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Kompilasi Tugas AKM I Before UTS Kelas 7-1 NON AKT
Kompilasi Tugas AKM I Before UTS Kelas 7-1 NON AKT
Answer:
(a) This entry violates the economic entity assumption. This assumption in
accounting indicates that economic activity can be identified with a
particular unit of accountability. In this situation, the company erred by
charging this cost to the wrong economic entity.
(b) The historical cost principle indicates that assets and liabilities are
accounted for on the basis of cost. If we were to select sales value, for
example, we would have an extremely difficult time in attempting to
1
establish a sales value for a given item without selling it. It should further
be noted that the revenue recognition principle provides the answer to
when revenue should be recognized. Revenue should
be recognized when it is probable that future economic benefits will flow to
the entity and reliable measurement of the amount of revenue is possible. In
this situation, an earnings process has definitely not taken place.
(c) Probably the company should not record this loss. The expense
recognition principle indicates that expenses should be allocated to the
appropriate periods involved. In this case, there appears to be a high
uncertainty that the company will have to pay. IAS 37 requires that a loss
should be accrued only (1) when it is probable that the company would
lose the suit and (2) the amount of the loss can be reasonably estimated.
(Note to instructor: The student will probably be unfamiliar with this
standard. The purpose of this question is to develop some decision
framework when the probability of a future event must be assumed.)
(e) Most accounting methods are based on the assumption that the busi-ness
enterprise will have a long life. Acceptance of this assumption provides
credibility to the historical cost principle, which would be of limited
usefulness if liquidation were assumed. Only if we assume some permanence
to the enterprise is the use of depreciation and amortization policies
justifiable and appropriate. Therefore, it is incorrect to assume liquidation
as Gonzales, Inc. has done in this situation. It should be noted that only
where liquidation appears imminent is the going concern assumption
inapplicable.
2
EXERCISE 2-10
Answer:
(b) A gain should not be recognized until the inventory is sold. Accoun-tants
follow the cost approach and write-ups of assets are not permitted. It
should also be noted that the revenue recognition principle states that
revenue should not be recognized until the benefits will flow to the
company and can be measured reliably.
(c) Assets should be recorded at the fair value of what is given up or the fair
value of what is received, whichever is more clearly evident. It should be
emphasized that it is not a violation of the historical cost principle to use
the fair value of the shares. Recording the asset at the par value of the
shares has no conceptual validity. Par value is merely an arbitrary amount
usually set at the date of incorporation.
3
(d) The gain should be recognized at the point of sale. Deferral of the
gain should not be permitted. Revenue should be recognized when
it is probable that future economic benefits will flow to the entity
and reliable measurement of the revenue is possible. To explore this
question at greater length, one might ask what justification other than the
controller’s might be used to justify the deferral of the gain. For example,
the rationale provided in IFRS, noncompletion of the earnings process, might
be discussed.
(e) It appears from the information that the sale should be recorded in 2015
instead of 2014. Regardless of whether the terms are f.o.b. shipping point
or f.o.b. destination, the point is that the inventory was sold in 2015. It
should be noted that if the company is employing a perpetual inventory
system in dollars and quantities, a debit to Cost of Goods Sold and a
credit to Inventory is also necessary in 2015.
