UNIVERSITY INTERSCHOLASTIC LEAGUE ACCOUNTING EXAM Invitational 2015-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.
UIL ACCOUNTING Invitational 2015-A Group 1 Identify the account classification of items 1 through 12 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. the amount owed to a supplier 2. the amount of supplies on hand available for future use 3. Sales Discounts 4. the value of supplies used this fiscal period 5. Fees earned by a service-oriented business 6. Transportation In 7. the single account that contains amounts invested by the owner, amounts withdrawn by the owner in prior years, plus the net income (and net losses) from prior years 8. the value of insurance still in force for the next fiscal period 9. Accounts Payable 10. Utilities Expense 11. the amount owed to the state for state sales taxes collected 12. the controlling account for the subsidiary ledger that includes the company s customers
UIL Accounting Invitational 2015-A -2- Group 2 The adjusted trial balance columns of the work sheet of Samsing Co. (a service business) for the year ended December 31, 2014 revealed the following information: Total Assets 142,690 Total Liabilities 43,447 Owner s capital account balance 103,431 Owner s withdrawals 2,000 Total Revenue 82,430 Total Expenses 84,618 The general ledger also revealed that the owner made two investments in the business during 2014 as follows: April 16, 2014 $10,000 July 1, 2014 6,000 For questions 13 through 20, write True if the statement is true; write False if it is false. 13. The net loss for the year 2014 was <$2,188>. 14. The balance in the capital account in the Trial Balance column of the worksheet for the twelve months ended December 31, 2014 was $87,431. 15. There is an adjusting entry on the worksheet for the twelve months ended December 31, 2014 that includes a credit to the capital account for $16,000. 16. The balance in the capital account in the General Ledger on January 1, 2014 was $87,431. 17. If Samsing Co. does not use a separate financial statement that reports the changes in owner s equity from the beginning of the year to the end of the year, then this information could be presented in the owner s equity section of the balance sheet dated December 31, 2014. 18. The first closing entry would include debit(s) to the revenue account(s) totaling $82,430. 19. The second closing entry would include a debit to Income Summary of $2,000. 20. The balance of the capital account on the post-closing trial balance dated December 31, 2014 was $99,243.
UIL Accounting Invitational 2015-A -3- Group 3 Moondollar owed the three suppliers $37,629 as of March 31, 2014, and one of these was Mocha Company for $10,215. On April 30, 2014 the balance of the controlling account for Accounts Payable had decreased by $9,219 since the beginning of the month. From Moondollar s General Ledger: Accounts Payable (04-01-14) (April 2014) (April 2014) (04-30-14) Moondollar s Accounts Payable Subsidiary Ledger: Mocha Company Debit Credit Balance 04-01-14? April 2014 27,985 32,810? Vanilla Co. Debit Credit Balance 04-01-14? April 2014? 24,695? Chi Tea Co. Debit Credit Balance 04-01-14? April 2014 44,128 35,275 7,081 For questions 21 through 23, write the correct amount on your answer sheet. All three of these questions examine the subsidiary account of Vanilla Co.: 21. What was the balance of the account on 3-31-14? 22. What was the balance of the account on 4-30-14? 23. How much did Moondollar pay to Vanilla Co. on account in the month of April?
UIL Accounting Invitational 2015-A -4- Group 4 The information in the table below is for a sole proprietorship and is taken from the Income Statement columns of the work sheet for the twelve months ended December 31, 2014. All accounts have normal balances and are listed in random order. Merchandise Inventory on January 1, 2014 was $18,642. During the year 2014 the owner withdrew $15,000 and also made one additional investment of $8,575. The Statement of Changes in Owner s Equity for the twelve months ended December 31, 2014 showed an ending balance of $97,849. Income Summary 1,648 CR Insurance Expense 2,016 Purchases Ret. & Allow. 3,290 Rent Expense 7,860 Net Sales 84,370 Transportation In 3,642 Utilities Expense 2,460 Supplies Expense 1,712 Purchases Discounts 1,647 Purchases 53,565 For questions 24 and 25 write the correct amount on your answer sheet. What is the correct amount of: *24. the owner s capital account balance in the Trial Balance column of the work sheet for the twelve months ended 12-31-14? **25. the owner s capital account balance on the prior year s Post-Closing Trial Balance dated December 31, 2013? Group 5 On November 1, 2014 Barbara Sayle, owner of Sayle Boat Supply, received a bank statement dated October 30, 2014. It is company policy to record any necessary journal entries and to update the checkbook balance after the bank reconciliation is completed. Barbara compared the company s checkbook records with the bank statement and found the following: The October bank statement shows an ending balance of $4,362.94 The statement shows the October bank service charge of $22.75 A check from Ben Waters for $367.80 that was deposited in the business bank account on October 27 was returned by the bank. Barbara s bank charged her account with a $25 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 $2,618 was made on October 31 but does not appear on the bank statement. Four October checks do not appear on the bank statement: Check #5081 for $227.14 Check #5084 for $16.04 Check #5082 for $1,285.27 Check #5085 for $464.37 For questions 26 and 27, write the correct amount on your answer sheet. 26. What is the reconciled (adjusted) bank balance on October 31, 2014? 27. What was the balance in the checkbook immediately before the bank reconciliation was prepared?
