Grade 12 Accounting Review & Practice Questions

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1 Grade 12 Accounting Review & Practice Questions Chapter 1 Review Questions Chapter 1 Theory: Do m/c Page #1 10 Chapter 1 Practice: o BE1 1 o BE1 5 o BE1 6 o BE1 11 o BE1 15 Exercises o E1 4 o E1 10 o E1 14 o E1 15 Chapter 1: What do I need to practice? Chapter 2 Review Questions Chapter 2 Theory: Do m/c Page #1 12 Chapter 2 Practice: o BE2 1 o BE2 2 o BE2 5 o BE2 12 Exercises o E2 6 (a&b) Do this on Journal Paper (Double Entry + Explanation) o Problem P2 4 Chapter 2: What do I need to practice? Chapter 3 Review Questions Chapter 3 Theory: Do m/c Page #1 13 Chapter 3 Practice: o BE3 3 o BE3 4 o BE3 5 Exercises o E3 3 o E3 5 o P3 6A (a) + (c) show calculations of new Adjusted TB Chapter 3: What do I need to practice? Chapter 4 Review Questions Chapter 4 Theory: Do m/c Page #1 12 Chapter 4 Practice: o BE4 1 o BE4 2 o BE4 3 o BE4 4 o BE4 10 Exercises o E4 3 o E4 4 o E4 8 o E4 9 o E4 10 o P4 1A Chapter 4: What do I need to practice?

2 Chapter 5 Review Questions Chapter 5 Theory: Do m/c Page #1 12 Chapter 5 Practice: Perpetual o BE5 2 o BE5 3 o BE5 4 o BE5 5 o BE5 7 o BE5 8 o BE5 9 Periodic o BE 15 o BE 16 o BE 17 Perpetual o E5 2 o E5 3 o E5 4 o E5 5 Periodic o E5 12 o E5 13 o E5 14 Multi Step Income Statement & Ratios o BE5 12 o BE5 14 o E5 9 o E5 10 o E 5 11 o E 5 16 Chapter 5: What do I need to practice? Chapter 6 Review Questions Chapter 6 Theory: Do m/c Page #1 13 Specific Identification o E6 3 FIFO o BE6 5 o BE6 7 o E6 6 o E6 7 Avg Cost o BE 6 6 o BE6 7 o E6 6 o E6 7 Theory & Ratio: o BE6 10 o BE6 15 o BE6 16 o E6 12 Chapter 6: What do I need to practice?

3 Chapter 9 Review Questions Chapter 9 Theory: Do m/c Page #1 12 Chapter 9 Practice: BE9 5 BE9 6 BE9 7 E9 4 E9 5 P9 3A Chapter 12 Review Questions Chapter 12 Theory: Do m/c Page #1 10 Chapter 12 Practice: BE12 1 BE12 2 Demonstration Problem #1 P12 3A Chapter 9: What do I need to practice? Chapter 12: What do I need to practice?

4 Chapter 1 Review P1-3A The following selected data are for Perron Importers Limited for its first three years of operations: January 1: Total assets 40,000 $ (f) $ (j) Total liabilities 0 50,000 (k) Total owner's equity (a) 75,000 (l) December 31: Total assets (b) 140, ,000 Total liabilities 50,000 (g) 65,000 Total owner's equity (c) 97,000 (m) Changes during year in owner's equity: Investments by owner during the year 7,000 0 (n) Drawings by owner during the year 15,000 (h) 36,000 Profit or loss for the year (d) 40,000 (o) Total revenues for the year 132,000 (i) 157,000 Total expenses for the year (e) 95, ,000 Determine the missing amounts. Chapter 2 Review P2-11A The ledger of Super Delivery Service has the following account balances at the company's year end, August 31, 2014: Accounts Payable $ 3,235 Repairs Expense $ 1,580 Accounts Receivable 4,275 Salaries Expense 5,665 Cash? Salaries Payable 925 Equipment 49,720 Service Revenue 37,780 Fuel Expense 12,145 Supplies 265 Insurance Expense 2,020 Supplies Expense 2,650 Interest Expense 975 T. Rowe, Capital 48,750 Notes Payable 19,500 T. Rowe, Drawings 24,400 Prepaid Insurance 405 Unearned Revenue 675 (a) Prepare a trial balance, with the accounts arranged in ledger (financial statement) order, as illustrated in the chapter, and determine the missing amount for Cash. Show your calculations. (b) Prepare an income statement, statement of owner's equity, and balance sheet.

5 Chapter 3 Review P3-7A The Highland Cove Resort has an August 31 fiscal year end and prepares adjusting entries on a monthly basis. The following trial balance was prepared before recording the August 31 month-end adjustments: Additional information: HIGHLAND COVE RESORT Trial Balance August 31, 2014 Debit Credit Cash 17,520 $ Prepaid insurance 4,240 Supplies 995 Land 35,000 Buildings 150,000 Accumulated depreciation buildings 47,750 $ Furniture 33,000 Accumulated depreciation furniture 12,925 Accounts payable 8,500 Unearned revenue 15,000 Mortgage payable 96,000 K. MacPhail, capital 85,000 K. MacPhail, drawings 42,735 Rent revenue 246,150 Depreciation expense 5,775 Insurance expense 6,890 Interest expense 5,720 Repairs expense 14,400 Salaries expense 153,000 Supplies expense 4,450 Utilities expense 37,600 $511,325 $511, The company pays $6,360 for its annual insurance policy on March 31 of each year. 2. A count shows $560 of supplies on hand on August 31, The buildings have an estimated useful life of 50 years. 4. The furniture has an estimated useful life of 10 years. 5. Customers must pay a $100 deposit if they want to book a room during peak times. An analysis of these bookings indicates that 150 deposits were received (all credited to Unearned Revenue) and only 40 of the deposits have not yet been earned by August 31, The mortgage interest rate is 6.5% per year. Interest has been paid to August 1, Salaries accrued to the end of August were $1,450. (a) Prepare the monthly adjusting journal entries on August 31. (b) Prepare a ledger, enter the trial balance amounts, and post the adjusting entries. (c) Prepare an adjusted trial balance at August 31. (d) Prepare an income statement and a statement of owner's equity for the year ended August 31, and a balance sheet as at August 31, 2014.

