UWA Business School

MID-SEMESTER MOCK EXAM

1st Semester 2019

ACCT1101 - FINANCIAL ACCOUNTING

[SOLUTIONS]

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SECTION A: MULTIPLE CHOICE QUESTIONS
A1. c

A2. e

A3. c

A4. c

A5. a

A6. c

A7. d

A8. e

A9. a

A10. d

A11. e

A12. c

A13. e

A14. c

A15. a

A16. c

A17. a

A18. e

A19. c

A20. c

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A21. e

A22. e

A23. d

A24. e

A25. a

A26. d

A27. c

A28. a

A29. b

A30. c

A31. d

A32. b

A33. c

A34. d

A35. a

A36. d

A37. a

A38. b

A39. b

A40. c

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 SECTION B: MULTIPLE CHOICE QUESTIONS

Refer to the Solutions to Lecture Week 5 Example & Lecture Week 6 Example which can
be both found in the Lecture Notes Section on LMS.

Solutions are also available online on LMS to the following Questions from the
textbook “Financial Accounting” by Hoggett et al. (2018), (10th Edition);
Tutorial Questions – Exercise 4.2, Problem 4.16, & Problem 4.21 and Practical Lecture -
Problem 4.19 & Problem 4.29 for both Adjusting Journal entries and Closing Journal
entries.

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SECTION C: MULTIPLE CHOICE QUESTIONS
[General Journal entries for Colorado Ltd are as follows:]
Using the column headings [Date / Accounts / Debit / Credit]

A.

September
1. Cash at Bank 550
Sales 500
GST Collection 50
Cost of Sales 300
Inventory 300

2. Accounts Payable 660

Cash at Bank 660

4. Inventory 750
GST Outlays 75
Accounts Payable 825

5. Sales Returns & Allowances 200

GST Collection 20
Cash at Bank 220

Inventory 120
Cost of Sales 120

8. Freight Inwards 30
Cash at Bank 30

10. Accounts Payable 165

Inventory 150
GST Outlays 15

12. Accounts Receivable 1 100

Sales 1 000
GST Collections 100
Cost of Sales 600
Inventory 600

14. Accounts Payable 660

Discount Received 12
GST Outlays 1

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 Cash at Bank 647
(25 purchased – 5 returned = 20)

23. Sales Returns & Allowances 250

GST Collections 25
Accounts Receivable 275
Inventory 150
Cost of Sales 150
Cash at Bank 825
Accounts Receivable 825

24. Inventory 900

GST Outlays 90
Accounts Payable 990

29. Accounts Payable 990

Cash at Bank 970

GST Outlays 2
Discount Received 18

Inventory Shortage
Physical Count 61 units @ $30
Records show 69 units @ $30 should be on hand.

Entry to record Shortage 8 units @ $30.

Inventory Shortage Expense 240
Inventory 240

B. [Closing Entries]

30. Profit & Loss Summary 1 350

Sales Returns & Allowances 450
Cost of Sales 630
Inventory Shortage 240
Freight Inwards 30
(Closing of all accounts with a
Debit balance)

Discount Received 30
Sales 1 500
Profit & Loss Summary 1 530
(Closing of all accounts with a
Credit balance)
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 Profit & Loss Summary 180 180
Capital
(Transfer of Profit to Capital)

*Solutions to Tutorial Questions – Exercise 6.2, Exercise 6.3 & Problem 6.15 and Practical
Lecture - Problem 6.16 from Hoggett et al. (2018), (10th Edition) and a comparison of the use
of Perpetual and Periodic Inventory systems for a retailing business are available online on
LMS.

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SECTION D: MULTIPLE CHOICE QUESTIONS

Q1. What is the Gross Sales Revenue?

$2 975 000

Q2. What is the Net Sales Revenue?

Gross Sales 2 975 000

Less Sales Returns & Allowances 112 000
2 863 000

Q3. What are the Net cost of Purchases?

Purchases 2 817 500

Plus Freight Inwards 147 000
2 964 500
Less PurchasesReturns & Allowances 612 500
2 352 000

Q4. How much are the Cost of Goods Sold?

Opening Inventory 56 000

Plus Net Cost of Purchases 2 352 000
$2 408 000
Less Closing Inventory 128 920
$2 279 080

Q5. What is the Other Income equal to?

Commission Income = $44 375

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Q6. What is the Gross Profit?

Net Sales Revenue 2 863 000

Less Cost of Goods Sold 2 279 080
$583 920

Q7. How much are the Selling Expenses?

Salesmen Salaries 150 000

Freight Outwards 16 020
Marketing Costs 24 000
Depreciation of Showroom Building 33 000
$223 020

Q8. How much are the Administrative Expenses?

Office Rent 130 000

Utilities Expense 113 240
Insurance Expense 65 000
$308 240

Q9. How much are the Financial Expenses?

Bad Debts 6 000

Interest Expense 23 015
$29 015

Q10. What are the Total Expenses?

Selling 223 020

Admin 308 240
Finance 29 015
$560 275

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Q11. What is the Net Profit (or Net Loss) for the period?

Gross Profit 583 920

Plus Other Income 44 375
$628 295
Less Total Expenses 560 275
$68 020

Q12. What are the Current Assets equal to?

Cash at Bank 88 100

Accounts Receivable 44 000
Closing Inventory 128 920
Prepaid Rent 25 000
$286 020

Q13. How much are the Intangible Assets?

Trademarks & Brand Names $200 000

Q14. What are the Non-Current Assets equal to?

Showroom Buildings 780 000

Less Accumulated Depreciation 38 500
$741 500
Trademarks & Brand Names 200 000
$941 500

Q15. What are the Total Assets equal to?

Current Assets 286 020

Non-Current Assets 941 500
$1 227 520

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Q16. How much is the GST payable?

GST Collections 28 000

Less GST Outlays 16 000
= GST Payable 12 000

Q17. How much are the Current Liabilities?

Accounts Payable 108 000

Unearned Revenue 9 000
GST Payable 12 000
Salesmen Salaries Payable 15 000
$144 000

Q18. How much are the Non-Current Liabilities?

Mortgage Payable $600 000

Q19. How much are the Total Liabilities?

Current $144 000

Non-Current $600 000
$744 000

Q20. What is the Equity of the business equal to?

Opening Capital 515 500

Plus Net Profit 68 020
583 520
Less Drawings 100 000
$483 520

END OF EXAMINATION

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