4
CHAPTER 3
The Accounting Information System
EXERCISE 3-17
Answer:
Mar. 1 Cash ............................................................................ 60,000
Share Capital—Ordinary .................................. 60,000
(Investment of cash in business)
5
18 Cash ............................................................................ 1,200
Service Revenue .............................................. 1,200
(Received cash for services performed)
6
EXERCISE 3-20
Answer:
(a) Adjusting Entries:
1. Insurance Expense (₺6,000 X 5/24) ................................. 1,250
Prepaid Insurance ................................................... 1,250
2. Rental Revenue (₺2,400 X 1/3) ......................................... 800
Unearned Rental Revenue ...................................... 800
3. Supplies ............................................................................ 290
Supplies Expense .................................................... 290
4. Interest Expense .............................................................. 770
Interest Payable ....................................................... 770
7
PROBLEM 3-1
Answer:
Cash Equipment
Sept. 1 20,000 Sept. 4 680 Sept. 2 17,280
8 1,690 5 942
20 980 10 430
18 3,600 Yasunari Kawabata, Capital
19 3,000 Sept. 19 3,000 Sept. 1 20,000
30 1,800 30 6,007
30 85 Bal. 30 23,007
30 Bal. 12,133
8
Accounts Receivable
Sept. 14 5,820 Sept. 20 980
25 2,110 Accounts Payable
Bal. 30 6,950 Sept. 18 3,600 Sept. 2 17,280
Bal. 30 13,680
Rent Expense
Sept. 4 680 Sept. 30 680
Supplies Expense
Sept. 30 330 Sept. 30 330
9
(b) YASUNARI KAWABATA, D.D.S.
Trial Balance
September 30
Debit Credit
Cash ................................................................... ¥12,133
Accounts Receivable ........................................ 6,950
Supplies ............................................................. 612
Equipment.......................................................... 17,280
Accumulated Depreciation–Equipment........... ¥ 288
Accounts Payable ............................................. 13,680
Yasunari Kawabata, Capital ............................. 17,000
Service Revenue ............................................... 9,620
Rent Expense .................................................... 680
Office Expense .................................................. 515
Salaries and Wages Expense ........................... 1,800
Supplies Expense.............................................. 330
Depreciation Expense ....................................... 288
Totals ..................................................... ¥40,588 ¥40,588
10
YASUNARI KAWABATA, D.D.S.
Statement of Owner’s Equity
For the Month of September
Kawabata, Capital September 1 ....................................................... ¥20,000
Add: Net income for September .................................................. 6,007
26,007
Less: Withdrawal by owner ............................................................. 3,000
Kawabata, Capital September 30 ..................................................... ¥23,007
11
PROBLEM 3-4
Answer:
(a) November 30 Supplies Expense ............................................... 4,000
Supplies ...................................................... 4,000
Depreciation Expense—Equipment .................. 15,000
Accumulated Depreciation—
Equipment .............................................. 15,000
12
Interest Expense ................................................. 11,000
Interest Payable ......................................... 11,000
Dr. Cr.
Cash ...................................................................... € 28,700
Accounts Receivable ........................................... 33,700
Inventory .............................................................. 45,000
Supplies ................................................................ 1,500
Equipment ............................................................ 133,000
Accumulated Depreciation—Equipment .......... € 39,000
Notes Payable ...................................................... 51,000
Accounts Payable ................................................ 48,500
Share Capital—Ordinary ..................................... 90,000
Retained Earnings ............................................... 8,000
Sales Revenue ..................................................... 757,200
Sales Returns and
Allowances ........................................................ 4,200
Cost of Goods Sold ............................................. 495,400
Salaries Expense ................................................. 140,000
Advertising Expense ........................................... 26,400
Utilities Expense .................................................. 14,000
Maintenance and Repairs Expense .................... 12,100
Delivery Expense ................................................. 16,700
Rent Expense ....................................................... 24,000
Supplies Expense ................................................ 4,000
Depreciation Expense—Equipment ................... 15,000
Interest Expense .................................................. 11,000
Interest Payable ................................................... 11,000
Totals .............................................................. €1,004,700 €1,004,700
13
(c) BELLEMY FASHION CENTER
Income Statement
For the Year Ended November 30, 2015
Sales revenue
Sales revenue ............................................................ €757,200
Less: Sales returns and allowances ...................... 4,200
