General Accounting Practice Exam 2

School: Eckerd College - Course: ACCOUNTING 101 - Subject: Accounting

General Accounting Practice Exam 2 DIRECTIONS: The questions below are based on the information given on the chart below. TABULATION I consists of data that affect the capital account. Certain information has been inserted in each set of data reading horizontally. On each line, one or more numbers are missing. These blank spaces are identified by a number in parenthesis. Each question is also identified by a number in parenthesis that corresponds to the number in the blank spaces. You are to answer the questions by determining the correct entry for each blank. TABULATION I Capital atBeginning ofPeriodNet ProfitNet LossInvestmentsDuringPeriod WithdrawalsDuring PeriodCapital at End of Period $5,000(1)$3,000$7,000 $15,000$2,000$1,000(2)$15,000 (3)$6,000$2,000$25,000 $12,000$3,000(4)$2,000$9,000 $5,000$4,000$2,000(5) DIRECTIONS: Answer the following questions based on the information given in the chart above. 1.a. $1,000 b. $4,000 c. $2,000 d. $8,000 2.a. $12,000 b. $0 c. $3,000 d. $18,000 3.a. $8,000 b. $17,000 c. $23,000 d. $19,000 4.a. $8,000 b. $2,000 c. $3,000 d. $9,000 5.a. $9,000 b. $11,000 c. $7,000 d. $3,000

Practice Exam 2 - Solutions 1.$1,000. The Capital at the Beginning of the period minus any net loss, plus the investments made during that period should equal the capital at the end of the period; thus $5,000 - x + $3,000 = $7,000, where x is the net loss. Solving for x gives you $1,000. 2.$3,000. The Capital at the Beginning of the period plus any net profit, plus the investments made during that period minus any withdrawals for the same period should equal the capital at the end of the period; thus $15,000 + $2,000 + $1,000 - x = $15,000, where x is the withdrawals during the period. Solving for x gives you $3,000. 3.$17,000. The Capital at the beginning of the period plus any net profit, plus the investments made during that period should equal the capital at the end of the period; thus x + $6,000 + $2,000 = $25,000, where x is the Capital at the beginning of the period. Solving for x gives you $17,000. 4.$2,000. The Capital at the beginning of the period minus any net loss, plus the investments made during that period, minus any withdrawals for the same period should equal the capital at the end of the period; thus $12,000 - $3,000 + x - $2,000 = $9,000, where x is the investments during the period the period. Solving for x gives you $2,000. 5.$11,000. The Capital at the beginning of the period plus any net profit, plus the investments made during that period should equal the capital at the end of the period; thus $5,000 + $4,000 + $2,000 = x, where x is the Capital at the end of the period. Solving for x gives you $11,000.