Accounting Final Exam

1. You must complete the examination in the provided Microsoft Excel template.

The tabs have been prepopulated for each question; there is no need to create additional tabs. The name of your Microsoft Excel file should be your first and last names.

Examinations in other formats (Word, PDF, picture format) will not be accepted.

2. Upload your completed examination to the “Final Exam File Submission” folder on Moodle.

3. The “Final Exam File Submission” folder closes promptly at 9:05pm PST. Late

submissions will incur a penalty of 1% per minute late.

Question 1: Tokyo Limited (22 marks)

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Tokyo Limited is a footwear manufacturer located in Thompson, Manitoba. The company is known for its high-quality winter boot collection. It is December 1, 2021 and you have just joined Tokyo Limited as an accountant. Tokyo Limited’s fiscal yearend is November 30th. For the 2021 fiscal year, net income totaled $48,000 and dividends (cash) of $17,000 were paid. The following balance sheets are for the company’s last two years of operations:

Question 2: Newark-on-Trent Limited (30 marks)

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Newark-on-Trent Limited, a manufacturer of baby products, is headquartered in Charlottetown, Prince Edward Island. For the fiscal year ended November 30, 2020, it was determined that the company had contributed surplus of $25,000; accumulated other comprehensive income of $132,000; and retained earnings of $300,000. Furthermore, Newark-on-Trent Limited had 360,000 common sharesvalued at $2,400,000 and 110,000 preferred shares valued at $660,000. 

Required:

(a) Provide all the necessary journal entries for the latest year. (10 marks)

(b) Prepare a statement of changes in equity for the latest year. (20 marks)

Question 3: Chandigarh Incorporated (28 marks)

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Chandigarh Incorporated is a baseball bat manufacturer headquartered in The Pas with a fiscal year-end of September 30th. The company’s accountant has prepared a summary of financial accounts as at September 30th, 2021:

Required:

(a) Compute 2021 Net Income (4 marks)

(b) Compute 2021 Ending Retained Earnings (4 marks)

(c) Prepare the statement of financial position (classified) in good form as at September 30th, 2021. (21 marks)

(d) Compute the current ratio (2 marks)

(e) Compute the debt-to-equity ratio (2 marks)

(f) Compute the basic EPS (2 marks)

Question 4: Sydney Limited (20 marks)

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Sydney Limited is a beach towel manufacturing company located in Bathurst, New Brunswick. Presented below are its comparative balance sheets for its last two fiscal years.

Required:

(a) Perform a vertical analysis on the above information. Construct a balance sheet in good form to do this. (10 marks)

(b) Perform a horizontal analysis on the above information. Construct a balance sheet in good form to do this. (10 marks) 

Question 5: Calgary Corporation (22 marks)

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Calgary Corporation makes high-quality oil drills. Contrary to their name, Calgary Corporation is headquartered in Montreal. The company has a financial year-end of March 31st. The company’s unadjusted trial balance showed the following as of its March 31st , 2020 financial year-end:

Required:

(a) Provide the journal entry in good form to record estimated bad debt expense for the March 31st, 2020 financial year. (5 marks)

(b) Prepare the balance sheet presentation of accounts receivable on March 31st, 2020. (5 marks)

(c) Assume on September 14th, 2020 that the accounts receivable balance is $200,000 and the AFDA balance is $4,000 credit. Provide the journal ntry in good form to write off the amount. Additionally, prepare the balance sheet presentation of accounts receivable before and after the write off. (12 marks)

Question 6: Baku Inc. (28 marks)

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Baku Inc. is a tire manufacturing located in western Manitoba. The company has a December 31st year-end. Baku Inc. has made a concerted effort to keep better financial accounting records. Baku Inc. decided to sell two machines in 2021

Required:

In good form, provide all the journal entries needed to update depreciation and record the asset sales.