Net sales .................................................................... 753,000
Cost of goods sold ................................................................ 495,400
Gross profit ............................................................................ 257,600
Operating expenses
Selling expenses
Salaries and wages expense
(€140,000 X 70%) ........................................ €98,000
Advertising expense ...................................... 26,400
Rent expense (€24,000 X 80%) ...................... 19,200
Delivery expense ............................................ 16,700
Utilities expense (€14,000 X 80%) ................. 11,200
Depr. exp.— equipment ................................. 15,000
Supplies expense ........................................... 4,000 190,500
Administrative expenses
Salaries and wages expense
(€140,000 X 30%) ........................................ 42,000
Maintence and repairs expense .................... 12,100
Rent expense (€24,000 X 20%) ...................... 4,800
Utilities expense (€14,000 X 20%) ................. 2,800 61,700
Other income and expense
Interest expense ........................................................ 11,000
Net loss ................................................................................. (€ 5,600)
14
BELLEMY FASHION CENTER
Retained Earnings Statement
For the Year Ended November 30, 2015
15
(d) Nov. 30 Sales Revenue ...................................................... 757,200
Income Summary ......................................... 757,200
16
PROBLEM 3-9
Answer:
(a), (b), (c)
17
Prepaid Insurance Notes Payable
Bal. 5,100 Adj. 2,550 Bal. 28,00
0
2,550
18
(b) -1-
Bad Debt Expense ................................................................... 1,400
Allowance for Doubtful Accounts .................................. 1,400
-2-
Depreciation Expense (€84,000 ÷ 7) ...................................... 12,000
Accumulated Depreciation—Equipment ...................... 12,000
-3-
Insurance Expense ................................................................. 2,550
Prepaid Insurance .......................................................... 2,550
-4-
Interest Expense ..................................................................... 3,360
Interest Payable .............................................................. 3,360
-5-
Salaries and Wages Expense.................................................. 2,400
Salaries and Wages Payable .......................................... 2,400
-6-
Prepaid Advertising ................................................................. 700
Advertising Expense ....................................................... 700
-7-
Supplies .................................................................................... 1,500
Office Expense ................................................................ 1,500
19
(c) Dec. 31
Sales Revenue .................................................................. 600,000
Income Summary ..................................................... 600,000
Dec. 31
Income Summary.............................................................. 554,210
Cost of Goods Sold.................................................. 408,000
Advertising Expense................................................ 6,000
Salaries and Wages Expense .................................. 117,400
Office Expense (€5,000 – €1,500) ............................ 3,500
Insurance Expense .................................................. 2,550
Bad Debt Expense.................................................... 1,400
Depreciation Expense.............................................. 12,000
Interest Expense ...................................................... 3,360
Dec. 31
Income Summary.............................................................. 45,790
Retained Earnings.................................................... 45,790
20
PROBLEM 3-10
Answer:
(a) LAKELAND SALES AND SERVICE
Income Statement
For the Month Ended January 31, 2015
(1) (2)
Cash Basis Accrual Basis
Revenues........................................................... £ 75,000 £98,400*
Expenses
Cost of computers & printers:
Purchased and paid ....................... 82,500**
Cost of goods sold ......................... 59,500***
Salaries and wages .............................. 9,600 12,600
Rent ....................................................... 6,000 2,000
Other operating expenses ................... 8,400 10,400
Total expenses ............................. 106,500 84,500
Net income (loss) .............................................. £(31,500) £13,900
Note: The headings for the cash basis income statement should technically be
cash receipts and cash payments.
21
(b) LAKELAND SALES AND SERVICE
Statement of Financial Position
As of January 31, 2015
(1) (2)
Cash Basis Accrual Basis
Assets
Prepaid rent ........................................... £ 4,000
Inventory ................................................ 23,000b
Accounts receivable ............................. 23,400
Cash ....................................................... £58,500a 58,500a
Total assets ..................................... £58,500 £108,900
22
(c) 1. The £23,400 in receivables from customers is an asset and a future
cash flow resulting from sales that is ignored. The cash basis under-
states the amount of revenues and inflow of assets in January from
the sale of computers and printers by £23,400.
3. The cash basis ignores £3,000 of the salaries and wages that have
been earned by the employees in January and will be paid in February.
