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Financial Management Accounting Exam Practice

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Accounting

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FINANCIAL MANAGEMENT ACCOUNTING
Use the information below to answer questions 1-9
Kerwin James is a sole trader who operates a variety store in Deanery Park. Mr. James opened his store
on April 1, 2010 in the Park Plaza. The trial Balance of the enterprise as at 31 August
2020 is as follows:
Dr. Cr.
Sales 540,000
Long Term Mortgage 120,000
Land & Building 200,000
Fixtures & Fittings 145,000
Machinery & Equipment 97,500
Debtors 42,500
Capital 210,000
Carriage Inwards 4,500
Return Inwards 8,500
Return Outwards 3,500
Carriage Outwards 6,500
Creditors 32,000
Purchases 255,000
Commission Received 8,000
Motor Vehicle 65,000
Rent Received 12,200
Discount Received 10,000
Discount Allowed 6,000
Wages 40,000
Drawings 28,500
Office Expense 12,000
Telephone charges 5,250
Stock at September 1. 2019 31,500
Bank 12,250
Cash 6,200
--------------- -------------------
953,950 953,950
======== ========
End note:
Stock at August 31, 2020 was 50,000

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QUESTIONS
1. Net sales for the year is:
a) $540,000
b) $525,500
c) 536,500
d) $531,500
2. Cost of goods sold for the year is:
a) $255,000
b) $ 48,000
c) $227,500
d) $237,500
3. Gross profit for the year is:
a) $298,000.
b) $ 304,000
c) $237500.
d) $ 287,500
4. Total other income for the year is:
a) $20,200
b) $ 10,000
c) $ 30,200
d) $ 18,000

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FINANCIAL MANAGEMENT ACCOUNTING Use the information below to answer questions 1-9 Kerwin James is a sole trader who operates a variety store in Deanery Park. Mr. James opened his store on April 1, 2010 in the Park Plaza. The trial Balance of the enterprise as at 31 August 2020 is as follows: Dr. • • • • • • • • • • • • • • • • • • • • • • • • • Sales Long Term Mortgage Land & Building Fixtures & Fittings Machinery & Equipment Debtors Capital Carriage Inwards Return Inwards Return Outwards Carriage Outwards Creditors Purchases Commission Received Motor Vehicle Rent Received Discount Received Discount Allowed Wages Drawings Office Expense Telephone charges Stock at September 1. 2019 Bank Cash Cr. 540,000 120,000 200,000 145,000 97,500 42,500 210,000 4,500 8,500 3,500 6,500 32,000 255,000 8,000 65,000 12,200 10,000 6,000 40,000 28,500 12,000 5,250 31,500 12,250 6,200 --------------- ------------------- 953,950 953,950 ======== ======== End note: Stock at August 31, 2020 was 50,000 QUESTIONS 1. Net sales for the year is: a) $540,000 b) $525,500 c) 536,500 d) $531,500 2. Cost of goods sold for the year is: a) $255,000 b) $ ...
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