UIL Accounting Invitational 2015-A -5- Group 6 Keep Running Co. is a retail shoe store and uses the following order to close the temporary accounts at the end of the fiscal year: Close appropriate accounts with credit balances in one combined entry. Close appropriate accounts with debit balances in one combined entry. Close the Income Summary account. Close the owner s drawing account. The adjusted trial balance for Keep Running Co. for the calendar year 2014 follows. All accounts have normal balances. Kym Breaker invested $25,000 in cash in her business during 2014. Cash in Bank 8,796 Sales Discounts 3,172 Accounts Receivable 3,215 Sales Returns & Allow. 2,448 Merchandise Inventory 14,170 Purchases 53,806 Prepaid Insurance 740 Purchases Discounts 1,678 Equipment 10,395 Purchases Returns & Allow. 1,044 Store Fixtures 22,650 Transportation In 3,240 Accounts Payable 15,207 Rent Expense 5,100 Kym Breaker, Capital 41,944 Salary Expense 12,630 Kym Breaker, Withdrawals 10,000 Payroll Tax Expense 1,307 Income Summary 1,260 DR Advertising Expense 2,024 Sales 98,260 Insurance Expense 3,180 For questions 28 through 38, write the correct amount on your answer sheet. 28. What was the balance of Kym Breaker, Capital on January 1, 2014? 29. What is the amount of Cost of Delivered Merchandise? 30. What is the amount of Net Purchases? 31. What was the amount that affected Income Summary in the first closing entry? 32. What was the amount that affected Income Summary in the second closing entry? *33. What was the amount of the third closing entry? *34. What was the balance of Kym Breaker, Capital on 12-31-14 after all closing entries were posted? *35. What was the amount of beginning inventory on January 1, 2014? 36. What was the amount of Prepaid Insurance on the trial balance of the work sheet for the year ended 12-31-14? 37. What is the amount of net sales? 38. What is the amount of gross profit?
UIL Accounting Invitational 2015-A -6- Group 7 A company s unadjusted and adjusted trial balances for the twelve months ending December 31, 2014 are as follows: Unadjusted Adjusted Trial Balance Trial Balance Debit Credit Debit Credit Cash 11,240 11,240 Office Supplies 3,094 550 Merchandise Inventory 24,780 26,410 Prepaid Insurance 3,056 776 Equipment 52,980 52,980 Accounts Payable 12,478 12,478 Lynn Abdou, Capital 74,282 74,282 Lynn Abdou, Drawing 10,000 10,000 Income Summary 1,630 Sales 94,310 94,310 Purchases 58,220 58,220 Rent Expense 17,700 17,700 Office Supplies Expense 2,544 Insurance Expense 2,280 Subtotals 181,070 181,070 182,700 182,700 For questions 39 through 51, write the correct amount on your answer sheet. 39. What is the amount of office supplies used during 2014? 40. What is the amount of unexpired insurance on 12-31-14 after the end-of-year adjustment? 41. If the company bought $2,479 of office supplies during 2014, what was the amount of supplies on hand on January 1, 2014? 42. What is the amount of expired insurance? 43. If the Prepaid Insurance account had a January 1, 2014 debit balance of $728, what was the amount of insurance purchased during the year 2014? 44. If the owner s capital account had a January 1, 2014 credit balance of $39,282, what amount of capital contribution did the owner make to the business during the year 2014? 45. What is the amount of Cost of Merchandise Available for Sale? 46. What is the amount of Cost of Merchandise Sold? 47. What is the amount of Gross Profit? 48. On the Income Statement for the twelve months ended December 31, 2014, what is the amount of Total Expenses? 49. What is the amount of net income that should be shown on the Statement of Changes in Owner s Equity for the twelve months ended 12-31-14? * 50. On the Statement of Changes in Owner s Equity for the twelve months ended December 31, 2014, what is the correct amount of ending capital? 51. On the Post-Closing Trial Balance dated December 31, 2014, what is the amount of Lynn Abdou, Capital?
UIL Accounting Invitational 2015-A -7- Group 8 Match the correct formula (choices A through P) to the term below. Consider each term and formula as it applies to a merchandising business. A B C D E F G H I J K L M N O P Beginning Inventory less Ending Inventory Beginning Inventory plus Net Purchases Beginning Inventory plus Cost of Merchandise Sold Cost of Delivered Merchandise less the contra cost of merchandise accounts Cost of Delivered Merchandise plus the contra cost of merchandise accounts Cost of Merchandise Available less Ending Inventory Cost of Merchandise Available plus Ending Inventory Gross Profit on Sales less Total Expenses Net Purchases plus Transportation In Net Sales less Total Expenses Net Sales less Cost of Merchandise Sold Net Sales plus Cost of Merchandise Sold Purchases plus Transportation In Purchases plus Transportation In plus Purchases Discounts plus Purchases Returns and Allowances Sales less Sales Discounts and Sales Returns and Allowances Sales plus Transportation In For terms 52 through 57, write on your answer sheet the identifying letter of the correct formula. 52. Net Purchases 53. Gross Profit on Sales 54. Cost of Merchandise Sold 55. Cost of Delivered Merchandise 56. Net Income 57. Cost of Merchandise Available for Sale
