Do not turn this page until the start signal is given!

Transcription

1 UNIVERSITY INTERSCHOLASTIC LEAGUE ACCOUNTING EXAM Invitational 2016-A Contestant # Team # Do not turn this page until the start signal is given! All answers MUST be written on your answer sheet. Either upper case or lower case letters are acceptable. Write legibly. Write letters far enough above the line so that (for example) an E can be distinguished from an F. For each multiple choice question, write only the identifying letter of the correct answer on your answer sheet. Acceptable responses (and not case sensitive) for the following are: True = True or T False = False or F debit = DR credit = CR If you choose another response for the examples given above, it will be counted as incorrect. When an answer contains more than one response, all responses must be correct for the answer to be correct. The correct responses may be listed in any order unless the group instructions say otherwise. An incorrect response among the correct responses will cause your answer to be wrong. If the answer has zero cents, it is not necessary to write the decimal or the zeroes for cents. A dollar amount with cents must have two decimal places. A required decimal point must be clearly visible. Including commas in an amount where appropriate is encouraged. Marking a comma in the wrong position will cause your answer to be marked wrong. Failure to use commas will not make your answer wrong. When there are no choices of answers given (not a multiple choice) and the answer is zero, write the number 0 or the word zero. After the start signal is given, you may remove table pages and any work papers from the staple for convenience. Work papers and the test itself are never reviewed by graders.

2 UIL ACCOUNTING Invitational 2016-A Group 1 In items 1 through 5 are listed some of the accounts that appear in the Account Title section of a work sheet. Indicate whether the normal account balance will be entered in the debit or the credit column of the Trial Balance section of the work sheet using the following code: DR = Trial Balance debit column CR = Trial Balance credit column 1. Prepaid Insurance 2. Sales Tax Payable 3. Purchases 4. Fees Earned 5. Rent Expense Group 2 Georgia Company began operations of a service business on Jan 8, 2015 when the owner invested $50,000 cash in the business. The fiscal year end is December 31. During 2015, the company had service revenue of $79,844; of this amount, $52,918 was collected during 2015 and the rest was considered a collectible outstanding receivable at year-end. Georgia incurred $62,518 of expenses during 2015; of this amount, $20,257 was unpaid as of December 31, The owner withdrew $7,500 of cash from the business on December 20, Use the above information to answer questions 6 through 9. Write the correct amount on your answer sheet. 6. What is the balance of the cash account on ? 7. What is the amount of total liabilities on ? 8. What is the company s net income for 2015? *9. What is the balance in the capital account after closing entries for 2015 are posted?

3 UIL Accounting Invitational 2016-A -2- Group 3 It is company policy to record any necessary journal entries and to update the checkbook balance after the bank reconciliation is completed. Data: Bank Service Charge for December is $18.40 Deposits in transit on December 31 are $ and $3, Reconciled bank balance on December 31 is $2, Outstanding checks on December 31 are $562.47, $91.18, and $ For questions 10 and 11, write the correct amount on your answer sheet. *10. Given the above facts, what was the amount that was printed on the bank statement as the closing balance for December? 11. What was the balance in the cash account in the accounting records prior to reconciling the bank statement for December? Group 4 The balance in the Supplies account on January 1 was $2,425. During the year supplies were purchased as follows: $1,892, $3,261, $1,207, and $951. A physical inventory taken on December 31 totaled $2,890. Use the information above to answer questions 12 through 15. identifying letter of the best response on your answer sheet. Write the 12. What amount should appear in the work sheet s unadjusted trial balance column for the account called Supplies? A. zero C. $2,890 E. $7,311 G. $ 9,736 B. $2,425 D. $6,846 F. $7,776 H. $10, What amount should appear in the work sheet s unadjusted trial balance column for the account called Supplies Expense? A. zero C. $2,890 E. $7,311 G. $ 9,736 B. $2,425 D. $6,846 F. $7,776 H. $10,201 *14. What amount should appear in the work sheet s adjustment columns to indicate the supplies usage for the period? A. zero C. $2,890 E. $7,311 G. $ 9,736 B. $2,425 D. $6,846 F. $7,776 H. $10, What amount should appear in the work sheet s balance sheet column for the account called Supplies? A. zero C. $2,890 E. $7,311 G. $ 9,736 B. $2,425 D. $6,846 F. $7,776 H. $10,201

4 UIL Accounting Invitational 2016-A -3- Group 5 Some amounts are omitted in each of the following financial statements: Income Statement For the Year Ended December 31, 2015 Sheldon Company Leonard Company Howard Company Revenues 80,462 (e) (h) Expenses 61,947 59,224 62,706 Owner s Equity Statement For the Year Ended December 31, 2015 Sheldon Company Leonard Company Howard Company Capital, January 1 (a) 7,240 11,376 Additional Capital Investment 20,000 35,000 (i) Net Income <Loss> (b) 3,723 <8,415> Drawing 5,000 (f) 500 Capital, Dec. 31 (c) 44,463? Balance Sheet December 31, 2015 Sheldon Company Leonard Company Howard Company Total assets (d) 55,334 42,685 Total liabilities 34,690 (g) 31,724 Total owner s equity 112,930?? Determine the missing amounts for items a through i shown above and that correspond to questions 16 through 24 below. Write the correct amount for each on your answer sheet. A net loss must be indicated by brackets or parentheses. (Question marks above indicate an unknown, but are not questions to be answered below.) *16. Item a 17. Item b 18. Item c 19. Item d 20. Item e 21. Item f 22. Item g 23. Item h 24. Item i