23
CHAPTER 4
Income Statement and Related Information
EXERCISE 4-1
Answer:
Sales revenue ........................................................................................... €310,000
Cost of goods sold ................................................................................... 140,000
Gross profit............................................................................................... 170,000
Selling and administrative expenses...................................................... 50,000
Other income and expense
Gain on sale of plant assets ......................................................... 30,000
Income from operations .......................................................................... 150,000(a)
Interest expense ....................................................................................... 6,000
Income from continuing operations ....................................................... 144,000
Loss on discontinued operations ........................................................... (12,000)
Net income ................................................................................................ 132,000(b)
Allocation to non-controlling interest .................................................... (40,000)
Net income attributable to controlling shareholders........................... € 92,000(c)
Net income ................................................................................................ €132,000
Unrealized gain on non-trading equity securities ................................. 10,000
Comprehensive income........................................................................... €142,000(d)
24
EXERCISE 4-9
Answer:
( a) TAO CORP.
Income Statement
For the Year Ended December 31, 2015
Sales
Net sales ....................................................... HK$1,200,000
Cost of goods sold ...................................... 780,000
Gross profit ....................................... 420,000
Selling expenses ......................................... HK$65,000
Administrative expenses ............................ 48,000 113,000
Other income and expense
Dividend revenue ........................................... 20,000
Interest revenue ............................................. 7,000
Write-off of inventory due to
obsolescence .............................................. (80,000) (53,000)
Income from operations .................................... 254,000
Interest expense ................................................ 50,000
Income before income tax................................. 204,000
Income tax ...................................................... 69,360
Net income ......................................................... HK$ 134,640
*Rounded
25
(b) TAO CORP.
Retained Earnings Statement
For the Year Ended December 31, 2015
Retained earnings, Jan. 1, as reported ............................. HK$ 980,000
Correction for overstatement of net income in prior
period (depreciation error) (net of HK$13,600 tax) ........ (26,400)
Retained earnings, Jan. 1, as adjusted ............................. 953,600
Add: Net income ............................................................... 134,640
1,088,240
Less: Dividends declared .................................................. 45,000
Retained earnings, Dec. 31 ................................................ HK$1,043,240
26
EXERCISE 4-14
Answer:
(a) 2015
Income before income tax ............................................ $460,000
Income tax (35%) ........................................................... 161,000
Net income ..................................................................... $299,000
27
PROBLEM 4-5
Answer:
TWAIN CORPORATION
Income Statement
For the Year Ended June 30, 2015
Revenue
Sales revenue ....................................................................... $1,578,500
Less: Sales discounts ......................................................... $31,150
Sales returns .......................................................... 62,300 93,450
Net sales ............................................................................... 1,485,050
Cost of goods sold ..................................................................... 896,770
Gross profit ................................................................................. 588,280
Selling expenses
Sales commissions........................................... $97,600
Salaries and wages expense (sale’s) .............. 56,260
Travel expense .................................................. 28,930
Delivery expense............................................... 21,400
Entertainment expense .................................... 14,820
Telephone and internet exp. ............................ 9,030
Maintenance and repairs expense................... 6,200
Depreciation expense ....................................... 4,980
Bad debt expense ............................................. 4,850
Misc. selling expenses ..................................... 4,715 248,785
28
Administrative Expenses
Maintenance and repairs expense .................... 9,130
Property tax expense ......................................... 7,320
Depreciation expense ......................................... 7,250
Supplies expense ............................................... 3,450
Telephone and internet expense ....................... 2,820
Office expense .................................................... 6,000 35,970 284,755
Other income and expense
Dividend revenue ............................................... 38,000
Income from operations ........................................... 341,525
Interest expense ................................................ 18,000
Income before income tax........................................ 323,525
Income tax ........................................................... 102,000
Net income ................................................................ $221,525
Earnings per share
[($221,525 – $9,000) ÷ 80,000] ............................... $2.66*
*Rounded
TWAIN CORPORATION
Retained Earnings Statement
For the Year Ended June 30, 2015
Retained earnings, July 1, 2014, as reported ................... $337,000
Correction of depreciation understatement,
net of tax.......................................................................... (17,700)
Retained earnings, July 1, 2014, as adjusted ................... 319,300
Add: Net income ................................................................ 221,525
540,825
Less:
Dividends declared on preference shares ................ $ 9,000
Dividends declared on ordinary shares .................. 37,000 46,000
Retained earnings, June 30, 2015 ..................................... $494,825
29
PROBLEM 4-7
Answer:
(a) ACADIAN CORP.