UIL Accounting Invitational 2015-A -8- Group 9 Refer to Table 1 on page 11 for the income statement, statement of changes in owner s equity, and balance sheet of the Bush Company prior to the discovery of several major errors. The following errors and omissions were made by Bush and discovered by the independent auditor: 1. Bush prepared the bank reconciliation for December, but failed to record the entries required to reflect the following: A. bank service charges for December $25 B. customer check returned for insufficient funds $210 (Customer account was reopened and collection efforts are ongoing.) C. bank charge for the NSF check $35. (No attempt will be made by Bush to collect this fee from the customer.) D. Failure to record an electronic funds transfer of December 29 paying a vendor on account $275. 2. Bush failed to record $1,200 in customer invoices on account. 3. The ending inventory of supplies on hand was overstated by $400. 4. The company that performed the physical inventory of merchandise sent a letter of apology for their errors. The ending inventory as of 12-31-14 originally reported by them and used by Bush to prepare the financial statements was understated by $1,090. 5. Unrecorded invoices were found in the desk of Bush s accounts payable clerk who was recently fired. The unpaid invoices were for advertising and utilities incurred in December 2014 that are payable in January 2015 totaling $935. 6. Bush misread the insurance policy terms which caused Prepaid Insurance to be understated by $150. 7. A capital contribution made by the owner in April, 2014 in the amount of $5,000 was recorded in error as sales. Consider that all corrections have been made and the financial statements are prepared correctly. For questions 58 through 68 write the correct amount for each on your answer sheet. 58. Investments by Owner (correct amount that should appear on the Statement of Changes in Owner s Equity) *59. Cash 60. Accounts Receivable 61. Supplies 62. Prepaid Insurance 63. Merchandise Inventory 64. Accounts Payable *65. Ted Bush, Capital (correct amount that should appear on the Balance Sheet dated December 31, 2014) **66. Gross Profit 67. Expenses **68. Net Income
UIL Accounting Invitational 2015-A -9- Group 10 Sara Raynes is a sole proprietor and interior designer. She has been in business for several years. Regular operating transactions are journalized daily and posted no less often than monthly. She prepares adjusting entries and financial statements on a monthly basis. However, she prepares closing entries only at the end of her fiscal year, which is December 31. Table 2 on pages 12 and 13 shows her year-to-date, adjusted account balances as of November 30, 2014 in the form of T-accounts. (Accounts with a zero balance are not included because of space limitations on the page.) The balance of Accounts Receivable on 11-30-14 consists of one customer account. Sara Raynes made a capital contribution only once during the year (on March 7, 2014) in the amount of $15,000. The transaction was correctly recorded and posted in the month of March 2014. Table 2 also shows her transactions for the month of December 2014. Additional information is provided that will be needed for adjusting entries at the end of December. Company procedure is to record purchases of supplies and insurance in asset accounts and adjust for ending supplies on hand and unexpired insurance at the end of each month. For questions 69 through 73 use the above data and Table 2. Consider in each case that all the transactions for December 2014 have been journalized and posted correctly, but no adjusting or closing entries have been made for December. Write the identifying letter of the best answer on your answer sheet. *69. The balance in the Cash in Bank account is A. $13,974 B. $21,408 C. $22,068 D. $35,382 E. $40,142 *70. The balance of the Supplies account is A. $1,425 B. $2,670 C. $3,255 D. $4,500 E. $5,925 71. The balance of the Prepaid Insurance account is A. zero B. $1,782 C. $1,944 D. $2,098 E. $3,792 *72. The balancing total of the trial balance is A. $179,606 B. $182,034 C. $186,696 D. $201,696 73. In the General Ledger on January 1, 2014, the balance of Sara Raynes, Capital was A. zero B. $15,000 C. $69,226 D. $84,226 E. $99,226
UIL Accounting Invitational 2015-A -10- Group 10_continued Continue to use the information in Group 10 and Table 2. Consider now that the work sheet has been prepared for the twelve months ending December 31, 2014 and that any necessary adjusting entries have been prepared and posted to the general ledger. Closing entries have not been journalized at this time. For questions 74 through 78 write the identifying letter of the best answer on your answer sheet. *74. The balance of the Supplies Expense account is A. $10,990 B. $15,490 C. $18,745 D. $19,990 75. The balance of the Insurance Expense account is A. zero B. $162 C. $1,694 D. $1,782 E. $1,856 F. $1,944 76. The balance of Prepaid Insurance is A. zero B. $162 C. $1,694 D. $1,782 E. $1,856 F. $1,944 *77. The net income for the twelve months ending December 31, 2014 is A. $21,269 B. $37,451 C. $59,136 D. $64,769 E. $69,431 *78. The subtotal of the work sheet s Balance Sheet Debit column before net income is calculated is A. $32,789 B. $76,289 C. $149,245 D. $153,907 E. $186,696 Continue to use the information in this group, and now for questions 79 and 80 assume that all closing entries have been journalized and posted. 79. Accounts with a zero balance are: A. Insurance Expense; Design Fees; Sara Raynes, Drawing B. Design Fees; Delivery Expense; Prepaid Insurance C. Sara Raynes, Drawing; Sara Raynes, Capital D. Design Fees; Sara Raynes, Drawing; Supplies *80. The balance of the account called Sara Raynes, Capital is A. $69,226 D. $105,495 B. $84,226 E. $120,495 C. $90,495 F. $148,995 This is the end of the exam. Please hold your answer sheet and test questions until the contest director asks for them. Thank you.