5 UIL Accounting Invitational 2016-A -4- Group 6 Saundra Best started a baking service in January of In this month she completed ten transactions which were all journalized and posted correctly. She correctly prepared the trial balance that follows. Best Bakery Trial Balance January 31, 2015 Debit Credit Cash 12,480 Accounts Receivable 285 Supplies 2,650 Kitchen Appliances 6,500 Computer Equipment 2,000 Accounts Payable 4,000 Saundra Best, Capital 20,000 Saundra Best, Drawing 4,000 Sales 4,340 Supplies Expense 0 Advertising Expense 425 Totals 28,340 28,340 Additional Information: The owner withdrawal was for cash. All kitchen appliances (and only kitchen appliances) were purchased on account with a down payment of $2,500. Only one customer made a payment on account and it was for $315. All of the radio and newspaper advertising was broadcast and printed during the month of January. Analyze the trial balance to determine what the ten transactions were. For questions 25 through 35, on your answer sheet, write True if the statement is true; write False if the statement is false. 25. The amount of owner s capital contribution is $20, Part of the $425 in Advertising Expense belongs in an account called Prepaid Advertising. 27. The amount in Kitchen Appliances should be $9,000 because of the down payment amount. 28. A customer charged $600 for birthday cake to feed a very large crowd. 29. The Accounts Receivable account was credited for $ The $4,340 in Sales consists of two types of transactions: one for a baking service provided on account and others for services provided for cash. 31. Sales at the time the baked goods were provided that resulted in an immediate increase to Cash was for $4, The supplies purchased resulted in a credit to Cash for $2, The correct amount of Supplies on the Trial Balance cannot be determined because the supplies inventory as of January 31 is not known. 34. The total of the debits to Cash is $24, The total of the credits to Cash is $7,575.

6 UIL Accounting Invitational 2016-A -5- Group 7 Use the following information (arranged in alphabetical order) to answer questions 36 through 42. Write the correct amount on your answer sheet. All accounts have normal balances. Cost of delivered merchandise 80,771 Cost of merchandise available for sale 108,246 Gross profit 58,824 Net purchases 76,616 Net sales 136,800 Purchases? Purchases discounts? Purchases returns and allowances 1,743 Sales 143,232 Sales discounts? Sales returns and allowances 2,747 Transportation in 3,829 *36. What is the amount of beginning inventory? 37. What is the amount of ending inventory? 38. What is the amount of purchases? 39. What is the amount of purchases discounts? 40. What is the amount of sales discounts? 41. What is the amount of cost of merchandise sold? *42. What is the amount of net income if expenses were $44,174? Group 8 Refer to Table 1 on page 10. For questions 43 through 47, write the correct amount on your answer sheet. What was the balance of each of the following on January 1, 2015? 43. Supplies 44. Prepaid Insurance 45. Merchandise Inventory *46. Mary Brighton, Capital 47. Mary Brighton, Drawing Group 9 Refer to Table 1. For questions 48 through 56, on your answer sheet write True if the statement is true; write False if the statement is false. 48. The amount $1,410 on the line for Income Summary resulted from an adjusting entry. 49. Insurance expense for the year 2015 consists of the amount of unexpired insurance premiums on January 1, 2015 plus ten twelfths of the premium paid on The amount of supplies used during 2015 was $4, A closing entry resulted in an increase to Cash.

7 UIL Accounting Invitational 2016-A -6- Group 9 continued 52. The amount of insurance that should be reported as an asset on the Balance Sheet dated December 31, 2015 is $ The physical inventory of supplies on hand on December 31, 2015 was $ Merchandise Inventory decreased from January 1, 2015 to December 31, The capital contribution made on June 4, 2015 is the main reason there is a net profit for the year Total Expenses on the Income Statement for the twelve months ending December 31, 2015 equal $13,580. Group 10 Refer to Table 1. For questions 57 through 71, write the identifying letter of the best response on your answer sheet. 57. Which of the following statements is false? A. The work sheet is a working paper used to collect information from the ledger accounts in one place. B. A columnar accounting form used to summarize the general ledger information needed to prepare financial statements is called a work sheet. C. The work sheet is more than a planning tool; it is considered a permanent accounting record. D. A work sheet may be prepared in pencil. E. One purpose of the work sheet is to plan needed changes to general ledger accounts to bring account balances up to date. 58. The first line of the heading on a work sheet includes A. the words Work Sheet B. the date of the workpaper C. the name of the business 59. The heading of a work sheet includes a A. specific date or point in time B. date that describes a period of time 60. The insurance premium that was paid on was posted to the general ledger with a posting date of March 1, 2015 A. in the asset account called Prepaid Insurance in the debit column B. in an expense account called Insurance Expense in the debit column C. in the asset account called Prepaid Insurance in the credit column D. in an expense account called Insurance Expense in the credit column

8 UIL Accounting Invitational 2016-A -7- Group 10 continued 61. Which of the following statements is false? A. The balance of the Merchandise Inventory account in the general ledger on January 1, 2015 was $18,650. B. Until the adjusting entries are journalized and posted, Merchandise Inventory will continue to have a general ledger balance of $17,240. C. The clerk who performed the physical inventory of the merchandise in the store on December 31, 2015 determined the correct amount of merchandise inventory to be $17,240. D. The adjustment for merchandise inventory on December 31, 2015 requires a credit to the asset account called Merchandise Inventory. 62. The first closing entry includes a A. debit to Income Summary for $92,400 B. credit to Income Summary for $92,400 C. credit to Sales for $94,200 D. credit to Mary Brighton, Capital for $92, When a trial balance is prepared at the end of an accounting period prior to the preparation of financial statements, A. the trial balance is prepared as a part of the work sheet. B. the trial balance is already accurate; therefore adjusting entries are not necessary. C. all the general ledger accounts are listed on the work sheet, even those that have a zero balance. D. only A and B are true E. only A and C are true 64. In accounting ruling means: A. making judgments about complicated transactions, deciding what accounts to debit or credit B. researching GAAP for the proper decision about a transaction and being able to cite the code section as a part of the journal entry documentation C. drawing a line; a single line drawn under a column of amounts means that the entries above the line are to be added or subtracted D. only A and B are true 65. The second closing entry includes a A. debit to Mary Brighton, Capital for $84,717 B. debit to Income Summary for $73,307 C. credit to Income Summary for $74,717 D. debit to Income Summary for $74, To close the drawing account A. debit Income Summary for $10,000 B. credit Mary Brighton, Drawing for $10,000 C. debit Mary Brighton, Capital for $10,000 D. both A and B are correct E. both B and C are correct