Retained Earnings Statement
For the Year Ended December 31, 2015
30
PROBLEM 4-8
Answer:
WADE CORP.
Income Statement (Partial)
For the Year Ended December 31, 2015
Income before income tax .................................. €1,325,000*
Income tax ................................................. 265,000**
Income from continuing operations .................. 1,060,000
Discontinued operations
Loss from operations of
discontinued subsidiary ...................... € 90,000
Less: Applicable income tax
reduction ............................. 18,000 €72,000
Loss from disposal of subsidiary .............. 100,000
Less: Applicable income tax
reduction.............................. 20,000 80,000 (152,000)
Net income ........................................................... € 908,000
31
CHAPTER 5
Statement of Financial Position and Statement of Cash Flows
EXERCISE 5-6
Answer:
LIBA COMPANY
Statement of Financial Position
July 31, 2015
Assets
Non-current assets
Long-term investments
Bond sinking fund............................................ ¥ 12,000
32
Intangible assets
Patents .............................................................. 21,000
Total non-current assets ................................. ¥117,000
Current assets
Inventory ........................................................... 65,300*
Accounts receivable ........................................ 46,700**
Less: Allowance for doubtful
accounts............................................. 3,500 43,200
Cash .................................................................. 66,000***
Total current assets ................................... 174,500
Total assets ............................................... ¥291,500
*(¥60,000 + ¥5,300)
**(¥52,000 – ¥5,300)
***(¥69,000 – ¥12,000 + ¥9,000)
****(¥44,000 + ¥8,000)
33
EXERCISE 5-7
Answer:
Current assets
Inventories at lower-of-cost (determined
using FIFO) or net-realizable-value
Finished goods ..................................................... € 52,000
Work in process .................................................... 34,000
Raw materials ........................................................ 187,000 €273,000
Accounts receivable (of which €50,000 is
pledged as collateral on a bank loan) .............. 161,000
Less: Allowance for doubtful accounts ............. 12,000 149,000
Interest receivable [(€40,000 X 6%) X 8/12] ......... 1,600
Trading securities at fair value
(cost, €31,000) .................................................... 29,000
Cash ....................................................................... 92,000*
Less: Cash restricted for plant expansion ......... (50,000) 42,000
Total current assets ............................... €494,600
*An acceptable alternative is to report cash at €42,000 and simply report the cash
restricted for plant expansion in the investments section.