UIL Accounting Invitational 2015-A -11- Table 1 (for questions 58 through 68) Bush Company Income Statement For the Twelve Months Ended December 31, 2014 Sales 72,980 Cost of Merchandise Sold 42,590 Gross Profit 30,390 Expenses 24,155 Net Income 6,235 Bush Company Statement of Changes in Owner s Equity For the Twelve Months Ended December 31, 2014 Beginning Capital, January 1, 2014 19,620 Add: Investments by Owner 10,000 Net Income 6,235 Total Increase in Capital 16,235 Subtotal 35,855 Less: Withdrawals by Owner 2,500 Ending Capital, December 31, 2014 33,355 Bush Company Balance Sheet December 31, 2014 Assets Liabilities Cash 18,645 Accounts Payable 14,815 Accounts Receivable 2,400 Supplies 1,810 Owner s Equity Prepaid Insurance 750 Ted Bush, Capital 33,355 Merchandise Inventory 24,565 Total Liabilities and Total Assets 48,170 Owner s Equity 48,170
UIL Accounting Invitational 2015-A -12- December 2014 Transactions: Table 2 (for questions 69 through 80) Date 1 Issued a check for $425 for the December rent. 1 Issued check #3311 for $1,944 for a 12-month insurance policy. The coverage is effective on this date. 2 Issued a check to purchase design supplies $650. 4 Received invoice from Designer Ideas for fabric samples purchased on account, $250. 5 Received $960 for design services performed. 8 Issued a check to Design Supply in payment on account, $2,740. 9 Received $1,800 from Dale Jenkins on account. 9 Issued a check for $1,980 for design supplies. 10 Used debit card to pay for truck rental used to transport equipment and supplies to a design job for a museum $285. 12 Issued an invoice on account to Central Shopping Center $8,250 for the completion of designing and installing Christmas displays. 15 Issued a check for $205 for utilities used at the office. 18 Issued a check for $3,500 for a new leather couch for the office waiting room. 20 Received $500 for redecorating the university president s home. 22 Issued a check for $3,000 for owner s personal use. 27 Received $1,500 for redecorating a commercial property. 30 Issued a check to Designer Ideas for $1,630 on account. 31 Issued check for $2,000 for owner s personal use. 31 Used debit card to buy design supplies $375. Other Information: Physical inventory of supplies on December 31, 2014 was $1,425 Summary of insurance policies purchased: December 1, 2013 $1,848 for a 12-month policy (coverage effective 12-1-13) December 1, 2014 (see above check #3311)
UIL Accounting Invitational 2015-A Table 2 continued -13- Cash in Bank Accounts Receivable Supplies (11-30-14) 35,382 (11-30-14) 1,800 (11-30-14) 2,670 Prepaid Insurance Furniture & Equipment (11-30-14) 0 (11-30-14) 69,380 Accts. Pay. Designer Ideas Accts. Pay. Design Supply Sara Raynes, Capital (11-30-14) 1,630 (11-30-14) 2,740 (11-30-14) 84,226 Sara Raynes, Drawing Design Fees Rent & Utilities Expense (11-30-14) 38,500 (11-30-14) 91,010 (11-30-14) 7,480 Insurance Expense Delivery Expense Supplies Expense (11-30-14) 1,694 (11-30-14) 7,210 (11-30-14) 15,490
Grader #1 UIL ACCOUNTING Invitational 2015-A Contestant # Grader #2 Answer Sheet Team # Grader #3 Group 1 Group 4 Group 7 cont. Group 10 1 *24 $ 47 $ *69 2 **25 $ 48 $ *70 3 Group 5 49 $ 71 4 26 $ *50 $ *72 5 27 $ 51 $ 73 6 Group 6 Group 8 *74 7 28 $ 52 75 8 29 $ 53 76 9 30 $ 54 *77 10 31 $ 55 *78 11 32 $ 56 79 12 *33 $ 57 *80 Group 2 *34 $ Group 9 13 *35 $ 58 $ 14 36 $ *59 $ 15 37 $ 60 $ 16 38 $ 61 $ 17 Group 7 62 $ 18 39 $ 63 $ 19 40 $ 64 $ 20 41 $ *65 $ Group 3 42 $ **66 $ 21 $ 43 $ 67 $ 22 $ 44 $ **68 $ 23 $ 45 $ 46 $ A B C D E F G H I J K L M N O P R T 0 1 2 3 4 5 6 7 8 9
UIL ACCOUNTING Invitational 2015-A KEY Group 1 Group 4 Group 7 cont. Group 10 1 B CR *24 $ 93,149 47 $ 37,720 *69 B 2 A DR **25 $ 84,574 48 $ 22,524 *70 E 3 D DR Group 5 49 $ 15,196 71 C 4 F DR 26 $ 4,988.12 *50 $ 79,478 *72 C 5 D CR 27 $ 5,403.67 51 $ 79,478 73 C 6 E DR Group 6 Group 8 *74 D 7 C CR 28 $ 16,944 52 D 75 E 8 A DR 29 $ 57,046 53 K 76 D 9 B CR 30 $ 54,324 54 F *77 D 10 F DR 31 $ 100,982 55 M *78 C 11 B CR 32 $ 86,907 56 H 79 A 12 A DR *33 $ 12,815 57 B *80 D Group 2 *34 $ 44,759 Group 9 13 True *35 $ 15,430 58 $ 15,000 14 False 36 $ 3,920 *59 $ 18,100 15 False 37 $ 92,640 60 $ 3,810 16 True 38 $ 37,056 61 $ 1,410 17 True Group 7 62 $ 900 18 True 39 $ 2,544 63 $ 25,655 19 False 40 $ 776 64 $ 15,475 20 True 41 $ 615 *65 $ 34,400 Group 3 42 $ 2,280 **66 $ 27,680 21 $ 11,480 43 $ 2,328 67 $ 25,400 22 $ 6,289 44 $ 35,000 **68 $ 2,280 23 $ 29,886 45 $ 83,000 46 $ 56,590
Grader #1 Grader #2 Grader #3 UIL ACCOUNTING Invitational 2015-A SCORING CHART Contestant # Team # Number of correct answers out of 80 (without considering asterisks).. times 5 = Plus extra credit for asterisk questions answered correctly. (If the answer is incorrect, draw a line through the block.) Question Number Asterisks on Exam 24 1 25 2 33 1 34 1 35 1 50 1 59 1 65 1 66 2 68 2 69 1 70 1 72 1 74 1 77 1 78 1 80 1 Extra Points If Correct Total Extra Points.. TOTAL SCORE
Contestant # Team # UNIVERSITY INTERSCHOLASTIC LEAGUE ACCOUNTING EXAM Invitational 2015-B 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.