9 UIL Accounting Invitational 2016-A -8- Group 10 continued *67. The only remaining closing entry of a temporary capital account requires a A. debit to Income Summary B. debit to Mary Brighton, Capital C. credit to Mary Brighton, Drawing D. credit to Income Summary E. Both A and C are correct **68. The balance of the capital account on the Post-Closing Trial Balance dated December 31, 2015 is A. $44,862 B. $48,362 C. $56,045 D. $59,545 E. $66, On the line for Insurance Expense on the work sheet, the amount in the Adjusted Trial Balance column represents the value of insurance A. in force at the beginning of the fiscal period B. bought during the fiscal period C. available during the fiscal period D. used during the fiscal period E. still in force at the end of the fiscal period 70. On the line for Supplies on the work sheet, the amount in the Trial Balance column represents the value of supplies A. on hand at the beginning of the fiscal period only B. bought during the fiscal period only C. available during the fiscal period D. still on hand at the end of the fiscal period *71. If the accountant fails to adjust the supplies account, it will result in an A. understatement of liabilities B. overstatement of expenses C. overstatement of assets only D. overstatement of assets and ending owner s capital Group 11 Refer to Table 1. For questions 72 through 74, write the identifying letter of the best response on your answer sheet. Consider the Income Statement for the twelve months ending December 31, The Cost of Merchandise Available for Sale is A. $18,650 B. $38,808 C. $52,182 D. $53,592 E. $70, The Cost of Merchandise Sold is A. $18,650 B. $38,808 C. $52,182 D. $53,592 E. $70,832 *74. The amount of Gross Profit is A. $18,650 B. $38,808 C. $52,182 D. $53,592 E. $70,832

10 UIL Accounting Invitational 2016-A -9- Group 12 Refer to Table 1. The following chart represents the bottom three lines of selected columns on the completed work sheet: subtotals before net income or net loss is calculated; the line for net income or net loss; and the line for the respective balancing totals for the income statement columns and the balance sheet columns. For each of the questions 75 through 78 (found in the chart below), write the correct amount on your answer sheet. Income Statement Balance Sheet Debit Credit Debit Credit Subtotals *#75 *#76 *#77 *#78 Net Income or <Net Loss> Apple Orange Peach Banana Totals For question 79, write the correct amount on your answer sheet. ***79. What is the amount of net income for the year? For question 80, write the identifying letter of the best response on your answer sheet. *80. After the net income is calculated, indicate in which columns of the work sheet the amount would appear in the chart above using the fruit names as indicators. A. Peach Banana B. Peach Orange C. Apple Banana D. Apple Orange This is the end of the exam. Please hold your exam and answer sheet until the contest director asks for them. Thank you.

11 UIL Accounting Invitational 2016-A -10- Table 1 (for questions 43 through 80) A company owned by Mary Brighton has the following unadjusted and adjusted trial balances as of December 31, Unadjusted Adjusted Trial Balance Trial Balance Debit Credit Debit Credit Cash in Bank 4,740 4,740 Accounts Receivable 3,600 3,600 Merchandise Inventory 18,650 17,240 Supplies 4, Prepaid Insurance 3, Equipment 31,650 31,650 Accounts Payable 2,475 2,475 Mary Brighton, Capital 48,362 48,362 Mary Brighton, Drawing 10,000 10,000 Income Summary 1,410 Sales 92,400 92,400 Purchases 52,182 52,182 Rent Expense 8,100 8,100 Utilities Expense 4,320 4,320 Advertising Expense 1,160 1,160 Supplies Expense 4,185 Insurance Expense 3,360 Subtotals 143, , , ,237 Company Policies: The temporary capital accounts are closed only at the end of the fiscal year, which is December 31. The first two steps (there are four steps) of the closing process include: 1. close all revenue accounts in one combined entry 2. close all expense and cost of merchandise accounts in one combined entry Information Found in the General Ledger: Mary transferred from her personal savings account to her business bank account $3,500 on June 4, Supplies purchased throughout the year 2015 totaled $4,290 The only insurance premium paid during 2015 was on March 1 for $3,420, which was a twelve-month policy

12 Grader #1 UIL ACCOUNTING Invitational 2016-A Contestant # Grader #2 Answer Sheet Team # Grader #3 Group 1 Group 5 cont. Group 8 Group 10 cont $ 43 $ * $ 44 $ **68 3 Group 6 45 $ *46 $ $ *71 Group 2 27 Group 9 Group 11 6 $ $ $ *74 *9 $ Group 12 Group *75 $ *10 $ *76 $ 11 $ *77 $ Group *78 $ 12 Group 7 56 ***79 $ 13 *36 $ Group 10 *80 *14 37 $ $ 58 Group 5 39 $ 59 *16 $ 40 $ $ 41 $ $ *42 $ $ $ $ $ 66 A B C D E F G H R T

