ACG 2021, Introduction to Financial Accounting, Summer 2001, Exam 3 Final :: UFL Florida Business Accounting

2021FNLSM01A 7/18/01Page 1ACG 2021FINAL tryoutSUMMER 2001NAME _____________________________________ SS ____________________________InstructionsNOW Bubble in your office number on your Scan Sheet.Fill in your name and social security number on this examination and your scansheet.1. Listen cautiously for any comments your proctor may have related to the exam. Read these instruction manual c arfully. Failure to do so may result in your losing points.2. This exam consists of 60 multiple-choice questions, each worth two points for a innate of 120points. Select the BEST answer and mark the appropriate home on the scan sheet with a 2pencil only. You mustiness keep your scan sheet face down on the desk when you atomic number 18 notfilling it in.3. You may practice ONLY a non-programmable estimator during the exam. practise of any othercalculator go forth be considered a violation of the honor code. Your exam lead be taken fromyou and you testament receive a grade of 0.4. At the end of 2 hours, you leave alone be told to stop. Put your pencils down IMMEDIATELY.Failure to do so pull up stakes result in your receiving a zero for the exam.5. The exam consists of 20 paginates, including this cover, defer value tables and a blank page atthe end. Make convinced(predicate) you have all pages and all questions.6. Have your University of Florida Identification card put in to be checked when you turn inyour exam.7. Assume the accounting entities use a calendar year unless otherwise noted.8. Assume a 360-day year.9. When you are finished, turn in your scan sheet, as well as your exam. Answers will beposted on the web after the exams are give back in class.10. The University of Florida policy on academic honesty will be strictly enforced.When you are told to open your exam, turn to thefirst page and find your exam code. Immediatelybubble this in on your scantron.2021FNLSM01A 7/18/01Page 2EXAM CODE = AUse the following to answer questions 1-3Bennett Industries p urchased a large piece of equipment from Crumpet Company on January 1, 2001. Bennettsigned a note, agreeing to pay Crumpet $400,000 for the equipment on December 31, 2003. The market straddle ofinterest for similar notes was 8%. The present value of $400,000 discounted at 8% for three years is $317,520.On January 1, 2001, Bennett recorded the purchase with a calculate to equipment for $317,520 and a credit to notespayable for $317,520.1. On Bennetts 2001 year-end balance sheet, the entertain value of the liability for notes payable related to thispurchase would equalA) $317,520.B) an heart less than $317,520.