学期《中级财务会计》期中考试
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091学期《中级财务会计》期中考试试卷
考试时间:3.5小时
Question One (13 points)
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.)
a. Economic entity assumption g. Matching principle
b. Going concern assumption h. Full disclosure principle
c. Monetary unit assumption i. Relevance characteristic
d. Periodicity assumption j. Reliability characteristic
e. Historical cost principle k. Consistency characteristic
f. Revenue recognition principle
___ 1. Stable-dollar assumption (do not use historical cost principle).
___ 2. Earning process completed and realized or realizable.
___ 3. Presentation of error-free information with representational faithfulness.
___ 4. Yearly financial reports.
___ 5. Accruals and deferrals in adjusting and closing process. (Do not use going concern.)
___ 6. Useful standard measuring unit for business transactions.
___ 7. Notes as part of necessary information to a fair presentation.
___ 8. Affairs of the business distinguished from those of its owners.
___ 9. Business enterprise assumed to have a long life.
___ 10. Valuing assets at amounts originally paid for them.
___ 11. Application of the same accounting principles as in the preceding year.
___ 12. Summarizing significant accounting policies.
___ 13. Presentation of timely information with predictive and feedback value.
Question Two (6 points)
The trial balance before adjustment of Pratt Company reports the following balances:
Dr. Cr.
Accounts receivable $100,000
Allowance for doubtful accounts $ 2,500
Sales (all on credit) 750,000
Sales returns and allowances 40,000
Required:
(a) Prepare the entries for estimated bad debts assuming that doubtful accounts are
estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales.
(b) Assume that all the information above is the same, except that the Allowance for Doubtful
Accounts has a debit balance of $2,500 instead of a credit balance. Prepare the journal entry to record the bad debt expense?
Question Three (9 points)
The following trial balance was taken from the books of Fisk Corporation on December 31, 2007.
Account Debit Credit Cash $ 12,000 Accounts Receivable 40,000
Note Receivable 7,000
Allowance for Doubtful Accounts $ 1,800 Merchandise Inventory 44,000
Prepaid Insurance 4,800
Furniture and Equipment 125,000
Accumulated Depreciation--F. & E. 15,000 Accounts Payable 10,800 Common Stock 44,000 Retained Earnings 55,000 Sales 280,000
Cost of Goods Sold 111,000
Salaries Expense 50,000
Rent Expense 12,800
Totals $406,600 $406,600
At year end, the following items have not yet been recorded.
a. Insurance expired during the year, $2,000.
b. Estimated bad debts, 1% of gross sales.
c. Depreciation on furniture and equipment, 10% per year.
d. Interest at 6% is receivable on the note for one full year.
e. Rent paid in advance at December 1, $6,000 for half a year
f. Accrued salaries at December 31, $5,800.
Required:
(a) Prepare the necessary adjusting entries.
(b) Prepare the necessary closing entries.
Question Four (6 points)
On May 1, Carter, Inc. factored $800,000 of accounts receivable with Rapid Finance on a without recourse basis. Under the arrangement, Carter was to handle disputes concerning service, and Rapid Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Rapid Finance assessed a finance charge of 6% of the total