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2014 Vol 1 CH 8 Answers-1
2014 Vol 1 CH 8 Answers-1
CHAPTER 8
INVESTMENT PROPERTY, OTHER NONCURRENT FINANCIAL ASSETS
AND NONCURRENT ASSETS HELD FOR SALE
PROBLEMS
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Chapter 8 – Investment Property, Other Non-current Financial Assets & Non-current Assets Held for Sale
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Chapter 8 – Investment Property, Other Non-current Financial Assets & Non-current Assets Held for Sale
11. Buildings
Building Expansion Fund Cash
12. Cash
Building Expansion Fund Cash
(b) 1/2/13
Bond Sinking Fund Cash 503,726
Cash 503,726
6/30/13
Bond Sinking Fund Cash 523,875
Cash 503,726
Interest Income (503,726 x 4%) 20,149
12/31/13
Bond Sinking Fund Cash 544,830
Cash 503,726
Interest Income 41,104
4% ( 503,726 + 523,875) = 41,104
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Chapter 8 – Investment Property, Other Non-current Financial Assets & Non-current Assets Held for Sale
*The cash surrender value of life insurance may be recognized on the anniversary date
(June 30, 2011 and every June 30 thereafter). No proportionate adjustment, however, is
necessary at year end because there is no actual increase in cash surrender between
anniversary dates.
(b) If the president or his heirs were the beneficiaries of the policy, the premiums paid shall
be charged to employees benefit expense and no cash surrender value will be set up by
the company.
8-8. (Solidbank)
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Chapter 8 – Investment Property, Other Non-current Financial Assets & Non-current Assets Held for Sale
8-11.
Cost = 42,000 ÷(3/5) = 70,000 Accumulated Depreciation = 70,000 – 42,000 = 28,000
(a) Mar. 31 Depreciation Expense (14,000 x 3/12) 3,500
Accumulated Depreciation 3,500
MULTIPLE CHOICE
MC1 C MC9 B
MC2 C MC10 A
MC3 B MC11 B
MC4 A MC12 A
MC5 B MC13 D
MC6 C MC14 B
MC7 C MC15 C
MC8 D MC16 A
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