13 UIL ACCOUNTING Invitational 2016-A KEY Group 1 Group 5 cont. Group 8 Group 10 cont. 1 DR 23 $ 54, $ 615 *67 A 2 CR 24 $ 8, $ 510 **68 C 3 DR Group 6 45 $ 18, D 4 CR 25 True *46 $ 44, C 5 DR 26 False 47 $ 0 or zero *71 D Group 2 27 False Group 9 Group 11 6 $ 53, True 48 True 72 E 7 $ 20, True 49 True 73 D 8 $ 17, True 50 False *74 B *9 $ 59, False 51 False Group 12 Group 3 32 True 52 False *75 $ 74,717 *10 $ False 53 False *76 $ 92, $ 2, True 54 True *77 $ 68,520 Group 4 35 False 55 False *78 $ 50, G Group 7 56 False ***79 $ 17, A *36 $ 31,630 Group 10 *80 C *14 D 37 $ 30, C 15 C 38 $ 76, C Group 5 39 $ 2, B *16 $ 79, $ 3, A 17 $ 18, $ 77, B 18 $ 112,930 *42 $ 14, B 19 $ 147, E 20 $ 62, C 21 $ 1, B 22 $ 10, E

14 UNIVERSITY INTERSCHOLASTIC LEAGUE ACCOUNTING EXAM Invitational 2016-B Contestant # Team # Do not turn this page until the start signal is given! All answers MUST be written on your answer sheet. Either upper case or lower case letters are acceptable. Write legibly. Write letters far enough above the line so that (for example) an E can be distinguished from an F. For each multiple choice question, write only the identifying letter of the correct answer on your answer sheet. Acceptable responses (and not case sensitive) for the following are: debit = DR credit = CR If you choose another response for the examples given above, it will be counted as incorrect. When an answer contains more than one response, all responses must be correct for the answer to be correct. The correct responses may be listed in any order unless the group instructions say otherwise. An incorrect response among the correct responses will cause your answer to be wrong. If the answer has zero cents, it is not necessary to write the decimal or the zeroes for cents. A dollar amount with cents must have two decimal places. A required decimal point must be clearly visible. Including commas in an amount where appropriate is encouraged. Marking a comma in the wrong position will cause your answer to be marked wrong. Failure to use commas will not make your answer wrong. When there are no choices of answers given (not a multiple choice) and the answer is zero, write the number 0 or the word zero. After the start signal is given, you may remove table pages and any work papers from the staple for convenience. Work papers and the test itself are never reviewed by graders.

15

16 UIL ACCOUNTING Invitational 2016-B Group 1 Identify the account classification of items 1 through 16 by writing the correct identifying letter on your answer sheet AND indicate the increase side of the account by writing DR for debit or CR for credit. Both parts of each compound answer must be correct in order for your response to be counted correct. A. Asset D. Revenue DR=debit B. Liability E. Cost of Merchandise Sold CR=credit C. Capital F. Expense 1. Merchandise inventory on hand that is available for sale in the next fiscal period 2. Sales Discounts 3. Utilities Expense 4. the amount owed to the state for income tax withheld from an employee s paycheck 5. Fees earned by a service-oriented business 6. Transportation In 7. the value of insurance still in force for the next fiscal period 8. the controlling account for the subsidiary ledger that includes the company s customers 9. the single account that contains amounts invested by the owner, amounts withdrawn by the owner in prior years, plus the net income (and net losses) from prior years 10. the amount owed to a supplier 11. the amount of supplies on hand available for future use 12. Accounts Payable 13. the amount owed to the state for state sales taxes collected 14. the amount withdrawn from the business by the owner for personal use 15. the value of supplies used this fiscal period 16. Purchases Discounts Group 2 For items 17 through 20, write the correct amount on your answer sheet. None of the owners invested additional capital in their respective businesses during the time period shown. Company Name Ending Amt. of Assets Ending Amt. of Liabilities Beginning Amt. of Owner s Equity Withdrawals for the period Revenue for the period Expenses for the period Beltre Co. 41,592 10,437 30,031 8,000 Q#17 82,741 Andrus Co. 37,435 14,810 Q# ,699 86,482 Odor Co. *Q#19 12,615 42,313 7,500 87,692 *Q#20 Odor Company s total owner s equity after closing net income but before closing withdrawals is $55,395.

17 UIL Accounting Invitational 2016-B -2- Group 3 On November 1, 2015 Alberto Hansard, owner of Hansard Supply, received a bank statement dated October 30, It is company policy to record any necessary journal entries and to update the checkbook balance after the bank reconciliation is completed. Alberto compared the company s checkbook records with the bank statement and found the following: The October bank statement shows an ending balance of $4, The statement shows the October bank service charge of $25.60 A check from Danny Murphy for $ that was deposited in the business bank account on October 28 was returned by the bank. Alberto s bank charged his account with a $20 fee for handling the dishonored check. (Both the dishonored check and the fee were first discovered upon receipt of the bank statement.) A deposit of $3,942 was made on October 31 but does not appear on the bank statement. Four October checks do not appear on the bank statement: Check #1804 for $64.92 Check #1806 for $18.94 Check #1805 for $1, Check #1807 for $30.00 For questions 21 and 22, write the correct amount on your answer sheet. 21. What is the reconciled (adjusted) bank balance on October 31, 2015? 22. What was the balance in the checkbook immediately before the bank reconciliation was prepared? Group 4 Analyze each of the following transactions into debit and credit parts. Company accounting methods require that all supplies and insurance purchased be posted initially to the respective asset account. A Advertising Expense E Merchandise Inventory I Prepaid Insurance B Cash F Miscellaneous Expense J Sales C Income Summary G Owner s capital K Supplies D Insurance Expense H Owner s withdrawals L Supplies Expense Using the account titles chart above, write the identifying letter of the correct response for items 23 through 33 on your answer sheet. Debit Credit Adjusting entry for prepaid insurance expired XXX #23 Entry to close Supplies Expense #24 XXX Entry to adjust Merchandise Inventory from a beginning inventory of $7,500 to an ending inventory of $9,500 XXX #25 Closing entry for owner s drawing account #26 #27 Adjusting entry for supplies used #28 #29 Closing entry for revenue account #30 #31 Closing entry for Income Summary with a net loss #32 #33

