Preview

Accounting Sample Exam

Powerful Essays
Open Document
Open Document
2394 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Accounting Sample Exam
ACCT 1106
SAMPLE EXAMINATION

Section 1 – Technical Questions

Question 1 – Perpetual Journal Entries 20 marks

On October 1, Keiler Motorcycle Shop had an inventory of 20 dirt bikes at a cost of $1,150 each. During the month of October, the following transactions occurred.

Oct. 3 Purchased 10 bikes at a cost of $1,150 each from the Lyons Bike Company, terms n/30.

6 Sold 10 bikes for $1,500 each, terms n/30.

6 Freight of $250 on the October 6 sale was FOB shipping point.

7 Received credit from the Lyons Bike Company for the return of 2 defective bikes.

13 Issued a credit to a customer for the return of a bike. The bike was returned to inventory.

19 Purchased 8 bikes from Huffy Cycle Company at a cost of $1,125 each, terms 2/10, n/30.

20 Freight of $220 on the October 19 purchase was FOB shipping point.

29 Paid for the October 19 purchase.

Instructions
Using a perpetual inventory system, prepare the journal entries, in your exam booklet, to record the transactions.

[pic]

Question 2 Internal Controls 15 marks

The following internal control procedures are used by Brooks Company for cash receipts and disbursements.
1. Cashiers receive all over the counter receipts and place the cash into a single cash drawer.
2. When cash in the drawer exceeds $500, it is placed in an envelope marked “cash” and stored in a drawer in the supervisor’s office.
3. The company’s accountant makes daily bank deposits.
4. The clerk in the receiving department authorizes all payments for purchases.
5. Blank cheques are kept in the main office.

Instructions: For each of the above procedures, explain the weakness in internal control, identify the control policy or procedure violated and suggest a change in procedure that will result in better control. Complete your answer in the table provided below:
| | |Control

You May Also Find These Documents Helpful

  • Satisfactory Essays

    ACCT 640 QUIZ 2

    • 484 Words
    • 8 Pages

    ADDITIONAL INFORMATION: Sold a fixed asset with an original cost of $9,000 and accumulated depreciation of $7,000 and purchased a new fixed asset for cash.…

    • 484 Words
    • 8 Pages
    Satisfactory Essays
  • Powerful Essays

    Great Western Bank

    • 1827 Words
    • 8 Pages

    The truck gets involved in an accident when it was passing through Illinois and all the machines were a total loss. Data Max told the bank that title was passed to the bank when the goods were loaded in the truck and the machines were sold to you F.O.B. Cincinnati. So, it is not Data Max’s responsibility to refund the money. Great Western Bank made a point that they designated a particular carrier, but the goods were shipped via a different carrier. Data Max replied by saying that, still the Bank paid the invoice to get discount.…

    • 1827 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Week 3 Quiz 1

    • 1430 Words
    • 6 Pages

    Jefferson Company purchased a piece of equipment on January 1, 2011. The equipment cost $60,000 and had an…

    • 1430 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Week 2 Exercise 1 Copy

    • 453 Words
    • 16 Pages

    2. Purchased equipment for $5,000, paying $1,000 in cash and the balance of $4,000 on account.…

    • 453 Words
    • 16 Pages
    Satisfactory Essays
  • Good Essays

    Flu Clinic Case Study

    • 426 Words
    • 2 Pages

    PBS- Julie, thank you for the cash drawer. I believe we are good to go with the cash handling part. But, we will touch basis before we open.…

    • 426 Words
    • 2 Pages
    Good Essays
  • Good Essays

    business law

    • 1265 Words
    • 6 Pages

    2. business purchased supplies and carpet the amount of supplies 500 and the amount of carpet was $50 paid in cash…

    • 1265 Words
    • 6 Pages
    Good Essays
  • Good Essays

    FSA homework 2014

    • 1351 Words
    • 6 Pages

    1) Collects $800 cash from a customer in March for a custom-made bicycle that will be delivered to…

    • 1351 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Petty Cash Fund

    • 927 Words
    • 4 Pages

    Usually a custodian is appointed to administer the petty cash and it is his/her duty to account for the expenses incurred out of petty cash fund. Whenever the custodian makes any payment from the fund to an employee or a customer etc., he or she must record the amount being disbursed, the name of the person to whom the payment is being made and the reason for the disbursement.…

    • 927 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Australian Gst

    • 1138 Words
    • 5 Pages

    purchased whether it be a car or a pen with only a few exceptions. The…

    • 1138 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Sql Hw

    • 546 Words
    • 3 Pages

    1. SELECT PARTNUMB, PARTDESC FROM PART Query1 | PARTNUMB | PARTDESC | AX12 | IRON | CX11 | MIXER | WHERE UNONHAND BETWEEN 100 AND 200 2. SELECT PARTNUMB, PARTDESC, (UNITPRCE*UNONHAND) ONHANDVALUE FROM PART WHERE VALUE >= 1000…

    • 546 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Accounts Sba

    • 3247 Words
    • 13 Pages

    Bought 15 computers and parts from One Stop Computer Ltd paying by Cheque for $225,000…

    • 3247 Words
    • 13 Pages
    Satisfactory Essays
  • Satisfactory Essays

    • Income in P&L 37,500/Bike Purchased after 15 days of operation for 40,000/• Asset 40,000/• Bike Payable (liability) 40,000/Average Monthly Sale for Sep 2008 to Apr 2009 was 80,000…

    • 521 Words
    • 7 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Yours sincerely

    • 297 Words
    • 2 Pages

    25 pieces mountain bikes, brand “Swallow”, size 17 inches, price: at a unit price of 295 including delivery, but without your introductory discount of 5%; terms of payment as agreed net 10 days.…

    • 297 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Negative growth is the major problem being faced by companies in the two wheeler industry. The two wheeler industry has been shrinking continuously3. From a peak of over 40% growth in 2002 it is currently facing a growth of -12% in the second quarter of 2008. Exhibit 2 shows the recent trends.…

    • 763 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Ais Activity

    • 666 Words
    • 3 Pages

    2. Develop a context diagram and a level O DFD for the cash receipts system at Starducks…

    • 666 Words
    • 3 Pages
    Good Essays