34
EXERCISE 5-8
Answer:
35
EXERCISE 5-11
Answer:
ABBEY CORPORATION
Statement of Financial Position
December 31, 2015
Assets
Property, plant, and equipment
Equipment .......................................................................... £48,000
Less: Accumulated depreciation—equipment ............... 9,000
Total property, plant, and equipment ....................... £39,000
Intangible assets
Trademark .......................................................................... 950
Current assets
Supplies............................................................................... 1,200
Prepaid insurance............................................................... 1,000
Cash ..................................................................................... 6,850*
Total current assets ..................................................... 9,050
Total assets ............................................................................... £49,000
36
Equity and Liabilities
Equity
Share capital—ordinary ................................... £10,000
Retained earnings (£20,000 – £2,500**)............ 17,500
Total equity ................................................. £27,500
Non-current liabilities
Bonds payable .................................................. £ 9,000
Current liabilities
Accounts payable ............................................. £10,000
Salary and Wages payable ............................... 500
Unearned service revenue ............................... 2,000
Total current liabilities ............................. 12,500
Total liabilities ........................................... 21,500
Total equity and liabilities ...................................... £49,000
37
PROBLEM 5-3
38
Answer:
ASIAN-PACIFIC COMPANY
Statement of Financial Position
December 31, 2015
Assets
Non-current assets
Long-term investments
Investments in shares and,
bonds (¥120,000 have been pledged
as security for notes payable)—
at fair value ..................................................... ¥339,000
Intangible assets
Patents (at cost less amortization) ............... 36,000
Current assets
Inventory (Average cost) ............................... 208,500
Prepaid insurance .......................................... 5,900
Accounts receivable ...................................... 163,500
Less: Allowance for doubtful
accounts........................................... 8,700 154,800
Cash ................................................................ 41,000
Total current assets ................................. 410,200
Total assets .............................................. ¥1,154,200
39
Retained earnings .......................................... 138,000
Total equity ............................................... 683,000
Non-current liabilities
8% bonds payable, due
January 1, 2021 ............................................ 180,000
Current liabilities
Notes payable, secured by
investments of ¥120,000 ............................... ¥ 94,000
Accounts payable ........................................... 148,000
Accrued expenses .......................................... 49,200
Total current liabilities ............................. 291,200
Total liabilities .......................................... 471,200
Total equity and liabilities.................................... ¥1,154,200
40
CHAPTER 7
Cash and Receivables
EXERCISE 7-1
Answer:
(a) Cash includes the following:
1. Commercial savings account—
First National Bank of Olathe .................................... £ 600,000
1. Commercial checking account—
First National Bank of Olathe .................................... 800,000
2. Money market fund—Volonte ....................................... 5,000,000
5. Petty cash ...................................................................... 1,000
11. Commercial paper (cash equivalent) ........................... 2,100,000
12. Currency and coin on hand .......................................... 7,700
Cash reported on December 31, 2015, statement of £8,508,700
financial position .................................................................
41
(b) Other items classified as follows:
3. Travel advances (reimbursed by employee)* should be reported as
receivable—employee in the amount of £180,000.
4. Cash restricted in the amount of £1,500,000 for the retirement of
long-term debt should be reported as a noncurrent asset identified
as “Cash restricted for retirement of long-term debt.”
6. An IOU from Marianne Koch should be reported as a receivable in
the amount of £150,000.
7. The bank overdraft of £110,000 should be reported as a current
liability.**
8. Certificates of deposits of £500,000 each should be classified as
temporary investments.
9. Postdated check of £125,000 should be reported as an accounts
receivable.
10. The compensating balance requirement does not affect the balance
in cash. A note disclosure indicating the arrangement and the
amounts involved should be described in the notes.
**If cash is present in another account in the same bank on which the
overdraft occurred, offsetting is required.
42
EXERCISE 7-6
Answer:
July 1 Accounts Receivable ............................ 30,000
Sales Revenue ............................. 30,000
43
EXERCISE 7-15
Answer:
1. Cash ................................................................. 18,000
Loss on Sale of Receivables
(¥20,000 X 10%) ............................................ 2,000
Accounts Receivable............................ 20,000
44
PROBLEM 7-1
Answer:
(a) December 31
Accounts Receivable (€17,640 + €360) ............... 18,000
Sales Revenue ...................................................... 28,000
Cash............................................................ 45,640
Sales Discounts ......................................... 360
December 31
Cash ...................................................................... 22,200
Purchase Discounts ............................................. 250
Accounts Payable ...................................... 22,450
45
Current liabilities
Accounts payable
(€45,000 + €22,450) ...................................... 45,000 67,450
Other current liabilities ................................... 14,200 14,200
Total............................................................ (2) 59,200 81,650
Working capital................................................ (1) – (2) €88,800 €60,910
46
PROBLEM 7-10
Answer:
(a) BRADDOCK INC.
