NAMA : FAHMI NUR ALFIYAN

NIM : MAT81766
MATKUL : FINANCIAL ACCOUNTING
KELAS : A

Problems 10.1
a. Journalize the January Transactions

Jan-05 Cash 20.520

Sales Revenue (20.520 / 108%) 19.000
Sales Taxes Payable (20.520 - 19.000) 1.520

Jan-12 Unearned Service Revenue 10.000

Service Revenue 10.000

Jan-14 Sales Taxes Payable 7.700

Cash 7.700

Jan-20 Accounts Receivable 48.600

Sales Revenue 45.000
Sales Taxes Payable 3.600

Jan-21 Cash 27.000

Notes Payable 27.000

Jan-25 Cash 12.420

Sales Revenue 11.500
Sales Taxes Payable 920

b. Journalize the Adjusting Entries at January 31 for

1. The Outstanding Notes Payable

Jan-31 Interest Expense 60

Interest Payable 60

2. Estimated Warranty Liability, Assuming Warranty Costs are Expected to Equal 7%

Sales of the New Product

Jan-31 Warranty Expense 3.150

Warranty Liability 3.150

3. Prepare the current liabilities section of the Statement of Financial Position

at January 31, 2020. Assume no change in accounts payable

Current Liabilities:
Accounts Payable 52.000
Sales Taxes Payable 6.040
Unearned Service Revenue 6.000
Notes Payable 27.000
Interest Payable 60
Warranty Liability 3.150
Total Current Liabilities 94.250
Exercises 11.10
Suppose Lin Ltd.'s 2020 Financial Statements contain the following selected data (in millions)

Current Assets 3.416,3 Interest Expense 473,2

Total Assets 30.224,9 Income Taxes 1936,0
Current Liabilities 2.988,7 Net Income 4551,0
Total Liabilities 16.191,0

a. Debt to Assets Ratio

Debt to Assets Ratio = Total Liabilities / Total Assets

Debt to Assets Ratio = 16.191,0 / 30.224,9
Debt to Assets Ratio = 53,57%

b. Times Interest Earned

Time Interest Earned = (Net Income + Interest Expense + Income Tax Expense) / Interest Expense
Time Interest Earned = (4.551,0 + 473,2 + 1.936,0) / 473,2
Time Interest Earned = 14,7087912 Times
Problems 11.1
a. Prepare the journal entry to record the issuance of the bonds.

May-01 Cash 600.000

Bonds Payable 600.000
(To Record Sale of Bonds at Face Value)

b. Prepare the adjusting entry to record the accrual of interest on December 31, 2020

Dec-31 Interest Expense 36.000

Interest Payable 36.000
(To Accrue Bond Interest)

c. Show the Statement of Financial Position presentation on December 31, 2020

Herron Industries AG
Statement of Financial Position (Partial)
December 31, 2020

Current Liabilities:
Interest Payable 36.000
Non-Current Liabilities:
Bonds Payable, 9%, due in 2025 600.000
Total Liabilities 636.000

d. Prepare the journal entry to record payment of interest on May 1, 2021

May-01 Interest Expense 18.000

Interest Payable 36.000
Cash 54.000

e. Prepare the adjusting entry to record the accrual of interest on December 31, 2021

Dec-31 Interest Expense 36.000

Interest Payable 36.000
(To Accrue Bond Interest)

f. Assume on January 1, 2022, Herron pays the accrued bond interest and calls the bonds at 102.
Record the payment of interest and redemption of the bonds.

Jan-01 Interest Payable 36.000

Cash 36.000

Jan-01 Bonds Payable 600.000

Loss on Bond Redemption 12.000
Cash 612.000
(To Record Issuance of Bonds at 102)