Totals
$1,003,000
$1,003,000
Floppy is a small company and records adjusting entries &
closing entries only at fiscal (calendar) year end. Correcting and
adjusting entries have not been recorded.
Acct220
Page 1 of 9
Additional Information:
a. Notes Receivable is a 3-months, 6% note accepted on
November 1, 2014.
b. Long Term Notes Payable is a 5-year, 5% note, that was
signed on July 1, 2014. Interest is payable annually.
c. Building is depreciated at 3% per year. There is no salvage
value.
d. Equipment is depreciated at 15% year. There is no salvage
value.
e. Floppy discovered, on December 30th, that the inexperienced
bookkeeper recorded in the general journal and general ledger
that day's $1,500 cash sales as a debit to Accounts Receivable

and a credit to Sales Revenue.
f. The year-end physical count for Merchandise Inventory
reflected a value of $51,500. Any difference in value will not be
considered theft or loss.
g. Salaries for the last half of December, payable in January,
amount to $5,500.
h. Floppy estimates that of the Accounts Receivable 5% will not
be collectable.
Required:
a. Prepare in journal form, any required correcting entries
b. Prepare in journal form, all end-of-the period adjusting
entries
c. Prepare a December adjusted trial balance
d. Prepare a classified balance sheet for the year ended
December 31, 2014
e. Prepare in journal form, the closing entries for the year ended
December 31, 2014
NOTE: Students are encouraged to prepare their own T-
accounts, on a separate scratch sheet of paper, and track from
the beginning balance thru all journal transactions to ending
balances for all accounts used in this problem. Do not turn in

your separate scratch sheet of paper - those are student personal
working papers and not part of any solution required for this
exam.
Question 2: 8% points: Inventory
Floppy uses the period method and had the following inventory
events during January:
Date
Units Purchased
Unit Cost
Date
Units Sold
Unit Sales Price
Jan. 1
150
$7.00
Jan. 2
100
$10.00
Jan. 5
225
7.20
Jan. 7
125
10.00
Jan. 10
100
7.50
Jan. 12
75
12.00
Jan. 15
150
7.80
Jan. 17
200

12.50
Jan. 20
200
7.95
Jan. 24
150
15.00
Jan. 25
150
8.00
Jan. 30
75
8.20
Note: January 1 amount was the beginning inventory and unit
value.
(Round all total dollar values to the nearest dollar. Round all
unit values to the nearest penny.)
Acct220
Page 2 of 9
Required:

a. Calculate cost of goods available for sale.
b. Calculate the dollar value of sales.
c. Calculate the value of Ending Inventory and Cost of Good
Sold under the following independent assumptions:
1) LIFO method
2) FIFO method
3)
Average-cost method
Required: Prepare Flipper's Supply Co. general journal entries
for the following transactions:
Jan. 1
Accepted Flop's 120 days, 10% note, as settlement of an
outstanding $15,000 account receivable for goods sold last year
Jan. 15
Purchased $10,000 Equipment from Floppy, signing a 9 month,
12% note
Jan. 25
Loaned Flam Co. $30,000 cash, accepting a 90 days, 10% note
Jan. 31
Prepared accrual adjusting entry for any interest revenue
Apr. 25
Received payment in full from Flam Co. for outstanding note &
interest
May 1
Received payment in full from Flop Co. for outstanding note &
interest
Oct. 15
Paid Floppy in full
Floppy Company purchased a refrigerated delivery truck for

$65,000 on April 1, 2016. The plan is to use the truck for 5
years and then replace it. At the end of its useful life the truck
is expected to have a salvage value of $10,000.
a. Prepare the depreciation table for Floppy’s truck assuming
that the company uses the straight-line method for depreciation.
b. Prepare the depreciation table for Floppy’s truck assuming
that the company uses the double-declining-balance
depreciation method.
c. Compute the depreciation expense for 2016 for Floppy’s
truck assuming the truck has an expected life of 200,000 miles
and during 2016 the truck was driven 24,540 miles. Round your
depreciation expense per mile to three decimal places.
Acct220
Page 3 of 9
Flipper Company has a January 15 mid-month gross salaries
expense of $25,000. All is subject to FICA Social Security
(6.2%), FICA Medicare (1.45%), state income tax (5%) and
federal income tax (15%) withholdings. Additionally, all is
subject to employer taxes to include FUTA (0.8%) and SUTA
(5.4%) taxes. (Round all calculations to the nearest penny.)
Required:

