Accounting 110 - Practice Exam W/ Answers
Camosun College Financial Accounting Acct110 PRACTICE Final Exam
B. Edwards
Name: ____________________________________________________________
___________________ Question One: A/R and Bad debts (15 minutes)
Read each transaction and record the appropriate journal entry for Morrison Consultants, which has a June 30 year end. Explanations are NOT required. 1. On June 30 2011, Morrison prepares an aging schedule of accounts receivable that shows estimated uncollectible accounts of $5,200. Before journal entries, the Allowance for Doubtful accounts has a debit balance of $300 and Accounts Receivable has a balance of $85,000. 2. On July 5, Morrison was notified that Sperry Ltd has declared bankruptcy and Morrison writes off its A/R of $800. 3. On September 12, Sperry notifies Morrison that it can pay its $800 debt and includes a cheque for the entire amount. Date Account Debit Credit
Calculations:
What is the net realizable value of the accounts receivable at June 30, 2011? _______________ What is the net realizable value of the accounts receivable at July 5, 2011? _______________
There is no representation that the practice questions reflect the actual exam questions.
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Camosun College Financial Accounting Acct110 PRACTICE Final Exam
B. Edwards
Question Two: Capital Assets and amortization. (30 minutes)
Townsend Engineers owns a piece of machinery that it purchased 3 years ago for $40,000. The machinery has an estimated salvage value of $5,000 and an estimated useful life of 10 years. Straight-line amortization is used. At December 31, 2010, the accumulated amortization account had a balance of $10,500. On April 1, 2012 Townsend sold the machinery for $27,000. 1. Record the amortization on December 31, 2011. 2. Record all of the necessary journal entries to record the sale of machinery on April 1, 2012. Date Account Debit Credit
Calculations:
There is no representation that the practice questions reflect the actual exam
B. Edwards
Name: ____________________________________________________________
___________________ Question One: A/R and Bad debts (15 minutes)
Read each transaction and record the appropriate journal entry for Morrison Consultants, which has a June 30 year end. Explanations are NOT required. 1. On June 30 2011, Morrison prepares an aging schedule of accounts receivable that shows estimated uncollectible accounts of $5,200. Before journal entries, the Allowance for Doubtful accounts has a debit balance of $300 and Accounts Receivable has a balance of $85,000. 2. On July 5, Morrison was notified that Sperry Ltd has declared bankruptcy and Morrison writes off its A/R of $800. 3. On September 12, Sperry notifies Morrison that it can pay its $800 debt and includes a cheque for the entire amount. Date Account Debit Credit
Calculations:
What is the net realizable value of the accounts receivable at June 30, 2011? _______________ What is the net realizable value of the accounts receivable at July 5, 2011? _______________
There is no representation that the practice questions reflect the actual exam questions.
1|Page
Camosun College Financial Accounting Acct110 PRACTICE Final Exam
B. Edwards
Question Two: Capital Assets and amortization. (30 minutes)
Townsend Engineers owns a piece of machinery that it purchased 3 years ago for $40,000. The machinery has an estimated salvage value of $5,000 and an estimated useful life of 10 years. Straight-line amortization is used. At December 31, 2010, the accumulated amortization account had a balance of $10,500. On April 1, 2012 Townsend sold the machinery for $27,000. 1. Record the amortization on December 31, 2011. 2. Record all of the necessary journal entries to record the sale of machinery on April 1, 2012. Date Account Debit Credit
Calculations:
There is no representation that the practice questions reflect the actual exam