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Programme
Sunway University College
ACCOUNTING (BAT4M)
FINAL EXAMINATION
Date: 21 May, 2007
Length: 2 hours
Please read the following instructions carefully before you begin the examination:
4. All work is to be done in the answer booklets provided. Please hand in both the booklet and
exam paper before leaving the exam hall.
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Part B
Question 1
Mexx Corpoartion
Trial Balance
31 December 2006
Debit Credit
$ $
Cash 24,300
Accounts Receivable 15,400
Merchandise Inventory 23,600
Building 85,000
Accumulated Depreciation-Building 50,000
Equipment 45,000
Accumulated Depreciation-Equipment 9,000
Prepaid Insurance 5,400
Notes Payable 60,000
Accounts Payable 16,600
Chandra J., Capital 65,000
Chandra J., Drawings 2,300
Sales 92,300
Sales Return and Allowances 6,600
Sales Discounts 1,500
Cost of Goods Sold 43,200
Salaries Expense 15,000
Rent Expenses 12,000
Advertising Expense 5,600
Utilities Expense 4,000
Repair Expense 2,400
Storage Expense 1,600
292,900 292,900
Adjustment data:
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Other data:
Instructions
Prepare the multiple-step income statement and owner’s equity
statement for the year ended 31 December 2006 and a classified
balance sheet as at 31 December 2006. (26 marks)
Question 2
Easy Co. opened for business on 1 January 2006. Its trial balance
before adjustment on 31 December 2006 is:
Easy Co.
Trial Balance
31 December 2006
Debit Credit
$ $
Cash 42,500
Accounts Receivable 23,600
Supplies 5,500
Prepaid Insurance 9,800
Furniture 45,000
Accumulated Depreciation - Furniture 6,750
Accounts Payable 18,600
Unearned Revenue 8,450
Mortgage Payable 60,000
Easy Ross, Capital 12,000
Easy Ross, Drawings 5,200
Service Revenue 32,000
Salaries Expense 6,200
137,800 137,800
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Other data:
1. A count of supplies shows $1,750 supplies have been used.
2. Easy Ross paid the 1-year insurance premium on the 1 October.
3. The mortgage interest rate is 12%. (The mortgage was taken out
on 1st July.)
4. Utilities expenses of $800 are unpaid.
5. Invoices representing $5,800 of services performed during the
December have not been recorded as of 31 December.
6. $800 of the balance in the unearned service revenue account
remains unearned at the end of the 31 December.
7. Easy Co. used 5% of total accounts receivable to estimates its
bad debts expense.
Instructions
Journalize the adjusting entries that were made. Show all the
workings. No narration required. (14 Marks)
Question 3
Max Co. has been in business since 2003 and its fiscal year is 30
June. The following are the details of the assets used in his
business
Instructions
a) Prepare a complete depreciation schedule for the Machinery,
from the date of purchased to the disposal date.(Answers to
be rounded to the nearest dollar).
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Question 4
The Income Statement and Balance Sheet for Apex Healthcare Berhad
for the year 2005 are as follows:
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Instructions
Compute the following ratios for Apex Healthcare Berhad (All
working must be shown):-
i) Current Ratio
ii) Inventory Turnover Ratio
iii) Profit Margin
iv) Asset Turnover
v) Return on Assets
vi) Return on Common Stockholder’s Equity
vii) Debt to Total Assets Ratio
viii) Times Interest Earned
ix) Earnings Per Share
x) Acid-Test Ratio (10 Marks)
PART C
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