Fin 324 final exam

1. To download this material Click this link
https://bitly.com/1oJK7xu
This pack of FIN 324 Final Exam includes answers to the next
questions: 1. The primary users of external financial reports
are
a. Those who direct day to day operations of a business
enterprise
b. Individuals who have an economic interest in the firm but
who are not part of management
c. Managers of an enterprise who plan, implement plans, and
control costs
d. None of the above
2. If a company has $15,000 in assets and $10,000 in equities,
then liabilities are
a. $25,000
b. $10,000
c. $5,000
d. $0
3. A revenue account is increased with
a. Debits
b. Credits
c. Equities
d. None of the above
4. Expense items that have been incurred during a period but
not recorded by the end of the period are:
a. Prepaid liabilities
b. Prepaid expenses
c. Deferred expenses
d. Unrecorded liabilities

2. 5. A purchase of $900 of supplies on account was journalized
and posted as $900 debit to Supplies on Hand and a $900
credit to Accounts Receivable. The entry to correct this error
is
a. A $900 debit to accounts payable and a $900 credit to
accounts receivable
b. A $900 debit to supplies on hand and a $900 credit to
accounts payable
c. A $900 debit to accounts receivable and a $900 credit to
accounts payable
d. A $900 debit to accounts receivable and a $900 credit to
supplies on hand
6. The retained earnings balance of Werner Company was
$46,800 on January 1, 2005. Net income for 2005 was
$26,480. If retained earnings had a credit balance of $21,000
after closing entries were posted on December 31, 2005 and
if additional stock of $13,000 was issued during the year,
dividends paid during 2005 were:
a. $38,800
b. $52,280
c. $65,280
d. none of the above
7. If net purchases are $200,000 and beginning and ending
accounts payable -balances are $25,000 and $20,000,
respectively, cash paid for purchases is
a. $195,000
b. $200,000
c. $205,000
d. $210,000
8. The tools of financial statement analysis are not
Business - Finance

3. Part A: Answer each of the following two questions. Each
answer is worth 20 points.
1. The following information was made available from the
income statement and balance sheet of Miranda Company.
Item 12/31/10 12/31/09
Accounts Receivable $ 42,000 $ 45,100
Accounts Payable 27,900 24,500
Merchandise Inventory 68,000 63000
Sales 2010 170,000
Interest Revenue 2010 3,200
Dividends Revenue 2010 1,800
Tax expense 2010 11,600
Salaries Expenses 2010 22,400
COGS 2010 57,000
Interest Expenses 2010 2,200
Operating Expenses 19,400
Complete the cash flow from operating activities section for
Meranda Company using the direct method for the year
ended December 31, 2010.
2. Given the following balance sheet, complete a horizontal
analysis. Compute the percentage to the nearest tenth of a
percent.
Jessica jewel store comparative Balance sheet for year ended
December 31, 2011 and 2010
In thousands 2011 2010 Difference Percentage
Assets
Current Assets
Cash Equivalents $319 $288
Accounts Receivable, net 166 173
Inventory 437 400
Total Current Asset 922 861

4. Property, Plant and equipment 377 412
Total Assets $1,299 $1273
Liabilities
Current liabilities
Accounts Payables 132 144
Accrued Liabilities 90 84
Total current liabilities 222 228
Long Term Liabilities 84 96
Total Liabilities 306 324
Stockholder Equity
Common Stock 288 255
Retained Earnings 705 694
Total Stockholder Equity 993 949
Total Liabilities and Stockholder Equity $1,299 1,273
Part B: Answer each of the following 15 questions. Each
answer is worth
4 points.
1. Given the following information, show the increase or
decrease in the accounting equation:
A. Deanne invests $45,000 and $10,000 of office equipment
into the business.
B. Furniture is purchased for $8,000 cash.
C. Supplies are purchased on credit for $2,300.
D. The month’s electric bill of $775 was paid.
E. The month’s cash sales were $5,000.
2. Journalize the following transactions and include the
explanations.
A. Tammy invested $40,000 into her corporation on June 11.
B. Tammy purchased inventory for $95,000, of which $70,000
was on account on June 14.
C. Tammy paid one month’s rent of $2,400 on June 16.

5. D. Tammy had sales of $15,000 on account on June 19.
E. Tammy had paid $2,500 on her payables account on June
21.
3. Prepare a trial balance from the following information for
Computer
Systems, Inc. for December 31, 2012:
Accounts payable $4,298
Common stock $4,073
Sales $8,302
Cash $1,902
Notes payable $888
Wages expense $777
Supplies expense $1,028
Equipment $5,183
Accounts receivable $1,733
Inventory $6,938
4. Compute the missing information from this post-closing
trial balance:
Cash $38,502
Accounts Receivable 14,372
Prepaid Rent 18,229
Prepaid Insurance 4,583
Supplies (A)
Accounts Payable (B)
Wages Payable 29,428
Common Stock 30,049
Retained Earnings 18,423
_______ _______
Total $80,436 $80,436
5. Journalize the following transactions using the perpetual
inventory method:

6. Nov. 1 Purchased $3,600 of merchandise from Hilltop, terms
2/10, n/30.
Nov. 5 Purchased $1,750 of merchandise for cash from
Owen’s Supply.
Nov. 7 Purchased $3,400 of merchandise from Seaside, terms
1/15, n/30.
Nov. 10 Returned $500 of merchandise to Seaside. Credit
Memo #131.
Nov. 11 Paid the invoice from Hilltop.
6. Given the following information, prepare a balance sheet
for Brandon’s
Campstore for the year ending December 31, 2012:
Cash
$38,745
Retained Earnings
$171,309
Common Stock
$43,500
Equipment
$37,200
Accounts Receivable
$14,109
Accounts Payable
$26,351
Land
$35,000
Inventory
$81,311
Prepaid Supplies
$9,003
Income Taxes Payable

7. $5,284
Office Computers
$16,399
Other PPE
$26,550
Accum. Depr. (all)
$21,013
Prepaid Insurance
$9,140
7. Rick Company’s beginning inventory and purchases during
the fiscal year ended December 31, 2012, were as follows: (
Note: The company uses a perpetual system of inventory.)
Units
Unit Price
Total Cost
January 1—Beginning
18
$24
432
inventory
March 12—Sold
13

8. April 11—Purchase
45
$29
$1,305
June 20—Sold
33
Aug 16—Purchase
35
$27
$945
Sept 11—Sold
29
Total Cost of Inventory
Ending inventory is 23 units.
$2,682
What is the ending inventory of Rick Company for 2012 using
FIFO?
8. Assume that in Year 1, the ending merchandise inventory
is overstated by $30,000. If this is the only error in Years 1
and 2, fill in the items below, indicating which items will be
understated, overstated, or correctly stated for

9. Years 1 and 2.
Item Year 1 Year 2
Gross Profit _____________ ______________
Net Income _____________ ______________
Ending Retained Earnings _____________ ______________
9. Below is a list of treatments of accounting topics. Place
GAAP on the line if th...
https://bitly.com/1oJK7xu