Accounting exam

Name
Instructor
Course
Date
PART A
Question 1
Details Amount
1-Oct Opening Balance $1,200.50
6-Oct Deposit $300.00
12-Oct Paid Phenom -$382.65
16-Oct Deposit $400.00
28-Oct Paid Opus -$185.99
31-Oct Paid Penton, Inc. -$88.92
Closing balance $1,242.94

Question 2
(100%- 18%) * (100%-2%)
=0.82 * 0.98
=0.8036
1 -0.8036 = 0.1964 or19.64%
discount = $1400* 0.1964 = $ 274.96
net cost price – discount
= $ 1400 – $274.96
= $1125.04
Single EQ rate is 18 %
=$1400 -18%
= $1148.
Amount of trade discount is
=$1400 – $1125.04
=$275.96
Total price – trade discount = net price
= $1400 -$275.96
= $1125.04
Question 3
Year 1: $25000*0.2=$ 5000
Year 2: $ 20000*0.2=$ 4000
Total depreciation expense= $5000+4000
=$ 9,000
Book value= 25000-9,000
=$16,000
PART B
Question 1
Increase by 1/3
1/3 of 144,600
Increase =48,200
Sales for new year= 144,600+48200
= $192,800
Question 2
If the beds produced in shift 1 is x
then beds produced in shift 2 will be 5*x which is 5x
x+5x = 240
=>6x =240
x=40
bed produced in shift one =40
bed produced in shift 2 = 200
Question 3
Income before taxes=$ 60,000
Taxes=45%
45%*60,000= 27,000
60,000-27000
= $33,000
Question 4
=$85.00*(100-45%)
=$46.75
Question 5
=9,000*110.5%
=$9,945
Question 6
Note days = 120
Due Date = May 12 + 120 days
= 09-Sep
Gap between due date & Discount date
= [09-Sep] – [8-Jul]
= 63 days
Discount rate for 63 days
= Interest rate per annum * 63/ 365
= 9% * 63/365
= 1.55%
Proceeds = Note amount / (1+int rate for 63 days)
= $ 5,000 / (1+0.0155)
= $ 5,000/ 1.

0155
= $ 4,923.68
Question 7
Asset turnover= sales/ assets
3.2=sales/32000
Sales=$102,400
Question 8
Given opening stock of 300 boxes
Purchased during year = 850 boxes
Closing stock is 475 boxes
This implies 675 boxes.
Assuming all sales are made after August 1st,
If we apply LIFO, 475 boxes of closing stock belong to 300 boxes from opening stock and 175 boxes of purchases made on May 1st.
Value of closing stock is
(300*1.89) +(175*2.1)
= 934.5
And cost of goods sold is
(250*2.4) +(400*2.2) +(25*2.1)
= 1532.5
Question 9
sales tax amount =205,000*6/106=22641
(since sales includes the tax)
sales amount will be =205,000-11603.77
=$193,396.20
Question 10
If $100 is $0.83
What will be $90,000
=90,000*0.83/100
=$747