a. Prepare the general journal entry to record the employer's
payroll liability.
b. Prepare the general journal entry to record the employer's
payroll tax liability.
c. Prepare the general journal entry to liquidate the liabilities
accrued in parts (a) and (b) on January 22.
Flipper Company at the end of the fiscal 2014 year has the
following information: Credit Sales, $2,500,000 Sales Returns
& Allowances $25,000 Accounts Receivable $200,000 and
Allowance for Doubtful Accounts with a debit o $1,500.
Required:
a. Prepare the general journal entry to record the end of the year
adjusting entry if Flipper uses 0.5% of Net Credit Sales as the
basis for determining Bad Debt Expense.
b. Prepare the general journal entry to record the end of the year
adjusting entry if Flipper uses 5% of Accounts Receivable as
the basis for determining Bad Debt Expense.
Multiple choice questions allocated 1% point each. Make your
selection by recording the letter in the answer box provided.
Question 7: After the bank reconciliation is prepared, the entry
to record bank service charges would have a credit to:
a.
Bank Service Charge Expense

b.
Cash
c.
Petty Cash
d.
Cash Short and Over
e.
None of the above
Question 8: Frick Company estimates uncollectible accounts
using the percentage-of-receivables method and expects that 5
percent of outstanding receivables will be uncollectible for
2010. The balance in Accounts Receivable is $200,000, and the
allowance account has a $3,000 credit balance before
adjustment at year-end. The uncollectible accounts expense for
2010 will be:
a
$7,000
b.
$10,000
c.
$13,000
d.
$9,850
e.
None of the above

Acct220
Page 4 of 9
Question 9: Frick Company issued its own $10,000, 90-day, non
interest-bearing note to a bank. If the note is discounted at 10
percent, the proceeds to Frick are:
a.
$10,000
b.
$9,000
c.
$9,750
d.
$10,250
e.
None of the above
Question 10: On 2010 July 1, Frick Company purchased
equipment for $400,000, and installation and testing costs
totaled $40,000. The equipment has an estimated useful life of
10 years and an estimated salvage value of $40,000. If Frick
uses the double-declining-depreciation method, the depreciation
expense for 2010 is:

a.
$88,000
b.
$72,000
c.
$36,000
d.
$44,000
e.
$40,000
Question 11: The result of recording a capital expenditure as a
revenue expenditure is an:
a.
Overstatement of current year's expense
b.
Understatement of current year's expense
c.
Understatement of subsequent year's net income
d.
Overstatement of current year's net income
e.
None of the above
Question 12: A truck costing $45,000 and having an estimated
salvage value of $4,500 and an original life of five years is
exchanged for a new truck. The cash price of the new truck is
$57,000, and a trade-in allowance of $22,500 is received. The
old truck has been depreciated for three years using the straight-

line method. The new truck would be recorded at:
a.
$55,200
b.
$57,000
c.
$34,500
d.
$43,200
e.
None of the above
Question 13: Which of the following is not an advantage of the
corporate form of organization?
a.
Continuous existence of the entity
b.
Limited liability of stockholders
c.
Government regulation
d.
Easy transfer of ownership
Acct220

of 9
Question 14: Treasury stock should be shown on the balance
sheet as a(n):
a.
Reduction of the corporation's stockholders' equity
b.
Current asset
c.
Current liability
d.
Investment asset
Question 15: When the stockholders invest cash in the business,
what is the effect?
a
Liabilities increase and stockholders’ equity increases
b
Both assets and liabilities increase
c
Both assets and stockholders’ equity increase
d
None of the above
Question 16: The ending balance in retained earnings is shown
in the:
a. Income statement

b. Statement of retained earnings
c. Balance sheet
d. Both (b) and (c)
e. Both (a) and (c)
f. (a), (b) and (c)
Question 17: A cash dividend of $500 was declared and paid to
stockholders. The correct journal entry to record the declaration
is:
a.
DR Capital stock 500 and CR Cash 500
b.
DR Cash 500 and CR Dividends 500
c.
DR Dividends 500 and CR Cash 500
d.
DR Cash 500 and CR Capital stock 500
Question 18: If $3,000 has been earned by a company’s workers
since the last payday in an accounting period, the necessary
adjusting entry would be:
a.
Debit an expense and credit a liability.
b.
Debit an expense and credit an asset.