18 UIL Accounting Invitational 2016-B -3- Group 5 Use the following information to answer questions 34 through 39. identifying letter of the best response on your answer sheet. Write the Sales 83,510 Sales Discounts 2,475 Transportation In 3,410 Purchases Returns 2,485 Net Sales 79,385 Ending Inventory 15,410 Sales Returns? Beginning Inventory? Purchases 39,915 Purchases Discounts 2,575 Gross Profit 43, The amount of sales returns is: A. zero D. $2,485 B. $1,650 E. $2,575 C. $2,475 F. $4, The amount of net purchases is: A. $31,445 D. $39,915 B. $34,855 E. $47,595 C. $38,265 F. $51,005 *36. The amount of cost of delivered merchandise is: A. $35,595 D. $39,915 B. $36,505 E. $41,565 C. $38,265 F. $43, The amount of cost of merchandise sold is: A. $32,185 D. $43,325 B. $35,595 E. $43,790 C. $38,265 F. $51,005 *38. The amount of beginning inventory is: A. $ 2,670 D. $18,080 B. $12,740 E. $20,185 C. $15,410 F. $89,270 *39. The amount of cost of merchandise available for sale is: A. $32,185 D. $43,325 B. $35,595 E. $43,790 C. $38,265 F. $51,005

19 UIL Accounting Invitational 2016-B -4- Group 6 Three customers owed a total of $94,860 to a business called Napoli Company as of November 30, 2015 and one of these customers was Prince Company that owed $32,950. On December 31, 2015 the balance of Napoli s controlling account for Accounts Receivable had decreased by $8,430 since the beginning of the month. From Napoli s General Ledger: ( ) Accounts Receivable (Dec 2015) (Dec 2015) ( ) Napoli s Accounts Receivable Subsidiary Ledger: Yu Company Debit Credit Balance ,240 Dec ,170 Stubbs Company Debit Credit Balance Dec ,725 56,920 Prince Company Debit Credit Balance Dec ,580 42,905 For questions 40 through 42 write the correct amount on your answer sheet. 40. What is the total amount of charges made by all three customers in December? 41. What is the balance of the Stubbs Company account on ? 42. What amount was sold on account to Yu Company during December?

20 UIL Accounting Invitational 2016-B -5- Group 7 Jay Banister records adjusting and closing entries only at year end, which is December 31. The following partially completed balance sheet is correct. Use the group information to calculate the missing amounts. Banister Company Balance Sheet December 31, 2015 Assets Liabilities Cash 3,610 Accounts Payable 1,200 Accounts Receivable 12,470 Sales Tax Payable 840 Merchandise Inventory Total Liabilities Prepaid Insurance Supplies Owner s Equity Jay Banister, Capital Total Liabilities and Total Assets $ Owner s Equity $ ======== ======== The balance in the owner s capital account on was $19,395. The owner made one additional capital investment of $10,000. He made equal monthly withdrawals for personal use of $1,500 per month during the year. The amount of merchandise Inventory as of was $15,820. On one of the adjusting entries included a credit to Income Summary for $1,470. Supplies Expense for 2015 was $5,200. Supplies inventory as of was $2,420. During the year Banister purchased $3,745 in supplies. Banister began the year 2015 with no insurance coverage. Following the advice of his attorney, he purchased two different types of policies that cost $2,430 and $1,080 respectively. During 2015, $2,045 in insurance had expired. For items 43 through 50 write the correct amount on your answer sheet. *43. What is the amount of net income for the year 2015? What is the correct amount that should appear on the worksheet in the Trial Balance column for: 44. Supplies 45. Prepaid Insurance 46. Merchandise Inventory What is the correct amount that should appear on this Balance Sheet for: *47. Merchandise Inventory 48. Prepaid Insurance *49. Supplies *50. Jay Banister, Capital

21 UIL Accounting Invitational 2016-B -6- Group 8 From the list of terms, select the one that best relates to each statement (items 51 through 59). Each term (if used) is used only once. Write the identifying letter of the correct term on your answer sheet. A cash-in journal M merchandise inventory B cash-out journal N miscellaneous journal C cash payments journal O owner's equity D cash receipts journal P purchases E cost of merchandise available for sale Q purchases journal F cost of merchandise sold R retailer G final seller S sales H general journal T sales journal I gross profit U special journals J initial profit before expenses V stocker K initial seller W subsidiary journals L inventory journal X wholesaler 51. The accounting term for a business that sells to the final consumer. 52. The special journal used to record purchases of merchandise on account. 53. The actual cost to the business of the merchandise sold to customers. 54. Items of merchandise that the business has in stock. 55. The special journal used to record sales of merchandise on account. 56. Beginning inventory plus net purchases. 57. The journal used to record transactions that are not recorded in a special journal. 58. When a business uses the periodic inventory method and buys new goods to replace those sold to customers, the account debited for the cost of the new merchandise is _?_. 59. The accounting term for the difference between revenue earned from sales and the total cost of merchandise sold. Group 9 For question #60, write the correct amount on your answer sheet. Company has three employees who are paid weekly as follows: Arlington Chi Chi Hamilton Colby Feliz Jake Robinson $10.50 per hour with overtime for hours worked over 40 hours in a week at a rate of time and a half $700 salary per week $600 salary per week plus 1.25% commission on sales Last week each employee worked standard hours except Chi Chi who worked a total of 60 hours. Jake Robinson sold $20,800 of merchandise. *60. What is the total gross pay for the week on the Payroll Register for all three employees?