Long-Term Receivables Section of Statement of Financial Position
December 31, 2015
9% note receivable from sale of division, due
in annual installments of $500,000 to
May 1, 2017, less current installment....................... $ 500,000 (1)
8% note receivable from officer, due Dec. 31,
2017, collateralized by 10,000 shares
of Braddock, Inc., common stock
with a fair value of $450,000 ..................................... 400,000
Zero-interest-bearing note from sale of patent,
net of 12% imputed interest, due April 1, 2017........ 86,873 (2)
Installment contract receivable, due in annual
installments of $45,125 to July 1, 2019,
less current installment ............................................ 110,275 (3)
Total long-term receivables ................................... $1,097,148
47
(b) BRADDOCK INC.
Partial Statement of Financial Position Balances
December 31, 2015
Current portion of long-term receivables:
Note receivable from sale of division ..................... $500,000 (1)
Installment contract receivable ............................... 29,725 (3)
Total current portion of long-term
receivables ....................................................... $529,725
Explanation of Amounts
48
(3) Long-term Portion of Installment Contract
Receivable at 12/31/15
Contract selling price, 7/1/15 ................................ $ 200,000
Less: Down payment, 7/1/15 ................................ 60,000
Balance, 12/31/15 ................................................... 140,000
Less: Installment due, 7/1/17
[$45,125 – ($140,000 X 11%)] ................................. 29,725
Long-term portion, 12/31/16 .................................. $ 110,275
49
PROBLEM 7-13
Answer:
(a) AGUILAR CO.
Bank Reconciliation
June 30, 2015
Balance per bank, June 30......................................... $4,150.00
Add: Deposits in transit ............................................ 3,390.00
Deduct: Outstanding checks .................................... 2,136.05
Correct cash balance, June 30 .................................. $5,403.95
50
Accounts Receivable.................................................. 253.20
Accounts Payable ....................................................... 72.00***
Office Expense (Bank Charges) ................................ 30.50
Cash ....................................................................... 355.70
51
CHAPTER 13
Current Liabilities, Provisions, and Contingencies
EXERCISE 13-7
Answer:
(a) 2014
To accrue the expense and liability for vacations
2015
To accrue the expense and liability for vacations
52
(1) 9 employees X €12.90/hr. X 8 hrs./day X 10 days = €9,288
53
EXERCISE 13-17
Answer:
1. The IASB requires that, when some amount within the range of expected
loss appears at the time to be a better estimate than any other amount
within the range, that amount is accrued. When no amount within the
range is a better estimate than any other amount, the expected value
(midpoint of the range) should be used. In this case, therefore, Maverick
Inc. would report a liability of €1,100,000 at December 31, 2015.
54
PROBLEM 13-1
Answer:
(a) February 2
Purchases (€70,000 X 98%) ............................. 68,600
Accounts Payable................................. 68,600
February 26
Accounts Payable ............................................ 68,600
Purchase Discounts Lost ................................ 1,400
Cash....................................................... 70,000
April 1
Trucks ............................................................... 50,000
Cash....................................................... 4,000
Notes Payable ....................................... 46,000
August 1
Retained Earnings (Dividends Declared) ...... 300,000
Dividends Payable ............................... 300,000
September 10
Dividends Payable .......................................... 300,000
Cash...................................................... 300,000
(b) December 31
1. No adjustment necessary
3. No adjustment necessary
55
PROBLEM 13-6
Answer:
(a) Cash .................................................................... 294,300
Sales (300 X R$900)................................. 270,000
Unearned Warranty Revenue
(270 X R$90)............................................... 24,300
Non-current Liabilities:
Unearned Warranty Revenue
(R$24,300 X 2/3) .................................... R$16,200
Non-current Liabilities:
Unearned Warranty Revenue ................. R$8,100
56
57
PROBLEM 13-14
- AMEN -