2021 COIN Competition Research

Welcome to the CPABC COIN Competition Research page. This page includes additional information to help you answer the following questions in the CPABC COIN Competition:

Question #16

Use the following information to answer question #16 in the CPABC COIN Competition.

Computer Equipment 1,600
Accounts Payable – City of Bedrock 900
Capital 700
Accounts Payable – Fred Flintstone 2,100
Accounts Receivable – Wilma Flintstone 800
Loan from BamBam Bank 1,750
Trucks 1,200
Supplies 200
Accounts Payable – Barney Rubble 740


16. From the list of accounts above, the total amount of credits on the trial balance would be (assume all balances are “normal” balances):

  1. $5,490
  2. $5,290
  3. $6,390
  4. $6,190

Questions #51 – 54

Use the following information to answer questions #51 – 54 in the CPABC COIN Competition

After high school, Wayne, Trevor and Sidney each started up their own side gigs to help them pay for post-secondary.  They are now into their 3rd year of running their own businesses and decide to meet for coffee but all of them forget to bring the full financial statements for their businesses.  They only have the following select details that they quickly scribbled down in their notepads but as you can see some information is missing.

The year-ends for each business is the same.

  Wayne's Biscuits Trevor's Biscuits Sidney's Biscuits
September 30th, 2019:      
Assets 20,000 15,000 2,000
Liabilities 30,000 14,000 6,500
       
September 30th, 2020:      
Assets 34,200 ______ 14,000
Liabilities 14,300 9,050 2,000
Investments 18,750 11,725 _____
Net income/(loss) 15,500 19,070 8,900
Owner drawings ______ 11,195 0


51.    The owner’s drawings for Wayne for the year ended Sept 30, 2020 are: 

  1. $4,350
  2. $0
  3. $16,650
  4. $8,700

52. The assets for Trevor for the year ended Sept 30, 2020 are:

  1. $11,550
  2. $15,000
  3. $29,650
  4. $0

53. The investments for Sidney for the year ended Sept 30, 2020 are:

  1. $0
  2. $16,500
  3. $3,800
  4. $7,600

54. The equity for Sidney for the year ended Sept 30, 2019 is:

  1. ($8,500)
  2. $0
  3. ($4,500)
  4. $8,500

Questions #55-59

Use the following information to answer questions #55 – 59 in the CPABC COIN Competition

Barack had always wanted to do something in the field of clean energy, so on January 1st 2020, he launched a business selling solar panels called Sola Styles Ltd. 

The trial balance for the Company after the first year of operations is presented below.  The year-end adjusting journal entries have not yet been made.

Sola Styles Ltd
Unadjusted Trial Balance
December 31, 2020

  Debit Credit
Bank 71,000  
Accounts Receivable 23,000  
Supplies 8,000  
Prepaid insurance expense 1,200  
Equipment 7,000  
Accumulated amortization - equipment   3,000
Accounts Payable   18,000
Salaries Payable   6,000
Unearned service revenue   15,000
Barack, Capital   30,000
Barack, Drawings   2,000
Service Revenue   74,000
Salaries Expense 30,000  
Supplies Expense 5,000  
Insurance Expense 800  
Amortization Expense 0  
Utilities Expense 2,000  
  $148,000 $148,000


55.    Barack sends his assistant to count the supplies in the storeroom. The assistant reports $2,700 worth of supplies. Barack needs to:

  1. Make a journal entry involving a credit to amortization expense
  2. Make a journal entry involving a debit to supplies
  3. Make a journal entry involving a debit to supplies expense
  4. Make a journal entry involving a debit to amortization expense


56.    Due to the promotional prices on Boxing Day, it’s been a busy time during year end. Staff have been working hard to meet customer demand and bookkeeping is slightly behind. Barack realizes that the salary of $2,500 for the part-time office assistant, Sasha, still needs to be accrued. Barack could do this by:

  1. Increasing revenues
  2. Decreasing expenses
  3. Increasing assets
  4. Increasing liabilities

57.    As Barack is going through the mail he finds a renewal notice for the Company’s insurance policy, indicating that the current insurance expires at the end of the calendar year. The journal entry Barack would need to prepare is:

  1. Dr. Amortization expense, Cr. Insurance expense
  2. Dr. Insurance expense, Cr. Amortization expense
  3. Dr. Insurance expense, Cr. Prepaid insurance expense
  4. Cr. Prepaid insurance expense, Cr. Insurance expense


58.    Some of Barack’s customers find that paying for one year of service is more convenient than receiving a monthly bill. These customer’s choose to pay $5,000 for a full year of service. The beginning and ending times of their service periods are noted below.

Name of Customer Service Start Service End
Angela Jan 1, 2020 Dec 31, 2020
Vladimir June 1, 2020 May 31, 2021
Emmanuel Sept 1, 2020 Aug 31, 2021


The adjusting journal entry required would include:

  1. A credit to revenue of $4,583.33
  2. A credit to revenue of $10,416.67
  3. A credit to revenue of $5,416.67
  4. A credit to revenue of $9,583.33

59.    If Barack did not make the adjustments in question 56 and 57, the effect on financial statements would be:

  1. Net income would be overstated and liabilities would be overstated
  2. Net income would be understated and liabilities would be understated
  3. Net income would be overstated and liabilities would be understated
  4. Net income would be understated and liabilities would be overstated

Question #66

Use the following information to answer question #66 in the CPABC COIN Competition

66.    Sukhleen is deciding whether or not to buy shares of The Mask Up Company at the end of 2020. She could instead loan her money to Yeast For All Company and get 7% interest per year. Sukhleen has the following data about The Mask Up Company:

  2019 2020
Net income $42,500 $163,890
Beginning equity $337,800 $381,055
Ending equity    $381,055 $656,290


Which would be the best choice for Sukhleen?

  1. Invest in Yeast For All
  2. Invest in The Mask Up
  3. The Mask Up would only have been a good investment in 2019
  4. Invest in Yeast for All because The Mask Up is on a downwards spiral