ACCT 100 F20 - Term Test 1 Sample Questions Time Limit: 0:23:00 Time Left:0:22:35 CHENGWEI XIANG: Attempt 1 Page 1: 1 Nanaimo Gadgets Ltd. (NGL) began operations on January 1, 2020. Entries have been recorded in the template for the following select transactions: 1 NGL issued 1,000 common shares in exchange for $20,000. NGL paid $55,000 to purchase equipment NGL purchased goods to resell costing $12,500 on account. NGL paid $3,600 in wages to its employees for the first half of the month. Page 2: 8 12 17 2 Page 3: 3 Date Cash Assets Inventory Prepaid Rent Equipment Liabilities & Shareholders' Equity Accts. Wages Common R/E Payable Payable Shares Page 4 1 20,000 (20,000) 4 8 (55,000) 55,000 12 (12,000) 12,000 17 (3,600) (3,600) Required: Identify errors in the recorded transactions. For each error, identify both the error and the condition Required: Identify errors in the recorded transactions. For each error, identify both the error and the correct treatment Example: The transaction on the 1" should not be a decrease to common shares. It should be an increase to common shares. (2 marks - 5 minutes) Next Page Page 1 of 4