UIL ACCOUNTING Invitational 2015-B Group 1 For items 1 through 6, decide whether the item belongs on the Post-Closing Trial Balance. If the item belongs on this type of trial balance, indicate whether the balance will be listed in the debit column or the credit column. Use the following code: A B C Yes, debit side Yes, credit side No 1. Sales Tax Payable 2. Sales Discounts 3. Petty Cash 4. the owner s withdrawals 5. Merchandise Inventory 6 Benny Fields, Capital Group 2 Brett Brightman is the sole proprietor of Lightscapes, a retail company that sells light fixtures to the general public. For the year 2014, his revenues were $89,435; purchases were $35,870; expenses were $54,560; beginning inventory was $8,800; and ending inventory was $8,900. Consider that each account has a normal balance. For each account title in questions 7 through 14, write the identifying letter of the correct response (A, B, or C), which indicates whether each account should be closed and where, or if it should not be closed at all. If the account is to be closed, indicate whether that account is closed with a debit or a credit. Use the following sets of codes. An answer might appear in this way: B DR A. closed into Income Summary DR=debit B. closed into the capital account CR=credit C. not closed 7. Accounts Receivable 8. Sales 9. Brett Brightman, Capital 10. Purchases 11. Brett Brightman, Drawing 12. Medicare Tax Payable 13. Payroll Tax Expense *14. Income Summary (All accounts that are supposed to be closed to this account have already been closed.)
UIL Accounting Invitational 2015-B -2- Group 3 Use the following information of a sole proprietorship to answer questions 15 through 18. Consider each question independently. Write the identifying letter of the best response on your answer sheet. ASSETS LIABILITIES Beginning of Year 84,220 11,215 End of Year After Closing 98,940 5,255 15. The owner made an investment of $10,000 in the business during the year and withdrew nothing. The amount of net income or net loss for the year was: A. $5,960 C. $10,000 E. $14,720 B. $8,760 D. $10,680 F. $20,680 16. The owner made no investments in the business during the year and withdrew $15,000. The amount of net income or net loss for the year was: A. $5,680 C. $ 8,760 E. $15,000 B. $5,960 D. $14,720 F. $35,680 17. The owner made no investments in the business during the year and withdrew nothing. The amount of net income or net loss for the year was: A. zero C. $ 8,760 E. $20,680 B. $5,960 D. $14,720 F. $26,640 18. The owner made an investment of $18,000 and withdrew $25,000 during the year. The amount of net income or net loss for the year was: A. $5,960 C. $ 8,760 E. $14,720 B. $7,000 D. $13,680 F. $27,680 Group 4 Answer questions 19 through 22 regarding the six-column worksheet using the identifying letter of the following account titles. A B C D Accounts Receivable Accounts Payable Sales Rent Expense 19. This account has a normal debit balance in the Trial Balance section, and the balance is extended to the Balance Sheet section. 20. This account has a normal credit balance in the Trial Balance section, and the balance is extended to the Income Statement section. 21. This account has a normal debit balance in the Trial Balance section, and the balance is extended to the Income Statement section. 22. This account has a normal credit balance in the Trial Balance section, and the balance is extended to the Balance Sheet section.
UIL Accounting Invitational 2015-B -3- Group 5 Shane Dyer is the sole proprietor of an ice cream shop called Tasty Freeze. At the end of each work day, Shane makes a night deposit at the local bank where his business checking account is held. For the month of June, Shane made deposits totaling $12,260. This total included the deposits for June 29 $570 and June 30 $610. During June, Shane wrote checks totaling $5,115. This total included the last three checks written in June: check #2748 for $45 check #2749 for $169 check #2750 for $24 The beginning general ledger Cash in Bank balance for the month of June was $4,279, which is also the amount shown as the June 1 beginning balance on the June bank statement. The June bank statement includes a service charge deduction for $18 and a deduction for new checks printed in the amount of $36. Shane did not know about these charges until he reviewed the June bank statement. For questions 23 through 26, write the correct amount on your answer sheet. Consider each question independently unless instructed otherwise. 23. What is the ending bank statement balance for June if all checks written have cleared the bank, and there are no deposits in transit? 24. What is the ending bank statement balance for June if checks #2748, #2749, and #2750 are outstanding, and there are no deposits in transit? *25. What is the ending bank statement balance for June if checks #2748 and #2750 are outstanding, and the deposit of June 30 is in transit? *26. Consider the same facts as Question #25. After reconciling the bank statement and after all required entries from the bank reconciliation have been journalized and posted, what is the ending general ledger Cash in Bank balance on June 30?
