ACC201 Seminars 1 - 3 Additional Self-Practice Questions PDF

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Download ACC201 Seminars 1 - 3 Additional Self-Practice Questions PDF

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SIM University School of Business ACC201 – Financial Accounting Academic Year 2016-17 Semester 2 Term 2 ADDITIONAL SELF-PRACTICE QUESTIONS FROM SU1 to SU3 1. The following items are reflected on AAA Ltd’s unadjusted trial balance as at 31 December 20X1. Cash $71,800 Accounts Receivables $6,000 Prepaid Expenses $3,000 Factory $110,000 Accumulated Depreciation - Factory $18,000 Accounts Payables $6,500 Unearned Service Revenue $5,400 Share Capital $10,000 Retained Earnings $35,000 Service Revenue $159,000 Salary Expenses $34,000 Other Expenses $9,100 The following adjustments have yet to be made: (a) Accrued salary expenses of $3,000; (b) Prepaid expenses expired of $1,000; (c) Unearned service revenue that has been earned of $1,500; (d) Accrued service revenue of $30,000; (e) Depreciation expenses for the factory for the year of $3,000. Apply the accrual accounting concepts and determine the total assets, total liabilities, total equity, and net income for the year. [Partial answers: Total assets = $198,800, Total Liabilities = $13,400, Total Equity = $185,400, Net Income = $140,400] 2. AAA Ltd received its monthly bank statement as at 31 December 20X1 from BBB Bank Ltd and the statement shows an ending cash balance of $2,500. Listed on the statement are an electronic funds transfer for rent collected for AAA Ltd of $300 and two bounced cheques totalling $125. In reviewing its cash records, AAA Ltd noted that there are outstanding cheques totalling $600 and a deposit in transit of $800. AAA Ltd’s cash book balance as at 31 December 20X1 showed $2,525. Prepare the bank reconciliation statement for the month ending 31 December 20X1? [Partial answer: Adjusted Cash Balance = $2,700] 3. AAA Ltd reported allowances of uncollectible receivables of $60 million and $70 million on 1 January 20X1 and 31 December 20X1 respectively. It recorded uncollectible-account expense of $25 million for the year ended 31 December 20X1. Determine the write-offs of uncollectible receivables for the year ended 31 December 20X1. [Partial answer: $15 million] 4. AAA Ltd has the following balances: $130,000 in cash, $70,000 in short-term investments, $190,000 in net current receivables,$90,000 in inventory and $240,000 in total current liabilities. Compute its current ratio. [Partial answer: 2.0]

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