2nd Test Governmental Accounting Note. Attempt any Two Questions All Questions carry equal Marks.

Q.1 Interest Collected in 1964 are $15000, Interest Income Reported on the Income Statement is $10500, The Balance Sheet Prepared at the beginning of the year reported accrued Interest Income $ 2000, and Un-earned Interest Income $2550, the balance Sheet at the end of year reported accrued interest Income $3500, Requirement. What was the amount of unearned Interest Income at the end of the Year? Q.2 The Following date are taken the Mason Corporation records for the years ending December 31, 2010, 2011, 2012 2010 $ 15000 40000 30000 360000 210000 200000 120000 2011 $ 30,000 40000 40000 340000 235000 250000 130000 2012 $60,000 60000 50000 500000 230000 260000 150000

Finished goods inventory Goods in Process Inventory Raw materials inventory Sales Cost of goods sold Cost of goods manufactured Materials used in production

Calculate Turnover figures for 2011, 2012, for (a) Finished goods, (b) Goods in process (c) raw Materials. Q.3 Statements for the Ali Co, Show the following balances:

2010 2011 2012 Average receivables (net) $35000 $40000 $60000 Net Sales 350000 380000 500000 Give any significant measurements that may be developed in analyzing the foregoing, assuming a 300day business year and assuming that approximately one third of the sales are for cash, the balance being on account. What conclusions may be made concerning the receivables if sales on account are made on a 2/30,n/60 basis?