22 UIL Accounting Invitational 2016-B -7- Group 10 The following rates and maximums per employee per year are in effect: Social Security 6.2% on gross earnings up to $118,500 Medicare 1.45% on all earnings Employee Federal Income Tax 15% on all earnings Employee State Income Tax 2% on all earnings Federal Unemployment Tax.6% on first $7,000 of gross earnings State Unemployment Tax 1.4% on first $9,000 of gross earnings 1½ times regular rate for hours worked in Overtime excess of 40 hours in a 5-day work week The applicable employer matching taxes are at the same rate as the employee rate. In this state only employers are subject to unemployment taxes. Any taxes withheld from an employee for state income tax must be remitted by the employer directly to the state. Health insurance premiums are remitted to APlus Health Insurance Co. Selected information from a weekly payroll register for two employees is presented below with some amounts intentionally omitted. Prior to this week s paycheck the accumulated gross earnings respectively for each employee were: Josh $8,575 and Leonys $6,720. For this pay period overtime hours respectively are: Josh 6 hours and Leonys 5 hours. The payroll clerk is new to the job and was unsure what to deduct. Gross Earnings: Josh Leonys Regular Overtime Total Gross Earnings Deductions:???? Social Security Medicare Federal Income Tax State Income Tax Health Insurance Premium Federal Unemployment Tax State Unemployment Tax Total Deductions Net Pay: For questions 61 through 63, write the correct amount on your answer sheet. *61. What is the correct amount of net pay for both employees combined? *62. What is the correct amount of the employer s payroll tax expense for these two employees for this week? *63. The employer must pay the liability (for these two paychecks) for employee federal income tax withheld and the employer and employee portion of Social Security and Medicare taxes by the 15 th of the following month. What is this amount?

23 UIL Accounting Invitational 2016-B -8- Group 11 You are the payroll clerk for Moreland Co. After reviewing the payroll records, you observed that three employees are approaching the 2015 maximum taxable amount for social security of $118,500. These employees do not earn a salary or wages; they earn only commissions based on the sales they generate. You prepared the following electronic spreadsheet to determine how much more in sales each employee needed to reach the maximum taxable amount for social security. Then an electric power surge resulted in some lost data. For questions 64 through 66, write the correct amount or percentage on your answer sheet. Additional Sales Earnings to Date Commission Rate Needed Sym Choo 92,510 Q# ,800 Andre Beltre 98,454 6% Q# 65 Delayne Shields Q# 66 5% 478,000 Group 12 Refer to Table 1 on page 9. For questions 67 through 80, write the correct amount on your answer sheet. 67. What is the balancing total for the adjusted trial balance columns on the work sheet? *68. On the work sheet what is the subtotal before net income or net loss is calculated for the balance sheet debit column? 69. On the work sheet what is the subtotal before net income or net loss is calculated for the balance sheet credit column? *70. On the work sheet what is the subtotal before net income or net loss is calculated for the income statement debit column? 71. On the work sheet what is the subtotal before net income or net loss is calculated for the income statement credit column? *72. What was the balance in Prepaid Insurance on January 1, 2015? *73. What is the correct amount of Office Supplies purchased throughout the year 2015? 74. What was the amount of owner s capital contribution made during the year 2015? *75. What was the balance in Merchandise Inventory on January 1, 2015? 76. What is the amount of Cost of Merchandise Sold on the Income Statement? 77. What is the amount of Gross Profit on the Income Statement? *78. What was the net income or net loss for the year? *79. What is the balance of the owner s capital account on the Post-Closing Trial Balance? 80. What is the amount of total assets that would appear on the Post-Closing Trial Balance? This is the end of the exam. Please hold your test and answer sheet until the contest director asks for them. Thank you!

24 UIL Accounting Invitational 2016-B -9- Table 1 (for questions 67 through 80) Below is the adjusted trial balance from the work sheet of Cole s Sporting Goods for the year ended December 31, All accounts have normal balances. All prepaid expenses, inventory, and supply items are recorded in respective asset accounts when they are originally purchased. Adjusting and closing entries are prepared only at the end of the fiscal year. Other Information: The only insurance purchased in 2015 was a 12-month policy purchased on August 1 for $3,300 The balance in Office Supplies on January 1, 2015 was $625 The balance in Cole Gallardo, Capital on January 1, 2015 was $22,816 Account Title Amount Account Title Amount Cash in Bank 5,462 Sales 88,194 Accounts Receivable 2,175 Sales Returns & Allow. 948 Prepaid Insurance 1,925 Purchases 56,340 Office Supplies 710 Purchases Returns 3,424 Office Equipment 6,850 Insurance Expense 3,230 Merchandise Inventory 20,250 Rent Expense 4,800 Accounts Payable 3,670 Utilities Expense 1,980 Cole Gallardo, Capital 32,816 Office Supplies Expense 1,790 Cole Gallardo, Drawing 1,000 Salary Expense 18,000 Income Summary, debit 1,180 Miscellaneous Expense 1,464