UIL Accounting Invitational 2015-B -4- Group 6 Comet Company pays four employees weekly. Hourly wage employees are paid overtime at a rate of 1 and ½ times the regular rate of pay for hours worked over 40 hours in a week. The following information is available for the week ending November 6. Zoe earns an hourly wage of $8.92 and she worked 61 hours. Violet receives a salary of $550 per week plus a 2.5% commission on sales. Violet worked 40 hours and was responsible for $18,240 worth of sales this week. Zelda earns an hourly wage of $8.16 and a piece rate of 2 cents. Zelda worked 57 hours and produced 20,619 pieces. Zane earns an hourly wage of $6.28 and he worked 44 hours. For question 27, write the correct amount on your answer sheet. *27. What was the total amount of gross earnings for the week? Group 7 Use the following information for questions 28 and 29. Write the correct amount on your answer sheet. Payroll tax expense per employee is based on the following: Social Security 6.2% on gross earnings up to $117,000 Medicare 1.45% on all earnings Federal Unemployment Tax.6% on first $7,000 of gross earnings State Unemployment Tax 2.4% on first $9,000 of gross earnings *28. Drysdale, an employee, has cumulative gross wages of $6,275 in the first quarter. In the second quarter, if the current gross wages are $2,260, what is the total amount of employer s payroll tax expense on Drysdale s earnings for the second quarter only? *29. Hathaway, an employee, has cumulative gross wages of $6,890 in the first quarter. In the second quarter, if current gross wages are $2,420, what is the total amount of employer s payroll tax expense on Hathaway s earnings for the second quarter only?
UIL Accounting Invitational 2015-B -5- Group 8 Use the following information (arranged in alphabetical order) to answer questions 30 and 31. Write the correct amount on your answer sheet. Beginning Inventory? Cost of Delivered Merchandise 51,806 Cost of Merchandise Available for Sale 72,666 Ending Inventory? Gross Profit 29,659 Income Summary 1,355 DR Net Income or <Net Loss>? Net Purchases? Net Sales 78,050 Purchases? Purchases Discounts? Purchases Returns and Allowances 1,490 Sales 82,790 Sales Discounts? Sales Returns and Allowances 1,280 Total Expenses? Transportation in 2,784 30. What is the amount of Sales Discounts? *31. What is the amount of Purchases Discounts? Group 9 For questions 32 through 48, write the identifying letter of the best response on your answer sheet. 32. Depositor s checks returned with the bank statement are called A. NSF checks D. canceled checks B. voucher checks E. none of the above C. outstanding checks *33. A trial balance shows total debits of $6,500 and total credits of $7,900. Which of the following errors could explain this out-of-balance situation? A. The journal entry for the owner s withdrawal for personal use of $700 was credited to the capital account B. The Equipment account balance is $9,600 in the general ledger, but was recorded in the trial balance as $8,200. C. The journal entry to pay a vendor $700 on account was posted as a credit to Accounts Payable D. Any one of the above may have happened to cause the trial balance to be out-of-balance. E. none of the above would cause this situation.
UIL Accounting Invitational 2015-B -6- Group 9 continued 34. The owner s net income (or net loss) and the owner s withdrawals would be shown on what financial statement? A. Work Sheet B. Income Statement C. Statement of Changes in Owner s Equity D. Balance Sheet (with a detailed capital section) E. all of the above F. C and D 35. To determine how much a company owes a vendor, examine the A. journal B. Accounts Payable subsidiary ledger C. Accounts Receivable controlling account in the general ledger D. Accounts Payable controlling account in the general ledger E. Work Sheet 36. The only accounts that are listed on the Post-Closing Trial Balance are those that A. were open at the end of the current fiscal period B. were closed at the end of the current fiscal period C. will be open for the next fiscal period D. both A and C 37. A customer pays cash on account. What is the effect on the accounting equation? A. increases assets B. increases both assets and liabilities C. increases assets and decreases liabilities D. no change 38. Business transactions are not recorded directly in the ledger accounts because A. journalizing provides a helpful record of transactions in chronological order B. journalizing increases accuracy showing both the debit and credit parts C. journalizing makes it easy to see that the debit and credit parts are equal D. all of the above E. none of the above 39. The Prepaid Insurance amount in the work sheet s Balance Sheet section represents the insurance premiums A. at the beginning of the work sheet s fiscal period B. available during the fiscal period covered by the work sheet C. purchased during the fiscal period D. expired during the work sheet s fiscal period E. none of the above
UIL Accounting Invitational 2015-B -7- Group 9 continued 40. The Supplies amount in the work sheet s Trial Balance section represents A. the value of supplies on hand at the beginning of the fiscal period B. the value of supplies on hand at the end of the fiscal period C. the beginning value of supplies on hand plus supplies purchased during the fiscal period D. none of the above 41. Temporary capital accounts start the fiscal year A. with a debit balance B. with a credit balance C. with either a debit or credit balance D. none of the above 42. If there is a net loss for the fiscal period, the amount of the net loss would appear on the work sheet in the A. income statement debit column; the balance sheet credit column B. income statement credit column; the balance sheet credit column C. the income statement debit column; the balance sheet debit column D. the income statement credit column; the balance sheet debit column 43. When Fluffy Company (a retail pillow store) records bank card sales A. a liability is credited for the amount of sales tax collected B. a receivable is debited until the customer pays his credit card bill and the credit card company remits the payment to Fluffy Company C. the bank card sales are recorded as though they were cash sales D. both A and C 44. The process of determining whether the amounts of cash recorded in a business s accounting records and in its checkbook agree is called A. proving the ledger C. reconciling the bank statement B. reconciling cash D. proving cash 45. In accounting, the financial recordkeeping system in which each business transaction affects at least two accounts is called _?