1. DEVRY ACCT 550 F INAL E XAM Check this A+ tutorial guideline at http://www.assignmentcloud.com/acct-550/acct-550-final-exam For more classes visit http://www.assignmentcloud.com ACCT 550 Final Exam 1. (TCO A) Listed below are several information, characteristics, and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Points : 30) Potential Matches: 1 : Earnings process completed and realized or realizable 2 : Cost of providing financial information versus the benefits derived from its use 3 : Accruals and deferrals in adjusting and closing process 4 : Business enterprise assumed to have a long life 5 : Stable dollar assumption 6 : Notes as part of necessary information to a fair presentation 7 : Valuing assets at amount originally paid for them 8 : The impact of an item on the overall financial operations of a company 9 : Presentation of error-free information with representational faithfulness

2. 2. (TCO B) Adjusting Entries: Unearned rent at 1/1/10 was $10,300 and at 12/31/10 was $6,000. The records indicate cash receipts from rental sources during 2010 amounted to $50,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit. (Points : 10) 3. (TCO B) Adjusting Entries: Data relating to the balances of various accounts affected by adjusting or closing entries appear below. (The entries which caused the changes in the balances are not given.) You are asked to supply the missing journal entries which would logically account for the changes in the account balances. Interest receivable at 1/1/10 was $1,000. During 2010 cash received from debtors for interest on outstanding notes receivable amounted to $1,000. The 2010 income statement showed interest revenue in the amount of $2,900. You are to provide the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr. for debit and Cr. for credit. (Points : 10) 4. (TCO B) Adjusting entries: Accumulated depreciation-equipment at 1/1/10 was $200,000. At 12/31/10, the balance of the account was $320,000. During 2010, one piece of equipment was sold. The equipment had an original cost of $50,000 and was 1/2 depreciated when sold. You are to prepare the missing adjusting entry. For each journal entry, write Dr. for debit and Cr. for credit. (Points : 10) 5. (TCO B) Adjusting Entries: Allowance for doubtful accounts on 1/1/10 was $70,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $70,000 and during 2010 bad debts written off amounted to $40,000. You are to provide the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit. (Points : 10)

3. 6. (TCO B) Adjusting Entries: Prepaid rent at 1/1/10 was $50,000. During 2010 rent payments of $110,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $135,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr. for debit and Cr. for credit. (Points : 10) 7. (TCO B) Adjusting Entries: Retained earnings at 1/1/10 were $100,000 and at 12/31/10 it was $300,000. During 2010, cash dividends of $40,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. For each journal entry write Dr. for debit and Cr. for credit. (Points : 10) 8. (TCO C) Presented below is information related to Big Blast Company. Retained earnings, December 31, 2010 $ 2,350,000 Sales 2,600,000 Selling and administrative expenses 240,000 Earthquake loss (pre-tax) on plant (extraordinary item) 250,000 Cash dividends declared on common stock 53,600 Cost of good sold 1,000,000 Gain resulting from computation error on depreciation charge in 2009 (pre- tax) 520,000