ACCT 2010 Final Exam Fall 2025

Exam 1

Exam 2

Exam 3

Exam 4

Hearty Mix

100

During the month of September, Carmen Enterprises received $250,000 in cash investments, paid $75,000 in supplies, and purchased $30,000 of supplies on account. What is the ending balance in the accounts payable account for the month of July?

A. 250,000 Debit
B. 75, 000 Credit
C. 30,000 Credit
D. 175,000 Debit

C. 30,000 Credit

100

When a bank reconciliation is completed, do we need to make any journal entry adjustments?

A. Yes, journalize all items on the bank side
B. Yes, journalize all items on the book side
C. No, because there should be no adjustments for the cash transactions
D. All of the above

B. Yes, journalize all items on the book side

100

Capitalizing a cost involves increasing what type of account?

Asset
Expense
Liability
Stockholder’s equity

A. Asset (“capitalized cost is an expense that is added to the cost of a fixed asset on a company's balance sheet”)

100

The two main categories of stockholders' equity are
Retained earnings and Paid-in Capital
Common stock and Preferred Stock
Retained Earnings and Common Stock
Assets and Liabilities

Retained earnings and Paid-in Capital

100

At the beginning of last year, Brentwood Corporation purchased a piece of heavy equipment for $38,000. The equipment has a life of five years or 100,000 hours. The estimated residual value is $8,000. Bremond used the equipment for 19,000 hours last year and 21,000 hours this year. Depreciation expense for year two using double-declining balance and units-of-production methods would be?

DDB=9120

1/5 x 2= .4 (rate)

38 (bv) x .4= 15.2 (dep exp 1 year)

38 (fv) – 15.2 (dep exp 1 year) = 22.8 (new fv)

22.8 x .4= 9120 (dep exp yr 2)

UOP= 6300

COST – RV / HOJURS= 38-8/100= .3 (rate) x 21= 6300

200

The accounting equation can be expressed as

A. Assets = Liabilities-Equity.
B. Assets-Liabilities = Equity.
C. Assets + Liabilities = Equity.
D. Equity-Assets = Liabilities.

B. Assets-Liabilities = Equity.

200

Washington Products offers credit terms of 3/10, n/45. Which of the following statements is correct?
A. No discount is offered for early payment.
B. The total amount of the invoice must be paid within 10 days of the invoice date.
C. A discount of 3% can be taken if the invoice is paid within 10 days of the invoice date.
D. The customer can take a 3% discount if the bill is paid within 45 days of the invoice

C. A discount of 3% can be taken if the invoice is paid within 10 days of the invoice date.

200

Duke Corporation issued $ 1,900,000, 10-year, 4% bonds for $ 1,786,000 on January 1, 2019. Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization. Duke's fiscal year ends on December 31. The amount of discount amortization on July 1, 2019, would be

A. $ 114,000

B. $ 76,000

C. $ 11,400

D. $ 5,700

Discount bond issued: 1.9 -1.786= 114000 Amortization of 10 years: 114000/ 10= 11400 Semiannual: 11400/2= 5700

200

Surfside Corp. purchased 2,400 shares of its own $1.40 par value common stock for $130,000. As a result of this transaction, the company stockholders’ equity
Increased by $126,640
Increased by $130,000
Decreased by $130,000
Decreased by $3,360

Decreased by $130,000

200

EXAM 4

Which of the three types of activities reported on the statement of cash flows is the most important to evaluate when analyzing a company’s long-term survival?

Investing activities
Operating activities
Financing activities
Noncash investing and financing activities

Operating activities

300

Frost Enterprises buys a warehouse for $ 570,000 to use for its East Coast distribution operations. On the date of the purchase, a professional appraisal shows a value of $620,000 for the warehouse. The seller had originally purchased the building for $525,000. Frost has a similar warehouse on the West Coast that has a book value of $586,000. Under the historical cost principle, Frost should record the building for

A. $ 525,000.
B. $ 620,000.
C. $ 570,000.
D. $ 586,000.

C. $ 570,000.

300

The Cash account of Reese Corporation had a balance of $3,540 at October 31, 2018. Included were outstanding checks totaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement. The bank statement, which came from Turnstone State Bank, listed an October 31 balance of $5,570. Included in the bank balance was an October 30 collection of $600 on account from a customer who pays the bank directly. The bank statement also showed a $30 service charge, $10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50. Prepare a bank reconciliation to determine how much cash Reese actually had at Oct. 31.
7070
5000
3900
4070

4070

300

A company purchased a building and land for $600,000 in total. Individually, the land appraised for $227,500 and the building appraised for $422,500. How much of the purchase price should be allocated to the cost of the land?
$600,000
$210,000
$147,875
$227,500

$210,000
(227500/(227500+422500)= .35; .35x600000= 210000)