_ accounting. A. two-faced B. two-sided C. double-entry D. equation-based 46. The sequence 2/10, n/30 A. is an example of terms of sale B. communicates a potential 10% discount C. is usually offered by the seller to receive the resulting cash quickly D. both A and C 47. January 1 through December 31 in accounting is referred to as a A. physical year D. fiscal year B. calendar year E. both B and D C. ten month period of time
UIL Accounting Invitational 2015-B -8- Group 9 continued *48. A business did not record its expired insurance at the end of the fiscal period. All insurance premiums had been recorded in Prepaid Insurance. What effect would this error have on the following? Capital Assets Expenses Net Income (after closing) A. overstated overstated understated overstated B. unaffected understated overstated unaffected C. understated unaffected overstated overstated D. overstated understated unaffected understated E. none of the above Group 10 Refer to Table 1 on page 10 and the work sheet on page 11. For questions 49 through 59, write the correct amount on your answer sheet. These questions refer to the properly completed work sheet. What was the balance in each of the following accounts in the unadjusted trial balance? *49. Accounts Receivable 55. Karri Burns, Drawing 50. Merchandise Inventory 56. Income Summary 51. Supplies 57. Sales 52. Prepaid Insurance 58. Purchases *53. Accounts Payable 59. Supplies Expense 54. Karri Burns, Capital Group 11 Continue to refer to Table 1 and the work sheet. For questions 60 through 65, write the correct amount on your answer sheet. These questions refer to the properly completed work sheet. What was the balance in each of the following accounts after the adjustments were correctly written on the worksheet and the adjusted balances were correctly extended? *60. Merchandise Inventory 63. Karri Burns, Capital 61. Supplies 64. Supplies Expense 62. Prepaid Insurance 65. Insurance Expense Group 12 Continue to refer to Table 1 and the work sheet. For questions 66 through 72, write on your answer sheet the correct amount that would appear on the income statement for the twelve months ending December 31, 2014 and the balance sheet dated December 31, 2014. The balance sheet includes a detailed capital section. The company does not prepare a statement of changes in owner s equity. 66. Cost of Merchandise Sold *70. Total Assets 67. Cost of Merchandise Available for Sale 71. Total Liabilities 68. Gross Profit 72. Total Expenses *69. Net Income or <Net Loss>
UIL Accounting Invitational 2015-B -9- Group 13 Continue to refer to Table 1 and the work sheet. 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 73 through 76 (found in the chart below), write the correct amount on your answer sheet. Income Statement Balance Sheet Debit Credit Debit Credit Subtotals * #73 #74 * #75 * #76 Net Income or <Net Loss> Totals Red Blue Green Yellow For question 77, write the identifying letter of the best response on your answer sheet. 77. After the net income or net loss is calculated, indicate in which columns of the work sheet the amount would appear in the chart above using colors as indicators. A. Blue Green C. Red Green E. Red Yellow B. Yellow Green D. Yellow Blue F. Red Blue Group 14 Continue to refer to Table 1 and the work sheet. For questions 78 through 80, write the correct amount on your answer sheet. 78. What is the correct balancing total of the Trial Balance columns? 79. What is the correct balancing total of the Adjustments columns? ***80. What was the balance in Karri Burns, Capital on December 31, 2014 after all closing entries were posted? This is the end of the exam. Please hold your exam and answer sheet until the contest director asks for them. Thank you.
UIL Accounting Invitational 2015-B -10- TABLE 1 (for questions 49 through 80) Karri Burns is the owner of Superior Medical Supply. The selected amounts that appear on the work sheet on page 11 are accurate. It is company policy to purchase on account only merchandise for resale. All other assets and expenses must be paid for by check rather than purchased on account. Some of the merchandise vendors used in 2014 did not allow purchases on account by Superior Medical Supply and required that payment by check be received before they would ship the items. Acquisitions of supplies and insurance are properly recorded in their respective asset accounts. Adjusting and closing entries are prepared only at the end of the fiscal year, which is December 31. Additional Information: Supplies: Inventory on January 1, 2014...$ 4,860 Purchased during 2014 11,265 Inventory on December 31, 2014... 2,495 Prepaid Insurance: Unexpired as of January 1, 2014. $ 555 Policy purchased during 2014. 2,460 Unexpired as of December 31, 2014 615 Merchandise Inventory: January 1, 2014. $41,200 Capital account balance on January 1, 2014 was $60,245 Capital contributions made by the owner in 2014 were $12,500 Cash withdrawals by owner in 2014 were $40,000 Sales: cash.. $136,295 on account. 41,085 Purchases of merchandise: cash $ 16,274 on account 80,025 Accounts Receivable balance on January 1, 2014 was $3,205 Accounts Payable balance on January 1, 2014 was $3,980 Received on account in 2014 from customers $40,315 Paid on account in 2014 to vendors $79,245
