****For A-plus Writer only****

You must complete answer all questions – be a very careful reader

4Questions: 3 short answers and one problem. Please do not write more than 2 paragraphs for any questions. Be sure to use and show that you understand the vocabulary discussed in your course resourses. Ch Hermanson: 7,8,9 & 10,11,12,&13

Edwardson: ch 9

please try to complete the quiz in one setting Save the exam file as a word document with your name in the file name & Quiz 1 such as Johnny_Unitas_Quiz_1

UMUC – ACCT 301 Due November 9, 2015 This quiz is to be completed without the assistance of any other person.

You may use only the resources provided by your instructor for this class.

** Save this file and include your name in the file name: Johnny_Unitas_Quiz_2

You may create an Excel and / or Word File for your work. Please verify that each page prints out formatted with your name and page number on the page. Excel files should show gridlines.

Excel ‘page format’ has options for grid lines (sheet) and headers/footers.

At a minimum, use print preview so you can see how the work will print out.

I pledge on my honor that I have not given or received any unauthorized assistance on this examination. In addition, I pledge that I will not disclose to, or discuss the contents of this examination with, students who have not taken it.

Signed

Good Luck!!!

Short Answer 1: (20 points) Compare and Contrast Perpetual and Periodic Inventory Systems. Which do you think provides the most accurate inventory data? Which system do you see used the most?

Short Answer 2: (20 points) The Bank Balance presented on the bank statement totals $12,000 while the general ledger cash balance for this account, on the same date, the last day of the month, displays a value of $15,600.

Please explain the issues related to this difference and how they would be resolved. Use you experience in creating a bank reconciliation to assist you in considering the variables.

Short Answer 3: (20 points) As a new business manager you are concerned that the bank reconciliation is not being completed and presented to you on a timely basis. Explain why the bank reconciliation is important, who should complete the actual report, and actions that should occur upon receiving the report.

Problem #1 (40 points)

On July 1, 2014 Calloway Inc. acquired a new machine at a cost of $40,000 with a residual value of $4,000. The estimated useful life is 6 years and 200,000 units. For the year ending June 30, 2015 the machine produced 35,000 units. For the year ending June 30, 2016, the machine produced 40,000 units.

1. Using the three depreciation methods (straight line, units of production,) calculate the depreciation for the year ending 6/30/15 and present each of the three journal entries in proper form.