300

When treasury stock is sold for less than its cost, the entry should include a debit to
Loss on sale of TS
Paid-in Capital in Excess of Par
Retained Earnings
Gain on Sale of Treasury Stock

Retained Earnings

300

EXAM 2

Birchwood Corporation began 2018 with a balance in Accounts Receivable of $ 600,000. Service revenue, all on account, for the year totaled $ 1,600,000. The company ended the year with a balance in Accounts Receivable of $ 775,000. Birchwood's bad-debt write-offs are nonexistent. How much cash did the company collect from customers in 2018?
A. $ 2,375,000
B. $ 1,600,000
C. $ 1,425,000
D. $ 1,775,000

C. $ 1,425,000

400

A physician performs medical services for a patient on October 20; the total bill for the medical services was $200. The patient makes a co-pay of $20 on October 20, and the insurance company pays the remaining balance of $180 on November 19. On what date(s) will the physician record the revenue for those medical services provided on October 20? (Assume the accrual basis of accounting is used.)
A. $200 of revenue on November 19
B. $20 of revenue on October 20 and $180 of revenue on November 19
C. $200 of revenue on October 20
D. $180 of revenue on October 20 and the remaining $20 on November 19

C. $200 of revenue on October 20

400

Accounts Receivable has a debit balance of $ 2,000, and the Allowance for Uncollectible Accounts has a credit balance of $ 600. A $ 110 account receivable is written off. What is the amount of net receivables (net realizable value) after the write-off?
A. $ 1,510
B. $ 1,400
C. $ 1,890
D. $ 1,290

B. $ 1,400

400

Company issued $ 350,000, 7%, five-year bonds for 115, with interest paid annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?

A. $ 397,250
B. $ 402,500
C. $ 392,000
D. $ 413,000

C. $ 392,000

Value x issue price= 350,000 x 1.15 = 402500= $ receipts $ cash receipts – value= 52500 = premium Premium/ years= 10500 annual amortization $ receipts – annual amorti= 392000

400

The issuance of common stock in exchange for cash is reported in:

The noncash financing section of the statement of cash flows
The operating activities section of the cash flows
The investing activities section of the statement of cash flows
The financing activities section of the statement of cash flows

The financing activities section of the statement of cash flows

400

EXAM 3

Suppose you buy land for $2,900,000 and spend $1,300,000 to develop the property. You then divide the land into lots as follows: 15 Hilltop lots for $550,000 and 15 Valley lots for $825,000. How much did each Hilltop lot cost you?
$43,333
$168,000
$112,000
$550,000

$112,000
=[(2.9+1.3)x (550000)/(1375000)]/ 15 lots = [(4200000)x(.4)]/ 15 lots = 1680000/15 =$112000

500

On January 1 of the current year, Jasmine Company paid $1,500 in rent to cover six months (January- June). Jasmine recorded this transaction as follows:

Jan 1 Prepaid Rent 1,500
Cash 1,500
Jasmine adjusts the accounts at the end of each month. Based on these facts, the adjusting entry at the end of January should include
A. a debit to Prepaid Rent for $ 250.
B. a credit to Prepaid Rent for $ 250.
C. a debit to Prepaid Rent for $ 1250.
D. a credit to Prepaid Rent for $ 1250.

B. a credit to Prepaid Rent for $ 250.

500

Use the following prompt to answer questions 6, 7, and 8: A company had a beginning inventory of $8,000 at January 1, 2017 and net purchases of inventory of $95,000 during 2017. Ending inventory was $3,500 on December 31, 2017. Net Sales Revenue for 2016 was $175,000.

What is the 2017 cost of goods sold?
What is the 2017 gross profit?
What is the 2017 gross profit percent?

a) COGS= BEG. I + P – END I: 8k+95k-3500= $99,500

b) GP= Rev. – COGS: 175k-99,500= $75,500

C) GP%= GP/S. REV: 75,500/175k= .431= 43%

500

Mission Furniture issued $500,000 in bonds payable at par. The journal entry to record a semiannual interest payment on these bonds would
A. debit Cash and credit Interest Expense.
B. debit Interest Expense and credit Bonds Payable.
C. debit Interest Expense and credit Cash.
D. debit Cash and credit Interest Payable.

C. debit Interest Expense and credit Cash.

500

On the statement of cash flows, which of the following items is classified as an investing activity?

Repaying a loan with cash
Collecting cash on a long-term loan
Borrowing cash from a bank
Issuing common stock

Collecting cash on a long-term loan

500

EXAM 3

The carrying value of bonds payable equals

Bonds payable – discount on bonds payable
Bonds payable – premium on bonds payable
Bonds payable + discount on bonds payable
Bonds payable + premium on bonds payable
Bonds payable + accrued interest

Bonds payable – discount on bonds payable
Bonds payable + premium on bonds payable