25 Grader #1 UIL ACCOUNTING Invitational 2016-B Contestant # Grader #2 Answer Sheet Team # Grader #3 Group 1 Group 4 Group 7 Group *43 $ 64 % $ 65 $ $ 66 $ $ Group *47 $ 67 $ $ *68 $ 7 29 *49 $ 69 $ 8 30 *50 $ *70 $ 9 31 Group 8 71 $ *72 $ *73 $ 12 Group $ *75 $ $ 15 * $ *78 $ Group 2 *38 58 *79 $ 17 $ * $ 18 $ Group 6 Group 9 *19 $ 40 $ *60 $ *20 $ 41 $ Group 10 Group 3 42 $ *61 $ 21 $ *62 $ 22 $ *63 $ A B C D E F G H I J K L M N O P Q R S T U V W X

26 UIL ACCOUNTING Invitational 2016-B KEY Group 1 Group 4 Group 7 Group 11 1 A DR 23 I *43 $ 22, % 2 D DR 24 C 44 $ 6, $ 334,100 3 F DR 25 C 45 $ 3, $ 94,600 4 B CR 26 G 46 $ 15,820 Group 12 5 D CR 27 H *47 $ 17, $ 128,104 6 E DR 28 L 48 $ 1,465 *68 $ 38,372 7 A DR 29 K *49 $ $ 36,486 8 A DR 30 J *50 $ 33,760 *70 $ 89,732 9 C CR 31 C Group 8 71 $ 91, B CR 32 G 51 R *72 $ 1, A DR 33 C 52 Q *73 $ 1, B CR Group 5 53 F 74 $ 10, B CR 34 B 54 M *75 $ 21, C DR 35 C 55 T 76 $ 54, F DR *36 F 56 E 77 $ 33, E CR 37 B 57 H *78 $ 1,886 Group 2 *38 B 58 P *79 $ 33, $ 91,865 *39 F 59 I 80 $ 37, $ 24,908 Group 6 Group 9 *19 $ 60, $ 127,240 *60 $ 2,295 *20 $ 74, $ 31,670 Group 10 Group 3 42 $ 40,980 *61 $ 1, $ 6, *62 $ $ 7, *63 $

27 Contestant # UNIVERSITY INTERSCHOLASTIC LEAGUE ACCOUNTING EXAM District 2016-D1 Do not turn this page until the start signal is given! All answers MUST be written on your answer sheet. Either upper case or lower case letters are acceptable. Write legibly. Write letters far enough above the line so that (for example) an E can be distinguished from an F. For each multiple choice question, write only the identifying letter of the correct answer on your answer sheet. If the answer has zero cents, it is not necessary to write the decimal or the zeroes for cents. A dollar amount with cents must have two decimal places. A required decimal point must be clearly visible. Including commas in an amount where appropriate is encouraged. Marking a comma in the wrong position will cause your answer to be marked wrong. Failure to use commas will not make your answer wrong. When there are no choices of answers given (not a multiple choice) and the answer is zero, write the number 0 or the word zero. You must follow group instructions regarding rounding. A percentage must be expressed as a percentage (not a decimal). After the start signal is given, you may remove table pages and any work papers from the staple for convenience. Work papers are never reviewed by graders.

28

29 UIL ACCOUNTING District 2016-D1 Group 1 An individual started a new business on March 1, At that time the individual invested his personal life savings in the business. In 2012 revenues were $62,741 expenses were $91,212, and there were no owner withdrawals. In 2013 the owner made an additional capital contribution of $35,000 and made no withdrawals. Total revenues for 2013 were $164,218 and expenses were $159,044. In 2014 the owner made no additional contributions of capital. Total revenues for 2014 were $384,906 and expenses were $334,404. During 2014 the owner withdrew $25,000. In 2015 the owner made an additional capital contribution of $2,500. Total revenues for 2015 were $371,500 and expenses were $294,848. The owner determined from the financial statements that his original investment in 2012 was finally indicating a high rate of return on his investment so he withdrew $75,000 for personal use. The ending capital account balance on December 31, 2015 after closing entries were posted was $103,857. For question #1, write the correct amount on your answer sheet. 1. What was the amount of the owner s original investment in the business on March 1, 2012? Group 2 Below are selected line items from a portion of a work sheet. The beginning inventory is $26,890. The company uses net sales as the base for calculating component percentages. INCOME STATEMENT ACCOUNT DEBIT CREDIT Income Summary 2,540 Sales 90,460 Sales Returns & Allowances 1,470 Sales Discounts 2,790 Purchases 48,289 Purchases Returns & Allowances 2,125 Purchases Discounts 1,630 Transportation In 3,784 Expenses (combined) 35,211 Use the information above to answer questions 2 through 10. Write the correct amount (or the correct percentage for question #9) on your answer sheet. 2. The amount of net sales is 3. The amount of net purchases is 4. The amount of cost of delivered merchandise is 5. The amount of cost of merchandise available for sale is 6. The amount of cost of merchandise sold is *7. The amount of inventory at the end of this period is 8. What is the amount of gross profit for this period? 9. What is the gross profit percentage? *10. What is the amount of net income or net loss?