UIL Accounting Invitational 2015-B -11- Superior Medical Supply Worksheet For the Year Ended December 31, 2014 Account Title Trial Balance Adjustments Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Cash in Bank 38,971 Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Accounts Payable Karri Burns, Capital Karri Burns, Drawing Income Summary 1,260 Sales Purchases Supplies Expense Insurance Expense Rent Expense 9,360 Utilities Expense 5,940
Grader #1 UIL ACCOUNTING Invitational 2015-B Contestant # Grader #2 Answer Sheet Team # Grader #3 Group 1 Group 5 Group 9 cont. Group 12 1 23 $ 45 66 $ 2 24 $ 46 67 $ 3 *25 $ 47 68 $ 4 *26 $ *48 *69 $ 5 Group 6 Group 10 *70 $ 6 *27 $ *49 $ 71 $ Group 2 Group 7 50 $ 72 $ 7 *28 $ 51 $ Group 13 8 *29 $ 52 $ *73 $ 9 Group 8 *53 $ 74 $ 10 30 $ 54 $ *75 $ 11 *31 $ 55 $ *76 $ 12 Group 9 56 $ 77 13 32 57 $ Group 14 *14 *33 58 $ 78 $ Group 3 34 59 $ 79 $ 15 35 Group 11 ***80 $ 16 36 *60 $ 17 37 61 $ 18 38 62 $ Group 4 39 63 $ 19 40 64 $ 20 41 65 $ 21 42 22 43 44 A B C D E F R 0 1 2 3 4 5 6 7 8 9
UIL ACCOUNTING Invitational 2015-B KEY Group 1 Group 5 Group 9 cont. Group 12 1 B 23 $ 11,370 45 C 66 $ 97,559 2 C 24 $ 11,608 46 D 67 $ 137,499 3 A *25 $ 10,829 47 E 68 $ 79,821 4 C *26 $ 11,370 *48 E *69 $ 48,491 5 A Group 6 Group 10 *70 $ 85,996 6 B *27 $ 2,879.52 *49 $ 3,975 71 $ 4,760 Group 2 Group 7 50 $ 41,200 72 $ 31,330 7 C *28 $ 231.48 51 $ 16,125 Group 13 8 A DR *29 $ 236.43 52 $ 3,015 *73 $ 128,889 9 C Group 8 *53 $ 4,760 74 $ 177,380 10 A CR 30 $ 3,460 54 $ 72,745 *75 $ 125,996 11 B CR *31 $ 3,280 55 $ 40,000 *76 $ 77,505 12 C Group 9 56 $ 0 or zero 77 E 13 A CR 32 D 57 $ 177,380 Group 14 *14 B CR *33 D 58 $ 96,299 78 $ 254,885 Group 3 34 F 59 $ 0 or zero 79 $ 17,290 15 D 35 B Group 11 ***80 $ 81,236 16 F 36 D *60 $ 39,940 17 E 37 D 61 $ 2,495 18 F 38 D 62 $ 615 Group 4 39 E 63 $ 72,745 19 A 40 C 64 $ 13,630 20 C 41 D 65 $ 2,400 21 D 42 D 22 B 43 D 44 D
Grader #1 Grader #2 Grader #3 UIL ACCOUNTING Invitational 2015-B SCORING CHART Contestant # Team # Number of correct answers out of 80 (without considering asterisks).. times 5 = Plus extra credit for asterisk questions answered correctly. (If the answer is incorrect, draw a line through the block.) Question Number Asterisks on Exam 14 1 25 1 26 1 27 1 28 1 29 1 31 1 33 1 48 1 49 1 53 1 60 1 69 1 70 1 73 1 75 1 76 1 80 3 Extra Points If Correct Total Extra Points.. TOTAL SCORE
Contestant # UNIVERSITY INTERSCHOLASTIC LEAGUE ACCOUNTING EXAM District 2015-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. 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. 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.
UIL ACCOUNTING District 2015-D1 Group 1 In questions 1 through 5, use the following code to indicate the account classification: A Asset B Liability C Capital D Revenue E Cost of Merchandise F Expense In questions 6 through 10, indicate how each account would be decreased using the code: DR=debit CR=credit Account Classification Decrease Side Payroll Tax Expense 1. 6. Accounts Payable 2. 7. Purchases Discounts 3. 8. Sales 4. 9. Merchandise Inventory 5. 10. Group 2 Write the correct identifying letters (DR or CR or P or NA) on your answer sheet for items 11 through 28. The company does not use the perpetual inventory method. Consider that all accounts have normal balances. DR = this account is closed with a debit CR = this account is closed with a credit P = this is a permanent account and is not closed during the closing process NA = this is the description of a subtotal on a financial statement 11. Net Sales 21. Merchandise Inventory 12. Prepaid Insurance 22. Cost of Merchandise Sold 13. Purchases 23. Blake Medlock, Capital 14. Sales Tax Payable 24. Blake Medlock, Drawing 15. Sales 25. Supplies Expense 16. Purchases Discounts 26. Supplies 17. Transportation In 27. Cost of Delivered Merchandise 18. Sales Returns and Allowances 28. Purchases Returns & Allowances 19. Cost of Merchandise Available for Sale 20. Income Summary (total debits are larger than credits in this account)
UIL Accounting District 2015-D1-2- Group 3 On September 1, 2014 Shari Fuller, owner of Travel Escapes, received a bank statement dated August 30, 2014. It is company policy to record any necessary journal entries and to update the checkbook balance after the bank reconciliation is completed. Shari compared the company s checkbook records with the bank statement and found the following: The August bank statement shows an ending balance of $2,305.42 The statement shows the August bank service charge of $18.25 A check from Abe Bumstead for $450 that was deposited in the business bank account on August 29 was returned by the bank. Shari s bank charged her account with a $25 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 $8,620 was made on August 31 but does not appear on the bank statement. Four July and August checks do not appear on the bank statement: Check #4073 for $35.00 Check #4265 for $519.87 Check #4264 for $2,346.19 Check #4266 for $364.92 For questions 29 and 30, write the correct amount on your answer sheet. 29. What is the reconciled (adjusted) bank balance on August 31, 2014? 30. What was the balance in the checkbook immediately before the bank reconciliation was prepared? Group 4 The following chart correctly summarizes the activity in the petty cash fund of a business for four months although much of the information is missing. All vouchers were prepared correctly and according to company policies. The company reconciles petty cash on the last day of each month and has always maintained a $200 balance in the account until July 23th when the company increased the fund by $50. Actual Cash Cash Amount Vouchers Before Over Needed to Month Totaling Replenishment <Short> Replenish May 31 12.20 1.60 June 30 <.55> 197.85 July 31 37.71 <1.45> Aug 31 2.15 200.04 For questions 31 and 32, write the correct amount on your answer sheet. 31. The check needed to replenish petty cash on July 31 is?. *32. The vouchers for the months of May through August added together equal?.