台灣科技大學

113學年度上學期

1131 會計學 小考：Ch 1,2 A

系級： 學號： 姓名：

一、 Multiple Choice (20 points)

1. ( ) A company performed services for a customer on account. This transaction increased

assets and:
(A) decreased equity.

(B) increased liabilities.

(C) increased expenses.
(D) increased revenues
2. ( ) A company sells its product for $100. The cost of the product to the company is $60.
Selling expenses are $15. Cost of goods sold is:
(A) 100 (B) 60
(C) 40 (D) 75
3. ( ) Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000
cash (Building $40,000 and Inventory $20,000), performed services for clients for
$10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash.
The journal entry to record the purchase of the company includes a:
(A) credit to Building for $40,000.
(B) debit to Share Capital for $60,000.
(C) debit to Inventory for $20,000.
(D) credit to Cash for $40,000.
4. ( ) At the beginning of the period, assets were $490,000 and shareholders’ equity was
$240,000. During the year, assets increased by $60,000, liabilities increased by $40,000,
and shareholders’ equity increased by $20,000. Beginning liabilities must have been:
(A) $230,000. (B) $250,000. (C) $280,000. (D) $300,000.
5. ( ) The accounts receivable account for James Rivers Inc. had a beginning balance of
$6,000. During the month, the company received payments of $8,000 and additional
accounts of $11,000. The ending balance in accounts receivable is _____ and is a
______.
(A) $9,000, credit (B) $9,000, debit (C) $3,000, debit (D) $3,000, credit
6. ( ) Which of the following is NOT a business transaction?
(A) The company sells goods for cash.

(B) The company buys land for cash.

(C) The company hires a new president.
(D) The company pays a dividend to its shareholders.
7. ( ) The going-concern assumption of accounting:

(A) enables accountants to ignore the effect of inflation in the accounting records.

(B) holds that the entity will remain in operation long enough to use its existing assets.
 (C) maintains that each organization, or section of an organization, stands apart from
other organizations and individuals.
(D) ensures that accounting records and statements are based on the most reliable data
available.
8. ( ) The accounting assumption that states that the business, rather than its owners, is the
reporting unit is the:
(A) entity assumption.
(B) going concern assumption.
(C) stable-monetary-unit assumption.
(D) historical cost assumption.
9. ( ) The income statement:

(A) is not dated

(B) may cover a period of time or only one day in time, like a snapshot photograph.
(C) covers a defined period of time.
(D) reports the results of operations since the inception of the business.
10. ( ) An investor wishing to assess a company’s overall financial position at the end of the
period would probably examine the:
(A) Statement of Cash Flows and the Income Statement.

(B) Income Statement only

(C) Balance Sheet.
(D) Statement of Changes in Equity.

二、What are the fundamental and enhancing qualitative characteristics of useful financial information?
(10 points)

三、The assets and liabilities of Vienna, as of December 31, 2016, and revenues and expenses for the year
ended on that date follow.
Land.................................... $ 32,000 Equipment.......................... $ 127,000
Note payable....................... 110,000 Interest expense.................. 16,000
Property tax expense........... 6,400 Interest payable.................. 7,200
Rent expense....................... 52,000 Accounts payable ............... 40,000
Accounts receivable............. 88,000 Salary expense.................... 150,600
Service revenue.................... 580,000 Building.............................. 480,200
Supplies............................... 9,000 Cash................................... 56,000
Utilities expense .................. 15,000 Share capital....................... 5,000

Beginning retained earnings was $450,000, and dividends totaled $160,000 for the year.
Requirements
1. Prepare the Income Statement of Vienna for the year ended December 31, 2016. (8 points)

2. Prepare the company’s Statement of Changes in Equity for the year. (8 points)
3. Prepare the company’s Balance Sheet at December31,2016. (8 points)
 四、 During the first month of operations, Combell , Inc., completed the following transactions:

Aug 2 Combell received $69,000 cash and issued ordinary shares to the stockholders.
5 Paid monthly rent, $1,500.
9 Paid $7,500 cash and signed a $54,000 note payable to purchase land for an office site.
10 Purchased supplies on account, $1,500.
19 Paid $1,000 on account.
22 Borrowed $25,000 from the bank for business use. Combell signed a note payable to the bank in the
name of the business.
31 Service revenue earned during the month included $13,000 cash and $7,000 on account.
31 Paid employees’ salaries ($2,000), advertising expense ($1,800), and utilities expense ($1,900).
31 Declared and paid dividends of $4,000.
Combell’s business uses the following accounts: Cash, Accounts Receivable, Supplies, Land, Accounts
Payable, Notes Payable, Share Capital, Dividends, Service Revenue, Rent Expense, Salary Expense,
Advertising Expense, and Utilities Expense.
Requirements
1. Record each transaction in the journal. Be sure to record the date in each entry. Explanations are not required.
(18 points)
2. Post to these T-accounts: Cash, Accounts Payable, and Notes Payable. (6 points)
3. After these transactions, how much cash does the business have? How much in total liabilities
does it owe? (4 points)
五、 The trial balance of Fnatic, Inc., at June 30, 20X6, does not balance.

Debit Credit
Cash 4,000
Accounts receivable 12,800
Inventory 17,000
Supplies 500
Land 50,100
Accounts payable 14,200
Share capital 45,300
Service revenue 30,300
Salary expense 2,100
Rent expense 800
Utilities expense 500
Total ....................... 87,800 89,800
The accounting records hold the following errors:
a. Recorded a €500 cash revenue transaction by debiting Accounts Receivable. The credit
entry was correct.
b. Posted a € 1,000 credit to Accounts Payable as € 100.
c. Did not record utilities expense and the related account payable in the amount of €800.
d. Understated Share Capital by €1,000.
e. Omitted Insurance Expense of €3,900 from the trial balance.

Requirement
1. Prepare the correct trial balance at June 30, 20X6, complete with a heading. Journal entries
are not required. (18 points)