Baruch College – CUNY

                                 Stan Ross Department of Accountancy

                                 Accountancy 3000 - Section TR24 –B

                                       Fall 2003 –  Prof Jan Sweeney

Quiz 2 - Solution

 

Q1  Balance Sheet Classification (8 points)

_ Inv   1.            Cash in Bond sinking fund

_ CA   2.               Allowance for Doubtful Accounts

CS/PiC  3.               Contributed Capital in excess of par 

CA       4.         Trading securities

CL             5.            Rent Revenue collected in advance

IntA     6.         Patents

_P&E  7.                Accumulated Depreciation                                   

_ CL _ 8.               Customer Accounts with credit balances

 

Question 2 —Statement of cash flows (7 points).

c          1.            Repayment of  long-term note

c          2.            Issuance of bonds at a premium

a____    3. Collection of accounts receivable

d          4    Cash dividends declared

b___    5     Sale of real estate held as a long-term investment

b____    6. Sale of available-for-sale securities (long-term)

a____    7. Payment of employees' wages

Question 3  (5 points)

1..        Cash                                                    $2,940

Discount for Prompt  Payment                  60

                  Accounts Receivable                          $3000

2.         Cash                                  $3,000

                  Accounts Receivable                          $3000

 

Question 4 (10 points)  All numbers in thousands     

1.         ______A/R___________            ______ADA_________

                  $500    |                       $22      | 

                              |                             |

 

2.         Bad Debt Expense                $87

                                    ADA                     $87

 

3.         $500 -$65 = $435

 

4.         $435

     

                                     Baruch College – CUNY

                                 Stan Ross Department of Accountancy

                                 Accountancy 3000 - Section TR24 – C

                                       Fall 2003 –  Prof Jan Sweeney

                                           Quiz 2 - Solution

 

Q1  Balance Sheet Classification (8 points)

Inv___    1. Securities Available for Sale

Inv      2.  Land Acquired for building future factory.

CS/PiC 3.   Contributed Capital in excess of Par

N/A__    4. Bad Debt Expense

CA___    5. Inventory

RE___    6. Appropriation for Plant expansion

Inv  _  7.    Cash in Sinking Fund                     

IntA    8.   Goodwill

 

Question 2 —Statement of cash flows (7 points).

a____    1. Purchase of inventory

c____    2. Issuance of bonds at a premium

a____    3. Collection of accounts receivale

d____    4. Cash dividends declared

d____    5. Issuance of stock to acquire land

b____    6. Sale of available-for-sale securities (long-term)

a____    7. Payment of employees' wages

 

Question 3  (5 points)

1..        Cash                                                    $4,900

Discount for Prompt  Payment                 100

                  Accounts Receivable                          $5000

 

2.         Cash                                  $5,000

                  Accounts Receivable                          $5000

Question 4 (10 points) All numbers in thousands

1.        ______A/R___________            ______ADA_________

                  $400    |                       $12      |

                              |                             |

     

2.         Bad Debt Expense                $68

                                    ADA                     $68

 

3.         $400 -$56 = $344

 

4.         $344

                                     Baruch College – CUNY

                                 Stan Ross Department of Accountancy

                                 Accountancy 3000 - Section TR24 –D

                                       Fall 2003 –  Prof Jan Sweeney

                                           Quiz 2 - Solution

 

Q1  Balance Sheet Classification (8 points)

CA___    1. Allowance for Doubtful Accounts

CS/PiC  2.   Treasury  stock

P&E    3.   Recently acquired equipment

N/A__    4. Bad Debt Expense

CL___    5. Cash dividends declared this period and payable in the next period

CL___    6. Rent Revenue collected in advance

Inv _  7.    Cash in Sinking Fund                     

N/A    8.   Amortization of  Goodwill in current period.

 

Question 2 —Statement of cash flows (7 points).

b.____    1. Sale of available-for-sale securities (long-term)

a____    2. Payment of employees' wages

c____    3. Issuance of common stock for cash

a____    4. Payment of income taxes payable

b____    5. Purchase of equipment

c ____  6.   Purchase of treasury stock (common)

b  ___  7.   Sale of real estate held as a long-term investment

Question 3  (5 points)

1..        Cash                                                    $3,920

Discount for Prompt  Payment                  80

                  Accounts Receivable                          $4,000

2.         Cash                                  $4,000

                  Accounts Receivable                          $4,000

     

Question 4 (10 points) All numbers in thousands

 

1.        ______A/R___________      ______ADA_________

            $300          |                       | $22

                              |                       |

 

2.         Bad Debt Expense                $43

                                    ADA                     $43

 

3.         $300 -$65 = $235

 

4.         $235

                                     Baruch College – CUNY

                                 Stan Ross Department of Accountancy

                                 Accountancy 3000 - Section TR54 –A

                                       Fall 2003 –  Prof Jan Sweeney

  Quiz 2

 

Q1  Balance Sheet Classification (8 points)

CA___    1. Accrued revenue on Temporary Investments

CS/PiC 2.   Treasury  stock

CS/PiC 3.   Contributed Capital in excess of Par

N/A__    4. Bad Debt Expense

CA___    5. Inventory

CL___    6. Salaries which will be paid to company employees next period

CA  _  7.   Factory Building Retired from use and held for sale     

IntA    8.   Patents

Question 2 —Statement of cash flows (7 points)

a          1.            Collection of accounts receivable

d____    2. Cash dividends declared

b____    3. Sale of available-for-sale securities (long-term)

c____    4. Issuance of common stock for cash

a____    5. Payment of income taxes payable

b____   6. Purchase of equipment

b ____    7.   Sale of real estate held as a long-term investment

Question 3  (5 points)

1..        Cash                                                    $5,880

Discount for Prompt  Payment                120

                  Accounts Receivable                          $6,000

 

2.         Cash                                  $6,000

                  Accounts Receivable                          $6,000

 

Question 4 (10 points) All numbers in thousands

 

1.   ______A/R___________      ______ADA_________

            $200          |                       $8      |

                              |                             |

 

2..        Bad Debt Expense                $23

                                    ADA                     $23

 

3.         $200 -$15 = $185

 

4.         $185