c.
Debit a liability and credit an asset.
d.
Debit a liability and credit an expense.
Question 19: The accrual basis of accounting:
a.
Recognizes revenues only when cash is received
b.
Is used by almost all companies
c.
Recognizes expenses only when cash is paid out
d.
Recognizes revenues when sales are made or services are
performed and recognizes expenses only when cash is paid out.
Acct220
Page 6 of 9
Question 20: The need for adjusting entries is based on:
a.
The matching principle

b.
Source documents
c.
The cash basis of accounting
d.
Activity that has already been recorded in the proper accounts.
Question 21: Which of the following statements is false
regarding the closing process?
a.
The Dividends account is closed to Income Summary.
b.
The closing of expense accounts results in a debit to Income
Summary.
c.
The closing of revenues results in a credit to Income Summary.
d.
The Income Summary account is closed to the Retained
Earnings account.
Question 22: Which of the following statements is true
regarding the classified balance sheet?
a.
Current assets include cash, accounts receivable, and
equipment.
b.
Plant, property, and equipment is one category of long-term
assets.

c.
Current liabilities include accounts payable, salaries payable,
and notes receivable.
d.
Stockholders' equity is subdivided into current and long-term
categories.
Question 23: The underlying assumptions of accounting
includes all the following except:
a.
Business entity
b.
Going concern
c.
Matching
d.
Money measurement and periodicity
Question 24: Frick Company began the accounting period with
$60,000 of merchandise, and net cost of purchases was
$240,000. A physical inventory showed $72,000 of merchandise
unsold at the end of the period. The cost of goods sold of Frick
Company for the period is:
a.
$300,000
b.
$228,000
c.

$252,000
d.
$168,000
e.
None of the above
Question 25: A classified income statement consists of all of the
following major sections except for:
a.
Operating revenues
b.
Cost of goods sold
c.
Operating expenses
d.
Non-operating revenues and expenses
e.
Current assets
Acct220
Page 7 of 9

Question 26: A business purchased merchandise for $12,000 on
account; terms are 2/10, n/30. If $2,000 of the merchandise was
returned and the remaining amount due was paid within the
discount period, the purchase discount would be:
a.
$240
b.
$200
c.
$1,200
d.
$1,000
e.
$3,600
inventory of 3,000 units at $30 each. During the period, the
company purchased an additional 5,000 units at $36 each and
sold 4,600 units. Assume the use of periodic inventory
procedure. The cost of ending inventory using weighted-average
is:
a.
$114,750
b.
$157,600
c.
$122,400
d.

$109,650
e.
None of the above
inventory of 3,000 units at $30 each. During the period, the
company purchased an additional 5,000 units at $36 each and
sold 4,600 units. Assume the use of periodic inventory
procedure. The cost of goods sold using weighted-average is:
a.
$147,200
b.
$160,350
c.
$155,250
d.
$114,000
e.
None of the above
Question 29: During a period of rising prices, which inventory
method might be expected to give the highest net income?
a.
Weighted-average
b.
FIFO
c.
LIFO

d.
Specific identification
e.
Cannot determine
Acct220
Page 8 of 9
Question 30: The following information: related to the bank
reconciliation of the Flipper Company:
Balance per bank statement
$1,951.20
Balance per ledger
1,869.60
Deposits in transit
271.20
Outstanding checks
427.80
NSF check
61.20
Service charges
13.80
The adjusted/correct cash balance is:
a.
$1,794.60

b.
$1,719.60
c.
$1,638.00
d.
$1,713.00
e.
$1,876.20
Question 31: In a bank reconciliation, deposits in transit should
be:
a.
Deducted from the balance per books
b.
Deducted from the balance per bank statement
c.
Added to the balance per ledger
d.
Added to the balance per bank statement
e.
Disregarded in the bank reconciliation
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