(2021) ACCT1101 Mid-Semester Mock Exam Solution - Semester 2(1) PDF

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Mid-semester exam solutions for 2021 with answers...

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UWA Business School

MID-SEMESTER MOCK EXAM 2nd Semester 2021

ACCT1101 - FINANCIAL ACCOUNTING [SOLUTIONS]

1

SECTION A: MULTIPLE CHOICE QUESTIONS A1. A2.

e

A3.

c

A4.

c

A5.

a

A6.

c

A7.

d

A8.

e

A9.

a

A10.

d

A11.

e

A12.

c

A13.

e

A14.

c

A15.

a

A16.

c

A17.

a

A18.

e

A19.

c

A20.

c

c

A21.

e

A22.

e

A23.

d

A24.

e

A25.

a

A26.

d

A27.

c

A28.

a

A29.

b

A30.

c

A31.

d

A32.

b

A33.

c

A34.

d

A35.

a

A36.

d

A37.

a

A38.

b

A39.

b

A40.

c

SECTION B: MULTIPLE CHOICE QUESTIONS (Based on Adjusting & Closing entries recorded in the General Journal) Refer to the Solutions to the Lecture Week 5 Example & Lecture Week 6 Example which can both be found in the Lecture Notes Section on LMS. Solutions are also available online on LMS to the following Questions from the textbook “Financial Accounting” by Hoggett et al. (2021), (11th Edition); Tutorial Questions – Exercise 4.2 & Problems 4.16 & 4.21 and Practical Problems 4.19 & 4.29 for both Adjusting Journal entries and Closing Journal entries.

SECTION C: MULTIPLE CHOICE QUESTIONS (Based on General Journal entries) [General Journal entries for Colorado Ltd are as follows:] Using the column headings [Date / Accounts / Debit / Credit] A. September 1. Cash at Bank Sales

550 500 50

GST Collection Cost of Sales Inventory

300

2. Accounts Payable Cash at Bank

660

4. Inventory GST Outlays

750 75

300

660

Accounts Payable 5. Sales Returns & Allowances GST Collection Cash at Bank Inventory

825 200 20 220 120 120

Cost of Sales 8. Freight Inwards Cash at Bank

30

10. Accounts Payable Inventory

165

30

150

GST Outlays 12. Accounts Receivable Sales GST Collections Cost of Sales

15 1 100 1 000 100 600

Inventory 14. Accounts Payable Discount Received GST Outlays

600 660 12 1

Cash at Bank

647

(25 purchased – 5 returned = 20) 23. Sales Returns & Allowances GST Collections Accounts Receivable Inventory

250 25 275 150

Cost of Sales Cash at Bank

150 825

Accounts Receivable 24. Inventory GST Outlays

825 900 90

Accounts Payable

29. Accounts Payable Cash at Bank

990

990

970

GST Outlays

2

Discount Received

18

Inventory Shortage Physical Count 61 units @ $30 Records show 69 units @ $30 should be on hand. Entry to record Shortage 8 units @ $30. Inventory Shortage Expense 240 Inventory

240

B. [Closing Entries] 30. Profit & Loss Summary

1 350

Sales Returns & Allowances Cost of Sales

450 630

Inventory Shortage Freight Inwards (Closing of all accounts with a Debit balance)

240 30

Discount Received Sales Profit & Loss Summary (Closing of all accounts with a Credit balance)

30 1 500 1 530

Profit & Loss Summary Capital (Transfer of Profit to Capital)

180 180

*Solutions to Tutorial Questions – Exercise 6.2 & 6.3 and Practical Problems 6.13, 6.14 & 6.16 from Hoggett et al. (2021), (11th Edition) and a comparison of the use of Perpetual and Periodic Inventory systems for a retailing business are available online on LMS.

SECTION D: MULTIPLE CHOICE QUESTIONS (Based on calculations) Q1.

What is the Gross Sales Revenue?

$2 975 000

Q2.

What is the Net Sales Revenue?

Gross Sales Less Sales Returns & Allowances

Q3.

2 975 000 112 000 2 863 000

What are the Net cost of Purchases?

Purchases Plus Freight Inwards

2 817 500 147 000 2 964 500 Less Purchases Returns & Allowances 612 500 2 352 000

Q4.

How much are the Cost of Goods Sold?

Opening Inventory Plus Net Cost of Purchases Less Closing Inventory

Q5.

56 000 2 352 000 $2 408 000 128 920 $2 279 080

What is the Other Income equal

to? Commission Income = $44 375

Q6.

What is the Gross Profit?

Net Sales Revenue Less Cost of Goods Sold

Q7.

2 863 000 2 279 080 $583 920

How much are the Selling Expenses?

Salesmen Salaries 150 000 Freight Outwards 16 020 Marketing Costs 24 000 Depreciation of Showroom Building 33 000 $223 020

Q8.

How much are the Administrative Expenses?

Office Rent Utilities Expense Insurance Expense

Q9.

How much are the Financial Expenses?

Bad Debts Interest Expense

Q10. Selling Admin Finance

130 000 113 240 65 000 $308 240

6 000 23 015 $29 015

What are the Total Expenses? 223 020 308 240 29 015 $560 275

Q11.

What is the Net Profit (or Net Loss) for the period?

Gross Profit Plus Other Income Less Total Expenses

Q12.

What are the Current Assets equal to?

Cash at Bank Accounts Receivable Closing Inventory Prepaid Rent

Q13.

583 920 44 375 $628 295 560 275 $68 020

88 100 44 000 128 920 25 000 $286 020

How much are the Intangible

Assets? Trademarks & Brand Names $200 000

Q14.

What are the Non-Current Assets equal to?

Showroom Buildings Less Accumulated Depreciation Trademarks & Brand Names

Q15.

780 000 38 500 $741 500 200 000 $941 500

What are the Total Assets equal to?

Current Assets Non-Current Assets

286 020 941 500 $ 1 227

Q16.

How much is the GST Payable at the end of the period?

GST Collections Less GST Outlays = GST Payable

Q17.

How much are the Current Liabilities?

Accounts Payable Unearned Revenue GST Payable Salesmen Salaries Payable

Q18.

$600 000

How much are the Total Liabilities?

Current Non-Current

Q20.

108 000 9 000 12 000 15 000 $144 000

How much are the Non-Current

Liabilities? Mortgage Payable

Q19.

28 000 16 000 12 000

$144 000 $600 000 $744 000

What is the Equity of the business equal to?

Opening Capital Plus Net Profit Less Drawings

515 500 68 020 583 520 100 000 $483 520

END OF EXAMINATION...