30 UIL Accounting District 2016-D1-2- Group 3 It is company policy to record any necessary journal entries and to update the checkbook (check stubs) balance after the bank reconciliation is completed. There are no math errors or recording errors in the checkbook (check stubs). The owner did not receive any prior notice for items she discovered on the bank statement. Gold s Appliance Bank Reconciliation December 31, 2015 Bank Statement Balance, 12/29 Checkbook Balance, 12/31 Add: Add: Deduct: Deduct: On December 31, Connie received the company bank statement dated Dec. 29 and reviewed it along with other accounting records and found the following facts: The ending bank balance was $3, The checkbook balance on Dec. 31 before reconciliation was $3, The following checks were written in November, were outstanding in November, and still did not appear on this bank statement: check #1854L$50.00 The following checks were written in December and did not appear on this bank statement: check #1884L$ check #1886L$???? The bank charged $22.50 for the month s service charge A check in the amount of $ from Dee Hanson that Connie deposited on Dec. 27 was returned by the bank for insufficient funds. The bank charged Connie s account $17.00 for handling the NSF check. No journal entry has been made yet by Connie for the NSF check or its related fee. A deposit of $ made on Dec. 30 does not appear on the bank statement. For questions 11 and 12 write the correct amount on your answer sheet. 11. What is the reconciled bank balance as of December 31, 2015? *12. What is the amount of check #1886?

31 UIL Accounting District 2016-D1-3- Group 4 For questions 13 through 21, write the identifying letter of the correct concept that is violated in each independent case. Each concept may be used only once. A Accounting Period Cycle G Historical Cost B Business Entity H Matching Principle C Conservatism I Objective Evidence D Consistent Reporting J Realization of Revenue E Full Disclosure K Unit of Measure F Going Concern 13. A business (using the accrual method of accounting) provided a service in December 2015, but the customer did not pay for that service until the following month. Therefore, the service provider recorded the revenue in January A recent college graduate who majored in accounting opened his own home-based business, which quickly grew to include clients in Europe. His income statement included some revenue reported in U.S. dollars and some revenue reported in Euros. 15. An accountant knew the owner was most interested in the detail of the business expenses because expenses had been increasing dramatically. The accountant decided to report only Total Expenses on the income statement because it would save paper. 16. A sole-proprietor included his family s household expenses in the financial statements of his trucking business. 17. In one year a restaurant reported revenue in seven different revenue accounts, one for each day of the week. Then in the next year it reported revenue in three different revenue accounts, one each for breakfast, lunch, and dinner. 18. In one year a gift shop prepared financial statements every three months. Then the next year the gift shop used a one-year reporting period. 19. The accountant failed to prepare adjusting entries for Prepaid Insurance and Office Supplies. 20. The owner of a construction service business used checks for most business expenditures. When customers paid using cash currency, he tried to remember to issue the customer a receipt. Sometimes he paid for building supplies using cash, but often the paid invoices on his truck dashboard flew out the window. So he just made up numbers as best he could remember. 21. The owner of a software company found a real bargain when he purchased a used computer for $250. In shopping for this computer, all the other used computers of this kind were priced at $750. The owner decided to record the cost of the computer he purchased at $750 and credited the extra $500 to his capital account.

32 UIL Accounting District 2016-D1-4- Group 5 Refer to Table 1 on page 10. Mark the identifying letter of the BEST answer on your answer sheet for questions 22 through Transaction #1 has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. increase no change decrease B. increase no change increase C. increase increase no change D. decrease no change increase 23. Transaction #2 has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. increase decrease increase B. no overall effect no change no change C. increase increase no change D. decrease increase no change 24. Transaction #3 has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. decrease no change increase B. decrease decrease no change C. increase decrease decrease D. decrease no change decrease 25. Transaction #4 has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. increase decrease increase B. no overall effect no change no change C. increase increase no change D. decrease increase no change 26. Transaction #5 has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. decrease no change decrease B. increase increase no change C. no overall effect no change no change 27. Transaction #6 has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. increase no change increase B. no overall effect no change no change C. decrease no change decrease D. increase increase no change

33 UIL Accounting District 2016-D1-5- Group 5 continued 28. Transaction #7 has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. increase no change increase B. no overall effect no change no change C. increase no change decrease D. increase decrease no change 29. Transaction #8 (April 20) has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. increase increase no change B. no change increase increase C. increase no change increase D. increase no change decrease 30. Transaction #9 has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. decrease no change decrease B. decrease increase no change C. no change decrease increase D. decrease decrease no change 31. Transaction #10 has the following effects on the accounting equation: Assets Liabilities Owner s Equity A. increase no change increase B. no overall effect no change no change C. increase no change decrease D. increase decrease no change 32. Looking back at transaction #3 again, the transaction has the following effects on an expense account and owner s equity in general: Overall Owner s Equity Individual Expense Account A. decrease decrease B. no effect increase C. increase decrease D. decrease increase 33. Looking back at transaction #8 again, the transaction has the following effects on a revenue account and owner s equity in general: Overall Owner s Equity Individual Revenue Account A. no effect increase B. decrease decrease C. increase increase D. no effect no effect

34 UIL Accounting District 2016-D1-6- Group 5 continued 34. After the ten April transactions, the balance of the Cash in Bank account was A. $32,050 D. $45,550 B. $42,050 E. $47,050 C. $43,550 Continue to Refer to Table 1. For questions 35 through 49, write the correct amount on your answer sheet. Assume that all transactions for the entire year 2015 have been correctly journalized and posted. On the worksheet, only the unadjusted trial balance has been prepared. On the unadjusted trial balance dated December 31, 2015, what is the balance of: *35. Cash in Bank 36. Rafting Supplies 37. Accounts Receivable 38. Accounts Payable 39. Jay Cody, Capital 40. Rafting Revenue 41. Rent Expense 42. Rafting Supplies Expense Assume the entire worksheet for the year ending December 31, 2015 has been correctly prepared. In the adjusted trial balance, what is the balance of: *43. Prepaid Insurance *44. Rafting Supplies 45. Insurance Expense Assume the financial statements for the year 2015 have been prepared. On the Income Statement, what is the correct amount of: 46. Total Expenses *47. Net Income On the Balance Sheet, what is the correct amount of: 48. Total assets *49. Total ending capital