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ACCT1501 2015S1 Practice Final Exam Questions
ACCT1501 2015S1 Practice Final Exam Questions
QUESTION 1 (6 Marks)
2015S1
Bank Reconciliation
(4 marks)
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(2 marks)
Debit
$
Account name
Credit
$
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3. Describe Scope 1 and Scope 2 emissions and provide an example for each of
them. (3 marks)
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Return on Assets
Financial Leverage
Total Assets
Total Shareholders Equity
Profit Margin
Asset Turnover
Sales
Total Assets
Days in Inventory
Days in Debtors
Current Ratio
Current Assets
Current Liabilities
Quick Ratio
2015S1
Required
Analyse BPSs profitability, asset management, liquidity and financial
structure for 2012 using the ratio information shown above.
QUESTION 4
(15 marks)
2015S1
Control Accounts
Rupert Ltd maintains subsidiary ledgers for debtors and creditors. At 31 May 2014,
the debtors control account has a debit balance of $50,120 and the creditors control
account has a credit balance of $30,670. An extract of totals from the special
journals for the month of June 2014 is as follows:
$
Credit sales
86,500
Cash sales
6,100
Credit purchases
93,200
Cash received from debtors
67,800
Cash paid to creditors
55,890
Cash purchases
4,300
Discount received from
7,500
creditors
Discount allowed to debtors
3,500
Complete the debtors and creditors control accounts as they would appear in the
general ledger.
2015S1
CR
Bank Overdraft
10,000
Accounts Receivable
200,000
1,000
Inventory
100,000
Prepaid Rent
10,000
450,000
200,000
Accounts Payable
60,000
Bank loan
50,000
Contributed Capital
310,000
34,000
Sales revenue
450,000
265,000
Interest Expense
5,000
Wages Expenses
80,000
Rent Expense
5,000
1,115,000
1,115,000
The following information is given which may give rise to year end adjustments:
Depreciation on Property, Plant and Equipment is provided for on a straight line
basis at 10% per annum, and it is assumed that it will have no salvage value.
The balance in Prepaid Rent relates to the 12 month period from 1 January 2014 to
31 December 2014.
An ageing analysis shows that $4,000 of Accounts Receivable is estimated to be
uncollectible.
On 30 June 2014, the directors declared a dividend of $5,000, which the
shareholders authorised. The dividend is to be paid on 15 September 2014.
2015S1
It is discovered that $10,000 cash received during the year and credited to sales are
actually related to services to be delivered in July 2014.
$5,000 of wages relating to June 2014 have not been paid and need to be accrued.
Part A (12 Marks)
Prepare journal entries for the necessary end of period adjustments.
Debit
$
Account name
Credit
$
2015S1
Part B (7 Marks)
Prepare an Income Statement for the year ended 30 June 2014:
Part C (4 Marks)
In the Balance Sheet as at 30 June 2014, what would be the closing balance of
retained profits? Show all workings.
10
2015S1
Cash Purchases
Cash Sales
Balance
100 units @ $10
80 units @ $12
140 units @ $20
30 units @ $14
50 units @ $25
Prepare the journal entries for inventory purchases and cost of sales for the month of
June 2014. (12 Marks)
Date
Debit
$
Account name
11
Credit
$
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12
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Debit
$
Account name
13
Credit
$
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Cost Classification
The following information was supplied by Bandcamp Ltds accountant about the
opening and closing inventory:
31 January
1 January
(ending)
(beginning)
$80 000
$95 000
$110 000
$60 000
$255 000
$75 000
Required:
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15
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Part C (2 marks)
Tree & Woods Corp., an international furniture company, manufactures and sells
furniture of unique natural material. In 2010, the company sold all 25,000 chairs that
it produced at $200 each. Total costs amounted to $3,300,000 comprised of
$1,300,000 variable costs and $2,000,000 fixed costs. In 2011, the company purchases
a new saw mill for $110,000. The useful life is estimated to be 5 years with a salvage
value of $10,000. Each year, the same amount of depreciation expense is recorded.
The usage of the new saw mill allows Tree & Woods to reduce variable costs for
producing one chair by $7. All other costs remain the same as in 2010.
What was Tree & Woods Corp.s break-even point in number of units in 2010?
16
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17