6 Chapter 4 Review P4-7A Danier Leather Inc. is one of the largest publicly traded specialty apparel leather retailers in the world. The following information (all amounts in thousands) can be found on its recent balance sheets (or statements of financial position, as Danier Leather calls them): Dec. 24, 2011 June 25, 2011 Dec. 25, 2010 Cash and cash equivalents $31,803 $28,698 $25,406 Accounts receivable 1, Inventories 36,789 28,964 41,163 Prepaid expenses Property and equipment 15,315 14,404 15,808 Other long-term assets 2,677 2,732 2,943 Payables and accruals 16,010 11,024 19,650 Income taxes payable ,097 Other current liabilities 3,586 1,536 3,659 Non-current liabilities 1,392 1,318 1,414 Shareholders' equity 67,125 60,272 61,928 (a) Calculate Danier Leather's current assets and current liabilities for each period. (b) Calculate Danier Leather's working capital, current ratio, and acid-test ratio for each period. (c) What does each of the measures calculated in part (b) show? Comment on Danier's liquidity. Chapter 5 Review Quiz Example: The following merchandise transactions occurred in December. Dec. 3 Company A (Seller) sold merchandise to Company B (Buyer) for $82,000, terms 3/15, n/30, FOB destination. This merchandise cost Company A $65,000. Dec. 4 The correct company paid freight charges of $1,650. Dec. 8 Company B returned unwanted merchandise to Company A. The returned merchandise had a sales price of $2,800 and a cost of $1,290. It was restored to inventory. Dec. 13 Company A received the balance due from Company B. Company A (Seller) Perpetual Inventory Company A (Seller) Periodic Inventory Company B (Buyer) Perpetual Inventory Company B (Buyer) Periodic Inventory

7 Chapter 6 Review P6-5A Fly-Buy Frisbees sells a wide variety of frisbees and uses a perpetual inventory system. On June 1, Fly-Buy Frisbees had five Fast Flying Frisbees on hand at a unit cost of $105. During June and July, the company had the following purchases and sales for this frisbee (all for cash): Purchases Units Unit Cost Units Sales Unit Price June 4 2 $ $ July (a) Determine the cost of goods sold and ending inventory under a perpetual inventory system using (1) FIFO and (2) average. (Hint: Round the average cost per unit to two decimal places.) (b) Calculate gross profit using (1) FIFO and (2) average. (c) What impact, if any, does the choice of cost formula have on cash flow? Chapter 9 Review P9-3A Campagner Company purchased equipment on account on September 3, 2012, at an invoice price of $210,000. On September 4, 2012, it paid $4,400 for delivery of the equipment. A one-year, $1,975 insurance policy on the equipment was purchased on September 6, On September 20, 2012, Campagner paid $5,600 for installation and testing of the equipment. The equipment was ready for use on October 1, Campagner estimates that the equipment's useful life will be four years, with a residual value of $13,000. It also estimates that, in terms of activity, the equipment's useful life will be 75,000 units. Campagner has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units Year Ended September 30 15, , , , (a) Determine the cost of the equipment. (b) Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line 2. diminishing-balance at double the straight-line rate 3. units-of-production (c) Which method would result in the highest profit for the year ended September 30, 2013? Over the life of the asset? (d) Which method would result in the least cash used for the year ended September 30, 2013? Over the life of the asset?

8 Chapter 12 Review P12-3A At the end of its first year of operations, on December 31, 2014, CDW Company's accounts show the following: Partner Drawings Capital J. Chapman-Brown $10,000 $30,000 C. Duperé 8,000 40,000 H. Weir 6,000 50,000 The capital balance represents each partner's initial capital investment. No closing entries for profit (loss) or drawings have been recorded as yet. (a) Journalize the entry to record the division of profit for the year ended December 31, 2014, under each of the following independent assumptions: 1. Profit is $40,000. Duperé and Weir are given salary allowances of $8,000 and $12,000, respectively. The remainder is shared equally. (b) Journalize the entry to close each partner's drawings account. (c) Prepare a statement of partners' equity for the year under assumption (2) in part (a) above.

9 Exam Mark Breakdown 20% of Final Mark EXAM: Wednesday, June 21th, 2016 Part A Thinking 24 marks Part B Application 23 marks Part C Communication 18 marks Part D Knowledge / Understanding 15 marks M/C Scantron Be in Full Uniform Students will need pens / pencils / erasers Bringing different colour pens will help (black, green, blue pens) Bring a calculator

MERCHANDISING OPERATIONS

MERCHANDISING OPERATIONS Key Topics to Know Merchandising Businesses The revenue account is Sales, not Fees Earned New expense account, Cost of Goods Sold (COGS), records the cost of merchandise inventory